Funnel diagrams or funnel charts are typically used to show the stages in a process flow. Mostly used in the sales space, these diagrams break up each stage and show how much revenue is possible in each stage.
For example, this is how sales might be represented:
Sales leads – Qualified leads – Hot leads – Closed deals
You can tell from the progression above that these diagrams display progressively decreasing values. A company has numerous sales leads, which are then narrowed down to qualified or possible leads. This is further reduced to potentially viable leads. The last stage is the actual closed deals.
To take another example of website traffic, it might read like this:
Website hits – Product likes – Free product downloads – Product purchases
This is another indication of progressively decreasing values. Websites get numerous hits due to the nature of their content. But depending on what the company would like to track, they could narrow into something like ‘Product likes’, which is likely a far smaller number than the number of hits on the site. This number can further be narrowed down to show how many people are downloading the free products. Last and probably most important, it can further be drilled down to the number of product purchases, which is the goal of most companies that offer products for sale.
In short, a funnel chart helps us understand an entire process from start to finish. It especially throws light on the stages at which the numbers begin to reduce, which could help in analyzing the possible reasons for the reduction. This will help take steps to curtail that rate, if necessary.
Look up our editable PowerPoint Funnel Chart Template product. You might also want to look up the Funnel Diagram in Apple Keynote version. These slides will bring to life your presentations be it at the workplace or school. You can change colors, layouts, text placeholders and more!