What is a funnel chart?
A funnel chart visualizes how a population shrinks step by step through a sequence, drawn in the shape of a funnel. It's powerful when you want to see "of 100 who entered, how many remained" — marketing customer journeys, sales pipelines, web flows, hiring processes, and similar.
The real value of a funnel is the conversion rate between stages. Use it less for the visual flourish and more as a tool to find where the biggest drop-off is happening.
When to use it
Tips for making one well
1. Order steps chronologically, top to bottom
A funnel encodes the flow of time. The top is "first," the bottom is "last." Reorder and the meaning collapses, so choose step names and order with care.
2. Be clear about what the CVR's "denominator" is
There are two kinds of conversion rate:
① Stage-to-stage (conversion rate): previous stage → this stage. Use this for measuring tactic effectiveness.
② vs. start (retention): first stage → this stage. Use this for overall yield.
This tool can display both.
3. Treat big drops as bottlenecks
A stage with an unusually low stage-to-stage rate is the critical point for improvement. For example, if "cart → purchase" only retains 30%, the bottleneck is likely the form, shipping options, or payment methods — and that's what to investigate.
4. Aim for five to seven stages
Too many stages and the bottom is barely a sliver, with rates hard to read. Consolidate to five to seven stages, or split into sub-funnels.