science

Funnel chart

Funnel chart is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand Funnel chart rather than just read about it. In short: Funnel charts are a type of chart, often used to represent stages in a sales process and show the amount of potential revenue for each stage. This type of chart can also be useful in identifying potential problem areas in an organization's sales processes.

Key takeaways

Funnel chart belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect Funnel chart to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of Funnel chart from memory before moving on to harder problems.

Reference excerpt

Funnel charts are a type of chart, often used to represent stages in a sales process and show the amount of potential revenue for each stage. This type of chart can also be useful in identifying potential problem areas in an organization's sales processes. A funnel chart is similar to a stacked percent bar chart.

Composition A funnel chart displays values as progressively decreasing proportions amounting to 100 percent in total. The size of the area is determined by the series value as a percentage of the total of all values. Any funnel consists of the higher part called head (or base) and the lower part referred to as neck.

Examples A typical example of a funnel chart starts with the sales leads on top, then down to the qualified leads, the hot leads and the closed deals. A business is bound to lose some number of potential deals at each step in the sales process and this is represented by the narrowing sections as you move from the top section (the widest) to the bottom section (the narrowest.) This allows executives to see how effective the sales team is in turning a sales lead into a closed deal. A sales funnel chart can also be used to quickly communicate your organization's sales process to new members of the sales team or other interested parties. A funnel chart can be used to display Web site visitor trends. It is likely that the funnel chart will display a wide area at the top, indicating visitor page hits to the homepage, and the other areas will be proportionally smaller, like the downloads or the people interested in buying the product. Another example is the order fulfillment funnel chart with the initiated orders on top and down to the bottom the orders delivered to satisfied customers. It shows how many there are still in the process and the percentage cancelled and returned.

Purpose of chart Ideally the funnel chart shows a process that starts at 100% and ends with a lower percentage where it is noticeable in what stages the decrease happens and at what rate. If the chart is also combined with research data, meaning quantified measurements of just how many items are lost at each step of the sales or order fulfillment process, then the funnel chart illustrates where the biggest bottlenecks are in the process. Note that unlike a real funnel, everything that is "poured in" at the top doesn't flow through to the bottom. The name only refers to the shape of the chart, the purpose of which is illustrative.

See also Exploratory data analysis Information graphics Graphic organizer Mathematical diagram Plot (graphics)

References

Worked examples

Example 1 — a first encounter with Funnel chart

Start with the simplest possible case. Write down what Funnel chart claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to Funnel chart before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about Funnel chart ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of Funnel chart

In research: Funnel chart appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses Funnel chart in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: Funnel chart is common in secondary-school and first-year university syllabi. It links to neighbouring topics Charts, Diagrams, Infographics, so understanding it makes those chapters shorter.
In everyday life: Look for Funnel chart outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study Funnel chart in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what Funnel chart means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain Funnel chart out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is Funnel chart in simple terms?

Why does Funnel chart matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study Funnel chart?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on Funnel chart.