The Ultimate Guide to Funnel Charts: How to Visualize Your Sales Process

Are you struggling to understand your sales process? Do you want to know where your customers are dropping off? If so, you need to start visualizing your sales process with funnel charts.

In this ultimate guide, we’ll cover everything you need to know about funnel charts, including how to create them in Excel, best practices for designing effective charts, common issues and how to troubleshoot them, alternative chart types to consider, examples and use cases, and tools and software options.

What are funnel charts and why use them?

A funnel chart is a type of chart that shows the progression of a process, typically a sales process. It’s called a funnel chart because it’s shaped like a funnel, with a wide top and a narrow bottom. Each section of the funnel represents a stage in the process, and the size of each section represents the number or percentage of people who move from one stage to the next.

Funnel charts are useful because they provide a clear and concise way to visualize your sales process. They allow you to see where your customers are dropping off and identify areas where you need to improve. They can also help you set goals and track your progress over time.

How to create a funnel chart in Excel, Google Sheets, and other tools

Creating a funnel chart is relatively easy in most spreadsheet programs, including Excel and Google Sheets. Here’s how to do it:

Enter your data into a spreadsheet. You’ll need at least two columns: one for the name of each stage in your sales process and one for the number or percentage of people who move from one stage to the next.
Select the data you want to use for your chart.
In Excel, go to the Insert tab and select the funnel chart type you want to use. In Google Sheets, go to the Insert menu and select Chart, then choose the funnel chart type.
Customize your chart as needed. You can change the colors, add labels, adjust the size, and more.

Other tools you can use to create funnel charts include Tableau, Power BI, and Google Data Studio.

Best practices for designing effective funnel charts

To design an effective funnel chart, you need to keep a few things in mind:

Keep it simple. Don’t clutter your chart with too much information or too many colors.
Use clear labels. Make sure each stage in your sales process is clearly labeled, and use descriptive labels that are easy to understand.
Use consistent colors. If you’re using colors to represent different stages in your sales process, make sure you use the same colors consistently throughout your chart.
Show the numbers. Make sure you include the number or percentage of people who move from one stage to the next in each section of your funnel.
Use the right type of funnel chart. There are several different types of funnel charts to choose from, including standard funnel charts, stacked funnel charts, and 3D funnel charts. Choose the type that best fits your data and the story you’re trying to tell.

Common issues and how to troubleshoot them

One common issue with funnel charts is that they can be misleading if the data isn’t accurate. Make sure you’re using reliable data and that you’re calculating the percentages correctly.

Another issue is that funnel charts can be difficult to read if there are too many stages in your sales process. If this is the case, consider simplifying your chart or breaking it up into smaller charts.

Alternative chart types to consider

While funnel charts are a great way to visualize your sales process, there are other chart types you can use as well. For example, you could use a bar chart or a line chart to show the progression of your sales process over time. You could also use a scatter plot to show the relationship between different variables in your sales process.

Funnel chart examples and use cases

Funnel charts can be used in a variety of industries and for a variety of purposes. Here are a few examples:

Sales: Use funnel charts to track your sales process and identify areas where you need to improve.
Marketing: Use funnel charts to track the progress of your marketing campaigns and identify which channels are most effective.
Recruiting: Use funnel charts to track your recruiting process and identify areas where you’re losing candidates.
E-commerce: Use funnel charts to track the progress of your e-commerce site and identify areas where customers are dropping off.

Funnel chart tools and software options

There are several tools and software options you can use to create and analyze funnel charts. Some popular options include Tableau, Power BI, Google Data Studio, Excel, and Google Sheets.

Conclusion

Funnel charts are a powerful tool for visualizing your sales process and identifying areas where you need to improve. By following the best practices we’ve outlined in this guide, you can create effective funnel charts that help you make data-driven decisions and achieve your business goals.