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What is a Funnel Chart and How to Create One

Written by: Letícia Fonseca

Jan 27, 2022

funnel chart

If you have difficulty visualizing the data you got from your sales pipeline or lead funnel, maybe it’s time to start thinking about using a funnel chart.

Funnel charts are among the types of diagrams that are invaluable in reports presented by sales teams to explain sales results, or by marketing teams to explain visitor trends and lead generation.

Learn what a funnel chart is, how businesses use funnel charts and how you can create one using our free diagram maker which comes with a diverse selection of customizable funnel chart templates.


Click to jump ahead:

What is a funnel chart?

A funnel chart (also called a funnel graph or funnel diagram) shows the progressive reduction of data as it passes from one phase to another. 

The chart takes its name from its shape as it resembles a funnel, as in this example where a funnel chart is used to describe the sales process:

funnel chart in sales presentation


The funnel chart shows that its data values decrease gradually from the first stage (opportunities) to the next (proposals, negotiations, closing).

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How do you explain a funnel chart?

As mentioned before, the funnel chart illustrates the progressive reduction of data from one stage to the next. In other words, the number of data in the first stage is the largest, and it gradually decreases as it moves on to the other stages.

Let’s take a look at an example:

funnel chart

This funnel chart describes a sales funnel that measures the number of customers at each stage of a sales pipeline. The inverted triangle illustrates how the number of potential customers at the top of the funnel decreases as they go through the stages. 

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Tips to create a good funnel chart

A good funnel chart should be an excellent representation of data and visual hierarchy for its data values.

Data hierarchy refers to how data is arranged in a hierarchical structure, with the most general data being the biggest and the most specific as the smallest.

On the other hand, visual hierarchy is the arrangement of elements of a design in order of their visual weight, allowing you to create a design that is easy to navigate and scan. This is why the triangular visuals make it easy to see differences in categorical volume.

Before visualizing your data with a funnel chart, you should always categorize your stages and put them in the correct order.

As funnel charts are used to describe how data moves through a process, you should have a good grip on all the various stages involved in that process that should be visualized in the funnel chart.

Let’s say you want to visualize your sales development pipeline. You should first make a list of all the stages involved in the pipeline, as well as the data used for each stage.

Then, start organizing your stages in the correct order, with the first stage placed at the top of the funnel and the last one at the bottom, as in this funnel chart template:

funnel chart

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Funnel chart examples in a business context

Funnel graphs can be handy in illustrating

  • qualified leads, 
  • quantified measurements, 
  • the number of respondents in a survey or recruitment process, 
  • satisfied customers,

and more.

Here are some examples of how businesses can use funnel charts in their reports, proposals or other business communications materials.

Visualize the buyer’s journey

The buyer’s journey (or the customer’s journey) describes the process in which customers interact with your product or organization, often in this order: Awareness – Consideration – Acquisition – Service – Loyalty

funnel chart

RelatedCustomer Journey Map: What It Is & How to Create One

In a marketing campaign, the goal is often to move a customer from the Awareness stage to the Acquisition stage. 

As the name suggests, someone that’s aware of the product won’t necessarily purchase it, but people who already bought the product are definitely aware of it. 

This means that the number of customers (or qualified leads) gradually decreases as they move through the stages in this journey, which means the process can be visualized in a funnel chart.

This template describes the sales funnel, but you can customize it for your customer journey or marketing report:

funnel chart

Visualize the business sales funnel

This is a given, you’ve just seen a template that uses a funnel chart to visualize the sales funnel!

If you don’t want to hand in a one-page sales report using that template, customize this one instead:

funnel chart

This is a handy report in a slides format that can help sales team present the results of their campaign. 

If you want to export this template to be used on a presentation tool, it’s easy to do that too. Simply click “Download” and choose “PowerPoint”, and the report will be exported as a PPTX file that can be imported into PowerPoint or Google Slides easily:

Venngage download

Note that this function is only available in a Venngage Business plan, which will allow you to apply your brand colors to your design in one click, let you collaborate with team members on a sales presentation in real time, and more.

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How do I create a funnel chart using Venngage?

Step 1: Register for a FREE account

Step 2: Pick a template and start editing

Head to our Templates section or use the search bar to find funnel templates. Alternatively, you can use the templates we’ve included in this post for your first template.

We have funnel chart templates that are perfect for a 3-stage funnel, like this one:

funnel chart

But if your process comprises more stages than that, either add more shapes to that funnel or customize some other templates:

funnel chart

You can also add or replace all the icons and illustrations in the template if you want to. We offer 40,000+ icons and illustrations to help you visualize almost everything you want.

Venngage replace icon

Step 3: Download your funnel chart in various formats

Finalize your design and choose from many formats to download your chart, such as PNG, PNG HD, PDF, Interactive PDF, PowerPoint or HTML.

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Funnel chart FAQs

What are sales funnels and how do they work?

A sales funnel describes the journey a person goes through in order to become your customer.

Each sales funnel is typically made up of three steps: Awareness, Interest and Action. Some may also refer to it as Awareness, Consideration and Decision.

This three-stage process can be broken down further into smaller steps to accommodate a business, often to help Sales and Marketing collaborate. 

For some companies, the sales funnel only contains the stages pertaining to sales while the rest belongs to the marketing team. For example, the Interest/Consideration step can contain MQL (Marketing-Qualified Leads) and SQL (Sales-Qualified Leads). 

What is a lead funnel?

A lead funnel describes the process a person undergoes to become a lead (someone who’s interested in your product) and later, an MQL and an SQL. This process typically occupies the first half of the sales funnel, often owned by Marketing who’s responsible to draw in MQL’s before passing them onto the Sales team. 

Are funnel charts the best for sales analysis?

Funnel charts can be a great help for sales analysis as you can see how people go through different stages to become your customers, as well as calculating your conversion rate using the data from each stage of the funnel chart.

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In conclusion: Visualize your sales and marketing reports with the help of funnel charts 

Liven up your sales and marketing campaign reports with a sales funnel chart or a marketing funnel graphic. Feel free to customize all the funnel graph templates and funnel chart PowerPoint presentation templates in this post for your report. It’s free to get started.

About Letícia Fonseca

Letícia is a Content Marketing Specialist, and she is responsible for the International strategy at Venngage.