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#### What is funnel chart?

A funnel chart is a graph that shows how data changes throughout a process, with the dependent variable decreasing in value as the stages progress. Funnel charts are commonly used to represent sales pipelines, recruiting, and order fulfillment processes.

#### When to Use a Funnel Chart?

The utilization of a funnel chart is applicable for specific data types, and is deemed ideal if the following criteria are met:

1. The data undergoes a series of at least three stages, with each stage exhibiting a reduction in the amount of data.
2. The data is digitised and the reduction in data is clearly evident at each stage, such as having more projects in Phase 1 than in Phase 2 and more items in Phase 2 than in Phase 3.

Let’s create funnel chart

The funnel chart comprises distinct stages, numbered 1 through 5, and the aggregate quantity diminishes at each stage as indicated by the “stage cal” figures in the accompanying table. This prompts an inquiry into the mechanics of this process.

Displayed below are the calculation fields wherein we have specified the maximum and minimum stages. Notably, since there exists an extraneous “close lost” stage (stage 6), we have excluded it and set the maximum stage as 5. By applying the formula for subtracting the lookup value (-1) from the previous value, we arrive at the resultant figure of 85.29M after subtracting 6.11M from the previous value of 91.40M.

Upon completion of the calculation process, we have integrated the resulting data into the designated columns and applied appropriate coloring. Nonetheless, it is worth noting that the generated funnel chart may not be deemed flawless.

To create a butterfly chart, we divide all Gantt bars by 2 and assign a negative value to the start point., zero value to the middle point, and positive value to the end pointÂ  For instance, if the value is 100M, then the chart will have start points at -50M, 0, and 50M.

The sales process typically begins by identifying potential customers, who then move through various stages before completing a purchase. However, not all customers will proceed to the final stage, resulting in a reduction in their number. This progression can be visualised through a funnel chart, which provides a representation of the percentage of customers who move from one stage of the sales process to the next, as well as the proportion of customers who dropped out.

In addition to sales processes, funnel charts can be employed to represent selection processes, such as job interviews or competitions. For instance, if 100 candidates apply for a position, and 60 pass the initial CV screening, with only 40 proceeding to a telephone interview, a funnel chart can be used to depict the progression of candidates through each stage of the selection process. Through such a chart, it is possible to understand how many candidates are present at each stage of the process, thereby providing insights that can aid decision-making.