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Funnel charts are often used to represent data in different stages of a business process. It’s an important mechanism in Business Intelligence to identify potential problem areas of a process. For example, it’s used to observe the revenue or loss in a sales process for each stage, and displays values that are decreasing progressively. Each stage is illustrated as a percentage of the total of all values.


A marketing funnel is a visual representation of the steps a visitor takes from first finding out about your brand until they convert. The most common type of marketing funnel is five steps:

1. Visiting

A prospective customer sees your ad, social media post, or hear about you from a friend and then visits the website.


A prospective customer downloads for more information. This can be a clear indication for the brand that the customer is interested in the brand and can be seen as an oppurtunity.

3. Potentiality

The prospect has done their research and wants to convert.

4. Request

The prospect requests to buy your item, schedule a demo, or take whatever other action you want them to take.

Invoice sent

The prospect in return expects invoice or receipt for the price which can serve the legal and financial purposes but can also be used for keeping track of records.


Then someone does something you want them to do, it’s known as a conversion. The visitor converts from browsing to taking the action you want them to take.


Amazon Purchase Funnel

Think about the Amazon purchase funnel. There are several steps a visitor has to go through before they can purchase a product. Here’s how it looks:

• They visit • They view a product • They do more research on the product • They decide to add a product to the cart • They complete the purchase by paying and inreturn getting receipt • Final processing done

There are additional steps/actions that can be taken in between each of these steps, but they don’t matter in the marketing funnel unless they contribute to the final action. For example, a visitor may view Amazon’s Careers page, but we don’t need to count these in the funnel because they aren’t necessary steps.