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title: What is a Funnel Chart?

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How to Make a Funnel Chart in Excel?

![](https://i.imgur.com/98MtYjm.jpg)


With Microsoft Excel, you can create any chart that reciprocates your data and the goals you want to achieve. This tool has incredible features necessary to help business owners and [data analysts](Google.com) visualize data in the simplest way possible. 

Anyone can access Excel without paying anything since it is free to use. The funnel chart is one of the charts you can easily create in Microsoft Excel without calling for assistance. 

Funnel chart Excel is an advanced type of chart that can be used by business owners and data analysts to visualize data. Even though this chart type is good at data visualization, it is important for you to learn how to create it in order to help you find meaning in your data. The chat is highly customizable, provided that you have a powerful grasp of the goals you want to achieve in the long run. 

Sadly, not everybody understands a funnel chart and how they can create it in Microsoft Excel. This blog post is specifically meant to shed light on what you need to know about Funnel charts and how you can create one in Excel for the purpose of data visualization. Read this article for more actionable information. 

# What is a Funnel Chart? 

A funnel chart is a graphical representation of data that resembles a pyramid. The chat is mostly used by business owners who want to visualize the general performance of the business, especially when running online stores. The chart can showcase the number of site visits recorded, the buyers going through the [sales funnel](https://ppcexpo.com/blog/funnel-chart-excel), and the general number of prospects. 

The chart represents the succession stages of a rectangle, whereby the width of every bar reciprocates the data value it represents. The height of every level within the chart represents the percentage of aspects that fall in the same category. 

The final chart represents data in either a decreasing or increasing manner depending on the data type presented on the chart. When data is presented in the chart, it takes a pyramid shape, making it easier to analyze. 

The funnel chart has a successful track record of helping business owners visualize their businesses' progress and the milestones achieved within a given time frame. Regardless of the technical aspect of your data, the funnel chart has everything it takes to present the data in a meaningful way that you can easily grasp. 

**Applications of a Funnel Chart** 

The chart can be used to showcase the [digital marketing](https://inkbotdesign.com/services/digital-marketing-services/) stages implemented by a given business to attract customers from different localities. It can also showcase the steps taken in a sales process before customers make the final purchasing decision. 

The funnel chart is used to represent the total number of customers who visit a given business in search of various products and services. On the figures presented on the chart, the actual number of customers is represented at the top. 

Most business owners use this chart type to determine potential customers and some of the areas where they are likely to make losses. As a result, they put up strategies to eradicate the chances of making losses and increase the revenues generated. 

A funnel chart offers different perspectives in which you can view your data, helping you make detailed data compilations that will likely help you transform your business. 

The chart can help business owners keep records from the first interaction with a potential customer until the final deal is closed. It records all the steps taken before the customer makes the final decision, helping business stakeholders to determine bottlenecks within the entire process. 

A funnel chart can help business owners to track all the movements made by the salespeople within the company and their individual contributions to the business development. 

Note that this is the best option for business owners to visualize the flow of operations within the company and determine the areas that need changes. It can also be used to monitor the progress of a given project in an organizational setting. 

A [scatter plot](https://chartexpo.com/charts/scatter-plot-chart) (aka scatter chart, scatter graph) uses dots to represent values for two different numeric variables. The position of each dot on the horizontal and vertical axis indicates values for an individual data point. Scatter plots are used to observe relationships between variables.

**Benefits of Funnel Charts**

One of the major benefits of using a funnel chart is that it has the capability to drill down into large data sets and extract valuable information that decision-makers require. 

The decisions made in any organization are mainly propelled by the kind of data available. Through data visualization, insights are extracted from the raw data sets, which are then used to guide fundamental decisions. 

The final chart helps identify the bottlenecks available in any given process or any frictions likely to hinder the business from performing better. 

Business owners use this method to identify some of the aspects limiting potential clients from moving to the next stage once they visit the business. It can showcase their position from a large group of potential customers to a smaller category of actual customers within a business environment. 

The chart can also be helpful when you want to spot trends, patterns, and variations in your datasets. It helps you to point out some of the important elements that need to be addressed in a business to increase the general conversion rate. This is mainly because the final chart can track conversions at every stage in a business setting. Organizations can also use this technique to track the efficiency of their sales funnels and identify key areas that require changes. 

**How to Create a Funnel Chart**

Creating a funnel chart can be difficult if you are new to data visualization. However, this does not mean that the entire process is smooth and there is nothing you need to learn. Excel is a reliable source of information you can utilize when you want to compose a funnel chart that reciprocates your data. Provided you can access Microsoft Excel, you stand a better chance to compose the chart without experiencing any technicalities. 

However, there is one more thing that you need to learn when using Excel to create a funnel chart. Excel does not give you a default option that you can use to create a funnel chart. 

It only gives you access to vital features that can help you step up and compose the chart with a lot of ease. What you need to do is to supercharge your tool to make it more advanced in order to create the chart you need. 

There are numerous third-party applications designed to help you create advanced types of charts, such as the funnel chart. Most of these tools are integrated into Excel, making it easier for you to compose the chart without experiencing a lot of technicalities. 

You can easily download them from the Microsoft Store and integrate it on Excel through the add-on section, and you are good to go. Provided that you acquire a reliable add-on, you will find it easier to create the chart within the shortest time possible. 

Note that you need to have a slight budget set aside that you can utilize to pay for the subscription fees. Ensure you confirm the customer reviews before acquiring any tool to ensure your choice is reliable. 

**Bottom Line**

A funnel chart is utilized by most business owners who want to monitor the progress of their businesses. The tool has incredible features that can help business owners visualize the number of visitors who enter their stores daily. 

It also helps monitor all activities customers carry on the business website, enabling them to determine the reasons behind the limited number of conversions. 

The chart can also help you determine the bottlenecks in your activities and suggest changes to increase profitability. Provided that you have reliable information that you need to dig into and use to streamline business operations, the funnel chart can help you get the job done within the shortest time possible. 
