My understanding of a funnel is a chart that looks like a funnel and has stages and each stage has different people in it. That’s all cool.
My problem is the word being thrown around everywhere in every context ‘sales funnel’ ‘conversion funnel’ ‘lead gen funnel’ ‘nurture funnel’ and then in my mind i try to makes sense of things with that diagram in my head.
Even click funnels has nothing that looks, feels and talks abt tha funnel i know on their site
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So imagine you’re running an Ecommerce website.
500 people get to your site
250 people click past the first page and look at a product
100 people click ‘add to cart’ on a product
50 people click ‘checkout’
5 people actually fill in all their details and go through the checkout process
2 of them order again in the future to become repeat customers
Effectively the funnel shape simply demonstrates a smaller and smaller share of the original group of people that make it through to the next step of the process.
And by measuring how many people were at the start of the process vs at the end, you determine what the ‘conversion rate’ is. In the example above if you take 500 original people, and 5 that ended up buying something, you’d get a 1% conversion rate.
Where the confusion often appears is that where in case of a real funnel, all of whatever you put into it makes it through, and in the case of any of these funnels for sales/marketing/product, at every stage some % of the people is lost.
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