How to Create a Funnel Chart in Excel?

Visualizing your business funnel is one of the critical tasks you need to undertake regularly.

Why?

You need actionable insights into the journey taken by leads before they drop off or convert into buying customers. Besides, you need these insights to optimize your funnel for maximum conversion and reduced drop-off causes.

How can you get actionable insights into your business funnel?

You’re right if your answer is a Funnel Chart in Excel. Funnel Chart is specifically designed to help you visualize the journey taken by leads before they convert.

Creating a Funnel Chart in Excel does not have to consume your valuable time or even overwhelm you. This blog will provide you with a complete guide on the Funnel Chart, its definition, types, examples, practical tips, and how to create a Funnel Chart in Excel. First, let’s define the chart of the moment.

In this blog, you’ll learn:

Table of Content:

1. What is a Funnel Chart in Excel?
2. Why Use a Funnel Chart in Excel?
3. When to Use the Funnel Chart in Excel?
4. Components of a Funnel Chart in Excel
5. How to Create a Funnel Chart in Excel: Step-By-Step?
6. How to Customize Excel Funnel Graph?
7. Advanced Tips for Funnel Diagrams in Excel
8. Best Practices For Creating a Funnel Chart Using Excel
9. Applications of Funnel Chart in Excel
10. Funnel Charts Types
11. Top 5 Advantages of Funnel Charts in Excel
12. Funnel Chart in Excel: FAQs
13. Wrap Up

Let’s get started.

What is a Funnel Chart in Excel?

Definition: You can use a Funnel Chart to show progression through a series of connected stages in a process, such as sales or student admission rate in a college.

For instance, a college admissions officer can use a Funnel Chart to show the following:

• The number of individuals who visit the admissions page.
• The number of students who download
• The subset of prospective students who then attend a meeting on campus or virtually.
• The smaller group of prospective students who apply.
• The students that enroll and begin studies.

As you can see (above), the number of participants in the college’s funnel drops as potential leads move through each stage.

The Funnel Chart takes its name from its shape, which starts with a broad head and ends with a narrow neck. The funnel’s width indicates the number of users at each stage of the process as it narrows.

Here’s the truth.

Analyzing funnel data is easier said than done, especially if you don’t have the right tool. Besides, if Excel is your go-to data visualization tool, accessing the Funnel chart is impossible.

We understand Excel is a trusted data visualization tool because it’s familiar and has been there for decades. But, this spreadsheet application should not be your go-to Funnel Chart maker, especially if you want to harness high-level insights.

Microsoft Excel does not have a Funnel Chart.

You have to combine Bar Charts in a very time-consuming process. We estimate you can spend an hour generating an easy-to-read Funnel Chart.

We understand switching tools is not an easy task because you have to learn about the new one. And this is why we’re not advocating you ditch Excel in favor of other expensive data visualization tools.

There’s an easy-to-use and amazingly affordable tool that comes as an add-in you can install in your Excel to access advanced Excel charts, such as Funnel Chart in Excel.

The tool is called ChartExpo. Keep reading to discover more.

Why Use a Funnel Chart in Excel?

Using a Funnel chart in Excel helps visualize processes by showing data flow through stages, highlighting significant data drop-offs, and simplifying complex data into understandable stages.

This aids in pinpointing areas for improvement and enhances presentations by making data more engaging.

When to Use the Funnel Chart in Excel?

Think about this for a moment. How would you know the weakest link in your funnel without data visualization?

If you’re an ardent user of Excel, you cannot access these charts. This is because the Excel spreadsheet tool does not have Funnel Chart native support. It turns out you don’t have to ditch Excel for other super-expensive data visualization tools.

You can easily supercharge your Excel to access advanced charts, such as Funnel Charts. Yes, you read that right. You can achieve the above by installing third-party add-ins (which we’ll talk about in the coming sections).

Use this chart in the following scenarios (below):

• Use a Funnel Chart in Excel if your data has sequential attributes and can be traced up to at least four stages.
• Use this data visualization chart if the number of key data points in the first stage is greater than the number in the final stage.
• You can use a Funnel Chart to track potential sales revenue, conversion and retention rates, shopping cart abandonment, and workflow by stages.

Components of a Funnel Chart in Excel

1. Stages: Horizontal sections representing each step in the process.
2. Labels: Text indicating the stage name and data values.
3. Funnel Shape: The overall visual structure that narrows from top to bottom.
4. Data Series: The numerical data corresponding to each stage.
5. Axis: Typically, a horizontal axis showing values or percentages (if present).
6. Colors: Different hues are used to distinguish each stage.
7. Chart Title: Descriptive title for the chart.
8. Legend: An optional key to identify different series or categories.

How to Create a Funnel Chart in Excel: Step-By-Step?

To get started with the Funnel Chart in Excel generator, follow the steps below:

• Open your Excel application.
• Open the worksheet and click the Insert button to access the My Apps option.
• Click the My Apps button and See All button to view ChartExpo, among other add-ins.

• Select ChartExpo add-in and click the Insert button.

• The add-in will be added to the Excel application. It may ask you to log in if you are not already logged in.
• Once this add-in will open, you will see a list of charts available.

You have two options you can use to access Funnel Charts in ChartExpo.

• First either you scroll down the list of charts and find this chart or you can type “Funnel” in the Search box. It will filter out this chart in front of you.

• The other option is to click on the category button and browse through categories, namely as shown below:

• You’ll find the Funnel Chart under the General Analysis Chart.

• As we said, how to make a Funnel Chart in Excel should never stress you or even consume significant amounts of your valuable time.

• To create a hypothetical Funnel Chart in Excel for practice, click the Add Sample Chart + Data button, as shown below.

• Once you will click it, sample data will be added to the sheet and visualization will appear on your ChartExpo window.

Do you want to see the Funnel chart in action in Excel with your data? If your answer is yes, let’s get down to business.

Example

Imagine running a recruitment firm, and you want to extract insights into the total resumes you’ve received versus the actual hires.

Which chart would you go for?

Yes, a Funnel Chart is strategically positioned to provide hidden insights into a funnel or pipeline. Suppose your recruitment firm generated the data below over a given financial year.

Steps	Total
Step 1 – Total CVs Received	500
Step 2 – Shortlisted	300
Step 3 – Aptitude Test	200
Step 4 – Interviews	100
Step 5-New Hires	20

• Copy the data into your Excel to get started with the ChartExpo add-in.
• Select the data in the Excel sheet and then click on Create Chart From Selection.

How to Customize Excel Funnel Graph?

This chart like all other charts allows you to change the properties according to your needs. You can click on the Edit Chart button to see the pencil icons on the window and then you can change any property according to your needs.

• If you want to add a heading on top of this chart, just click on the top header pencil icon to see the property window and add text.

• You can click on the “Show toggle button” so that his heading can appear on the chart. You can even change the font size from the other property sections. Once you are done with changes you can click on the “Apply button” and then “Save Changes” to have a heading on your chart.

• Now let’s have another property to explore, you can click on the “Edit Chart button” again and click on the pencil icon as shown below.

• Under the “Stats” section, you will have to enable the button “Show overall percentage”. Click on Apply All and then Save Changes.

• Finally, you will have below look for your data visualization:

• Now each step is coming up with percentage stats that can give you a better idea about the funnel flow.

Insights

• In step 1 Total number of CVs received was 500.
• In step 2, the shortlisted rate is 60% (300 applicants)
• Only 40% of the total CVs, could apply to clear the aptitude test.
• 20% of the total, came for interviews.
• Finally out of a total of 500 CVs received only 4% (20 candidates) were hired.

Advanced Tips for Funnel Diagrams in Excel

Dynamic Funnel Charts

Take your Excel funnel charts to the next level by making them dynamic. This ensures that your visualizations automatically update with changes in the underlying data, providing real-time insights.

Multiple Series in a Funnel

For complex data sets, consider incorporating multiple series in your funnel chart. This allows for a more comprehensive depiction of various factors influencing the process.

Best Practices For Creating a Funnel Chart Using Excel

Choosing the Right Type

Consider the nature of your data and the story you want to tell. Choose a funnel type that aligns with your objectives.

Data Accuracy and Consistency

Maintain accurate data input to avoid misinterpretation. Consistency in data collection methods is crucial for meaningful comparisons.

Color and Design Considerations

Use colors strategically to highlight important stages. Keep the design clean and straightforward for easy comprehension.

Adding Annotations and Labels

Enhance the viewer’s understanding by adding annotations and labels to key points in the funnel. Clarity is key.

Applications of Funnel Chart in Excel

Funnel Charts have a wider variety of uses, especially within the business context.

Maximizing sales revenue is one of the common strategic goals businesses pursue. This means you need to track how a starting set of visitors or users drop out or convert in a sales pipeline.

To get a clear picture of how a sales funnel in Excel is performing in revenue generation, you need to visualize data. This will guide you during the optimization stage.

Here’s an interesting fact.

Funnel Chart in Excel can be best deployed for high-level insights, especially before you dive into the in-depth investigation. Let’s check its application in great detail.

• Summarize Data

A funnel chart in Excel is ideal for summarizing data of a process, such as a sales process (prospecting to conversion). You can easily distill key insights from noise and outliers using this chart.

Sales departments in most Fortune 1,000 firms use Funnel visualization to continuously improve their funnels for the exponential growth of sales revenue.

• Identify Bottlenecks

To constantly improve a valuable process, such as a sales pipeline, you need a chart that will provide hidden insights, such as a drop-off source. For instance, there could be bottlenecks preventing the leads from converting in a funnel.

Funnel Charts Types

This insightful and easy-to-read chart comes in 2 main variants, namely:

• Trapezoidal: In a Trapezoidal Funnel Chart, the size of each section indicates its value. For instance, a larger section equals a larger value. For this reason, when interpreting this chart, look at both the width and height of each section to understand how they relate to the whole.
• Stacked Bar: In contrast to the trapezoidal Funnel Chart, the focus of a Stacked Bar Funnel Chart is on the widths of the bars.
• Basic Funnel Chart: The fundamental form of a funnel chart, showcases a sequential process with decreasing values. Ideal for representing sales pipelines or conversion rates.
• Horizontal Funnel Chart: An alternative orientation to the traditional vertical funnel, providing a fresh perspective on data flow. Useful when space is a constraint.
• Multi-level Funnel Chart: Incorporating multiple layers, this type of funnel chart allows for a more detailed breakdown of stages within a process. Perfect for complex data analysis.
• Inverted Funnel Chart: Flipping the traditional funnel upside down, this chart is effective in scenarios where the emphasis is on growth or expansion rather than reduction.
• 3D Funnel Chart: Adding a third dimension to the visualization, 3D funnel charts bring depth to the representation, making it visually appealing and engaging.

Top 5 Advantages of Funnel Charts in Excel

Easy Process Visualization:

• Clearly illustrates the flow and reduction of data through sequential stages, making complex processes easier to understand.

Identifying Bottlenecks:

• Highlights stages where data drops significantly, helping to identify and address bottlenecks in a process.

Focus on Key Stages:

• Emphasizes critical stages in a process, allowing for targeted analysis and data-driven decision-making.

Comparative Analysis:

• Facilitates comparison between different stages to assess performance and efficiency.

Simple and Intuitive:

• It provides a straightforward and visually appealing way for data storytelling, making it accessible to a wide audience.

Funnel Chart in Excel: FAQs

What is a Funnel Chart Used For?

A Funnel Chart can help you visualize a linear process, such as a sales pipeline with connected stages.

At a glance, the shape of the funnel conveys the health of the process you’re tracking. Each funnel stage represents a percentage of the total.

How Can You Explain a Funnel Chart?

A Funnel Chart shows users’ flow in the process, such as client acquisition.

The chart takes its name from its shape, which starts with a broad head and ends with a narrow neck. The funnel’s width indicates the number of users at each stage of the process as it narrows.

Wrap Up

You’ll agree that visualizing a complex process, such as a sales funnel, is not easy. You need a specialized data visualization chart if your goal is to extract reliable, high-level insights.

What’s the best chart for the job than the Funnel Chart in Excel?

Well, a Funnel Chart is one of the visualization designs experts use to extract hidden, actionable insights into a funnel or a process.

Excel should not be your go-to tool if your goal is to create Funnel Charts that are simple to interpret and complement your data stories. Why?

This spreadsheet tool lacks Funnel Chart templates in its library.

So what tool do we recommend?

We recommend you install third-party apps, such as ChartExpo, into your Excel to access advanced charts. This easy-to-use data visualization tool comes as an add-in you can easily download and install in your Excel app.

ChartExpo comes loaded with insightful and easy-to-interpret Funnel Charts, plus over 50 more advanced charts. Besides, you don’t need programming or coding skills to visualize your data using ChartExpo.

How to create a Funnel Chart in Excel should be a problem of the past now that you’ve discovered the solution.

Sign up for a 7-day free trial today to access easy-to-interpret and visually appealing Funnel Charts for your data stories.