Funnel · conversion funnel
A funnel (conversion funnel) represents the steps a prospect goes through, from first contact to purchase: for example visitor, then lead, then customer. At each step, some people move forward and others drop off.
A concrete example
Example
1,000 visitors produce 40 leads (4%), who produce 8 customers (20%). The funnel narrows at every step.
Why it matters
Reasoning in funnel terms lets you spot the step that leaks the most. Often, fixing a single step (the landing page or the closing) returns more than adding traffic at the top.