Funnel charts are a great way to visualize data in a funnel-like shape, making it easy to see the progression or conversion rates between different stages. They are commonly used in sales and marketing to track leads, conversions, and sales pipelines.
In this tutorial, we’ll show you how to create and customize a funnel chart in Microsoft Excel, so you can effectively present your data and make informed decisions.
Why Use a Funnel Chart?
Funnel charts are a powerful tool for visualizing data because they show the progression or conversion rates between different stages in a clear and concise way. They are especially useful for tracking sales and marketing data, as they can easily show the number of leads, conversions, and sales at each stage of the funnel.
Easily Identify Bottlenecks and Opportunities
One of the main benefits of using a funnel chart is that it allows you to quickly identify bottlenecks and opportunities in your sales or marketing process. By seeing where the funnel narrows or widens, you can pinpoint areas that need improvement or where you are excelling.
For example, if you notice a significant drop in conversions between two stages, you can focus on improving that stage to increase your overall conversion rate. On the other hand, if you see a large increase in conversions at a particular stage, you can analyze what you did differently and replicate it in other stages.
Communicate Data Effectively
Funnel charts are also great for presenting data to others, as they are easy to understand and visually appealing. Instead of presenting a table of numbers, a funnel chart can help you tell a story with your data and make a stronger impact on your audience.
Creating a Funnel Chart in Microsoft Excel
Now that you understand the benefits of using a funnel chart, let’s dive into how to create one in Microsoft Excel.
Step 1: Prepare Your Data
Before you can create a funnel chart, you need to have your data ready in a specific format. Your data should include the different stages of your funnel and the corresponding values for each stage. For example, if you are tracking leads, your data might look like this:
| Stage | Value | |——-|——-| | Stage 1 | 100 | | Stage 2 | 80 | | Stage 3 | 60 | | Stage 4 | 40 | | Stage 5 | 20 |
Step 2: Insert a Stacked Bar Chart
Select your data and go to the “Insert” tab in the Excel ribbon. Click on the “Recommended Charts” button and select the “All Charts” tab. Scroll down to the “Bar” category and select the “Stacked Bar” chart.
Step 3: Change the Chart Type
Right-click on the chart and select “Change Chart Type”. In the “All Charts” tab, select the “Bar” category and choose the “Funnel” chart type.
Step 4: Customize Your Funnel Chart
Now that you have a basic funnel chart, you can customize it to fit your needs. Here are a few ways to do that:
- Change the colors: Right-click on any section of the chart and select “Format Data Series”. In the “Fill” tab, you can choose a different color for each stage of your funnel.
- Add data labels: Right-click on any section of the chart and select “Add Data Labels”. This will add the values for each stage to the chart.
- Adjust the axis: Right-click on the axis and select “Format Axis”. In the “Axis Options” tab, you can change the minimum and maximum values to adjust the size of your funnel.
- Add a title: Click on the chart and go to the “Layout” tab in the Excel ribbon. Click on “Chart Title” and choose where you want the title to appear.
Advanced Customization Options
If you want to take your funnel chart to the next level, here are a few advanced customization options you can try:
Add a Secondary Axis
If you have data that doesn’t fit into the funnel shape, you can add a secondary axis to your chart. This will allow you to plot a different type of data, such as a line graph, on the same chart.
To add a secondary axis, right-click on the data series you want to change and select “Format Data Series”. In the “Series Options” tab, select “Secondary Axis” under “Plot Series On”.
Create a 3D Funnel Chart
To make your funnel chart more visually appealing, you can create a 3D version. Select your chart and go to the “Design” tab in the Excel ribbon. Click on “Change Chart Type” and select the “3D Funnel” chart type.
Add Data Labels for Specific Stages
By default, data labels will appear for each stage of your funnel. However, you can choose to only show data labels for specific stages. Right-click on the data label you want to change and select “Format Data Label”. In the “Label Options” tab, select “Value From Cells” and choose the cells that contain the data labels you want to show.
Tips for Using Funnel Charts Effectively
Here are a few tips to help you get the most out of your funnel chart:
Keep Your Data Up to Date
To ensure that your funnel chart is accurate and useful, make sure to update your data regularly. This will help you track progress and make informed decisions based on the most recent data.
Use Multiple Funnel Charts for Different Data Sets
If you have multiple data sets that you want to track, it’s best to use separate funnel charts for each one. This will prevent your charts from becoming cluttered and make it easier to analyze each data set individually.
Experiment with Different Chart Types
While funnel charts are great for visualizing data, they may not be the best choice for every situation. Don’t be afraid to experiment with different chart types to find the one that works best for your data.
Conclusion
Funnel charts are a powerful tool for visualizing data in a clear and concise way. By following the steps outlined in this tutorial, you can easily create and customize a funnel chart in Microsoft Excel. Remember to keep your data up to date and experiment with different chart types to find the best way to present your data. With a well-designed funnel chart, you can easily identify bottlenecks and opportunities in your sales or marketing process and make informed decisions to drive success.
