What Is Funnel Analysis?
A funnel visualizes the customer journey in stages: awareness (how many people know about you?), consideration (how many evaluate you?), decision (how many choose you?), and retention (how many stay?). Each stage has a conversion rate to the next stage. If 100 prospects enter at awareness but only 10 convert, that's a 10% overall funnel conversion—and you need to identify where the 90 drop off. Plura's conversation funnel tracks calls from initial inquiry through qualification to scheduled demo.
Why Funnel Analysis Matters for Revenue Growth
Revenue growth depends on moving customers through funnels efficiently. A business can improve revenue by: (1) adding more people at the top, (2) improving conversion at each stage, or (3) reducing time in each stage. Most businesses focus only on #1 (more leads). Funnel analysis reveals that #2 and #3 often provide faster, cheaper growth.
Key Funnel Metrics to Track
Monitor these at each stage:
Drop-off Rate: What percentage leaves at each stage?
Stage Duration: How long does each stage take?
Conversion Rate: What percentage advances to the next stage?
Revenue per Stage: Which stages drive the most revenue?