Revenue Funnel

The staged model describing how prospects progress from first awareness to closed revenue, used to locate where volume is lost between stages.

What the model is for

The funnel is a measurement device, not a description of how people buy. Real buying is non-linear — prospects re-enter, stall, and involve people who never appear in your data. The funnel is useful because it localises loss, not because it is accurate about behaviour.

Reading it

Absolute volume at each stage is less informative than conversion between adjacent stages. A funnel that is wide at the top and narrow throughout has a qualification problem; one that is narrow at the top and converts well has a demand problem. These require opposite responses.

The definitional dependency

Stage-to-stage conversion is only comparable if stage definitions are stable. A funnel measured across a period in which someone redefined a stage is measuring the redefinition.

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