Academy · Lesson 3 · Funnel
A funnel shows where prospects drop off,
as long as every stage counts the same people.
A funnel is a sequence of stages a person reaches one after another, such as inquiry, intro meeting, proposal, signed deal. This lesson shows how to define stages, calculate step and overall conversion, and why most funnel numbers break on how they are counted.
Which three to five stages does a deal go through in your business?
2 questions in the plan. First question: “Why do we win so few deals from so many inquiries?”
The funnel maths
Define the stages Fix the group
“Why do we win so few deals from so many inquiries?”
Step conversion and overall conversion.
A funnel is a sequence of stages a person reaches one after another, such as inquiry, intro meeting, proposal, signed deal. This lesson shows how to define stages, calculate step and overall conversion, and why most funnel numbers break on how they are counted. Step conversion = count at this stage ÷ count at the previous one. Overall conversion = count at the last stage ÷ count at the first. Example (fictional): 80 inquiries, 32 intro meetings, 12 proposals, 5 deals, so 40%, 37.5%, about 42% and 6.25% overall.
From reading to doing
Your questions. For your numbers.
Prepare an evaluation.
2 questions selected
- “Why do we win so few deals from so many inquiries?”
Every stage has one clear event and a fixed time window.
- “How many trial accounts become paying customers?”
Accounts are counted, not logins or clicks.
Define stages, fix the group, find the gap.
as long as every stage counts the same people.
Three steps that turn a list of cases into a funnel you can calculate the same way every month.
“Why do we win so few deals from so many inquiries?”
Every stage has one clear event and a fixed time window.
Define the stagesThree to five stages, each with one unambiguous event: "proposal sent" rather than "interested". Each person can reach a stage only once.
Fix the groupPick the starting group by the date of the first stage, such as all inquiries in March, and follow exactly that group through the later stages, within a fixed window like 60 days.
Find the biggest gapCompare step conversions, not only the overall rate. The stage with the biggest loss is the first question for the team, not automatically the problem.
Stage 1Inquiry received · 80
Stage 2Intro meeting held · 32 · 40%
Stage 3Proposal sent · 12 · 37.5%
Stage 4Deal signed · 5 · about 42%, 6.25% overall
The playbook
Define stages, fix the group, find the gap.
Building a funnel
as long as every stage counts the same people.
Define the stages → Fix the group → Find the biggest gap
- 01
Define the stages
Three to five stages, each with one unambiguous event: "proposal sent" rather than "interested". Each person can reach a stage only once.
Example · Harbourview Agency (fictional)“Why do we win so few deals from so many inquiries?”
Step rates 40%, 37.5%, about 42% - 02
Fix the group
Pick the starting group by the date of the first stage, such as all inquiries in March, and follow exactly that group through the later stages, within a fixed window like 60 days.
Example · Taktwerk Software (fictional)
120 activated, 30 paying“How many trial accounts become paying customers?” - 03
Find the biggest gap
Compare step conversions, not only the overall rate. The stage with the biggest loss is the first question for the team, not automatically the problem.
Example · Nordwind Travel Goods (fictional)“How many first-time buyers order a second time?”
Second order within 90 days
Your quality check
Will the evaluation hold up?
Tick what you have checked. Your selection stays in this view only.
0 of 3 points checked
What this article is based on.
Editorial page with fictional examples (Harbourview Agency (fictional), Taktwerk Software (fictional), Nordwind Travel Goods (fictional)). The guide describes an approach; where Peak Analytics covers a step today, the page says so explicitly. No measurements, no customers, nothing is sent or saved.
- Editorial demo
Synthetic numbers in the browser. No real data is read, computed or saved.
- Checked evidence
Peak Analytics is a preview: pivot over orders, receipts, tasks, goals and files; count, sum, average, minimum, maximum; day to year; CSV export; sharing a released snapshot; largest value as a task.
peak-one app/w/[scope]/apps/analytics, lib/bi/model.ts, lib/views/pivot.ts, lib/bi/share.ts · checked 2026-10-29
The same people, stage by stage.
In lesson 4 you follow groups not across stages but across months: cohorts.
Frequently asked questions
Do I need Peak Analytics for this lesson?
No. The lesson works with any spreadsheet. Peak Analytics is a preview; where it covers a step today, the page says so.
What is the difference between step and overall conversion?
Step conversion divides by the previous stage, overall conversion by the first. Step rates show where the loss happens.
Why can't I divide April deals by April inquiries?
Because deals often come from older inquiries. Follow one starting group within a fixed window through every stage.
Can Peak Analytics analyse funnels?
Not yet. Funnel evaluations are planned. Today you calculate the funnel in a spreadsheet; the preview can count single stages that live in one of its five sources.