What is a conversion funnel?
The series of steps a visitor passes through to convert, like visit, sign-up, then purchase. Each step has its own conversion rate, and they multiply together.
// business-simulation › Models
Chain each stage's conversion rate into an overall funnel rate, then see how lifting one stage flows through to total conversions and revenue.
overall rate = product of stage rates ; conversions = visitors × overall rate
The series of steps a visitor passes through to convert, like visit, sign-up, then purchase. Each step has its own conversion rate, and they multiply together.
Because you only reach a later stage if you passed the earlier ones. Three stages of 40%, 50% and 30% give an overall rate of just 6%, since each leak compounds.
Often the worst-performing or highest-traffic one, since improving it flows through to everything downstream. The calculator lets you test improving any single stage.
Because the gain multiplies through the rest of the funnel and applies to all your traffic. A few points on one weak step can lift total conversions noticeably.
It assumes stages are independent and rates are stable. In reality, changing one step can affect others, so test real changes rather than trusting the model alone.