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A thousand see, twenty buy - where did the other 980 go?
Opening question
Hook3 min
2% overall - is that good?
1,000 see the product
20 buy - 2% overall
Five different losses hide inside
Which loss do you fix first?
Learning objectives
O1-O42 min
By the end, you can...
Name six measurable stages.
Compute stage and overall rates.
Diagnose and forecast with a funnel report.
Separate seller funnel from buyer stages.
Concept 1 · Definition
O14 min
What the textbook means by a funnel
§3.4.1: marketing arranged by time or stage.
Six marketing stages: awareness to purchase.
Wide top, narrowing as prospects drop out.
Goal: keep leads engaged and move them down.
Concept 2 · Counters
O14 min
Six counters, six hand-offs
1Exposure
2Click
3Add to cart / inquiry
4Order
5Payment
6Repurchase
Concept 2 · Counts
O24 min
Where the chain loses people
?Where does the chain lose most people?Swipe horizontally to see the full figure
Stage
People
Conversion from previous (%)
Note
Impressions
10,000
—
Starting audience
Clicks
500
5
Largest drop
Add-to-carts
100
20
Of clicks
Orders
40
40
Of carts
Payments
30
75
Of orders
Repurchases
6
20
Of payments
Takeaway
The largest drop is impressions to clicks (5%). Later stages convert better, but on very small bases.
A linear funnel cannot show 0.06% legibly; use the rates, not the shape.
Teaching simulationTeaching example · Course teaching example, not real store data
Concept 3 · Arithmetic
O25 min
Five rates, one chain
Click 500/10,000 = 5%.
Cart 100/500 = 20%.
Order 40/100 = 40%.
Payment 30/40 = 75%; repurchase 6/30 = 20%.
Overall impression-to-payment 30/10,000 = 0.3%.
Concept 3 · Warning
O23 min
One overall rate hides the leak
0.3% from impression to payment could be a normal top and a broken checkout, or a weak top and a perfect checkout. The overall number cannot tell them apart.
Report every layer, every week.
Keep denominators visible.
Compare with your own baseline.
Concept 3 · Diagnosis
O24 min
Four questions before choosing a fix
Volume
Where is the absolute loss?
Count people, not only percentages.
Rate
Which rate is off baseline?
Compare with the same layer last period.
Control
Can we change it this month?
Checkout beats brand awareness for speed.
Money
What is one point worth?
Convert to incremental orders and margin.
Concept 4 · Two tools
O44 min
Seller's funnel versus buyer's five stages
Sales funnel
Six counters from exposure to repurchase
Conversion and drop-off
Diagnosis, forecasting, team coaching
Five decision stages
Need, search, evaluate, purchase, post-purchase
What the buyer thinks and does
Message and content design
Concept 4 · Report
O34 min
Two uses and one warning
Diagnose
Find the stuck layer
Improve process and coach the team.
Forecast
Convert traffic to orders
Traffic × four rates; state assumptions.
Warning
Not a profit statement
Logistics, commission and margin sit outside.
Case · Teaching case
O1-O46 min
The leak that looked small
Case: the leak that looked small (teaching case)
80,000 impressions, 4,000 clicks
600 carts, 240 orders
192 payments, 38 repurchases
Overall 0.0475%
Fix traffic or checkout?
Case analysis
O1-O45 min
Fix the controllable leak
Before
US$11,520
192 paid orders at US$60.
Change
48% order, 90% payment
Shipping clarity, local payment, failed-payment recovery.
After
About US$15,540
288 orders, about 259 paid; +US$4,020.
Common misconceptions
O1-O43 min
Five claims to retire
Funnel equals five decision stages.
Overall rate locates the problem.
More traffic always means more sales.
Highest drop-off rate is always first.
A healthy funnel means profit.
Classroom activity
O1-O412 min
Find the leak
4 minCompute every stage rate and the overall rate.
3 minName the largest absolute loss and the most actionable rate.
3 minValue +1pp at two stages in paid orders.
2 minWrite one experiment and its success metric.
Materials on this slideSix-stage funnel worksheetFunnel diagnosis cards
Self-check
O1-O43 min
Five questions
Q1 stages · Q2 report uses
Q3 shape · Q4 arithmetic
Q5 funnel versus five stages
Summary
All2 min
What you can now do
Build a six-stage counter chain.
Compute and check stage rates.
Diagnose with volume, rate and money.
Forecast without pretending certainty.
Sources & next
Wrap1 min
Sources and preparation
Textbook §3.4–3.4.1; Figure 3-2.
Figures 3-1 and §3.1.1 for the five-stage comparison.
Next: retention, service and repeat purchase.
Slide 1 of 18
Lesson 13 · 50 min · 1 / 18
The sales funnel: from seeing a product to buying
A thousand see, twenty buy - where did the other 980 go?
Ask the question before defining anything. Let students list where people are lost.
Opening question · 2 / 18
2% overall - is that good?
1,000 see the product
20 buy - 2% overall
Five different losses hide inside
Which loss do you fix first?
The 2% is 20/1,000. Do not let the class treat it as one event; ask them to name the five losses before showing the next slide.
Learning objectives · 3 / 18
By the end, you can...
Name six measurable stages.
Compute stage and overall rates.
Diagnose and forecast with a funnel report.
Separate seller funnel from buyer stages.
O2 is tested by Q4; O3 by Q2 and the activity; O4 by Q1 and Q5.
Concept 1 · Definition · 4 / 18
What the textbook means by a funnel
§3.4.1: marketing arranged by time or stage.
Six marketing stages: awareness to purchase.
Wide top, narrowing as prospects drop out.
Goal: keep leads engaged and move them down.
Stress 'steps taken by marketers or sellers'. The funnel is not a description of the buyer's mind.
Concept 2 · Counters · 5 / 18
Six counters, six hand-offs
Ask why order and payment are separate. Failed payments, cash on delivery and fraud review lose buyers after the order exists.
Concept 2 · Counts · 6 / 18
Where the chain loses people
?Where does the chain lose most people?Swipe horizontally to see the full figure
Stage
People
Conversion from previous (%)
Note
Impressions
10,000
—
Starting audience
Clicks
500
5
Largest drop
Add-to-carts
100
20
Of clicks
Orders
40
40
Of carts
Payments
30
75
Of orders
Repurchases
6
20
Of payments
Takeaway
The largest drop is impressions to clicks (5%). Later stages convert better, but on very small bases.
A linear funnel cannot show 0.06% legibly; use the rates, not the shape.
Teaching simulationTeaching example · Course teaching example, not real store data
The bars are linear, so the last four are almost invisible. That is the honest picture; read the numbers for the rates.
Concept 3 · Arithmetic · 7 / 18
Five rates, one chain
Click 500/10,000 = 5%.
Cart 100/500 = 20%.
Order 40/100 = 40%.
Payment 30/40 = 75%; repurchase 6/30 = 20%.
Overall impression-to-payment 30/10,000 = 0.3%.
Check that 0.05 × 0.20 × 0.40 × 0.75 = 0.003. If the product does not match, a denominator is wrong.
Concept 3 · Warning · 8 / 18
One overall rate hides the leak
Report every layer, every week.
Keep denominators visible.
Compare with your own baseline.
Ask for a case where an overall rate improved while every segment got worse. Answer: traffic mix shifted to a cheaper, lower-converting source.
Concept 3 · Diagnosis · 9 / 18
Four questions before choosing a fix
At the example's rates, +1pp click is worth about six paid orders, +1pp payment only 0.4. Volume and cost must be compared together.
Concept 4 · Two tools · 10 / 18
Seller's funnel versus buyer's five stages
Sales funnel
Six counters from exposure to repurchase
Conversion and drop-off
Diagnosis, forecasting, team coaching
Five decision stages
Need, search, evaluate, purchase, post-purchase
What the buyer thinks and does
Message and content design
They are complements: the five stages tell you what to say; the funnel tells you how many were lost at each hand-off.
Concept 4 · Report · 11 / 18
Two uses and one warning
The forecast is only as good as its stability assumption. Ask what would break it: a promotion, a stock-out, or a new traffic source.
Case · Teaching case · 12 / 18
The leak that looked small
80,000 impressions, 4,000 clicks
600 carts, 240 orders
192 payments, 38 repurchases
Overall 0.0475%
Fix traffic or checkout?
Give groups two minutes to compute the five rates before showing the next slide. Expect disagreement about the 5% click rate.
Case analysis · 13 / 18
Fix the controllable leak
Check 600 × 0.48 = 288 and 288 × 0.90 = 259.2. The gain is monthly and before message costs; traffic was unchanged.
Common misconceptions · 14 / 18
Five claims to retire
Funnel equals five decision stages.
Overall rate locates the problem.
More traffic always means more sales.
Highest drop-off rate is always first.
A healthy funnel means profit.
For each, point to the counter-example in the case. The last one links forward to Lesson 14 and the cost lessons.
Classroom activity · 15 / 18
Find the leak
Insist on the arithmetic. The recommended layer should be the one with a plausible mechanism, a measurable effect and an affordable test, not simply the biggest bar.
Self-check · 16 / 18
Five questions
Q1 stages · Q2 report uses
Q3 shape · Q4 arithmetic
Q5 funnel versus five stages
Q4 checks denominator discipline; if it is missed, redo the chain on the board before the activity debrief.
Summary · 17 / 18
What you can now do
Build a six-stage counter chain.
Compute and check stage rates.
Diagnose with volume, rate and money.
Forecast without pretending certainty.
Return to the opening 2% and ask what the class would now report instead.
Sources & next · 18 / 18
Sources and preparation
Textbook §3.4–3.4.1; Figure 3-2.
Figures 3-1 and §3.1.1 for the five-stage comparison.
Next: retention, service and repeat purchase.
Remind students that all counts in the deck are teaching arithmetic, not a store's report.