Funnel (also called a conversion funnel or sales funnel) is the staged path someone follows from discovering your brand to completing a goal — like buying, booking, or signing up. At the top many people enter; at the bottom fewer complete the action.
Typical stages go from awareness to interest, consideration, and conversion. In e-commerce, that might look like visit → product page → cart → checkout → purchase. Each drop-off is a leak. Tools like landing pages, clear CTAs, and good UX exist to keep people moving down without friction.
A real-life example of a funnel
Think of a real funnel in a kitchen: a wide mouth, a narrow spout. Online, ads or search bring a wide mouth of visitors; only some become leads, and fewer become customers. Mapping the funnel shows where people leave — for example at cart abandonment — so you know what to fix first.