Sales funnel is a vital tool helping to analyze the sales process and find its weak points.
The Sales funnel shows how many leads/deals you have at each stage, so you can understand at which stage you lose potential clients.
There are two types of funnels: Standard and With Conversion.
Standard sales funnel
Standard sales funnel displays only those stages that a lead/deal really went through.
That's how the standard sales funnel will look like for a new lead that has been converted to a deal without going through other statuses, and the deal has been won without going through intermediate stages.
Standard sales funnel helps to find weak points of your sales process. For example, you can see which statuses or stages are skipped when working with leads or deals.
With Conversions sales funnel
With Conversions sales funnel displays all the stages that a lead/deal needs to go through to get to the current stage. For example, if you convert a new lead to a deal, the sales funnel will count this lead in each stage, as if it has gone through all the intermediate statuses.
With Conversions sales funnel doesn't count intermediate stages/statuses if a deal/lead was lost. This help to see at which stage or status you have problems and lose clients.