![[Conversion Funnel - 4 Point.png| 4 Point framework]] ## Description The illustration consists of 4 linked stages corresponding to the funnel checkpoint’s below. The conversion funnel is with reference to customers and business/product being built. 1. **Distribution**: Initial stage that forms the top of funnel and represents activities like marketing, advertisement, sales and positioning to prospective customers. 2. **Value** : Second stage that classifies a lead into customer. It represents the economic value a customer gains. 3. **Volume**: Third stage of the funnel that classifies the organic or inorganic growth of the business/product from a customer standpoint. Retention , usage and referrals play a role over here. 4. **Optimisation** : The bottom of the funnel and final stage depicts activities that correspond to extracting higher margins with every incremental value add. Bundling of services or infrastructure that would reduce the cost of service fall into this category. Getting a customer through the funnel ensures retention and increased gross margins.