Basic principles and tools of business data visualization

The amount of data generated by companies is increasing very quickly, so nowadays data-driven approach is popular – making management decisions based on big data. In such a situation, diagrams, maps, dashboards, and graphs come to the rescue. With the help of competent visualization, a large amount of information is much easier to perceive and analyze.

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How data visualization can help business

First of all, it simplifies the workflow and saves time – you don’t need to spend a long time studying whole pages of text or huge tables with figures. With the help of visualization, you can structure almost any information: from annual revenue growth to determining the size of discounts for loyal customers. Graphs and charts help you focus on key indicators, making it less likely that you will make a wrong or hasty decision. Especially, the role of healthcare data visualization cannot be overestimated, for example, in other important areas.

In marketing, data visualization helps to analyze sales, study consumer behavior, and determine the most effective promotion channels. It can be used to track trends and patterns, develop new marketing strategies, and improve the effectiveness of current campaigns.

For example, data can be used to create charts and graphs that show market share, conversion, average check, and other metrics. This way, marketers can better understand how products and services are ranked in the market and how the target audience behaves

Main principles of visualization creation

Here are a few things that are important to pay attention to when creating visualizations:

Simplicity and clarity

Graphs and charts should be as easy to use and understand as possible. Avoid complex design elements and fonts and do not overload the visualization with different indicators. It is better to make several graphs for a presentation than to try to fit all the information into one.

Credibility

Data should be thoroughly checked before visualization, especially if it is an important report or presentation for clients. This will not only save you from an awkward situation but will also save you from having to redo everything from scratch.

Relevance

The data visualization should be relevant to the business objectives and the document where it is placed. You should not make a diagram for the sake of a diagram, just to dilute the text with a picture.

How to visualize data: types of charts and graphs

There are many subspecies of visualization, but we’ll look at three of the most popular:

• Pie chart. The format is used to show the ratio of shares as a whole. It should not be used when the sum of data is less than 100%, as well as if the indicators are more than five – then the diagram will have too many small parts. On such visualization, it is convenient to show the percentage of customers in different regions or budget distribution.
• Line chart. Shows the change in the value of a variable over time. It is often used to track trends and forecast future values. Lines are convenient to show, for example, profit growth or number of customers by month or year.
• Column chart. Useful when it is necessary to compare the values of several categories or indicators among themselves. For example, a chart is used to compare sales of different products in a store over a certain period. It allows you to understand which products were the most popular and how sales have changed over time.

When choosing a visualization method, always start from the task: you need dynamics – a line chart is suitable, you need a percentage ratio – a pie chart, you are interested in the share and its dynamics for a specific time – a bar chart with a time axis of ordinate.

How to make visualization a part of the workflow

Visualization is as much a business task as the layout of a presentation or launching an advertisement. You need to be able to analyze the data correctly, load it into a program, and design it beautifully. Sometimes this can be handled by in-house employees, and sometimes it is better to outsource the task to an external specialist.

1. Set the task. Data visualization has many methods and tools that can be changed depending on the task. For example, dashboards and cohort analysis provide a comprehensive picture.
2. Determine budget. If several employees need to buy access to the service at once, the subscription will cost a decent sum. In this case, it may be cheaper to outsource the task to a marketing agency.
3. Find a performer. If visualizations are prepared by your employee or team, when purchasing a subscription, evaluate the functionality of the services: possibilities for group editing, interface, and the need for technical background of the user.

Think about who will use the service how often, and whether it will justify the cost. If it is a dashboard that is updated in real-time, you may need to work on emerging bugs and an employee who will do it regularly.