The Most Effective Data Communication Methods For Your Business

Building a data-driven culture is fantastic; however, it’s even more important to understand and apply the most effective data communication methods that are suitable for your organization. Your stakeholders can disconnect from you if you’re using the wrong communication approach to convey data facts and figures to them. To avoid that, you need to understand the peculiarities of each method of communication in order to communicate effectively with them.

The two most effective techniques for communicating with data are through data stories and interactive dashboards . While they are both effective ways, they are not suitable for use at all points in business. The data communication methods you choose depend on your stakeholders, their data literacy level, and the communication's end goal.

Let’s look closely at each communication method so you can decipher which is best for your business and the goals you wish to achieve.

The Definition and Characteristics of Interactive Dashboards

Interactive dashboards are visual interfaces in the form of charts, diagrams, graphs, and other visual elements that enable users to interact with data in real-time. They are designed with simplicity and automate themselves as new data flows in. Users can get up-to-date information from the dashboard and interpret results according to their own discretion.?

For instance, a food company can use an interactive dashboard to monitor customer satisfaction across different cities in a country using KPIs, such as the customer satisfaction CSAT score . They can easily know when the CSAT score decreases in a certain location, so they can determine what needs to be corrected and make amendments immediately.

If you decide to use interactive dashboards as a business, ensure that you ask your data analysts to design them so that they clearly define your data points and key metrics. Tools such as Tableau, Power BI, and Google Data Studio can be used to create interactive dashboards for effective data communication.?

Benefits of using Interactive dashboards for data communication

• It provides timely updates to enable quick decision-making
• The interactive elements allow users to explore data in-depth
• Insights gleaned from interpreting interactive dashboards are usually timely and relevant
• Simple dashboards are easy for users to navigate?

The Definition and Characteristics of Data Stories

In recent times, one of the developments in data communication is using data stories to communicate data insights to important stakeholders. Data stories offer a unique way of presenting data and statistical insights to a non-technical audience using clearly defined words and relatable stories. The main purpose of using data stories is to influence decision-making.? Typically, data analysts uncover it and present it to important organizational decision-makers.?

Unlike interactive dashboards, which are automated and update data in real-time, data stories are manually written and presented with a goal in mind. In more context, data stories entail an explanation of the data, an interpretation of the patterns and trends, insights from the data representation, and actions to be taken in response to the observations. They provide a clearer understanding of a research process and lay a good foundation for accuracy in decision-making.

Benefits of using data stories for data communication

• It presents data insights in such a simple way that anybody can understand them.
• It helps to mitigate risks and reduce mistakes in decision-making
• It helps in creating a culture of data literacy in an organization, such that everyone is carried along in data communication and decision-making
• It brings to light hidden patterns and trends that may not be clearly expressed in a dashboard
• Data stories are used to evoke emotions in users and sometimes influence decision-making

Limitations? of Both Data Communication Methods

The major limitation of using data stories in data communication is that they do not allow for automation and cannot be used to monitor data insights in real-time. Instead, it requires manual work and an intense use of brain power, which could be time-consuming.

Though interactive dashboards appear more advantageous, they demand a certain level of data literacy and are unsuitable for a non-technical audience.?

Knowing when to use each of the data communication methods

Having understood each data communication method's key benefits, uniqueness, and limitations, let’s help you understand how and when to use both methods.

Dashboards

Interactive dashboards should be used in a dynamic environment where data needs to be monitored in real-time and when users demand in-depth exploration of data insights.?

Data stories

Data stories should be used when communicating with important stakeholders in your company who are in the decision-making process. Ensure to use data stories when you’re communicating data insights to a large audience with different levels of data literacy . Also, data stories should be used to clarify data analysis trends, patterns, or outcomes.

Choosing a suitable data communication method is advisable, but both techniques can be combined for maximum impact.?

Final Thoughts

Both interactive dashboards and data stories are effective methods of communicating data insights. You can deploy both techniques according to the end use. When you understand the uniqueness, strengths, and limitations of both techniques, you should be able to decipher which is best for the goal you’re trying to achieve. Ensure to experiment with both techniques to find a balance in your organization and know when to use each of them.?