Tapping Data Visualization’s Growing Business Value

Data visualization tools are so commonplace within organizations that it’s easy to forget we’re using them at all. William Playfair invented the trusty bar graph back in 1786 so the concept of transforming data into a visual format is not exactly new!

The question then, is not if you’re using data visualization tools, but whether your business is getting the most from them.

Transforming data into insights that can be understood by people across the business is a vital part of transforming an organization from one where data is held, and understood by a minority of specialists, to one where everyone can access and interpret data relevant to their own needs.

The work of a CEO, sales consultant or junior marketer can be greatly improved by having access to the right data, in the right format, available when they need it most.

If you’re among those businesses struggling to make use of the large swathes of data you possess, then appropriate use of data visualization tools – which are embedded into a database management system – can help you turn data into ready-to-action insight.

The State of Data Visualization

Data visualization is a growing marketplace. It’s predicted to reach a global value of $7.76bn in 2023 with a predicted year-on-year growth rate of 9.47%. Last year Salesforce purchased analytics platform Tableau for more than $15bn while Google picked up another visual analytics platform, Looker, for nearly $2.6bn.

The reason for the industry’s growth lies in the huge amount of data available to organizations which can provide a huge variety of insights to every aspect of the business. Making sense of this data and putting it to good use, is one of the biggest challenges faced by enterprise organizations today.

Tools and technologies which draw on data, transform it into insight and then present it in a readily understandable way, to inform target audience activation or internal stakeholder decision-making, have a key role to play in making data useful. We often focus on the benefits provided to business leaders, marketers and sales professionals. Yet, their potential use is spread much further into areas like medical care and advanced weather mapping. Consequently, data visualization technologies are evolving rapidly.

But while there are many creative and awe-inducing ways of representing data, simplicity is often still best. Vitaly Friedman, Founder and Editor of Smashing Magazine explains it thus:

“The main goal of data visualization is to communicate information clearly and effectively… It doesn’t mean that data visualization needs to look boring to be functional or extremely sophisticated to look beautiful. To convey ideas effectively, both aesthetic form and functionality need to go hand-in-hand…”

Visuals can convey easily recognizable narratives which make the process of recognition and understanding faster. It’s worth noting that this can be more than an intellectual engagement, but an emotional one too.

For example, a marketer who is regularly updated with the success or otherwise of their content (think page views, dwell time, bounce rate, lead generation, etc.) in an easy to understand way, is able to understand the worth of their work and how it’s improving over time. At a glance, a sales professional or marketer can understand where they are having success, and where there is room for improvement.

In many ways, data visualization is democratizing insight across the business, empowering teams and individuals to improve performance and celebrate success.

In a recent study by Forrester, 22% of marketing decision makers agreed the lack of an enterprise view of master customer data is still a problem. Data visualization tools help solve it by making the appropriate data available and readily understood by the right person.

Why Data Visualization is a Key Part of the Data Management Mix

A visual is processed 60,000 times faster than any form of text and 65% of the population are visual learners. Leafing through hefty reports or large spreadsheets is hard work for the human brain – much better to provide insights visually.

According to a recent report by Dun & Bradstreet, two thirds of respondents say data will be vital to their organization’s future success. However, less than a quarter of organizations have staff that are dedicated to the management of data and less than a quarter say they have the right talent to implement effective data management.

There are a variety of aspects to this. Clearly, the appropriate data management processes and technologies need to be in place which can reduce the heavy lifting associated with cross-channel and cross-platform data management. But processes also need to be in place which can draw clear insights from data and present it in an engaging way

The Benefits of Transforming Data into a Visual Format Include:

1. Faster learning, faster action: As mentioned, visuals are much easier to process which means that individuals can read, understand and take the appropriate action more quickly. Which means less time learning and more time doing.

2. See the connection between operations and results: For example, if a food retailer launches a new product, they can quickly see in which locations it’s selling well or falling below expectations. No numbers to crunch or reams of spreadsheets to sift through. Data can be understood immediately via a sales heat map or other graphical format.

3. Spot emerging trends: Data is now capable of providing fast insights across different business areas. Data visualizations are capable of quickly demonstrating product performance across business areas, and automate the previously manual process of pulling out trends and other insights.

Fancy Visuals vs. Functional Graphs

Not just any data visualization will do. The fanciest graphs don’t always provide the easiest route to learning. Sometimes an old-fashioned bar graph is the best tool for the job.

The need to get the balance right is best summarized by Fernanda Viegas and Martin M. Wattenberg:

“…an ideal visual should not only communicate clearly, but stimulate viewer engagement and attention.”

Ask yourself, does the data visualization:

? Show the data?

? Make the reader think about the message it conveys – or do they get side-tracked by the methodology or technical wizardry behind it?

? Avoid distorting the data?

? Make large swathes of data readily understandable?

? Encourage comparison between different pieces of data?

? Provide data at different levels of detail – making it possible to have a broad understanding at a glance, yet also the option of zooming in to unpack in more detail if required?

? Have a clear purpose, which is clearly communicated?

Especially given the need for role-based personalization, it’s also important to understand who will be looking at the graphic. Will it be a CEO, marketing chief, copywriter or sales agent? Providing the relevant data in a way which is optimally geared towards the needs of the individual ensures that their eyes don’t glaze over multiple graphics which are unrelated to their work. There is no one-size-fits-all solution: everyone’s data needs are different.

Another key element is understanding what the individual will get out of the data. What should they learn from it? What action should they take? The message it conveys must provide the impetus for a particular course of action.

Using the right visual, in the right situation, for the right audience is vital. For example, a line graph is very useful for comparing values over time. While a scatter diagram is good for displaying relationships between different variables, such as illustrating the number of users who come to your website from different sources.

Create a Smarter, More Motivated Team

Data visualization tools are vital for ensuring that everyone has a keen awareness of how their work impacts on wider business performance. Learning from data insights should be an easy and intuitive process, not a time-consuming chore which delays action.

It’s just one aspect of how organizations today can remove barriers created by data silos and get everyone talking, sharing and learning from data.