Is data visualization important for business or just another fancy gimmick?

Is data visualization important for business or just another fancy gimmick?

With the immense amount of data generated every moment, you need to stay well-informed.  And DataViz precisely helps you do that.  It enables you to analyze your business, study market trends, stay prepared for the future, and improve brand image by giving you a clear picture of your business environment. Thus, the importance of data visualization has taken giant strides in the recent past.

Data visualization

Data visualization is the process of collating data from different sources, organizing it, and presenting it through visuals. As a result, it makes information more compelling and easy to understand. In turn, it enhances business decisions. 

Why is data visualization important? Analyze business performance

Compared to a lengthy report, even a simple line and bar chart can give you a better picture of your business’s performance. Moreover, the advanced features of BI tools like Power BI can help analyze and take critical decisions promptly and accurately. 

Understand your market

If you refer to Google Analytics, you would understand why we emphasize the importance of data visualization. The massive amount of information you can collect about your customers, their preferences, your marketing strategies' performances, and so much more is impeccable. In the absence of DataViz, getting all this data wouldn’t have been easy.

Intuitive presentation

The human brain can remember visuals with around 90% accuracy and for a more extended period. So when you present your stakeholders with reports highlighting crucial data, it's more impactful. Moreover, everyone wants data at their fingertips. So you’ll have to make the information available on the go. And to reap all these benefits, DataViz is essential.

Understanding correlated data

Business decisions depend on multiple variables, and most of them are scattered. Therefore, collating different reports to derive a meaningful decision is time-consuming and not cent-percent accurate. This is where the importance of data visualization comes in. A dashboard can bring in data from different data sources in the most readable format. Thus, you get all vital information in one place.

KPI measurement

KPIs or Key Performance Indicators give an overall picture of your business's health. Measuring them correctly helps you identify the best and worst metrics. Thus, you can modify your strategies and take action before the challenges aggravate.

Forecasting

Data visualization tools help you analyze your historical data accurately, empowering you to predict your future business trend more confidently. Your business will have a proactive approach than a reactive one, which is sure to give your business a competitive edge.

Conclusion

An article published in Forbes highlights how insufficient quality data can dampen a business's ROI, customer relationship, and brand reputation. So, while you gather the correct data from the authentic sources, it's also crucial that you analyze it correctly – and that’s precisely why data visualization is essential.