Graphs have been a staple of business data analysis for decades but are not universally used. According to Analytic Insights, a study of global businesses cited that only 26 percent of the respondents’ organizations used data visualization in 2020.
However, most of those companies led in revenue growth and planned to invest even more in data visualization in the next year. Consequently, the percentage of companies using data visualizations to assist in decision-making has since increased to 35% in 2022, according to the Data Visualization Society.
Graphs can provide an easy and quick way to visualize complex data sets and help decision-makers understand key trends and insights.
In this article, we'll explore nine ways businesses can use graphs to their advantage.
Analyzing Sales Data
Graphs can help businesses to analyze sales data more effectively. By plotting sales figures over time, businesses can identify trends and patterns that might not be apparent from looking at raw numbers. This can help businesses make better pricing decisions, marketing strategies, and product offerings.
Visualizing Market Research Data
Market research is essential for businesses looking to understand their target market. However, the data gathered from market research can be complex and difficult to interpret.
Graphs can help businesses to visualize this data, making it easier to understand and act upon. For example, a business might use a graph maker to create a pie chart showing the percentage of customers who prefer a particular product over another.
Analyzing Customer Behavior
Graphs can also be used to analyze customer behavior. For example, a scatterplot can show the relationship between customer age and purchasing behavior. This information can be used to make more informed decisions about product design, marketing campaigns, and customer service strategies.
Tracking Website Traffic
In today's digital age, businesses need to track website traffic to measure the success of their online marketing efforts. Graphs can be used to visualize website traffic data, making it easier to identify trends and patterns.
For example, a business might use a line graph to track website traffic over time, allowing them to see whether traffic is increasing or decreasing.
Monitoring Financial Performance
Graphs are an essential tool for monitoring financial performance. By plotting financial data such as revenue, expenses, and profits over time, businesses can identify trends and patterns that might not be apparent from looking at raw numbers.
This can help businesses to make better decisions about budgeting, investments, and other financial matters.
Identifying Key Performance Indicators (KPIs)
Graphs can be used to identify the KPIs that matter most to a business. For example, a line graph can track revenue over time, while a bar graph can compare sales figures between different products, regions, or periods.
By identifying and tracking KPIs using graphs, businesses can ensure they focus on the metrics most important to their success.
One of the most useful things graphs can do for businesses is to identify trends over time. By plotting data on a line graph, for example, you can easily see whether your sales are increasing or decreasing. This information can be used to identify areas of opportunity or to make adjustments to your business strategy or marketing spend.
Comparing Data Sets
Graphs can also be used to compare data sets. For example, a bar graph can compare sales figures for different products or departments. This information can be used to identify areas where resources may be better allocated or where additional investments may be needed.
Forecasting allows businesses to make informed decisions about where to allocate resources, how to plan for growth, and where to focus their efforts. And one of the most powerful tools available for business forecasting is graphs.
You can use graphs to project future performance by analyzing past data and identifying trends. This can be particularly helpful for businesses planning for future growth or making strategic investments.
Regarding using graphs in business, various tools and techniques are available. Common types of graphs include line graphs, bar graphs, pie charts, and scatter plots.
Graphs are a powerful tool for businesses of all sizes and industries. In this article's nine ways, businesses can gain valuable insights and make more informed decisions using graphs.
The key is to choose the right type of graph for the data you are trying to present and design it concisely and visually appealingly.
Whether you're a small startup or a large corporation, consider incorporating graphs into your data analysis and see the benefits for yourself.