What is Data Visualization?
In a business context, data visualization in a CRM (customer relationship management) system uses graphical representations to display information about customers, sales, and other business metrics. This can include charts, graphs, and visualizations that help managers and stakeholders understand and analyze customer data.
For example, a business might use a bar chart to show the total number of sales by region or a line graph to track the number of customer interactions over time. By visualizing this data, business leaders can quickly identify trends, patterns, and opportunities for growth. Additionally, data visualization in CRM can provide insights into customer behavior and help identify areas where the business can improve its customer service.
It can also help identify sales performance and customer interactions, determine customer segments and demographics, and identify critical sales and customer service metrics. All this information can be used to improve customer engagement, sales, and overall business performance.
How can Graphs and Charts communicate better than texts in a business?
Graphs and charts can communicate information more effectively than text in a business setting for several reasons:
- They allow for a quick understanding of complex data: Graphs and charts can make it easier to understand large amounts of data by condensing it into a single, easy-to-digest visual. This can be particularly useful for business leaders who need to make decisions quickly and don’t have the time to read through large amounts of data.
- They make it easier to identify patterns and trends: Visualizations like line graphs, bar charts, and scatter plots can help managers quickly identify patterns and trends in data. This can be particularly useful for identifying areas of growth or areas that need improvement.
- They make it easier to compare data: Visualizations like bar charts and pie charts allow for easy data comparison. This can be particularly useful for identifying how different departments, products, or salespeople are performing.
- They make it easier to communicate data to others: Graphs and charts can make it easier to share information to others. They are more visually appealing and can be more easily understood by people who may not have a background in the subject matter.
- They make it easier to detect outliers and abnormal data: Visualizations like scatter plot and box plots can help identify outliers that could be important data points that need further analysis.
In summary, graphs and charts can be a powerful tool for communicating complex data in a business setting, allowing managers to make better-informed decisions, and to share insights with their teams, stakeholders and customers.
Advantages of Data Visualization
- Faster Processing of Data
The human brain is wired to process visual information quickly, and visualizations like charts and graphs can help to make sense of large amounts of data in a shorter amount of time. Research has shown that people are able to process visual information much faster than text-based information. In fact, it’s estimated that the human brain can process visual information up to 60,000 times faster than text. This is because the brain is able to process visual information holistically, rather than having to read and interpret individual words and numbers.
Additionally, visualized data can be more engaging and more memorable than text. People tend to remember things they see better than things they read, making visualized data a powerful tool for communicating information and ensuring that important data is not forgotten.
- Get data insights that may be missed in text format
Data visualization tools can reveal insights that may be missed in traditional text-based reports. This is because data visualization tools allow data to be represented in various ways, such as charts, graphs, and maps. These visualizations can help to reveal patterns and trends in the data that may not be immediately obvious when looking at the raw data.
Data visualization tools can also allow for interactive exploration of data, which can help to reveal insights that may not be immediately obvious. For example, by allowing users to filter, sort, and drill-down into the data, data visualization tools can help to reveal patterns and trends that may not be immediately visible in a static text-based report.
- Deliver Actionable items
Data visualization can give actionable items by providing a clear and concise way to present information. When data is visualized, it can be easier to identify patterns, trends, and outliers, which can help to inform decisions and guide action.
For example, a bar chart showing the number of customer complaints by department can help managers identify which department has the most issues and improve customer service. A line graph showing the sales trend over time can help managers identify which products are selling well and which are not, and make decisions about inventory or promotions. Finally, a map visualization showing the distribution of customers can help managers to identify which areas are underserved and allocate resources accordingly.