Resources > Articles

The Power of Data Storytelling for Business Impact

Post Author
  • Pragmatic Institute is the transformational partner for today’s businesses, providing immediate impact through actionable and practical training for product, design and data teams. Our courses are taught by industry experts with decades of hands-on experience, and include a complete ecosystem of training, resources and community. This focus on dynamic instruction and continued learning has delivered impactful education to over 200,000 alumni worldwide over the last 30 years.

The Power of Data Storytelling for Business

In a world where data is increasingly becoming more accessible, it is more important than ever for businesses to learn how to leverage data to their advantage. 

After all, data is useless if you don’t know how to interpret it and use it to make informed decisions. That’s where data storytelling comes in.

In order to be successful, data practitioners must be able to effectively communicate data-driven insights to key decision-makers. 

Data storytelling is the process of using data to tell a story that can help drive business decisions or achieve a business goal. When done correctly, data storytelling can be an extremely powerful tool for business leaders. Here’s a look at why data storytelling is so important and how it can be used to achieve business impact.

 

Data Storytelling vs Data Analysis 

One of the most common misconceptions about data storytelling is that it is the same as data analysis.

While both disciplines do involve working with data, they are actually quite different. Data analysis focuses on understanding what the data is saying while data storytelling focuses on using the data to tell a story that will ultimately help achieve a business goal. 

To put it another way, data analysis is all about understanding the past while data storytelling is all about using the past to influence the future.

This distinction is important because it highlights the fact that businesses need both data analysts and data storytellers in order to be successful. Data analysts help businesses understand what has happened in the past while data storytellers help businesses make better decisions in the future. 

 

Things to Keep in Mind When Crafting a Data Story 

There are three key things to keep in mind when crafting a data story: 

  1. The story should be focused on the audience. It should answer the question of why this data is important to them. 
  2. The story should be clear and concise. It should be easy for the audience to follow and understand.
  3. The story should be visually appealing. The use of charts, graphs, and other visuals can help make complex data more understandable and easier to digest. 

Businesses can create data stories that are both informative and impactful by following these simple guidelines. When done correctly, data stories have the power to change how businesses operate by providing insights that would otherwise be hidden in complex datasets. 

By communicating complex data in a way that is easy for decision-makers to understand, businesses can make better-informed decisions that can lead to real-world results. 

 

The Benefits of Data Storytelling

There are many benefits that come with being able to effectively tell stories with data. For one, it allows businesses to better understand their customers. By analyzing customer behavior patterns, businesses can develop targeted marketing campaigns that are more likely to resonate with their target audience. Additionally, data storytelling can also help businesses identify new opportunities for growth and expansion. 

For example, let’s say you’re a clothing retailer who wants to expand into selling home goods. By analyzing your customer’s purchase history, you may notice that a significant portion of your customer base also buys home goods from other retailers. This information would then give you a good indication that there may be an opportunity for you to expand your business into selling home goods as well. 

Finally, data storytelling can also help businesses make better decisions by providing them with actionable insights. Too often, businesses make decisions based on gut instinct or personal bias rather than hard evidence. However, when you have access to actionable insights from data, you can make decisions that are backed by hard evidence and are more likely to lead to success. 

 

Conclusion

As we’ve seen, data storytelling is a powerful tool that can be used by businesses to achieve impactful results. If you want your business to stay ahead of the competition, then you need to start leveraging data storytelling when presenting analysis to stakeholders to drive decision-making. 

Not sure where to start? Our Business-Driven Data Analysis course can help you effectively communicate insights to stakeholders and ensure alignment so data can power business strategy. 

 

Storytelling with Data

Business-Driven Data Analysis is designed to help you translate a business problem into data analysis that provides actionable insights. You’ll leave the course able to transform the way you present insights and advance from a tactical role to being a strategic contributor for your organization. 

Learn More  

 

Author

  • Pragmatic Institute is the transformational partner for today’s businesses, providing immediate impact through actionable and practical training for product, design and data teams. Our courses are taught by industry experts with decades of hands-on experience, and include a complete ecosystem of training, resources and community. This focus on dynamic instruction and continued learning has delivered impactful education to over 200,000 alumni worldwide over the last 30 years.

Author:

Other Resources in this Series

Most Recent

Data Scientist Presenting Insights to Team
Article

Data Analytics vs. Data Mining: What's the Difference?

Both data analytics and data mining are important skills for any data scientist to master. When deciding which approach to use, it's important to consider the specific problem you're trying to solve and the type of data you have available.
Category: Data Science
Businesswoman networking using digital devices
Article

5 Common Misconceptions About Data Maturity

Companies that don’t utilize data lean heavily on intuition and industry experience when making business decisions. Data-driven companies are different.
Category: Data Science
paperwork and reports on 80/20 rule in data
Article

Overcoming the 80/20 Rule in Data Science

Data practitioners spend 80% of their valuable time finding, cleaning, and organizing the data, leaving only 20% to actually perform analysis on it. More often than not, data scientists spend hours preparing and cleaning the data to produce a report for stakeholders, only to find out they were looking for something else or didn’t understand the analysis enough to act on it.
Category: Data Science
Balancing Profits and Ethics
Article

A Conversation on Ethical Use of Data in Business

It’s vital for organizations to be open and transparent and spend time discussing ethics within the business.
Category: Data Science
professional analyzing reports
Article

6 Dimensions to Measure Data Quality in Your Company

Data quality is a critical aspect of any business. If your data is inaccurate, you will make poor decisions that can hurt your company. In this blog post, we will discuss the 6 dimensions to
Category: Data Science

OTHER ArticleS

Data Scientist Presenting Insights to Team
Article

Data Analytics vs. Data Mining: What's the Difference?

Both data analytics and data mining are important skills for any data scientist to master. When deciding which approach to use, it's important to consider the specific problem you're trying to solve and the type of data you have available.
Category: Data Science
Businesswoman networking using digital devices
Article

5 Common Misconceptions About Data Maturity

Companies that don’t utilize data lean heavily on intuition and industry experience when making business decisions. Data-driven companies are different.
Category: Data Science

Sign up to stay up to date on the latest industry best practices.

Sign up to received invites to upcoming webinars, updates on our recent podcast episodes and the latest on industry best practices.

Training on Your Schedule

Fill out the form today and our sales team will help you schedule your private Pragmatic training today.

Subscribe

Subscribe

Training on Your Schedule

Fill out the form today and our sales team will help you schedule your private Pragmatic training today.