Data visualization is the process of presenting complex data in easy-to-understand graphical formats on an interactive dashboard. Here, we’ll discuss the significance of data visualization in sales and the range of benefits it offers to boost a business in competitive markets.
Business intelligence is the process of combining strategies and technologies to collect, analyze, and manage large amounts of data in an enterprise. The analytics are presented in neat and structured reports to help make effective decisions faster. Data visualization is used to convert analytics into graphical reports with interactive elements. It presents insights in different readable formats and allows you to make changes in real-time.
Statistics show that the data visualization market was valued at $5590.75 million in 2021 and is expected to touch $9464.0 million by 2027 with a CAGR (compound annual growth rate) of 9.17%. According to a report, data visualization can make decision-making 5x faster and execution of the decision 3x faster. A study shows that using visual data can shorten the overall time spent on business meetings by up to 24%.
Several organizations hire Power BI consultants to set up a data visualization dashboard in different departments. Microsoft Power BI is one of the leading visualization tools with many user-friendly features and third-party integrations.
In this blog, we’ll understand why data visualization is vital for your business and the benefits of data visualization in streamlining sales, the most important department in many enterprises.
Data visualization is the process of converting large datasets into graphical format to make actionable insights more accessible to users. It reduces the time taken to identify patterns and trends and highlights outliners through different visual formats(like graphs, charts, maps, etc.). Data visualization is sometimes called information visualization, information graphics, and statistical graphics. It belongs to the data science processes and data presentation architecture (DPA).
For example, the sales analytics dashboard used by the sales and marketing teams uses data visualization to present advanced analytics in easy-to-understand reports. This helps monitor KPIs (key performance indicators) and ensure that your strategies are always aligned with the business goals. From streamlining data collection to hastening the entire process and reducing mistakes, data visualization has a crucial role in helping your business become successful.
So what are the benefits of visualization in the sales and marketing department? Let’s find out below.
The sales teams have to make quick decisions and be proactive to make the most of market opportunities. Data visualization tools provide graphical reports that help make decisions using accurate and reliable information. Since visual data is easy to comprehend, it allows teams to discuss more aspects in detail and finalize their decisions in less time.
The visualizations also allow you to understand how the reports change when you consider different variable parameters. In short, data visualization is an effective way to help businesses adopt data-driven decision-making processes.
Sales teams have to process data from various channels and applications. For example, you need customer data from CRM systems, brand mentions from the internet, lead generation data from multiple channels (email, website, social media, offline, etc.), and competitors’ market share to create and implement a robust sales strategy to boost your business.
Data visualization tools can be integrated with several data sources to create a unified interface. Your sales team can directly access the data they want by using the same tool without going through a long-winded process of asking their superiors to share the necessary information.
Data visualization reports are dynamic and provide different insights as you change the parameters. You can gain new perspectives as you analyze more visual reports. For example, the sales graph for the current month may show that you achieved more than the target. However, when the parameter is changed to six months, you may notice that the overall sales have been declining or not up to the mark.
Instead of going through pages of reports and guessing the overview picture, you can use data visualizations to present the final outcome in a clear format. Your sales team will find it convenient to use visualizations for correlations, which provide more perspectives for the given data.
The numbers in a report make no sense when taken out of context. They could mean anything, and trying to identify the relationship between the numbers and the data in the corresponding column and row headers can be stressful.
Data visualization provides an effective solution to this problem. For example, a bar graph report for sales performance will show the exact situation for the given period. The bars are not just decorations but indicators of the performance of the teams, products, and the overall business.
When you consider the above-listed benefits of data visualization, you can notice one common factor in all of them. Data visualizations save time and energy for the sales team. Sales reps don’t have to feel burdened by pages of paperwork and sheets with never ending data.
Everything is automated in the setup. The data visualization tools are connected to data sources and other applications that continuously collect, clean, store, and analyze data. You just have to run a query for the tool to generate the report in real-time.
One of the major applications of data visualization tools is to make data more interesting. Instead of sharing boring and lengthy reports, you can convert the whole thing into an interactive presentation to tell a story. A report by Accenture shows that more than 80% of the respondents thought data visualization tools were an effective means for storytelling in the business context.
Data visualizations are easy to generate and can make meetings more interesting. Some businesses are combining visualizations with VR tools to create 3D images and graphs. This increases the collaborative nature of the tool and helps the sales team present its points most engagingly.
Sales data visualization can help you with various aspects that ultimately enhance the team’s decision-making powers and increase productivity and revenue for the overall business.
This is the most important aspect of using data visualization in sales. You need to know the market trends (historical and present) and the changes in customer behavior based on different factors. Data visualization makes it easy to find these patterns by arranging complicated insights in simple graphical formats.
Data visualization brings greater clarity and transparency that helps sales leaders to make faster and better decisions. The data visualization tool keeps the sales and marketing teams connected by providing them with the latest information, reports, and updates. Moreover, employees have already access to the necessary data, so there’s no need to wait for approvals and permissions.
Measuring KPIs is necessary for the sales team to stay aligned with the goals and take corrective steps to increase revenue. Business intelligence and data visualization tools continuously monitor the KPIs and provide in-depth insights at every stage.
A study report shows that businesses that use data visualization tools have around 28% higher chances of finding more information from data compared to organizations that use only reporting tools. Visualizing data helps employees to become more productive and deliver greater performance.
Data visualization reduces the risk of misrepresentation or wrong understanding of reports. Graphs and charts are self-explanatory and don’t require high-level technical knowledge. Furthermore, it is simpler to communicate information and insights with others within and outside the enterprise using visual representations.
The market has various data visualization tools like Microsoft Power BI, Tableau, Qlik, Looker, Zoho Analytics, Klipfolio, etc. Each tool has its own set of features and functionalities. However, the best data visualization tool should have the following key features to increase its usability and significance in your business.
The data visualization tool has to be user-friendly, flexible, and scalable. It should be compatible with datasets of any volume. Your employees should find it easy to add more team members as your business grows.
Data visualization is useful when it can be integrated with other applications, software, and websites. This allows you to use the visualizations in different ways and access them from any application. Furthermore, embeddability also makes it easy to offer DaaS (data as a service) to other businesses.
Given the diversity of datasets and user requirements, the data visualization tool can be effective only when it offers extensive customization. You should have the option to choose from a long list of graphs, charts, maps, etc., and create visualizations the way you want.
Metadata management is the process of dealing with data sources, formats, and other relevant aspects. It is a vital feature that helps with correctly representing data in the dashboards and providing easy access to different datasets available in the enterprise.
The data visualization tool should allow different team members to work together on the same platform and share information with ease. Team leaders should have the option to add other team members, assign roles, and provide restricted access to work on the visualizations.
Data visualizations can be more effective when integrated with advanced AI and ML algorithms. This increases the usability of data and increases the accuracy of insights. Many BI consulting companies set up integrations between different business intelligence systems, data sources, and data visualization tools.
Self-servicing allows users to create and customize their dashboards to suit their job requirements. This reduces the workload on the IT department and analysts as they don’t have to constantly help and assist other employees.
In today’s world, employees have access to data and insights from various locations and devices. The data visualization tool has to be compatible with computers and smartphones to allow you to generate reports on the go and share them with others in real-time.
Data discovery is the process of getting more information by processing datasets to discover new patterns and correlations that aren’t previously identified. This is done by using various features like sorting, filtering, arranging, grouping data, etc.
The location intelligence feature helps identify specific data points from different regions. This is useful for sales teams as the representatives can use the performance reports to segregate markets based on revenue and shortlist regions that need more effort.
Data visualization is used by SMBs, MSMEs, and large enterprises in different verticals. Many businesses hire an offshore business intelligence consulting company to deploy and customize the data visualization tools for various departments.
Some organizations opt for stage-wise adoption and start by using data visualization in the sales department, while others prefer full-scale organization-wide implementation. Either way, you can get the best results and maximize profits by partnering with a BI consulting service provider.