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The right types of charts and graphs are capable of helping business owners in multiple ways, ensuring that everything is running smoothly. In addition, they help the business stakeholders, team members, and customers to understand complex data insights by presenting them in a manner that is easy to interpret.
Remember that 50% of the human brain is visually active. This means using charts is the best way to persuade your customers to purchase your products.
There are multiple types of graphs and charts in business that the business owner can acquire and use during data presentation. However, the main challenge comes in choosing the best chart and using it in data processing and presentation. The reality is that the type of chart you choose to use mainly depends on the purpose and the kind of message that you intend to communicate.
Charts play a crucial role in data insights to present complex data sets in a way that the business audience can understand. Even though there are many types of graphs that business owners can use, it’s essential to choose some of the most common models that many people can understand.
Since most business owners experience challenges when choosing charts and how to use them, this article compiles a comprehensive list of both popular and lesser-known types of charts and graphs for data insights.
In this blog, you will learn,
A chart or graph is a graphical presentation of complex information. In most cases, charts are mainly focused on numeric data, while others are strictly on conceptual models. Regardless of the chart model used, each one is designed to help readers easily interpret and understand the presented information, much like a funnel chart.
Since charts like dot plots are visual, they are easy for the reader to remember, thus suitable for delivering information.
This is why it’s essential to choose the right type of Chart and Graph for business to enable you to attain your goals in business.
It can be quite cumbersome and challenging to understand complex data sets, especially when comparing them. Consider how much simpler it is to present a data trend visually to an audience.
Charts and graphs, including Area charts, come in handy to present the data in an obvious way and facilitate analysis. They are particularly useful for presenting data trends visually, and facilitating clearer communication during reports, sales presentations, and team meetings.
This form of visual communication is a crucial aspect of data storytelling, which helps to convey the narrative behind the data effectively. So how do you use charts and graphs? Well, we have compiled a list of 11 best different types of graphs and charts to guide you.
The Sankey Chart below illustrates a flow of funds.
This chart simply and understandably depicts the flow. That means you can understand the flow without looking at the actual figures. Graphs and charts are standard in yearly reports, sales presentations, and team meetings. They help convey information to the reader in a clear, simple, and easy-to-remember manner.
Discover more below if you are still wondering which type of graphs and charts you should use for data examination.
We will discuss the different types of business graphs and charts examples and how businesses can use them in their daily operations.
Due to the increase in the volume of data and the need for data analysis to gain actionable insights, the variety and number of charts are expanding daily. We encounter many innovative charts that present data in unique ways.
Among these, Mekko charts have gained popularity for visualizing complex data sets. Let’s discuss the basic types of charts and graphs, including the use of Mekko charts.
Just like the name suggests, a Sankey Chart is used to present the flow of processes within a business.
This chart type usually has a series of turning points and paths that display how a particular process changes from one point to another. Also, it can be used to display decisions, information, and action changes within an interaction process.
You don’t need to possess any technical skills to understand a Sankey Chart. The chart outlines data in a simple way that is straight to the point depending on what is being displayed.
This chart draws the reader’s attention to the enormous flows, the largest consumer, the major losses, and other insights. Besides, Sankey uses links and nodes to uncover hidden insights into relationships between critical metrics.
The size of a node is directly proportional to the quantity of the data point under review. A flow that’s twice as wide represents double the value of the metric. Utilizing a chart maker ensures that these visual elements are accurately represented, enhancing data interpretation.
A Likert Scale is an ordinal scale usually used to measure attitudes, knowledge, perceptions, values, and behavioral changes. To present this information graphically we use the Likert Scale Chart.
A Scatter Plot is used to showcase a comparison between two numbers or variables outlined on a chart’s axis. In this case, the data points do not form a line like a chart. This is because the relationship in the numbers is varied in nature.
If you have complex data at your disposal that you would like to analyze and understand more about its relationship, you can use a scatter chart to help you get the job done.
For instance, business owners can use scatter charts to display the relationship between sales and revenue collection and the type of customers who contribute to the revenue collected by the business.
Understanding this type of data offers the business stakeholders a chance to work on other strategies that will attract more customers in the long run, contributing to the business’s continued growth.
A Comparison Chart is a visualization design that uses composite-colored bars to show comparison insights in a specified period. The graph is ideal if your goal is to compare more than two key data points.
A Waterfall Chart is a variation of a bar graph that shows how an initial value changes due to other factors over time. It is also known as a Bridge Chart in finance, or a floating brick chart.
The purpose of a Bridge Chart is to show a before and after picture of your data. It depicts each step in the journey and shows which factors help or hurt the progression.
Knowing the ins and outs of Bridge Charts enables you to use this visualization for your data effectively.
A Radar Chart with different scales (also known as a Dual Axis Radar Graph) is a two-dimensional visualization design you can use to display insights into two different metrics in your data.
A Radar Chart is very versatile and can be used in many situations.
Think of the Gauge Chart as your personal speedometer to evaluate the speed of your growth and performance.
It shows your results along a curved bar, quickly visualizing where your performance is at and where it could be. With this knowledge, you’ll be more than ready to elevate your results to the next level.
The value of the Gauge Chart can’t be overstated. It holds many benefits that you and your team will love when it comes to data storytelling and visual analysis.
A Pareto Chart is one of the creative data visualization examples that empowers you to categorize occurrences based on their impact on a common strategic goal or objective.
This data visualization aims to categorize key variables in your data based on their frequency of occurrence.
A line chart, also known as a line graph, is one of the most common types of charts that are essential in specific scenarios in data processing. This chart is good at showcasing how the changes that appear in one number are closely related to the changes in another.
If you want to communicate to your market audience or team members about how numbers have changed over a particular time frame, the line chart has your back covered. You can also use this chart as an exponential growth chart.
For instance, you can use a line chart to depict how the business revenue has changed from one figure to another within a specific duration. Also, you can use it to evaluate how the customer satisfaction rate has changed from one year to another.
You can use a Line Chart for conducting trend analysis in Excel. When you visualize the business data using a line chart, you can easily spot trends and patterns essential in decision-making and making predictions regarding the future of the business.
If you are dealing with continuous data, a line chart, such as a Slop Chart, can help you analyze the data and generate insights and an easy-to-read data report. This chart type allows you to analyze any kind of data that falls in your way.
The above variations of line charts can be used in your analysis depending upon data type.
The bar chart is a common type used in different scenarios across the business industry. The main reason why a bar chart is common is that it’s easy to create, read, and understand without the need for interpretation. This is the best choice, especially when dealing with numeric or quantitative data.
Business owners can use bar charts to compare the difference between values or sums of money, especially when creating data reports. The bar chart explains the total number of customers, revenue, and sales, among other essential items within the business.
In addition, this chart is more versatile, giving you advanced room for data processing and presentation.
At some point, you may come up with a bar chart that looks like vertical columns while sometimes they take a horizontal shape. When a business needs to display multiple comparisons, they have the freedom to use multiple bar graphs or a Tornado chart to ensure that all its needs are catered for.
Anytime you realize that you doubt certain data elements, you need to consider using a bar chart to clean up the doubts, giving you enough flexibility to work comfortably.
There are many variations of bar charts that you can use in your analysis e.g.
Sunburst Chart displays hierarchy in your raw data. This chart displays hierarchy insights through a series of concentric rings.
Each ring in the chart, often referred to as a Circular Chart, corresponds to a level in the hierarchy. Besides, each ring in the Sunburst Chart is segmented proportionally to represent its constituent details.
Focusing on a segment in the ring gives a sense of the part-to-whole relationship of a data point concerning its parent ring segment.
Both Sunburst and Treemaps Charts are ideal for uncovering hierarchical insights in your data. However, the Sunburst Chart is most effective at showing how one ring is broken into its contributing pieces. On the other hand, a Treemap chart is ideal for comparing the relative sizes of the key metrics in your data.
The chart simplifies bulky and complex data sets into quartiles and averages. Also, you can use the chart to pinpoint outliers in your data.
After discussing 12 different types of charts in detail with examples and use cases, here are some other charts and graphs types commonly used in various fields based on the type of data.
This section will use a Scatter Plot in Excel to display insights into the tabular data below.
| Products | Category | Sales | No. of Orders | In Stock |
| Primer | Cosmetic | 114 | 40 | 35 |
| Lipstick | Cosmetic | 178 | 16 | 18 |
| Blush | Cosmetic | 220 | 35 | 23 |
| Moisturizer | Cosmetic | 101 | 18 | 26 |
| Perfume | Cosmetic | 154 | 40 | 19 |
| Contour | Cosmetic | 68 | 38 | 17 |
| Makeup Remover | Cosmetic | 93 | 24 | 37 |
| Nail Polish | Cosmetic | 159 | 28 | 29 |
| Mixer | Electronics | 276 | 21 | 24 |
| Coffee Maker | Electronics | 216 | 40 | 26 |
| Kitchen Hood | Electronics | 388 | 31 | 30 |
| Vacuum Cleaner | Electronics | 274 | 40 | 33 |
| Washing Machine | Electronics | 331 | 23 | 23 |
| Microwave | Electronics | 383 | 17 | 22 |
| Toaster | Electronics | 327 | 15 | 17 |
| Blender | Electronics | 215 | 31 | 31 |
| Gear Lever | Car Parts | 389 | 37 | 27 |
| Hood | Car Parts | 234 | 27 | 28 |
| Trunk | Car Parts | 202 | 28 | 27 |
| Taillights | Car Parts | 260 | 35 | 32 |
| Battery | Car Parts | 158 | 35 | 30 |
| Muffler | Car Parts | 150 | 20 | 33 |
| Radiator | Car Parts | 176 | 12 | 22 |
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Popular chart types include Line Charts, Bar Charts, Sunburst Charts, Scatter Plots, and Sankey Charts. Charts are a great approach to display data insights.
Business graphs are tools for visual data analysis. Due to the ease with which patterns and relationships may sometimes be seen on the chart or graph, they can greatly simplify the process of comparing different sets of data. Additionally, they aid in presenting the information to the audience in a style that will stick in their minds.
When you present business data to your audience in the form of different charts and graphs, it takes an average of 13 milliseconds to process a single chart. As a result, this saves most of their time, and they understand the information displayed and can easily take action depending on your bottom line.
However, you must ensure that you choose the right type of chart and graph that aligns with the nature of your data and attracts your audience’s attention. This will increase your chances of delivering the intended message in real-time.
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