Data visualization can play a pivotal role in helping businesses improve their sales goals and budgeting while expanding and better planning sales territories.
With companies increasing their amount of data each year, data visualization makes sense to help organize and analyze data for meaningful value. Additionally, data visualization aids in real-time monitoring, for time-sensitive cases.
Five ways businesses benefit from data visualization are:
1. Easier Data Absorption
Many businesses grow in size over time, resulting in data-related increases that require a more sophisticated form of management. Data visualization helps to understand information that greatly impacts business operations, giving decision-makers a variety of different visual datasets for them to analyze.
Using bullet charts, heat maps, sales territory mapping and other graphical representations of data, they can more accurately gauge connections between variables and performance.
An Aberdeen Group survey found that managers who use data visualization to discover useful correlations are 28 percent more likely to find useful data, compared to those who use reporting and managed dashboards. Data visualization provides immensely useful ways to find the information you're looking for, more quickly and with additional insight than traditional data monitoring methods.
2. Greater Insight Into Operational Correlations
Data visualization helps monitor day-to-day tasks and their impact on overall performance. A business that incorporates data visualization into its analysis can pinpoint fluctuations in performance metrics, like monthly sales or number of active users, and help gauge which operational change impacted the performance metric.
Additionally, data visualization lets you look easily at past data, to compare current performance with relevant results from the past. By helping utilize data in the past and present, data visualization can aid in predicting future success or failure based on current operations.
3. Better Planning of Sales Territories
Data visualization can help you better plan sales territories, with territory alignment tools and drive time analysis providing customer data that can expand a business's reach. It's especially important that data visualization can help you account for drive time, since it defines coverage areas of salespeople that are traveling. Data visualization can help assign drive time areas, limiting wasteful travel time and helping assign employees to their optimal area based on experience and familiarity.
Data visualization helps businesses budget better regarding drive time, as well as using geographical customer data and emerging trends to identify promising and underperforming areas.
4. Quicker Identification of Emerging Trends
Market and customer data can be visualized to help identify emerging trends that can boost business performance. The sheer amount of data can be massive if sorting through it manually, though visualization helps decision-makers identify shifts in market conditions or customer behavior without spending ample time going through irrelevant data.
For example, a local store can use data visualization to gauge which products sell well and which do not, helping to identify potential items to put on sale to move inventory.
5. More Direct Data Interaction
Data visualization helps bring actionable insights to life. Previously, businesses would use tables and charts without any customization whatsoever. Today, data visualization allows you to set your metrics and interact directly with the data.
For example, a business can see from a table or chart that sales on a particular item are down for the month.
However, they will need data visualization to determine why exactly those sales are down. While using various mapping capabilities within data visualization tools, the answer could range from a competitor offering a discount to the product to market movement toward a similar product.
Compared to more traditional data analysis methods, the ability to directly interact and customize provided data makes data visualization an essential tool for any growing business.
Image via Lukas
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