Combining data analysis with narrative helps organisations communicate complex insight to non-technical audiences — the difference between data that informs and data that drives action.
Storytelling is one of the oldest forms of communication. Today, storytelling with data illustrates complex concepts in an easy-to-understand way. Consider the scale of data: over 90% of all the data in the world was created in the past two years, yet less than 0.5% of all data created is ever analysed and used — and bad data costs businesses more than $600 billion annually.
From startups to established enterprises, organisations collect, store and analyse more data than ever. The challenge lies in extracting value and communicating those insights to clients who often lack technical data-science expertise. Without combining insight with a story that conveys significance, you can't provide much value to users. Data storytelling is a crucial skill for any company seeking to increase transparency and improve communication.
What is data storytelling?
Data storytelling analyses raw data and conveys its significance to the audience through three elements. Data — accurate, reliable data pulled from multiple sources and cleansed, then analysed with statistics and algorithms. Translate — visualisation (graphs, charts, visual elements) to uncover and communicate trends, patterns and outliers missed in spreadsheets. Transform — narrative alongside insight and visualisation, demonstrating what is happening and why, and how you intend to make the data actionable.
Six methods for including data storytelling
Find the most important data points first. Create an accompanying narrative for those data points. Use charts and images to clarify the data. Use images and videos to illustrate your points beyond charts. Create a headline that captures the essence of your data-driven narrative. And summarise with key insights so clients remember the most crucial points.
By telling data-driven stories, you demonstrate not only what is happening with your company and why, but also provide a clean, direct way to convey your message — without requiring further analysis from your audience.
