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Home > Blog > Digital Marketing > Data Visualization >

What is the Purpose of a Graph in Data Stories?

You’ll agree we interpret visual content faster than words and numbers.

Scientific researches show that our brains interpret visual content, such as charts, graphs, and maps, 60,000 times faster than texts and figures.

what is the purpose of a graph?

Visualization charts play a critical role in today’s businesses by empowering data-backed decisions and providing insights for continuous improvement.

You need charts and graphs for your data story to be credible and compelling. Besides, you need tools to help you access charts.

Excel is arguably among the most-used data visualization tools. It has been there for a long time and is familiar to many. But to generate readymade graphs for your data stories, you’ve got to think beyond the Excel spreadsheet.

Why?

The spreadsheet tool produces very basic charts that require extra time and effort to edit. However, you don’t have to do away with Excel. You can transform it into a reliable data visualization tool by installing third-party applications (add-ins).

In this blog, you’ll learn:

  • What is the Purpose of a Graph in Data Narratives?
  • How to Install ChartExpo in Excel?

What is the Purpose of a Graph in Data Narratives?

Before we delve right into the meaty part of the blog post, let go through a couple of definitions.

What is a Graph?

Graphs are used to illustrate relationships in your data visually. The importance of graphs and charts, especially during data analysis, cannot be ignored.

Visualization graphs act as the bridge between raw data and insights. You can use them to display relationships, trends, and outliers that exist in your data.

When was the Graph First Used?

The first graph is attributed to the 19th-century Englishman James Sylvester, one of the pioneer mathematicians interested in visualization.

What do Graphs Tell Us?

Graphs are visual representations used to display patterns, trends, and relationships of key metrics in raw data. A graph shows this information by representing it as a shape.

Top 6 Categories of Charts and Graphs for Your Data Stories

There’re 6 main categories of visualization designs you can use for your data stories, namely:

  • Sankey Chart
  • Sentiment Analysis Charts
  • Comparative Analysis Charts
  • Specialized Survey Charts
  • General Analysis Charts
  • Pareto Charts

In the coming sections, we’ll use a chart from mentioned categories (above) in examples.

Which Tool Provides You With All The 6 Categories Of Charts And Graphs?

What is the purpose of a graph? To address the aforementioned questions, you also have to think about tools.

Yes, you read that right.

You cannot separate graphs from tools. You need an intuitive tool that’s loaded with ready-made charts. Excel is not the tool we’re talking about in this context.

Why?

Excel comes with pretty basic charts and graphs, which require additional time to edit. Besides, its library has a limited number of charts, graphs, and maps.  In today’s business landscape, the importance of graphs and charts cannot be stressed enough. You need a tool that can help you harness insights into your data efficiently and faster.

Here’s the deal.

You can transform your Excel into a visualization juggernaut by installing add-ins.

The add-in we’ve tested rigorously and recommend to you is ChartExpo.

ChartExpo is a cloud-hosted add-in that transforms your Excel spreadsheet app into a highly responsive data visualization tool.

What is the purpose of a graph? ChartExpo answers the aforementioned question by providing you with unlimited access to ready-made and visually appealing charts for your data stories.

what is the purpose of a graph?what is the purpose of a graph?

How to Install ChartExpo in Excel?

You can follow the guide on ChartExpo for Excel add-In for installation purpose. Once it is installed successfully you can find the add-in in Excel by going to insert menu and click on My Apps.

what is the purpose of a graph?

You will find below screen and you can click select the ChartExpo and click on Insert.

what is the purpose of a graph?

If you are not already logged-in, it may ask you for the log-in for the first time. Otherwise you will be able to see the list of charts as shown below.

what is the purpose of a graph?

Example #1 Sankey Chart

In this example, we’ll use Sankey Chart to visualize the tabular data below.

IncomeBudgetExpense MeanSpent OnSpending
SimonBudgetBudget ExpensesAuto Charity100
SimonBudgetBudget ExpensesMortgages on 2 Houses2,250
SimonBudgetBudget ExpensesDining Out and Groceries1,358
SimonBudgetBudget ExpensesProperty Taxes 2 Houses1,010
SimonBudgetBudget ExpensesUtilities & House Cleaning952
His WifeBudgetBudget ExpensesParking and Car Expenses689
His WifeBudgetBudget ExpensesLife Ins and Child Care491
His WifeBudgetBudget ExpensesInsurance Life and House304
His WifeBudgetAccountLeftover3,800
His WifeBudgetSaving and RetirementDividend Reinvestment500
PassiveBudgetSaving and RetirementAutomatic Cash Savings1,900
PassiveBudgetSaving and RetirementRetirement1,911
PassiveBudgetSaving and RetirementHSA360
PassiveBudgetSaving and RetirementDeferred Compensation300
PassiveBudgetSaving and RetirementI-Bond100
  • You can copy the above table into Excel sheet and then from the ChartExpo add-in you can find Sankey Chart.
what is the purpose of a graph?
  • Select al the columns and rows in sheet which is holding the data and then click on Create Chart From Selection.
what is the purpose of a graph?
  • You can change the chart properties to add header and properties and can have the final look as shown below.
what is the purpose of a graph?

Insights

  • Simon accounts for 37% of the aggregate monthly income, while his wife accounts for 38%.
  • Conversely, passive income accounts for 25% of the total monthly cash generated by the couple.
  • Expenses take a whopping 47% of the income earned by the couple.

Example #2: Sentiment Analysis Charts Category

In this example, we’ll use the Sentiment Trend Chart (which belongs to the Sentiment Trend Chart category) to visualize the data set below.

So here we go.

MonthPositive CountNegative Count
Jan3000500
Feb45001200
Mar55711624
Apr40591545
May46551876
Jun43662173
Jul44171698
Aug38631321
Sep2600200
Oct33001200
Nov4200677
Dec4500800
  • Paste this data into Excel and find Sentiment Trend Chart in the list and click on it.
what is the purpose of a graph?

You can now select all the columns and rows from the sheets in which data is present and click on Create Chart From Selection.

what is the purpose of a graph?

Check out the final Sentiment Trend Chart as shown below:

what is the purpose of a graph?

Insights:

  • August has the lowest positive sentiment. On the other hand, March has the highest positive sentiment.

What is the purpose of a graph? Continue reading to get in-depth information about the importance of graphs and charts in your data stories.

what is the purpose of a graph?what is the purpose of a graph?

Example #3: Comparative Analysis Charts Category

In this example, we’ll use the Comparison Bar Chart (which belongs to Comparative Analysis Charts Category) to visualize the data set below.

So here we go.

YearStore ItemsSales Order
2018K2 Southern Style Sauce700
2018Turkish Taffy Vanilla500
2018Turkish Taffy Strawberry380
2018Jimmie Stix600
2018Root Beer Barrels Candy600
2018Maple Beef Jerky400
2018Zachary Mello Crème Candy Corn800
2018Goetze’s Caramel Cream800
2018Rada Cutlery Popcorn on the cob600
2018Burning Asphalt Bourbon Beacon Ketchup400
2018Classic Country Gravy Mix380
2018Tuttorosso Marinara Pasta Sauce800
2018Tuttorosso Marinara Pasta Sauce Tomato400
2018Tuttorosso Marinara Traditional Sauce700
2019K2 Southern Style Sauce370
2019Turkish Taffy Vanilla350
2019Turkish Taffy Strawberry450
2019Jimmie Stix350
2019Root Beer Barrels Candy800
2019Maple Beef Jerky400
2019Zachary Mello Crème Candy Corn650
2019Goetze’s Caramel Cream550
2019Rada Cutlery Popcorn on the cob700
2019Burning Asphalt Bourbon Beacon Ketchup350
2019Classic Country Gravy Mix500
2019Tuttorosso Marinara Pasta Sauce700
2019Tuttorosso Marinara Pasta Sauce Tomato450
2019Tuttorosso Marinara Traditional Sauce500
2020K2 Southern Style Sauce700
2020Turkish Taffy Vanilla370
2020Turkish Taffy Strawberry550
2020Jimmie Stix380
2020Root Beer Barrels Candy360
2020Maple Beef Jerky500
2020Zachary Mello Crème Candy Corn700
2020Goetze’s Caramel Cream600
2020Rada Cutlery Popcorn on the cob350
2020Burning Asphalt Bourbon Beacon Ketchup450
2020Classic Country Gravy Mix600
2020Tuttorosso Marinara Pasta Sauce600
2020Tuttorosso Marinara Pasta Sauce Tomato500
2020Tuttorosso Marinara Traditional Sauce360
  • Import the tabular data (above) into your Excel spreadsheet to get started with Comparison Bar Charts by finding it from the list as shown below.
what is the purpose of a graph?

You can select the data in the sheet and click on Create Chart From Selection.

what is the purpose of a graph?
  • Check out the final Sankey Chart.
what is the purpose of a graph?

Insights

  • The most popular orders in 2018-20 were: Goetze Caramel Cream (10%), Root Beer Barrels Candy (11%), and K2 southern style sauce (10%).
  • Conversely, the worst-selling menus were: Turkish Taffy strawberry, Turkish Taffy vanilla, and Rada Cutlery.

Example #4: Specialized Survey Charts Category

In this example, we’ll use the 5-point Likert Chart (which belongs to Specialized Survey Charts Category) to visualize the data set below.

1 = Strongly Disagree

2 = Disagree

3 = Neutral

4 = Agree

5 = Strongly Agree

QuestionsScaleResponses
How do you rate our cleaning staff’s behavior?135
How do you rate our cleaning staff’s behavior?2100
How do you rate our cleaning staff’s behavior?3146
How do you rate our cleaning staff’s behavior?445
How do you rate our cleaning staff’s behavior?5193
How do you rate our cleaning services?1180
How do you rate our cleaning services?2204
How do you rate our cleaning services?3129
How do you rate our cleaning services?4193
How do you rate our cleaning services?5134
Will you recommend our services in your circle?1150
Will you recommend our services in your circle?25
Will you recommend our services in your circle?3105
Will you recommend our services in your circle?43
Will you recommend our services in your circle?5253
  • To get started with the Likert Chart, export the data (above) into Excel and find the chart in the list to continue.
what is the purpose of a graph?
  • Follow the steps we highlighted earlier to visualize your data in Excel using ChartExpo.
what is the purpose of a graph?

You can now select the data in the sheet and click on Create Chart From Selection.

what is the purpose of a graph?

You can have the final look as shown below by changing some properties of the charts.

what is the purpose of a graph?

What is the purpose of a graph? Continue reading to get in-depth information about the importance of graphs and charts in your data stories.

Example #4: General Analysis Charts Category

In this example, we’ll use the Grouped Bar Chart (which belongs to General Analysis Charts Category) to visualize the data set below.

BrandCaliforniaNew YorkChicago
Adidas4,5003,5003,000
Nike3,0002,0004,000
Tesco3,5002,5003,000
lucky brand2,0003,5002,500
Calvin Klein3,0002,0003,500
DIESEL2,0003,0003,500
DOCKERS3,0002,5002,000
George2,5003,0003,500
SANMAR3,0002,5003,500
  • Export the data set (above) into your Excel to get started with Grouped Bar Charts.
what is the purpose of a graph?

You can select the data from the sheet and click on Create Chart From Selection.

what is the purpose of a graph?
  • Check out the final Grouped Bar Chart (below).
what is the purpose of a graph?

Insights

  • Adidas is the most popular brand in California.
  • Nike is the best-selling brand in Chicago
  • Lucky and Adidas tie as the best-performing brands in New York.
what is the purpose of a graph?what is the purpose of a graph?

Example #6: Pareto Bar Chart

In this example, we’ll use the Pareto Bar Chart (which belongs to the Pay-per-click Charts category) to visualize the data set below.

CityCurrent Period SalesPrevious Period Sales
New York610650
Chicago550545
San Francisco445389
Los Angeles572533
Seattle153185
Boston188143
Phoenix497485
Atlanta265180
Philadelphia489460
Miami487367
Dallas86
Houston74
St Louis74
Columbus11
Fresno63
Mesa22
Oakland31
San Antonio12
San Diego11
  •  Paste the data (above) into your Excel and find the Pareto Bar Chart.
what is the purpose of a graph?

Select the data and click on Create Chart From Selection.

what is the purpose of a graph?

 

You will have a final look as shown below.

what is the purpose of a graph?

Insights:

New York, Los Angeles, Chicago, Phoenix, Philadelphia, and Miami cities accounts for 80% of the aggregate sales values in the USA.

What is the purpose of a graph? The aforementioned question is what the blog has just addressed.

FAQs:

Why is data visualization important?

Data visualization can help you to tell stories by transforming data into a form that’s easier to understand. A good visualization strategy should enable you to tell a story compellingly.

It acts as the bridge between raw data and insights by displaying relationships and trends in your data.

Why is it important to use graphs to visually represent data?

The purpose of a graph is to separate key insights from noise in your data using abstract images.

Our brains can interpret visual content over 60,000 times faster than texts and numbers. By using charts and graphs in your data story, you can easily influence the decisions of your target audiences (or readers).

Wrap Up

What is the purpose of a graph?

The key purpose of charts and graphs is to appeal to the emotions of the target audience. Like we said, our brains have a knack for interpreting visual information faster than words and numbers.

If you’re a business person or professional, chances are you already know the importance of graphs and charts. But do you leverage them fully to get the most from your data?

What tools are you using to extract insights into your data?

If your use Excel full-time, you’re really missing big. The spreadsheet application has basic charts, which require more time and effort to customize. Essentially, you cannot find ready-made graphs and charts in the spreadsheet application.

To harness your raw data 100%, download and install add-ins in your Excel.

One of the proven and tested data visualization add-in for Excel is ChartExpo.

ChartExpo with over 50 graphs ready-made and visually appealing charts to get you started in data storytelling. It’s trusted by thousands of professionals and business owners worldwide.

Besides, it has a super-friendly user interface (UI), which means you don’t need coding or programming skills to visualize your data.

Sign up for a 7-day free trial today to harness your raw data fully for actionable answers.

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