Section 1.1: Identifying Chart Confusion

Often, we become so focused on the data that we overlook the essential message it is meant to convey. A typical example is quarterly reporting, where the primary aim is to illustrate how figures have changed compared to the preceding quarter. This task, seemingly simple, often results in visuals like this:

For instance, “This quarter, our sales increased by $7 million.” However, locating that $7 million increase on the graph can be quite challenging and may take longer than three seconds to discern. If it does take that long, the audience’s attention has likely waned.

The confusion arises because the data presented and the accompanying title send two conflicting messages: while the data indicates an upward trend, the title claims a $7 million increase. This disconnect can leave viewers feeling lost, as they struggle to reconcile what they hear with what they see.

Section 1.2: Resolving Data Storytelling Discrepancies

The previous example highlights a common issue known as data storytelling asymmetry: the visual representation does not align with the spoken narrative. To bridge this gap, focus solely on the data relevant to your discussion. Consider these two visuals:

Both communicate, “This quarter, our sales increased by $7 million.” However, the chart on the right distinctly illustrates that increase, aligning the data with the statement. Notably, the right-side chart omits data from previous quarters, as it is unnecessary when comparing growth between two specific periods. Reducing data clutter enhances clarity, making the information more digestible within a few seconds.

Section 2.1: Airbnb's Approach to Highlighting Big Numbers

People are naturally drawn to substantial figures, which are easier to remember and more convincing than a plethora of charts. Airbnb’s founders understood this well. When illustrating the rental market, they chose to showcase only two significant numbers:

This approach proved effective, helping them secure $600K in funding from Sequoia Capital and Y Ventures.

Section 2.2: TikTok's Innovative Chart Design

While presenting absolute numbers is relatively straightforward, visualizing relative numbers—like market segment shares—can be more complex. Take a look at this chart:

Here, while the numbers are clear, understanding what they represent requires additional mental effort. The need to reference a legend to identify segment colors breaks the connection between the chart and its data, complicating comprehension.

In contrast, TikTok effectively addresses this issue by placing user age categories directly next to their corresponding segments:

This method enhances the chart's clarity and allows viewers to quickly associate segment sizes with their labels.

Section 2.3: PayPal's Use of Dynamic Data Labels

Consider any analysis that doesn't involve tracking data changes over time—daily, monthly, or quarterly. Dynamic charts are essential for such analyses. Although there are many templates available, crafting a clear and effective chart often requires additional effort.

An example of a standard bar chart template might look like this:

However, this format often leaves questions unanswered. What was the sales growth over time? What was the monthly sales volume? The answers remain ambiguous.

In contrast, PayPal’s quarterly account growth visualization incorporates data labels directly onto each bar:

This chart presents several improvements: Each bar displays its data label, and the Y-axis values are removed to reduce clutter. Furthermore, each time period's percentage growth is calculated against the previous quarter, clarifying whether numbers have increased or decreased, and by how much. The absolute values on the bars and the percentage growth line are distinct and do not conflict, ensuring that the data is easily accessible to the audience.

In summary, here are the key takeaways from this discussion:

• Data storytelling discrepancies arise when visual representations and accompanying titles convey conflicting messages. Aim to visualize only the key figures you are discussing, as Airbnb demonstrated effectively.
• Legends can detract from the clarity of a chart by severing the connection between segments and their labels. Position segment names adjacent to their respective values to maintain visual coherence.
• When illustrating data changes over time, include both absolute values and calculated percentage changes. This practice provides clarity regarding the magnitude and direction of data shifts, indicating whether trends are increasing or decreasing and by how much.

Thank you for engaging with this article; you are now better equipped to create clear and impactful data visuals!

For further reading, explore more of my articles on data and product management:

• Product Metrics Map: What It Is and How to Build It
• How to Check Analysis Quality in 3 Steps
• How to Build a Retention Model for Your Product

Links to the presentations referenced in the article:

• Airbnb pitch deck
• TikTok pitch deck
• PayPal pitch deck

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