When the term “data analysis” comes to mind, what does it conjure? You might envision delving into spreadsheets, deploying algorithms, and conducting intricate mathematical computations — the “hard skills” of data analysis. However, these technical abilities remain incomplete without their softer counterparts. Mere data analysis won’t suffice; one must possess the skill of articulating the story hidden within data in a lucid and compelling manner. This skill is known as data narration.
The Bureau of Labor Statistics predicts a 25% surge in demand for research analysts between 2020 and 2030, outpacing most industries. Numerous companies now mandate data storytelling as a prerequisite skill in their analyst job descriptions. Some have even begun hiring specifically for data storyteller roles to enhance their analytical teams. Having the capacity to both scrutinize data and convey its revelations can set you apart as a versatile candidate.
Here, we provide an overview of the fundamental aspects of data narration, the potency of storytelling as a communication tool, and guidance on crafting an engaging data narrative.
What Constitutes Data Narration?
Data narration is the art of conveying insights from a dataset using narratives and visual representations. It serves to contextualize data insights and inspire action among your audience.
Data narration comprises three essential elements:
- 1. Data: A robust foundation of your data narrative stems from thorough analysis of accurate and comprehensive data. Employing descriptive, diagnostic, predictive, and prescriptive analyses can grant you a comprehensive understanding of the data’s complete picture.
- 2. Narrative: The oral or written narrative, often referred to as a storyline, serves as the vehicle for conveying insights extracted from data, the context that surrounds it, and the actions you propose to instigate among your audience.
- 3. Visualizations: Visual depictions of your data and narrative can be invaluable for clearly and memorably conveying its story. These may encompass charts, graphs, diagrams, images, or videos.
Data narration can be applied both internally (for instance, advocating for product enhancements based on user data) and externally (for instance, constructing a compelling case for potential customers to purchase your product).
The Psychological Influence of Storytelling
Humans have employed storytelling as a means of communication since the Cro-Magnon era, a practice rooted in survival and the preservation of daily life accounts. While storytelling techniques have evolved considerably since the days of cave paintings, its psychological influence remains profound, even tens of thousands of years later.
The human brain exhibits a preference for stories over raw data. This preference arises from the brain’s constant intake of vast amounts of information daily, necessitating the determination of what is significant enough to process, remember, and what can be disregarded.
When a person engages with a story, various parts of the brain come into play, including:
- Wernicke’s area, which manages language comprehension.
- The amygdala, responsible for processing emotional responses
- Mirror neurons, which facilitates empathy towards others.
When multiple brain regions are engaged, the hippocampus, responsible for storing short-term memories, is more inclined to transform the story into a lasting memory.
Instead of presenting your team with a spreadsheet filled with data and a stream of numbers, consider ways to stimulate multiple facets of their brains. Data narration allows you to elicit a neural-level emotional response, aiding in the retention and action upon your points.
How to Craft a Compelling Data Narrative
Data narration incorporates the same narrative components as any story you’ve encountered: characters, setting, conflict, and resolution.
To illustrate this, envision yourself as a data analyst who has just unearthed a concerning trend: your company’s recent sales decline is attributable to customers aged 14 to 23, regardless of gender. Further analysis reveals that a viral social media post, highlighting your company’s negative environmental impact, instigated the downturn. You craft a narrative employing the following story elements:
- Characters: The cast includes customers aged 14 to 23, environmentally conscious consumers, and your internal team. While this doesn’t need to be explicitly presented, it’s essential to define these key players for yourself beforehand.
- Setting: Begin by explaining the recent sales dip among customers aged 14 to 23. Utilize data visualizations to illustrate the decline across different audience segments, emphasizing the steepest drop among young users.
- Conflict: Delve into the core issue: a viral social media post highlighting your company’s environmental impact has led tens of thousands of young customers to cease using your product. Incorporate supporting research which underscores the growing environmental consciousness of consumers and the potential for sustainable marketing to boost revenue. Remind your team of your company’s unsustainable manufacturing practices to clarify the cause behind the customer exodus. Visual aids should be utilized in this section as well.
- Resolution: Present your solution. Based on this data, propose a long-term plan to shift toward sustainable manufacturing practices. Center your marketing and public relations efforts on making this transition evident to all audience segments. Employ visualizations that demonstrate the investment in sustainable manufacturing can yield increased patronage from the burgeoning environmentally conscious market segment.
If your data story lacks conflict, for instance, if the data showcases that your current marketing campaign is driving traffic and surpassing objectives, you can bypass that element and directly recommend maintaining the current course of action.
Irrespective of the data’s story, you can effectively communicate it by structuring your narrative around these elements and guiding your audience through each facet with the assistance of visual aids.
Communicating the Imperative for Action
Data narration empowers the transformation of data insights into action. Without effective communication, these insights risk going unnoticed or fading from memory. Both hard and soft skills are essential to harnessing data’s full potential.
It is important to recognize that the application of analytical methods to managerial problems requires a combination of artistic and scientific elements. Mastering soft skills has proven to be the most demanding task, despite their absolute necessity.