Why Is Data Storytelling Important and Data Storytelling Principles


With the massive volume of data available today, it’s no surprise that business executives are increasingly leveraging their ability to generate valuable insights and make wise decisions. According to a Deloitte report, firms that use data for decision-making are more likely to beat their rivals and meet their business objectives. Data storytelling is one way to obtain the most useful information. 

Data storytelling is a strong tool for presenting data in a way your audience can readily grasp. Many firms still make decisions based on instinct rather than evidence. To become a data-driven organization, you must understand what data-driven storytelling is, why data storytelling is important and how to leverage it to your favor. 

What Is Data-driven Storytelling?  

Data storytelling creatively conveys data insights to organizations and inspires customer behaviors using narratives and data visualizations. It can emotionally sway individuals, captivate prospective customers, and foster loyalty. 

Data storytelling assists organizations in gaining the trust of their audiences by combining research-backed data with real-world examples. When they come across a very relevant tale, it also assists the audience bridge the gap between the technical content and what matters to them. 

Why Is Data Storytelling so Important?  

Data storytelling is utilized for both internal and external communication. When it comes to internal communication, firms utilize data storytelling based on customer data analysis to motivate staff to enhance goods and services. Data storytelling can encourage potential consumers to purchase items or services when utilized externally. Here are some of the reasons why data storytelling is critical for businesses: 

  • Build Trust: Building client trust is not an easy undertaking for businesses. This necessitates information based on evidence that can also be conveyed in a form that is easily comprehended. 
  • Engage Audience: People can integrate data insights into their personal experiences via data storytelling. It enables users to comprehend data insights readily and creates a memorable experience. Using tales to communicate incorporates a human aspect, which adds value to the data and numbers.  
  • Offer Significance and Value: Companies can portray themselves as trustworthy by including data storytelling in their data strategy. In addition to information, valuable content can give insights that can impact decision-making and inspire customer behaviors. Providing data with relevant context adds clarity and bridges the links between facts and statistics. 

How to Tell a Story With Data? 

Let’s understand how you can tell a story with the help of data under the following headings: 

1.Data Analysis  

Because data analysis is the foundation of a compelling tale, mastering your data is an important aspect of the process. Data storytelling demands comprehensive and up-to-date data to draw insights. This is the initial stage in the process; if it is not executed properly, the intended outcomes will not be obtained. 

Having a storyline worth telling is important. Begin by proposing a question or formulating a hypothesis, then collect and analyze through necessary evidence to uncover answers. 

As you evaluate various stories, ask yourself,  

  • What am I trying to articulate? 
  • What are your objectives? 
  • Are you trying to get backing for a proposal? 

There are numerous approaches to data that can be used to reveal a narrative—and the story you set out to tell may not be the one you find. Consider utilizing the following ways to help you pick a topic and construct a framework for your narrative as you gather and evaluate your data: 

2. Look for Correlations 

What are the links you notice between the data points? Are there any intriguing or unexpected connections? These connections can serve as a captivating framework for a story. 

3. Recognize Trends 

Trends describe which way something is moving or developing. 

Is there, for example, development in a certain product or service that your company provides? Or you want to examine your web traffic trends over time—you can find that particular days or periods are busier or busier than others. 

Identifying new or growing trends in your business is critical for knowing how the business should adapt and prepare. 

4. Draw Comparisons 

Assessments and rankings can assist you in discovering intriguing relationships and understanding how and why data is related to one another. 

For instance, you can analyze open rates for two distinct email subject lines to determine which was more effective. You can then explore what makes one data set more effective and share insights.  

5. Build Your Narrative  

With your facts in hand and your target audience in mind, you can begin crafting a narrative. 


  • Who are you speaking with? 
  • What are you hoping your audience will learn or do? 
  • How are you going to utilize your facts to make your point? 

A story is more than just a description of your data. A good data story should transport your audience on an adventure. Your data narrative should follow the following fundamental formula: 

  • Context: What is the scenario? What is the reason for sharing this story? Look for a hook to pique the audience’s interest. 
  • Characters: Who are the main characters? 
  • Problem: What is the source of the problem? 
  • Solutions: What can be done to resolve the issue? Or, more specifically, what critical insights or concrete activities should we take? What will you gain? 

Tell your narrative in chronological order. Start with the context and advance from there. Start with your discoveries—they should be the most intriguing aspect of your story. Save it until the last conclusion. 

6. Data visualization 

Lastly, visuals are required for a compelling data narrative. Visuals are an effective approach to engaging and retaining your audience, especially when talking with non-technical audiences. 

Visualizing your data story improves comprehension on all levels. Data visualization storytelling enables you to simplify information, emphasize data’s importance, and explain crucial ideas swiftly. Select visuals that will help your audience comprehend and interact with the data. 

7. Know Your Data Storytelling Audience  

When creating and presenting data stories, keep your audience in mind. If the narrative you want to share is not relevant or fascinating to your target audience, it will not have the desired impact. 

As you design your narrative, understand the storytelling importance and question yourself: 

  • Who is my targeted audience? 
  • Is this story interesting to my target audience? Is it helpful in resolving an issue or providing the required insight? 
  • Have they already heard this story? 

Your audience’s age, demography, profession, and subject matter knowledge will influence how they comprehend and respond to your stories. 

For example, if you’re presenting a story to a group of engineers, you have to include additional technical information and delve deeper into the data sets. On the other hand, an audience of managers is likely to possess a wider range of professional expertise and will be seeking precise data with clear insights. 

How Does Data Make All the Difference? 

The reasons why data is so crucial in storytelling can be understood by reading the points mentioned below:  

  • Story Credibility  

Branded content assists in the formation of a connection with an audience and the development of a brand experience, but when data is included, you offer a new element: cold, solid facts that speak for themselves. This is an effective technique to demonstrate, rather than just explain, your narrative. The soft sell in branded content is about establishing your business as a quality and reliable material producer. Using data, particularly data from an unbiased third-party source, is an excellent method to demonstrate your legitimacy and develop trust—both of which can boost your profile and encourage people to absorb your content. 

  • Powerful Visualization  

You can successfully address both sides of the human brain by combining data-driven content with relevant visuals. Your statistics will complement the content, and the visuals will enhance the customer experience. 

It is critical to show insights for target consumers since it allows the data to: 

  1. Understandable: humans comprehend pictures and visuals faster than words. A graphic is simpler to comprehend than an Excel spreadsheet. Visuals combined with text bring the facts to life. 
  2. Memorable. Text is more difficult to recall than visually portrayed information. 
  3. Attractive. Humans are stimulated by visual content, which makes it more intriguing and appealing. 
  • Improves versatility  

The data you collect can help you create various sorts of content to assist your audience in better comprehending the data. Aside from data-driven articles, you can create: 

  1. Brochures: An amazing technique to get closer to your target clients while also displaying your statistics. 
  2. Case studies: A case study is synonymous with research and development. And research entails gathering information. A lot of information! Case studies are one of the most effective forms of material for guiding the reader through the process of gathering and interpreting data. 
  3. Infographics: The simplest approach to processing information. Infographics are excellent data-driven content recommendations for your viewers. 
  4. Video content: Everyone enjoys watching videos! Especially if it makes numbers easier to grasp. 
  • Enhances productive engagement  

Stories are more than just show-and-tell gatherings with an audience. When done well, data storytelling touches your audience’s brains, letting them connect to and comprehend the facts based on their own life experiences and unique perspectives. It compels individuals to think, explore facts, and pursue research to satiate their curiosity, resulting in a more captivated and attentive audience and an unbelievable experience. 


Data storytelling is transforming the way we retain information. Data storytelling can be adopted in any business and professionals in every department to boost the significance of their data. Be truthful and honest while creating your storytelling, understand data storytelling principles and your targeted audience, and integrate problems to infuse suspense into your narrative and raise the drama. People remember narratives, not numbers. Offer them insights in the form of stories to transform your data and facts into an effective communication resource. 

Now you can make your future bright in a data-driven era by completing PG Certificate Program in Product Management from UNext Jigsaw, a data-driven storytelling course, and learning and gaining industry-recognized expertise in this demanding field.  

Related Articles

Please wait while your application is being created.
Request Callback