Best Excel Charts Types for Data Analysis, Presentation and Reporting
Table of Contents
- The importance of data visualization
- The anatomy of an Excel chart
- Most common data types
- When to use a clustered column chart
- Breaking a clustered column chart
- When to use a combination chart
- When to use a stacked column chart
- When to use a 100% stacked column chart
- When to use a bar chart
- When to use a line chart
- When to use a number chart
- When to use a gauge chart
- When to use a scatter chart
- When to use a pie chart
- When to use a stacked area chart
- When to use a histogram
- When to use a Venn diagram
- When to use an ‘actual vs. target’ chart
- When to use a bullet chart
- When to use a funnel chart
- Charts to avoid for reporting purposes
- Best practices for designing column and line charts
In this article I will show you how to select the best Excel Charts for Data Analysis, Presentation and Reporting within 15 minutes. You will learn about the various excel charts types from column charts, bar charts, line charts, pie charts to stacked area charts.
The importance of data visualization
Data visualization is the presentation of data (both qualitative and quantitative data) in graphical format.
Through data visualization you can easily:
- Visualize data (make sense of data, especially big data)
- Classify and categorize data
- Find a relationship among data
- Understand the composition of data
- Understand the distribution of data
- Understand the overlapping of data
- Determine patterns and trends
- Detect outliers and other anomalies in data
- Predict future trends
- Tell meaningful and engaging stories to decision-makers
Data presentation is a very important skill for an optimizer (marketer, analyst). In fact, it is so valuable that LinkedIn lists it as one of the top skills that can get you hired.
Excel charts are commonly used for data visualization and presentation. But selecting the right excel chart is always a challenge.
If you use an incorrect Excel chart for your analysis, you may misinterpret data and make the wrong business and marketing decisions. If you use an incorrect Excel chart for your presentation, then stakeholders may misinterpret your charts and take wrong decisions. Therefore selecting the right Excel chart is critically important.
The anatomy of an Excel chart
In order to read an Excel chart, it is important that you understand the various components of the chart. Consider the following data table in Excel:
This data table has got five variables: ‘Month’, ‘Sales’, ‘Cost’, ‘Profit’ and ‘ROI’:
This data table is made up of categories and data series:
Categories – Here the first category is ‘Jan’, the second category is ‘Feb’, the third category is ‘Mar’ and so on.
Data series – A data series is a set of related data points.
Data point – Data point represents an individual unit of data. 10, 20, 30, 40, etc are examples of data points. In the context of charts, a data point represents a mark on a chart:
Consider the following excel chart which is made from the data table mentioned earlier:
This chart is made up of the following chart elements:
- Primary Horizontal Axis:
- Primary Vertical Axis
- Secondary Vertical Axis
- Primary Horizontal Axis Title
- Primary Vertical Axis Title
- Secondary Vertical Axis Title
- Chart Title
- Data Labels
- Gridlines
- Legend
- Trendline
In Excel, categories are plotted on the horizontal axis and data series are plotted on the vertical axis:
From the chart above, we can conclude the following:
- Months are plotted on the primary horizontal axis.
- Sales, cost and profit are plotted on the primary vertical axis.
- ROI is plotted on the secondary vertical axis.
In order to add, remove or edit a chart element in Excel (2013 or above), follow the steps below:
Step-1: Open MS Excel and navigate to the spreadsheet which contains the chart you want to edit.
Step-2: Select the chart and then from the ”Design‘ tab select ‘Add Chart Element‘ drop-down menu:
You can also include ‘Data table’ in the chart above, by following the steps below:
Step-1: Click on the chart in Excel.
Step-2: Click on ‘Add Chart Element‘ > ‘Data Table‘ > ‘With legend Keys‘:
You can now see your chart along with the data table:
The type of Excel chart you select for your analysis and reporting depends upon the type of data you want to analyze and report and what you want to do with data:
- Visualize data (make sense of data esp. big data)
- Classify and categorize data
- Find a relationship among data
- Understand the composition of data
- Understand the distribution of data
- Understand the overlapping of data
- Determine patterns and trends
- Detect outliers and other anomalies in data
- Predict future trends
- Tell meaningful and engaging stories to decision-makers
Most common data types
Following are the most common data types that can be visualized:
Quantitative data (also known as interval/ratio data) is the data that can be measured. For example 10 customers, sales, ROI, weight, etc.
Qualitative data is the data that can be classified/categorized but it can not be measured. For example colors, satisfaction, rankings, etc.
Discrete data – quantitative data with a finite number of values/observations. For example 5 customers, 17 points, 12 steps, etc.
Continuous data – quantitative data with value / observation within a range/interval. For example sales in the last year.
Nominal data – qualitative data that can not be put into a meaningful order (i.e. ranked). For example {Blue, Yellow, Green, Red, Black}
Ordinal data – qualitative data that can be put into a meaningful order (i.e. ranked). For example, {Very Satisfied, Satisfied, Unsatisfied, very unsatisfied} or {Strong dislike, dislike, neutral, like, strong like}
When to use a clustered column chart?
#1 Use a clustered column chart when you want to compare two to four data series. In other words, avoid using column charts if you have just one data series to plot:
Alternatively, avoid creating a column chart that has got more than four data series. For example, the following chart contains just five data series and it has already started looking cluttered:
The chart below contains 11 data series and is very difficult to read and understand:
If you want to create a column chart which contains a lot of data series then you can try switching ‘row’ and ‘column’ of the chart and see whether it makes any difference:
For example, after switching the row and column of the chart (with 11 data series), it looks like the one below:
Now this chart, though still look cluttered, is much easier to read and understand.
#2 Use a clustered column chart when the data series you want to compare have the same unit of measurement. So avoid using column charts that compare data series with different units of measurement. For example in the chart below ‘Sales’ and ‘ROI’ have different units of measurement. The data series ‘Sales’ is of type number. Whereas the data series ‘ROI’ is of type percentage:
#3 Use a clustered column chart when the data series you want to compare are of comparable sizes. So if the values of one data series dwarf the values of the other data series then do not use the column chart. For example in the chart below the values of the data series ‘Website Traffic’ completely dwarf the values of the data series named ‘Transactions’:
#4 Use a clustered column chart when you want to show the maximum and minimum values of each data series you want to compare.
#5 Use a clustered column chart when you want to focus on short term trends (i.e. changes over days or weeks) and/or the order of categories is not important.
Breaking a clustered column chart
The chart below contains 11 data series and is very difficult to read and understand:
One method of making this chart easier to read and understand is by breaking it into several smaller clustered column charts. For example, you can create one column chart which just compares the sales performance of various countries in January. Create another column chart which just compares the sales performance of various countries in Feb and so on:
The rule of thumb is to avoid presenting too much data in one chart, regardless of the chart type you use.
When to use a combination chart
A combination chart is simply a combination of two or more charts. For example the combination of a column chart with a line chart. I use combination charts a lot and I think you must know how to create them as they are very useful.
Following is a short video on creating a combination chart in excel:
#1 Use a combination chart when you want to compare two or more data series that have different units of measurement: 
#2 Use a combination chart when you want to compare two or more data series that are not of comparable sizes:
When to use a stacked column chart
Use a stacked column chart when you want to compare data series along with their composition and the overall size of each data series is important:
When to use a 100% stacked column chart?
Use a 100% stacked column chart when you want to compare data series along with their composition but the overall size of each data series is not important:
When to use a bar chart
#1 Use a bar chart whenever the axis labels are too long to fit in a column chart:
When to use a line chart
#1 Use line charts when you want to show/focus on data trends (uptrend, downtrend, short term trend, sideways trend, long term) especially long term trends (i.e. changes over several months or years) between the values of the data series:
#2 Use line charts when you have too many data points to plot and the use of column or bar chart clutters the chart.
#3 Use a line chart instead of a clustered column chart if the order of categories is important:
When to use a number chart
If you want to visualize just one type of data and it contains a numeric value which does not fall in any range/interval then use the number chart:
When to use a gauge chart (also known as speedometer chart)
If you want to visualize just one type of data and it contains a numeric value which falls in a range/interval then use the gauge chart (also known as speedometer chart):
When to use a scatter chart
#1 Consider using a scatter chart when you want to analyze and report the relationship/correlation between two variables:
From this chart, we can conclude that the relationship between the two variables (‘x’ and ‘y’) is linear. What that means, as the value of the variable ‘x’ increases there is a corresponding increase in the value of the variable ‘y’.
#2 Create a scatter chart only when there are ten or more data points on the horizontal axis. The more data points the better it is for a scatter chart. Conversely, just a few data points (like five or six data points) are not good enough for creating a scatter chart.
#3 Use a scatter chart when you want to show ‘why’. For example: why revenue is correlated with average order value or why conversion rate is correlated with the number of transactions.
When to use a pie chart
#1 Use a pie chart when you want to show a 100% composition of data. In other words, the various pie slices you use must add up to 100%. What that means, do not create a pie-chart where the various pie slices do not represent parts of the whole pie. For example, the following pie chart is not a good representation of data composition as the two pie slices add up to 82% and not 100%:
#2 Use a pie chart to show the composition of data only when you have got one data series and less than five categories to plot. For example, the following pie chart shows the breakdown of website traffic sources in the last month:
Here I have got only four categories (search traffic, referral traffic, direct traffic, and campaigns) to plot. So a pie chart is ideal to show the breakdown. However, if there were more than four categories to plot, like eight or ten categories, then the pie chart would have become cluttered and hard to read. For example, the following pie chart looks cluttered because it has got too many categories:
#3 Use a pie chart to show data composition only when the pie slices are of comparable sizes. In other words, do not use a pie chart if the size of one pie slice completely dwarfs the size of the other pie slice(s):
#4 Order your pie slices in such a way that as you look clockwise from top to bottom, the biggest pie slice comes first followed by the second biggest pie slice and so on. This makes the pie chart easy to read:
These pie charts are made from the following data:
In order to create a pie chart where the biggest pie slice comes first followed by the second biggest pie slice and so on, I have sorted the data in decreasing order (from largest to smallest).
When to use a stacked area chart
Use a stacked area chart when you want to show the trend of composition and emphasize the magnitude of change over time. For example, the following stacked area chart shows the breakdown of website traffic:
When to use a histogram
Use a histogram to show frequency distribution for quantitative data:
Note: You would need to install the ‘Analysis ToolPak’ in order to create a histogram in Excel.
When to use a Venn diagram
Use a Venn diagram to show the overlapping of data. The multi-channel conversion visualizer chart used in Google Analytics to visualize multi-channel attribution is actually a Venn diagram:
In the context of web analytics, we can use a Venn diagram to determine whether or not a website has got attribution problems. If there is little to no overlap between two or more marketing channels then the website doesn’t have attribution issues. If there is a good amount of overlap then the website has got attribution issues and you should seriously consider taking multi-channel attribution into account while analyzing and interpreting the performance of marketing campaigns.
To learn more about attribution modelling read this article: Beginners Guide to Google Analytics Attribution Modelling
Another great use of Venn diagrams is in visualizing the backlinks overlaps between websites:
The tool that I have used to create this Venn diagram is known as Venny.
Note: You can create a Venn diagram in Excel. Check out this tutorial on the Microsoft Office website: Create a Venn diagram
When to use an ‘actual vs. target’ chart
The chart below shows whether target sales were achieved in each quarter:
This chart is based on the following data table:
The ‘Actual vs. target’ chart is a combination chart that requires some formatting. You can’t insert this chart straightaway into your excel spreadsheet. Use this chart when you have got multiple goals and you want to show progress towards each goal.
When to use a bullet chart
The chart below shows the performance of sales in Quarter 4:
This chart is based on the following data table:
If the actual sales are between $0 to $240,000 then sales performance is considered ‘Poor’.
If the actual sales are between $240,000 to $300,000 ($240,000 + $60,000) then it is considered ‘Fair’.
If the actual sales are between $300,000 to $360,000 ($240,000 + $60,000 + $60,000) then it is considered ‘Good’.
If the actual sales are between $360,000 to $400,000 ($240,000 + $60,000 + $60,000 + $40,000) then it is considered ‘Excellent’.
A Bullet chart is a combination chart (though it looks like a single bar chart) which is used to show progress towards a single goal using a range of predefined qualitative and quantitative parameters. You can’t insert this chart straightaway into your excel spreadsheet and it is also quite tricky to create.
If you have multiple goals and you want to show progress towards each goal then use the ‘Actual vs. target’ chart. But if you have only one goal and you want to show progress towards this goal (by using both qualitative and quantitative data) then use the bullet chart.
A bullet chart can be a vertical bar chart or horizontal bar chart. The choice of vertical or horizontal alignment depends on the space available to use for data visualization.
When to use a funnel chart
The chart below shows different stages of the purchase funnel and how user moved from one stage to the next:
This chart is based on the following data table:
As the name suggests the funnel chart is used for funnel visualization. It is perfect for showing lead funnel and sales funnels. This chart is available in MS Excel (2016 and above). You just need to select your data table and then insert the ‘Funnel’ chart.
Charts to avoid for reporting purposes
Throughout this article, I have talked about the charts that should be used. But there are some charts which should be avoided for reporting purposes unless your target audience is as data-savvy as you. Following are those charts:
Treemap
Waterfall chart
Radar chart
Bubble chart
The reason you should be avoiding reporting data via these charts to your clients is simple. The majority of people have no idea what you are trying to communicate via these charts. Use these charts only when your target audience is as data-savvy as you.
Best practices for designing column and line charts
#1 Start the ‘Y’axis value at zero
When you do not start the ‘Y’ axis value of a chart at zero, the chart does not accurately reflect the size of the variables (in case of column charts) and trend (in case of line charts). For example, the following column chart amplifies changes because the ‘y’ axis value starts at 440 instead of 0:
Following is the correct column chart:
Another example. Following line chart amplifies the growth of Facebook fans because the ‘y’ axis value starts at 2500 instead of 0:
Following is the correct line chart:
#2 Do not use line chart (to create trends) if you have less than eight data points
When you create a line chart with a few data points, the trend that you see can be very misleading. For example, the following line chart just contain two data points and as a result, it makes the growth look phenomenal:
For a line chart, the more data points the better.
#3 Do not hide the scale on the ‘y’ axis of a column/line chart
When you hide the scale of the ‘y’ axis, your chart won’t accurately reflect the size of the variables (in case of column charts) and trend (in case of line charts). Without any scale on the y-axis, there is no way of knowing where the y-axis starts. When you use such charts it creates doubt on your analysis.
#4 Add context to your chart
Different people analyze and interpret the same chart differently. It all depends upon the context in which they analyze and interpret the chart. No matter what chart you select, some people will always find a way to misinterpret your chart. Therefore it is critical that you provide context with your chart in the form of written commentary and describe exactly the intent of your chart.
First present the context, then the insight and then the chart to support your insight. In this way, you are giving clues to your chart reader regarding how to read your chart. For example:
Frequently asked questions about Excel Charts
What is data visualization?
Data visualization is the presentation of data (both qualitative and quantitative data) in graphical format. Through data visualization you can easily: make sense of data (especially big data), classify and categorize data, find relationships among data, understand the composition of data, understand the distribution of data, understand the overlapping of data, determine patterns and trends, detect outliers and other anomalies in data, predict future trends and tell meaningful and engaging stories to decision-makers.
Why is it important to use the correct Excel chart?
If you use an incorrect Excel chart for your analysis, you may misinterpret data and make the wrong business and marketing decisions. If you use an incorrect Excel chart for your presentation, then stakeholders may misinterpret your charts and take wrong decisions.Therefore selecting the right Excel chart is critically important.
What is a data series?
A data series is a set of related data points.
What is a data point?
Data point represents an individual unit of data. 10, 20, 30, 40, etc are examples of data points. In the context of charts, a data point represents a mark on a chart.
What should be the criteria for selecting an excel chart?
The type of Excel chart you select for your analysis and reporting should depend upon the type of data you want to analyse and report and what you want to do with data. Do you want to classify and categorize data or find relationships among data or understand the composition, distribution or overlapping of data.
What is quantitative data?
Quantitative data (also known as interval/ratio data) is the data that can be measured. For example 10 customers, sales, ROI, weight etc.
What is qualitative data?
Qualitative data is the data that can be classified/categorized but it can not be measured. For example: colours, satisfaction, rankings etc.
What is discrete data?
It is quantitative data with finite number of values / observations. For example: 5 customers, 17 points, 12 steps etc.
What is continuous data?
It is quantitative data with value / observation within a range/interval. For example, sales in the last one year.
What is nominal data?
It is qualitative data that can not be put into a meaningful order (i.e. ranked). For example {Blue, Yellow, Green, Red, Black}
What is ordinal data?
It is qualitative data that can be put into a meaningful order (i.e. ranked). For example {Very Satisfied, Satisfied, Unsatisfied, very unsatisfied} or {Strong dislike, dislike, neutral, like, strong like}
When to use a clustered column chart?
Use a clustered column chart when you want to compare two to four data series. In other words, avoid using column charts if you have just one data series to plot. Alternatively, avoid creating a column chart that has got more than four data series. Avoid using column charts which compare data series with different unit of measurements.
When to use a combination chart?
Use a combination chart when you want to compare two or more data series that have different units of measurement or when you want to compare two or more data series that are not of comparable sizes
When to use a stacked column chart?
Use a stacked column chart when you want to compare data series along with their composition and the overall size of each data series is important.
When to use a 100% stacked column chart?
Use a 100% stacked column chart when you want to compare data series along with their composition but the overall size of each data series is not important.
When to use a bar chart?
Use a bar chart whenever the axis labels are too long to fit in a column chart.
When to use a line chart?
Use line charts when you want to show/focus on data trends (uptrend, downtrend, short term trend, sideways trend, long term) especially long term trends (i.e. changes over several months or years) between the values of the data series. Use line charts when you have too many data points to plot and the use of column or bar chart clutters the chart.
When to use a number chart?
If you want to visualise just one type of data and it contains a numeric value which does not fall in any range/interval then use the number chart.
When to use a gauge chart?
If you want to visualise just one type of data and it contains a numeric value which falls in a range/interval then use the gauge chart (also known as speedometer chart).
When to use a scatter chart?
Consider using a scatter chart when you want to analyse and report the relationship/correlation between two variables.
When to use a pie chart?
Use a pie chart when you want to show 100% composition of data. In other words the various pie slices you use, must add up to 100%. What that means, do not create a pie chart where the various pie slices do not represent parts of the whole pie. Use a pie chart to show composition of data only when you have got one data series and less than five categories to plot.
When to use a stacked area chart?
Use a stacked area chart when you want to show the trend of composition and emphasise the magnitude of change over time.
When to use a histogram?
Use histogram to show frequency distribution for quantitative data.
When to use a Venn diagram?
Use a Venn diagram to show overlapping of data. In the context of web analytics, we can use a Venn diagram to determine whether or not a website has got attribution problem. If there is little to no overlap between two or more marketing channels then the website doesn't have attribution issues. If there is a good amount of overlap then the website has got attribution issues.
When to use an ‘actual vs. target’ chart?
Use this chart when you have got multiple goals and you want to show progress towards each goal.
When to use a bullet chart?
If you have only one goal and you want to show progress towards this goal (by using both qualitative and quantitative data) then use the bullet chart. A bullet chart can be a vertical bar chart or horizontal bar chart. The choice of vertical or horizontal alignment depends on the space available to use for data visualization.
When to use a funnel chart?
Use this chart to visualize funnels like sales and leads funnels.
Other articles on data analysis and reporting
Do you know the difference between Web Analytics and Google Analytics?
99.99% of course creators themselves don’t know the difference between Web analytics, Google Analytics (GA) and Google Tag Manager (GTM).
So they are teaching GA and GTM in the name of teaching Web analytics.
They just copy each other. Monkey see, monkey do.
But Web analytics is not about GA, GTM.
It is about analyzing and interpreting data, setting up goals, strategies and KPIs.
It’s about creating strategic roadmap for your business.
Web Analytics is the core skill. Google Analytics is just a tool used to implement ‘Web Analytics’.
You can also implement ‘Web analytics’ via other tools like ‘adobe analytics’, ‘kissmetrics’ etc.
Using Google Analytics without the good understanding of ‘Web analytics’ is like driving around in a car, in a big city without understanding the traffic rules and road signs.
You are either likely to end up somewhere other than your destination or you get involved in an accident.
You learn data analysis and interpretation from Web analytics and not from Google Analytics.
The direction in which your analysis will move, will determine the direction in which your marketing campaigns and eventually your company will move to get the highest possible return on investment.
You get that direction from ‘Web analytics’ and not from ‘Google Analytics’.
You learn to set up KPIs, strategies and measurement framework for your business from ‘Web analytics’ and not from ‘Google Analytics’.
So if you are taking a course only on 'Google Analytics’, you are learning to use one of the tools of ‘Web analytics’. You are not learning the ‘Web analytics’ itself.
Since any person can learn to use Google Analytics in couple of weeks, you do no get any competitive advantage in the marketplace just by knowing GA.
You need to know lot more than GA in order to work in Web analytics and marketing field.
So what I have done, if you are interested, is I have put together a completely free training that will teach you exactly how I have been able to leverage web/digital analytics to generate floods of news sales and customers and how you can literally copy what I have done to get similar results.
Here what You'll Learn On This FREE Web Class!
1) Why digital analytics is the key to online business success
2) The number 1 reason why most marketers are not able to scale their advertising and maximize sales.
3) Why Google and Facebook ads don’t work for most businesses & how to make them work.
4) Why you won’t get any competitive advantage in the marketplace just by knowing Google Analytics.
5) The number 1 reason why conversion optimization is not working for your business.
6) How to advertise on any marketing platform for FREE with an unlimited budget.
7) How to learn and master digital analytics and conversion optimization in record time.
My best selling books on Digital Analytics and Conversion Optimization
Maths and Stats for Web Analytics and Conversion Optimization
This expert guide will teach you how to leverage the knowledge of maths and statistics in order to accurately interpret data and take actions, which can quickly improve the bottom-line of your online business.
Master the Essentials of Email Marketing Analytics
This book focuses solely on the ‘analytics’ that power your email marketing optimization program and will help you dramatically reduce your cost per acquisition and increase marketing ROI by tracking the performance of the various KPIs and metrics used for email marketing.
Attribution Modelling in Google Analytics and Beyond
Attribution modelling is the process of determining the most effective marketing channels for investment. This book has been written to help you implement attribution modelling. It will teach you how to leverage the knowledge of attribution modelling in order to allocate marketing budget and understand buying behaviour.
Attribution Modelling in Google Ads and Facebook
This book has been written to help you implement attribution modelling in Google Ads (Google AdWords) and Facebook. It will teach you, how to leverage the knowledge of attribution modelling in order to understand the customer purchasing journey and determine the most effective marketing channels for investment.
Himanshu Sharma
Digital Marketing Consultant and Founder of Optimizesmart.com
Table of Contents
- The importance of data visualization
- The anatomy of an Excel chart
- Most common data types
- When to use a clustered column chart
- Breaking a clustered column chart
- When to use a combination chart
- When to use a stacked column chart
- When to use a 100% stacked column chart
- When to use a bar chart
- When to use a line chart
- When to use a number chart
- When to use a gauge chart
- When to use a scatter chart
- When to use a pie chart
- When to use a stacked area chart
- When to use a histogram
- When to use a Venn diagram
- When to use an ‘actual vs. target’ chart
- When to use a bullet chart
- When to use a funnel chart
- Charts to avoid for reporting purposes
- Best practices for designing column and line charts
In this article I will show you how to select the best Excel Charts for Data Analysis, Presentation and Reporting within 15 minutes. You will learn about the various excel charts types from column charts, bar charts, line charts, pie charts to stacked area charts.
The importance of data visualization
Data visualization is the presentation of data (both qualitative and quantitative data) in graphical format.
Through data visualization you can easily:
- Visualize data (make sense of data, especially big data)
- Classify and categorize data
- Find a relationship among data
- Understand the composition of data
- Understand the distribution of data
- Understand the overlapping of data
- Determine patterns and trends
- Detect outliers and other anomalies in data
- Predict future trends
- Tell meaningful and engaging stories to decision-makers
Data presentation is a very important skill for an optimizer (marketer, analyst). In fact, it is so valuable that LinkedIn lists it as one of the top skills that can get you hired.
Excel charts are commonly used for data visualization and presentation. But selecting the right excel chart is always a challenge.
If you use an incorrect Excel chart for your analysis, you may misinterpret data and make the wrong business and marketing decisions. If you use an incorrect Excel chart for your presentation, then stakeholders may misinterpret your charts and take wrong decisions. Therefore selecting the right Excel chart is critically important.
The anatomy of an Excel chart
In order to read an Excel chart, it is important that you understand the various components of the chart. Consider the following data table in Excel:
This data table has got five variables: ‘Month’, ‘Sales’, ‘Cost’, ‘Profit’ and ‘ROI’:
This data table is made up of categories and data series:
Categories – Here the first category is ‘Jan’, the second category is ‘Feb’, the third category is ‘Mar’ and so on.
Data series – A data series is a set of related data points.
Data point – Data point represents an individual unit of data. 10, 20, 30, 40, etc are examples of data points. In the context of charts, a data point represents a mark on a chart:
Consider the following excel chart which is made from the data table mentioned earlier:
This chart is made up of the following chart elements:
- Primary Horizontal Axis:
- Primary Vertical Axis
- Secondary Vertical Axis
- Primary Horizontal Axis Title
- Primary Vertical Axis Title
- Secondary Vertical Axis Title
- Chart Title
- Data Labels
- Gridlines
- Legend
- Trendline
In Excel, categories are plotted on the horizontal axis and data series are plotted on the vertical axis:
From the chart above, we can conclude the following:
- Months are plotted on the primary horizontal axis.
- Sales, cost and profit are plotted on the primary vertical axis.
- ROI is plotted on the secondary vertical axis.
In order to add, remove or edit a chart element in Excel (2013 or above), follow the steps below:
Step-1: Open MS Excel and navigate to the spreadsheet which contains the chart you want to edit.
Step-2: Select the chart and then from the ”Design‘ tab select ‘Add Chart Element‘ drop-down menu:
You can also include ‘Data table’ in the chart above, by following the steps below:
Step-1: Click on the chart in Excel.
Step-2: Click on ‘Add Chart Element‘ > ‘Data Table‘ > ‘With legend Keys‘:
You can now see your chart along with the data table:
The type of Excel chart you select for your analysis and reporting depends upon the type of data you want to analyze and report and what you want to do with data:
- Visualize data (make sense of data esp. big data)
- Classify and categorize data
- Find a relationship among data
- Understand the composition of data
- Understand the distribution of data
- Understand the overlapping of data
- Determine patterns and trends
- Detect outliers and other anomalies in data
- Predict future trends
- Tell meaningful and engaging stories to decision-makers
Most common data types
Following are the most common data types that can be visualized:
Quantitative data (also known as interval/ratio data) is the data that can be measured. For example 10 customers, sales, ROI, weight, etc.
Qualitative data is the data that can be classified/categorized but it can not be measured. For example colors, satisfaction, rankings, etc.
Discrete data – quantitative data with a finite number of values/observations. For example 5 customers, 17 points, 12 steps, etc.
Continuous data – quantitative data with value / observation within a range/interval. For example sales in the last year.
Nominal data – qualitative data that can not be put into a meaningful order (i.e. ranked). For example {Blue, Yellow, Green, Red, Black}
Ordinal data – qualitative data that can be put into a meaningful order (i.e. ranked). For example, {Very Satisfied, Satisfied, Unsatisfied, very unsatisfied} or {Strong dislike, dislike, neutral, like, strong like}
When to use a clustered column chart?
#1 Use a clustered column chart when you want to compare two to four data series. In other words, avoid using column charts if you have just one data series to plot:
Alternatively, avoid creating a column chart that has got more than four data series. For example, the following chart contains just five data series and it has already started looking cluttered:
The chart below contains 11 data series and is very difficult to read and understand:
If you want to create a column chart which contains a lot of data series then you can try switching ‘row’ and ‘column’ of the chart and see whether it makes any difference:
For example, after switching the row and column of the chart (with 11 data series), it looks like the one below:
Now this chart, though still look cluttered, is much easier to read and understand.
#2 Use a clustered column chart when the data series you want to compare have the same unit of measurement. So avoid using column charts that compare data series with different units of measurement. For example in the chart below ‘Sales’ and ‘ROI’ have different units of measurement. The data series ‘Sales’ is of type number. Whereas the data series ‘ROI’ is of type percentage:
#3 Use a clustered column chart when the data series you want to compare are of comparable sizes. So if the values of one data series dwarf the values of the other data series then do not use the column chart. For example in the chart below the values of the data series ‘Website Traffic’ completely dwarf the values of the data series named ‘Transactions’:
#4 Use a clustered column chart when you want to show the maximum and minimum values of each data series you want to compare.
#5 Use a clustered column chart when you want to focus on short term trends (i.e. changes over days or weeks) and/or the order of categories is not important.
Breaking a clustered column chart
The chart below contains 11 data series and is very difficult to read and understand:
One method of making this chart easier to read and understand is by breaking it into several smaller clustered column charts. For example, you can create one column chart which just compares the sales performance of various countries in January. Create another column chart which just compares the sales performance of various countries in Feb and so on:
The rule of thumb is to avoid presenting too much data in one chart, regardless of the chart type you use.
When to use a combination chart
A combination chart is simply a combination of two or more charts. For example the combination of a column chart with a line chart. I use combination charts a lot and I think you must know how to create them as they are very useful.
Following is a short video on creating a combination chart in excel:
#1 Use a combination chart when you want to compare two or more data series that have different units of measurement:
#2 Use a combination chart when you want to compare two or more data series that are not of comparable sizes:
When to use a stacked column chart
Use a stacked column chart when you want to compare data series along with their composition and the overall size of each data series is important:
When to use a 100% stacked column chart?
Use a 100% stacked column chart when you want to compare data series along with their composition but the overall size of each data series is not important:
When to use a bar chart
#1 Use a bar chart whenever the axis labels are too long to fit in a column chart:
When to use a line chart
#1 Use line charts when you want to show/focus on data trends (uptrend, downtrend, short term trend, sideways trend, long term) especially long term trends (i.e. changes over several months or years) between the values of the data series:
#2 Use line charts when you have too many data points to plot and the use of column or bar chart clutters the chart.
#3 Use a line chart instead of a clustered column chart if the order of categories is important:
When to use a number chart
If you want to visualize just one type of data and it contains a numeric value which does not fall in any range/interval then use the number chart:
When to use a gauge chart (also known as speedometer chart)
If you want to visualize just one type of data and it contains a numeric value which falls in a range/interval then use the gauge chart (also known as speedometer chart):
When to use a scatter chart
#1 Consider using a scatter chart when you want to analyze and report the relationship/correlation between two variables:
From this chart, we can conclude that the relationship between the two variables (‘x’ and ‘y’) is linear. What that means, as the value of the variable ‘x’ increases there is a corresponding increase in the value of the variable ‘y’.
#2 Create a scatter chart only when there are ten or more data points on the horizontal axis. The more data points the better it is for a scatter chart. Conversely, just a few data points (like five or six data points) are not good enough for creating a scatter chart.
#3 Use a scatter chart when you want to show ‘why’. For example: why revenue is correlated with average order value or why conversion rate is correlated with the number of transactions.
When to use a pie chart
#1 Use a pie chart when you want to show a 100% composition of data. In other words, the various pie slices you use must add up to 100%. What that means, do not create a pie-chart where the various pie slices do not represent parts of the whole pie. For example, the following pie chart is not a good representation of data composition as the two pie slices add up to 82% and not 100%:
#2 Use a pie chart to show the composition of data only when you have got one data series and less than five categories to plot. For example, the following pie chart shows the breakdown of website traffic sources in the last month:
Here I have got only four categories (search traffic, referral traffic, direct traffic, and campaigns) to plot. So a pie chart is ideal to show the breakdown. However, if there were more than four categories to plot, like eight or ten categories, then the pie chart would have become cluttered and hard to read. For example, the following pie chart looks cluttered because it has got too many categories:
#3 Use a pie chart to show data composition only when the pie slices are of comparable sizes. In other words, do not use a pie chart if the size of one pie slice completely dwarfs the size of the other pie slice(s):
#4 Order your pie slices in such a way that as you look clockwise from top to bottom, the biggest pie slice comes first followed by the second biggest pie slice and so on. This makes the pie chart easy to read:
These pie charts are made from the following data:
In order to create a pie chart where the biggest pie slice comes first followed by the second biggest pie slice and so on, I have sorted the data in decreasing order (from largest to smallest).
When to use a stacked area chart
Use a stacked area chart when you want to show the trend of composition and emphasize the magnitude of change over time. For example, the following stacked area chart shows the breakdown of website traffic:
When to use a histogram
Use a histogram to show frequency distribution for quantitative data:
Note: You would need to install the ‘Analysis ToolPak’ in order to create a histogram in Excel.
When to use a Venn diagram
Use a Venn diagram to show the overlapping of data. The multi-channel conversion visualizer chart used in Google Analytics to visualize multi-channel attribution is actually a Venn diagram:
In the context of web analytics, we can use a Venn diagram to determine whether or not a website has got attribution problems. If there is little to no overlap between two or more marketing channels then the website doesn’t have attribution issues. If there is a good amount of overlap then the website has got attribution issues and you should seriously consider taking multi-channel attribution into account while analyzing and interpreting the performance of marketing campaigns.
To learn more about attribution modelling read this article: Beginners Guide to Google Analytics Attribution Modelling
Another great use of Venn diagrams is in visualizing the backlinks overlaps between websites:
The tool that I have used to create this Venn diagram is known as Venny.
Note: You can create a Venn diagram in Excel. Check out this tutorial on the Microsoft Office website: Create a Venn diagram
When to use an ‘actual vs. target’ chart
The chart below shows whether target sales were achieved in each quarter:
This chart is based on the following data table:
The ‘Actual vs. target’ chart is a combination chart that requires some formatting. You can’t insert this chart straightaway into your excel spreadsheet. Use this chart when you have got multiple goals and you want to show progress towards each goal.
When to use a bullet chart
The chart below shows the performance of sales in Quarter 4:
This chart is based on the following data table:
If the actual sales are between $0 to $240,000 then sales performance is considered ‘Poor’.
If the actual sales are between $240,000 to $300,000 ($240,000 + $60,000) then it is considered ‘Fair’.
If the actual sales are between $300,000 to $360,000 ($240,000 + $60,000 + $60,000) then it is considered ‘Good’.
If the actual sales are between $360,000 to $400,000 ($240,000 + $60,000 + $60,000 + $40,000) then it is considered ‘Excellent’.
A Bullet chart is a combination chart (though it looks like a single bar chart) which is used to show progress towards a single goal using a range of predefined qualitative and quantitative parameters. You can’t insert this chart straightaway into your excel spreadsheet and it is also quite tricky to create.
If you have multiple goals and you want to show progress towards each goal then use the ‘Actual vs. target’ chart. But if you have only one goal and you want to show progress towards this goal (by using both qualitative and quantitative data) then use the bullet chart.
A bullet chart can be a vertical bar chart or horizontal bar chart. The choice of vertical or horizontal alignment depends on the space available to use for data visualization.
When to use a funnel chart
The chart below shows different stages of the purchase funnel and how user moved from one stage to the next:
This chart is based on the following data table:
As the name suggests the funnel chart is used for funnel visualization. It is perfect for showing lead funnel and sales funnels. This chart is available in MS Excel (2016 and above). You just need to select your data table and then insert the ‘Funnel’ chart.
Charts to avoid for reporting purposes
Throughout this article, I have talked about the charts that should be used. But there are some charts which should be avoided for reporting purposes unless your target audience is as data-savvy as you. Following are those charts:
Treemap
Waterfall chart
Radar chart
Bubble chart
The reason you should be avoiding reporting data via these charts to your clients is simple. The majority of people have no idea what you are trying to communicate via these charts. Use these charts only when your target audience is as data-savvy as you.
Best practices for designing column and line charts
#1 Start the ‘Y’axis value at zero
When you do not start the ‘Y’ axis value of a chart at zero, the chart does not accurately reflect the size of the variables (in case of column charts) and trend (in case of line charts). For example, the following column chart amplifies changes because the ‘y’ axis value starts at 440 instead of 0:
Following is the correct column chart:
Another example. Following line chart amplifies the growth of Facebook fans because the ‘y’ axis value starts at 2500 instead of 0:
Following is the correct line chart:
#2 Do not use line chart (to create trends) if you have less than eight data points
When you create a line chart with a few data points, the trend that you see can be very misleading. For example, the following line chart just contain two data points and as a result, it makes the growth look phenomenal:
For a line chart, the more data points the better.
#3 Do not hide the scale on the ‘y’ axis of a column/line chart
When you hide the scale of the ‘y’ axis, your chart won’t accurately reflect the size of the variables (in case of column charts) and trend (in case of line charts). Without any scale on the y-axis, there is no way of knowing where the y-axis starts. When you use such charts it creates doubt on your analysis.
#4 Add context to your chart
Different people analyze and interpret the same chart differently. It all depends upon the context in which they analyze and interpret the chart. No matter what chart you select, some people will always find a way to misinterpret your chart. Therefore it is critical that you provide context with your chart in the form of written commentary and describe exactly the intent of your chart.
First present the context, then the insight and then the chart to support your insight. In this way, you are giving clues to your chart reader regarding how to read your chart. For example:
Frequently asked questions about Excel Charts
What is data visualization?
Data visualization is the presentation of data (both qualitative and quantitative data) in graphical format. Through data visualization you can easily: make sense of data (especially big data), classify and categorize data, find relationships among data, understand the composition of data, understand the distribution of data, understand the overlapping of data, determine patterns and trends, detect outliers and other anomalies in data, predict future trends and tell meaningful and engaging stories to decision-makers.
Why is it important to use the correct Excel chart?
If you use an incorrect Excel chart for your analysis, you may misinterpret data and make the wrong business and marketing decisions. If you use an incorrect Excel chart for your presentation, then stakeholders may misinterpret your charts and take wrong decisions.Therefore selecting the right Excel chart is critically important.
What is a data series?
A data series is a set of related data points.
What is a data point?
Data point represents an individual unit of data. 10, 20, 30, 40, etc are examples of data points. In the context of charts, a data point represents a mark on a chart.
What should be the criteria for selecting an excel chart?
The type of Excel chart you select for your analysis and reporting should depend upon the type of data you want to analyse and report and what you want to do with data. Do you want to classify and categorize data or find relationships among data or understand the composition, distribution or overlapping of data.
What is quantitative data?
Quantitative data (also known as interval/ratio data) is the data that can be measured. For example 10 customers, sales, ROI, weight etc.
What is qualitative data?
Qualitative data is the data that can be classified/categorized but it can not be measured. For example: colours, satisfaction, rankings etc.
What is discrete data?
It is quantitative data with finite number of values / observations. For example: 5 customers, 17 points, 12 steps etc.
What is continuous data?
It is quantitative data with value / observation within a range/interval. For example, sales in the last one year.
What is nominal data?
It is qualitative data that can not be put into a meaningful order (i.e. ranked). For example {Blue, Yellow, Green, Red, Black}
What is ordinal data?
It is qualitative data that can be put into a meaningful order (i.e. ranked). For example {Very Satisfied, Satisfied, Unsatisfied, very unsatisfied} or {Strong dislike, dislike, neutral, like, strong like}
When to use a clustered column chart?
Use a clustered column chart when you want to compare two to four data series. In other words, avoid using column charts if you have just one data series to plot. Alternatively, avoid creating a column chart that has got more than four data series. Avoid using column charts which compare data series with different unit of measurements.
When to use a combination chart?
Use a combination chart when you want to compare two or more data series that have different units of measurement or when you want to compare two or more data series that are not of comparable sizes
When to use a stacked column chart?
Use a stacked column chart when you want to compare data series along with their composition and the overall size of each data series is important.
When to use a 100% stacked column chart?
Use a 100% stacked column chart when you want to compare data series along with their composition but the overall size of each data series is not important.
When to use a bar chart?
Use a bar chart whenever the axis labels are too long to fit in a column chart.
When to use a line chart?
Use line charts when you want to show/focus on data trends (uptrend, downtrend, short term trend, sideways trend, long term) especially long term trends (i.e. changes over several months or years) between the values of the data series. Use line charts when you have too many data points to plot and the use of column or bar chart clutters the chart.
When to use a number chart?
If you want to visualise just one type of data and it contains a numeric value which does not fall in any range/interval then use the number chart.
When to use a gauge chart?
If you want to visualise just one type of data and it contains a numeric value which falls in a range/interval then use the gauge chart (also known as speedometer chart).
When to use a scatter chart?
Consider using a scatter chart when you want to analyse and report the relationship/correlation between two variables.
When to use a pie chart?
Use a pie chart when you want to show 100% composition of data. In other words the various pie slices you use, must add up to 100%. What that means, do not create a pie chart where the various pie slices do not represent parts of the whole pie. Use a pie chart to show composition of data only when you have got one data series and less than five categories to plot.
When to use a stacked area chart?
Use a stacked area chart when you want to show the trend of composition and emphasise the magnitude of change over time.
When to use a histogram?
Use histogram to show frequency distribution for quantitative data.
When to use a Venn diagram?
Use a Venn diagram to show overlapping of data. In the context of web analytics, we can use a Venn diagram to determine whether or not a website has got attribution problem. If there is little to no overlap between two or more marketing channels then the website doesn't have attribution issues. If there is a good amount of overlap then the website has got attribution issues.
When to use an ‘actual vs. target’ chart?
Use this chart when you have got multiple goals and you want to show progress towards each goal.
When to use a bullet chart?
If you have only one goal and you want to show progress towards this goal (by using both qualitative and quantitative data) then use the bullet chart. A bullet chart can be a vertical bar chart or horizontal bar chart. The choice of vertical or horizontal alignment depends on the space available to use for data visualization.
When to use a funnel chart?
Use this chart to visualize funnels like sales and leads funnels.
Other articles on data analysis and reporting
Do you know the difference between Web Analytics and Google Analytics?
99.99% of course creators themselves don’t know the difference between Web analytics, Google Analytics (GA) and Google Tag Manager (GTM).So they are teaching GA and GTM in the name of teaching Web analytics.
They just copy each other. Monkey see, monkey do.
But Web analytics is not about GA, GTM.
It is about analyzing and interpreting data, setting up goals, strategies and KPIs.
It’s about creating strategic roadmap for your business.
Web Analytics is the core skill. Google Analytics is just a tool used to implement ‘Web Analytics’.You can also implement ‘Web analytics’ via other tools like ‘adobe analytics’, ‘kissmetrics’ etc.
Using Google Analytics without the good understanding of ‘Web analytics’ is like driving around in a car, in a big city without understanding the traffic rules and road signs.
You are either likely to end up somewhere other than your destination or you get involved in an accident.
You learn data analysis and interpretation from Web analytics and not from Google Analytics.The direction in which your analysis will move, will determine the direction in which your marketing campaigns and eventually your company will move to get the highest possible return on investment.
You get that direction from ‘Web analytics’ and not from ‘Google Analytics’.
You learn to set up KPIs, strategies and measurement framework for your business from ‘Web analytics’ and not from ‘Google Analytics’.So if you are taking a course only on 'Google Analytics’, you are learning to use one of the tools of ‘Web analytics’. You are not learning the ‘Web analytics’ itself.
Since any person can learn to use Google Analytics in couple of weeks, you do no get any competitive advantage in the marketplace just by knowing GA.
You need to know lot more than GA in order to work in Web analytics and marketing field.
So what I have done, if you are interested, is I have put together a completely free training that will teach you exactly how I have been able to leverage web/digital analytics to generate floods of news sales and customers and how you can literally copy what I have done to get similar results.
Here what You'll Learn On This FREE Web Class!
1) Why digital analytics is the key to online business success
2) The number 1 reason why most marketers are not able to scale their advertising and maximize sales.
3) Why Google and Facebook ads don’t work for most businesses & how to make them work.
4) Why you won’t get any competitive advantage in the marketplace just by knowing Google Analytics.
5) The number 1 reason why conversion optimization is not working for your business.
6) How to advertise on any marketing platform for FREE with an unlimited budget.
7) How to learn and master digital analytics and conversion optimization in record time.
My best selling books on Digital Analytics and Conversion Optimization
Maths and Stats for Web Analytics and Conversion Optimization
This expert guide will teach you how to leverage the knowledge of maths and statistics in order to accurately interpret data and take actions, which can quickly improve the bottom-line of your online business.
Master the Essentials of Email Marketing Analytics
This book focuses solely on the ‘analytics’ that power your email marketing optimization program and will help you dramatically reduce your cost per acquisition and increase marketing ROI by tracking the performance of the various KPIs and metrics used for email marketing.
Attribution Modelling in Google Analytics and Beyond
Attribution modelling is the process of determining the most effective marketing channels for investment. This book has been written to help you implement attribution modelling. It will teach you how to leverage the knowledge of attribution modelling in order to allocate marketing budget and understand buying behaviour.
Attribution Modelling in Google Ads and Facebook
This book has been written to help you implement attribution modelling in Google Ads (Google AdWords) and Facebook. It will teach you, how to leverage the knowledge of attribution modelling in order to understand the customer purchasing journey and determine the most effective marketing channels for investment.
Himanshu Sharma
Digital Marketing Consultant and Founder of Optimizesmart.com