Why Data Storytelling Matters

Published on: May 21, 2025

To define data in real-life terms and provide small business examples (sales, customer orders, inventory).

Data is any collection of information that can be used to draw conclusions or make decisions. Businesses rely on data to track performance, understand customers, manage inventory, and more.

• Quantitative – This type of data is in form of numeric information, and is anything that can be counted or measured in quantities. Examples include- age, income, temperature, number of items sold. If it can be measured, then it is quantitative.
• Qualitative – This is data that describes a thing. It is known for its descriptive information. Examples include- colors, customer reviews, or user sentiments. If the data describes a thing, object, or situation, then it's qualitative.
• Structured – Data that is stored in defined formats like tables or databases are known as structured data. A good example is a spreadsheet with rows and columns. Here, data is very structured and has a defined format.
• Unstructured – This is the opposite of structured data. Unstructured Datarefers to data types with no specific format. Some examples include- audio, video, and social media images.

Now that we’ve understood what data is and its types, let’s explore why it’s crucial for business success. Every business collects data in one way or another. For example:

• Sales transactions – Every sale generates data such as items purchased, date, amount, and customer contact information.
• Inventory records – Helps you track what’s in stock, what’s out, and when to restock.
• Marketing tools – Data from emails and social media shows how customers interact with campaigns.
• Customer information – Tracks how often customers return, what they buy together, and their feedback.

Businesses use this information to make better decisions, reduce costs, maximize sales, optimize supply chains, and improve targeted marketing.

• Better decision-making – Know what to sell, when, and to whom.
• Cost reduction – Avoid overstocking or underselling items.
• Sales maximization – Boost high-performing products and phase out low performers.
• Improved marketing – Target the right audience more effectively.
• Operational optimization – Track what works and replicate it.

Let’s break down the data types and their business benefits:

• Quantitative data – Answers "how many?" (e.g., number of orders).
• Qualitative data – Reveals how customers feel (e.g., reviews and sentiments).
• Structured data – Organized into formats like sales spreadsheets.
• Unstructured data – Includes marketing images, audio clips, or customer videos.

Now that we understand how important data is, the next step is to learn how to gather and use it effectively.

You don’t need expensive tools to start using data. You can start from what's available to your business. Here are some simple sources:

• Point of Sale (POS) – Every POS automatically records items sold, prices, and time of purchase. Having access to this is a great start to learn how to gather and use it.
• Spreadsheets – Track sales, inventory, and trends using Excel or Google Sheets. Whether you store your data manually through excel spreadsheets, or its gets updated to a google sheet, it can be used.
• Customer Feedback – You can also use customer feedback as a tool to gather insights. You can use surveys, reviews, social media polls, or online comments as a great source of data.
• Dashboards and Reports – Analytics tools like Excel, Tableau, or Power BI among others are a great way to create visual summaries of operations.

Meet Ema: Ema runs a small business selling healthy snacks. While reviewing her sales data over the past two years, she noticed sales dipped in July and August but consistently picked up in September.

What Should She Do? By identifying this seasonal trend, Ema can:

• Offer promotions or bundle deals during summer slumps.
• Launch new products or ads in September when sales increase.
• Use customer surveys to learn why summer sales decline.

Data doesn’t have to be intimidating. It helps businesses understand what’s happening and why. Whether you’re tracking sales in a ledger, managing spreadsheets, or viewing dashboards, using data helps you run smarter, leaner, and more profitable businesses.