Types of graphs and charts perfect for every top industry: Finding the ideal match

Data is everywhere, and it plays a critical role in the success of every organization. Today, the ability to present data effectively is essential across industries. Using the proper graphs to visualize data can make a huge difference, whether for tracking performance, sharing insights with stakeholders, or making strategic decisions.

Every industry has unique needs when presenting different data, and choosing the right types of charts and graphs ensures the data is clear and impactful. This article will explore the best data visualization types for various industries and why they are so powerful.

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What are graphs and charts?

Graphs visually represent data to show relationships between different variables. They illustrate trends over time, make comparisons, or display distributions. For example, a line graph can track monthly sales growth, while a bar graph compares department performance over time.

On the other hand, charts are more diverse and include various formats for displaying data sets. For instance, pie charts show proportions, while donut charts display more segmented breakdowns. Charts are the simplest forms of data visualization and understanding.

While all graphs are charts, not all charts are graphs; the main difference is how they represent relationships.

✳️Point to remember: Graphs typically show connections or patterns, while charts focus more on categorizing data.

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Why does choosing the right types of graphs or charts matter?

Graphs and charts help transform complex data into a visual format. Visuals are interpreted much faster by human beings. Did you know using visuals in your presentations can make them 70% more memorable?

Visuals can help people remember information better, solve problems more quickly, and get better results in less time. Graphs and charts can greatly affect how people absorb and use information.

Yet, not all graphs are equally suited for data visualization. A graph or chart suitable for one industry might not be the best choice for another domain. For example, the bar graphs used in retail to showcase the short ‘fashion fads’ might not be ideal for finance, which requires an asset's long-term ‘price history.’

Using the right graph according to the data can help businesses, for example:

• Track progress: Gantt charts assist in project management by visualizing tasks, deadlines, and progress in real-time.
• Identify trends: Some graphs, such as line charts, are ideal for tracking trends over time, allowing businesses to spot patterns and adjust accordingly.
• Make comparisons: Bar graphs and pie charts help businesses compare categories or segments, revealing insights into market share, customer demographics, or performance differences.
• Highlight relationships: Scatter plots and bubble charts show how variables relate, uncovering correlations or gaps that need attention.

Choosing an incorrect graph or chart can lead to negative consequences such as:

• Confusing your audience: Using the wrong chart can make your data harder to understand, leading to confusion instead of clarity.
• Misrepresenting the data: Showing data inaccurately can make important points seem more or less significant than they really are.
• Losing engagement: Complicated or hard-to-read charts can make people lose interest and miss important information.
• Failing to tell the right story: Different charts send different messages. Using the wrong one can hide important information and make it harder to tell your story.
• Wasting time and credibility: Explaining a poorly chosen chart takes longer and can make people doubt your expertise and miss your main message.

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Different types of graphs and charts best-suited for top industries

Did you know that more than 80 types of graphs and charts are available across business functions? However, not all the graphs and charts suit every industry or function.  Here are the best types of data visualizations for six industries below:

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E-commerce

E-commerce businesses depend on data visualization tools to track sales performance, understand customer behavior, optimize inventory, etc. Graphs help e-commerce teams quickly identify trends and make informed decisions.

• Conversion funnel charts: Funnel charts are important for tracking customer journeys on e-commerce platforms. This type of chart shows how many users progress from product viewing to purchasing, helping businesses identify drop-off points and optimize the sales funnel.‍

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• Line graphs: Line graphs are commonly used in e-commerce to track daily website traffic, sales trends, or customer engagement over time. These graphs help businesses monitor the impact of marketing campaigns or seasonal promotions.

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💡Pro tip: You can combine line graphs with funnel charts to gain a comprehensive view of traffic patterns and conversion rates (helps to optimize marketing efforts).

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Finance

This industry depends on analyzing a lot of financial information. Professionals use visual tools to understand market trends, performance, financial statements, asset management, etc. The following charts are best for finance professionals to help them make good decisions based on multiple data sets.

• Candlestick charts: A staple in financial analysis, candlestick charts showcase price movements of stocks, commodities, or currencies over time. They show opening and closing prices. This chart type also shows highs and lows, making them perfect for traders and investors who need to analyze market patterns.

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• Waterfall charts: These charts help financial analysts visualize how various factors contribute to a change in a specific metric, such as profit. Waterfall charts provide a clear picture of financial dynamics by breaking down complex components such as revenue, expenses, and taxes.‍

💡Pro tip: Present data using waterfall charts for quarterly earnings reports. These help stakeholders see exactly where profits are being made or lost.

Line graphs can also be used in the finance industry to track trends in stock prices, interest rates, or revenue growth over time. For instance, financial analysts can use line graphs to visualize fluctuations in a company’s stock price over a year, helping investors identify market trends, spot growth opportunities, and make informed investment decisions.

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Healthcare

Healthcare uses a lot of data and statistics to monitor patient health and hospital performance. Using pictures and graphs to show the data makes it easier for doctors and other healthcare workers to make smart choices.

• Line graphs: In healthcare, line graphs are often used to monitor patient health metrics over time. Multiple line graphs can show the relationship between two metrics. For instance, they can track a patient’s heart rate, blood pressure, or glucose levels across multiple visits, allowing doctors to identify trends or changes in their holistic health.

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• Pie charts: This is a type of chart that uses 'slices' or a circle to represent a proportionate part of the whole. They are best for showing an overall picture of healthcare resources. For example, a medical director can use a pie chart to illustrate the distribution of hospital resources or patient demographics, such as age groups, treatment types, or patient satisfaction scores.

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Logistics

Logistics is an industry with a lot of data, where efficiency, timing, and resource management are crucial. Graphs and charts are essential for monitoring supply chain operations, delivery times, and warehouse management. Effective data visualization helps logistics managers optimize routes, improve resource allocation, and reduce costs.

• Flowcharts: In logistics, flowcharts are perfect for mapping out supply chain processes. They represent each step in the delivery process, helping managers identify potential bottlenecks or inefficiencies. By streamlining workflows, flowcharts ensure smooth coordination between suppliers, warehouses, and distribution centers.

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• Geographical maps: Geographical maps are crucial for visualizing delivery routes, warehouse locations, and supply chain movements. They provide real-time insights into transportation logistics, helping to optimize routes for cost savings, faster delivery times, and reduced carbon footprints. These maps are invaluable for monitoring international shipments and fleet management.‍

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💡Pro-tip: Use flowcharts to improve warehouse processes and geographical maps to identify and resolve delivery issues.

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Manufacturing

Manufacturing companies utilize data storytelling to enhance production efficiency, monitor equipment performance, and ensure continuity in the supply chain. The appropriate charts aid in streamlining operations and upholding product quality.

• Pareto charts: This chart combines a bar graph and a line graph, typically used to highlight the most significant factors in a dataset. In manufacturing, this chart can be used to identify the most frequent causes of defects or inefficiencies in the production process. By focusing on the “critical” causes, manufacturers can improve quality control and streamline operations.

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• Gantt charts: Gantt charts are commonly used in manufacturing to manage project timelines and production schedules. This chart is used to provide a clear visual of the tasks involved in a production process; each should start and end, and the dependencies between tasks. Gantt charts are essential for ensuring production stays on track and meeting deadlines.

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Line graphs are used extensively in manufacturing to illustrate production output, machine efficiency, or defect rates over a specified time. By plotting these metrics, production managers can quickly identify patterns, such as a drop in output during specific shifts or times of the year, allowing them to make adjustments to improve overall efficiency and quality control.

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Technology

The tech industry is driven by innovation and performance, making data visualization crucial for tracking product development, user engagement, and operational efficiency.

• Stacked area charts: Area charts are ideal for tracking multiple variables in product usage over time, such as comparing daily active users, monthly active users, and subscription rates. They show how different segments contribute to an overall metric in any industry.

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• Radar charts: Radar charts allow tech companies to compare performance across various dimensions, such as software feature usage or customer satisfaction metrics. This visual helps highlight areas where a product excels and where it may need improvement.

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Stacked line graph: A stacked line graph helps display cumulative data trends over time, making it useful for visualizing growth in different segments of tech operations, such as the increase in cloud storage usage or monthly app downloads.

Example: A tech firm could use a stacked line graph to illustrate the cumulative growth of user subscriptions, app usage, and cloud services over the last few years.

In addition to that, line graphs are used in technology to track system performance metrics like server uptime, website traffic, or software adoption rates. A tech company can use line graphs to monitor the growth of app downloads month by month, providing insights into user engagement, app performance, and potential areas for optimization in future updates.

You can use multiple graphs and charts in each industry. There is no rule about the graphs you can use or that the charts mentioned above must only be used in that industry. Professionals must assess audience requirements and tailor their data sets to meet data visualization needs. Based on the industry, type of data, project scope, etc., people need to customize their data into visuals that resonate with their audience.

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How do you choose the right graph or chart for a business presentation?

Choosing the correct graph or chart for a business presentation is important for conveying your data effectively. You can select the most appropriate data visualizations by understanding the type of data you want to present and the story you want to tell. Here’s a deeper dive into how to make the best choice, with business examples for each case.

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For comparisons: Use bar charts

Bar charts are commonly used to compare different categories or groups. These charts are often used to represent differences between variables and are ideal for showcasing metrics such as sales by region or customer demographics.

For example:
You are presenting the quarterly sales figures for different product lines. A bar chart can easily show which products outperformed others and by how much, allowing stakeholders to grasp the differences quickly.

💡Pro tip: If comparing several categories over time, use a stacked bar chart to present multiple data series in one graph.

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To show distribution: Use histograms or pie charts

Histograms and pie charts are the most effective in showing how data is spread across different categories or ranges. Histograms help display the frequency of data points within specific ranges (for example, customer purchase amounts), while pie charts are ideal for showing the proportions of a whole.

For example:
An HR manager may use a pie chart to display the distribution of employees by department, visually representing the percentage of the company workforce in each department.

💡Pro tip: Avoid using pie charts when there are too many categories. (this can become difficult to interpret. Consider a treemap instead for more complex distributions).

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For trends over time: Use line graphs

One of the most common types of graphs is the line graph. Line graphs depict trends over time, making them useful for showcasing growth, decline, or seasonal changes in business scenarios. They connect data points with lines to emphasize the direction of the data movement.

For example:
A finance team tracking monthly revenue can use a line graph to show how revenue fluctuates over the year. This visual makes it easy to spot patterns, like seasonal peaks or dips, and adjust business strategies accordingly.

💡Pro-tip: Use different colors for multiple data series in a line graph, but limit the number of lines to avoid clutter.

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For hierarchical data: Use treemaps or waterfall charts

Treemaps and waterfall charts are the best when displaying relationships within hierarchical data or illustrating cumulative effects. Treemaps show data as nested rectangles, making it easy to see how each part contributes to the whole. Waterfall charts perfectly illustrate how positive and negative incremental changes affect a total.

For example:
A product manager presenting revenue breakdowns by product category and subcategory can use a treemap to visually display each subcategory's contribution to overall sales. Alternatively, a waterfall chart can illustrate how various cost components impact overall profit.

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For highlighting processes: Use funnel charts or flowcharts

Funnel charts and flowcharts illustrate customer journeys, sales pipelines, and project workflows. Funnel charts are great for demonstrating how data moves through different stages, making them perfect for understanding conversion rates. On the other hand, flowcharts can visualize steps in a process, making them useful for operations or HR teams.

For example:
A sales team could use a funnel chart to present the customer acquisition process, showing the number of leads at each stage (e.g., inquiry, demo, negotiation, close). This chart can help pinpoint where prospects drop off and identify opportunities to improve conversions.

Whichever graph or chart type you choose should simplify your data, amplify your message, and not overwhelm your audience. If you have doubts, select the chart that provides the clearest path for audience understanding. Whether you're highlighting growth, comparing performance, or breaking down complex processes, the right chart will elevate your presentation, allowing stakeholders to see the insights behind the numbers.

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FAQs

1. How can you make graphs easier to understand for stakeholders?

Simplicity is key. Avoid overloading your graph with too much data or excessive labels. Use contrasting colors to differentiate data points, ensure your axes are well-labeled, and keep the design clean. Highlight key insights with annotations or color emphasis to highlight important trends or findings.

💡Pro tip: Use a legend only if necessary. If the graph is simple enough, the data labels and titles should be self-explanatory.

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2. How can you avoid misrepresenting data in graphs?

To ensure accuracy:

• Keep your axis scales consistent.
• Avoid using 3D effects, which can distort data perception.
• Be careful when cutting off parts of the graph because it can make differences look bigger than they really are.
• Make sure the words and numbers on the graph are clear and right.

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3. What are the common mistakes to avoid when creating different types of charts or graphs?

Common mistakes include:

• Overloading the graph with too much data can confuse the audience.
• Inconsistent scales, which can mislead viewers.
• Using the wrong type of graph, such as pie charts, for data with too many segments makes it hard to interpret.
• Poor color choices: Too many colors or insufficient contrast can reduce readability.

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4. What type of chart is ideal for showing sales pipelines or customer journeys?

Funnel charts are highly effective for visualizing sales pipelines, customer journeys, or conversion rates. They depict how many customers move from one stage to another, making it easier to identify where drop-offs occur and optimize each stage of the sales process.

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5. Can you use multiple types of graphs in one presentation?

Yes, combining different types of graphs can enhance the clarity of your data, but only when done appropriately. Ensure each graph serves a distinct purpose and that transitions between them are smooth. Using the same color schemes and design is best to keep everything consistent.

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How can Prezent help you save time for data visualizations?

Creating graphs and charts with vast amounts of data or information can be overwhelming and time-consuming. Many professionals are often confused about which graph or chart might be right, especially when presenting to senior management/leadership.

With Prezent, you can seamlessly create different charts and graphs as per your industry. You can save users and your organization time and effort with the following features from Prezent:

• Simplified graph creation: Prezent offers a user-friendly interface that allows users to generate graphs and charts without advanced design skills. Whether preparing a business presentation, financial report, or product analysis, you can choose from various customizable templates and chart options to create effective presentations.
• Brand-aligned visualizations: With Prezent, all graphs and charts automatically align with your brand's visual guidelines. You need not worry about inconsistent colors, fonts, or layouts, as Prezent ensures that every graph created reflects your company’s branding. This is valuable for teams creating presentations for internal stakeholders or clients.
• Storytelling with data: Prezent's Story Builder feature makes integrating visual storytelling into presentations easy. With more than 1,000+ expert-curated storylines, users can personalize their content with graphs and charts that align with it. Thus, you can create compelling presentations with the appropriate graphs or charts to enhance audience engagement.
• Customized presentations: The Communication Fingerprints feature allows users to customize presentations to meet the audience's requirements. By understanding the preferences and expectations of diverse audience segments, presenters can develop relevant content with graphs or charts that resonate with the audience. This enhances the message people wish to communicate much more effectively.

It is important for professionals in any industry to understand how to communicate their data. There are many statistical graphs and charts individuals can use to enhance their message and better resonate with their audiences. Finding the right communication methods and tools can elevate your position in any organization.

While designing the perfect presentation can take a lot of time, Prezent can help you reduce the time spent designing slides. Prezent allows you to customize your charts and graphs for data visualization in just a few clicks. Using Prezent’s features ensures the visual element of your communication is polished and professional, enhancing overall effectiveness.

By scheduling a demo at your convenience, learn more about Prezent features and capabilities. You can also explore the platform for free using your free trial to see how it fits your needs.