Unleashing the Power of Sankey Charts: Visualizing the Flow of Information

Visualizing data is an essential part of data analysis and decision making. One type of chart that has gained popularity in recent years is the Sankey chart, which is a powerful tool for visualizing the flow of information between different nodes or categories. In this article, we will explore the basics of Sankey chart creation, as well as some common applications and best practices for using these charts to gain insights from your data.

What is a Sankey Chart?

A Sankey chart, also known as a flowchart, is a type of chart that uses arrows to represent the flow of information or goods between different nodes or categories. It is named after its creator, H. Charles Sankey, who first introduced the chart in the mid-19th century. Sankey charts are useful for visualizing complex systems, where different processes or entities interact with each other, and for identifying bottlenecks or opportunities for improvement in those systems.

How to Create a Sankey Chart

There are several steps involved in creating a Sankey chart, which can be a bit complex due to the use of mathematical equations and algorithms. Here are the basic steps:

Determine the source data: Identify the data that you want to visualize, such as transactions or processes, and determine the columns and rows of that data.
Choose a Sankey chart type: There are several different types of Sankey charts, including directed and undirected, flow and feedback, and hierarchical. Choose the type that best suits your data and the analysis that you are conducting.
Calculate the weights: If your data is quantitative, you will need to calculate the weights of the arrows based on the values in each data column or row. If your data is categorical, you will need to assign a weight or frequency to each category.
Set the chart limits: Determine the range and axis labels for your chart, and set any other options, such as the font size and color.
Run the Sankey chart algorithm: Use a software program or online tool to calculate the weights and positions of the arrows, and generate the chart.

Applications of Sankey Charts

Sankey charts are widely used in various fields, including finance, marketing, and operations management. Here are some examples of common applications:

Financial analysis: Sankey charts can be used to visualize the flow of money or assets between different accounts or entities, such as a company’s income statement or balance sheet.
Customer analysis: Sankey charts can be used to analyze customer behavior and purchasing patterns, by visualizing the flow of goods or services between different customer segments.
Supply chain management: Sankey charts can be used to visualize the flow of goods or information through a supply chain, identifying potential bottlenecks or areas for improvement.
Social media analytics: Sankey charts can be used to visualize the flow of engagement or shares on social media, by analyzing the interactions between different platforms or content.

Best Practices for Using Sankey Charts

Like any data visualization tool, it is important to use Sankey charts effectively and efficiently. Here are some best practices to keep in mind:

Use clear and concise arrows: The arrows in your Sankey chart should be clear and easy to understand, with a single arrowhead pointing in the direction of the flow.
Focus on the most important flows: Sometimes, there are many different flows in a Sankey chart, making it difficult to determine which ones are the most important. Identify the flows that are most relevant to your analysis and highlight those in your chart.
Avoid clutter: It is easy to become overwhelmed by a cluttered Sankey chart, which can make it difficult to understand the underlying data. Keep the chart simple and use colors and labels to highlight key information.
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