Introduction:

In today’s digital age, data analysis has become an essential tool for businesses and organizations aiming to make informed decisions. Sankey charts, a type of visual analytical tool, take advantage of this trend to provide visual representations of business relationships, flow patterns, and dependencies and provide decision-makers with actionable insights.

A Sankey chart is a diagram used in data analysis that combines two other types of chart – a flow diagram and a network diagram. The flow is represented by a series of arrows labeled with the source and destination cities, and the network diagram depicts the relationships between the cities. The combination of flow and network charts allows users to identify the key players in a business system and understand their hierarchical connections.

Unlocking the Power of Sankey Charts: A Visual Guide to Analyzing Complex Data Hierarchies

In today’s digital age, data analysis has become an essential tool for businesses and organizations aiming to make informed decisions. The challenge for data analysts is to extract meaningful insights from complex data, and a tool like a Sankey chart can help. Here are some key points to keep in mind when creating and interpreting a Sankey chart:

1. Define your data hierarchy: Every Sankey chart starts with a hierarchical structure of data, representing the relationships that exist between things. Make sure that your data hierarchy is clear and easy to understand. A well-structured data hierarchy will make your charts easier to read and interpret.

2. Choose the right scales: Choose the right scales for your data. For instance, if you are analyzing customer revenue, the scale should be based on the size of the customer’s orders. If you are analyzing patient outcomes, the scale should be based on the severity of the condition.

3. Use the right colors: Choose the right colors based on the type of data being displayed. Use colors with high contrast to make it easier to read and understand the data.

4. Explain the chart clearly: A Sankey chart represents complex data. Therefore, it is important to explain each component clearly to make it understandable. Include a legend and annotations to make it easier to interpret.

5. Draw the connections carefully: Make sure that the connection between the data points are drawn in a way that is easy to interpret. Ensure that the arrows are drawn in the right direction and don’t get lost.

Sankey Charts in Practice:

Sankey charts are widely used in different sectors such as business, transportation, and research. Let’s look at a real-world example of how a Sankey chart can be used to analyze complex data hierarchies.

Example: Marketing Performance

In this example, we will demonstrate how to create a Sankey chart for the marketing performance of a business. The data consists of marketing budgets, marketing channels, and the revenue generated by each channel.

Data:

Marketing Channels: TV, Radio, Social Media, Digital Advertising, Online Shopping

Breadth:

TV: 5 million dollars
Radio: 3 million dollars
Social Media: 2 million dollars
Digital Advertising: 6 million dollars
Online Shopping: 4 million dollars

Depth:

TV: 10% of marketing budget

Radio: 3%
Social Media: 8%
Digital Advertising: 12%
Online Shopping: 7%

Steps to Create and Interpret a Sankey Chart:

Step 1: Choose your scales:

• Marketing Channels: TV (1), Radio (2), Social Media (3), Digital Advertising (4), Online Shopping (5)

• Budget: 1, 2, 3, 4, 5 Million Dollars

Step 2: Choose colors:

• TV (Red) 10%
• Radio (Green) 3%
• Social Media (Blue) 8%
• Digital Advertising (Yellow) 12%
• Online Shopping (Orange) 7%

Step 3: Draw the connections:

• TV: 1 -> Radio -> Social Media -> Digital Advertising -> Online Shopping

• Radio: 2 -> Social Media -> Digital Advertising -> Online Shopping

• Social Media: 3 -> Digital Advertising -> Online Shopping

• Digital Advertising: 4 -> Online Shopping

• Online Shopping: 5

Step 4: Create the Sankey chart:

1. Open Microsoft Excel or other software that supports creating Sankey charts.
2. Input the data in a table format with columns for the data you want to display in the Sankey chart.
3. Choose the scales and colors as per your choice.
4. Enter the arrow labels in the space for the arrows.
5. Right-click on the chart, and select “Select Data from Other Sources” to add arrows and labels to the chart.
6. Customize and refine the chart as per your needs.

Example: Customer Outcomes

In this example, we will demonstrate how to create a Sankey chart for customer outcomes. The data consists of the number of customers and the time taken for each customer to make a purchase.

Data:

Time Taken: 10 hrs, 15 hrs, 20 hrs, 25 hrs

Number of customers: 50 customers, 100 customers, 150 customers, 200 customers

The steps to create and interpret a Sankey chart would be:

1. Choose scales: Number of customers (0, 1, 2, 3, 4, 5…)
   Time Taken (0, 1, 2, 3…)

2. Choose Colors: Use colors with high contrast to make it easy to read. Use primary colors to distinguish between the different types of customers and time periods.

3. Draw arrows: Set the arrow length to reflect the distance between the source and the destination.

4. Enter the label: Use the arrow labels to clearly and concisely label the data points.

5. Right-click on the chart, and select “Draw Arrows” to assign arrow labels to the arrows.

6. Customize and refine the chart as per your needs.

Conclusion:

Sankey charts are a powerful visual tool for analyzing complex data hierarchies. By following the steps outlined in this guide, you can create a clear and effective Sankey chart that is easy to read and interpret. Remember to keep things simple and let the data speak for itself. By doing so, you will be able to gain valuable insights from your data that will help your organization make better decisions and drive success.

SankeyMaster

SankeyMaster is your go-to tool for creating complex Sankey charts . Easily enter data and create Sankey charts that accurately reveal intricate data relationships.