Data Visualization Best-Practices For Pareto

“20/80: 20% of your customers are actually representing 80% of your overall business”. This data visualization, often called “Pareto Analysis” aims to highlight this key phenomenon. Applicable on any business this visualization is a key one to identify cost savings opportunities and ensure better focused investments.

Data visualization best-practices

  • Display a bar chart
    • Use vertical bars and display the KPI value inside each bar
    • Sort by KPI value descending
    • In addition to the bar, compute an indicator showing the cumulative share of total value (cumulative share of revenues in this example). Namely, the indicator on the second item will be the total share of first and second one on the overall total.
    • The cumulative indicator must be colored: green or red depending whether it is above or under the average KPI value
  • Allow the user to dynamically select the KPI he wants to analyze (for instance moving from a Revenue analysis to a Gross Margin analysis)
  • Allow the user to dynamically select the axes of analysis

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Tableau Software

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Qlik Sense

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