You’ve probably noticed how more and more businesses are using dashboards today instead of old-school static reports. This is not surprising as the former offer more dynamic and actionable insights. In this post, we’ll discuss why use dashboards, what types there are, and what purposes they serve.
What Is a Dashboard?
So why are dashboards important? The central reason is that they show your key metrics and data points from different sources in one view. Put simply, they give you a real-time summary of how things are running. Instead of wading through loads of reports, you just have different data dashboard templates that pull everything together and present it all in a way that’s easy to understand and act on.
Let’s take some of your important data — sales numbers, marketing results, customer service metrics. A dashboard purpose is to gather this data from various systems and show it in a single, easy-to-read format. This helps you make quick decisions, spot trends, and react to changes.
4 Major Benefits of Dashboard
The benefits of dashboards really stand out when compared to the static, manual reports they replace.
- Real-Time Data Access
Let us be honest, traditional reports are often outdated by the time you get them. As a result, your decisions may be based on old information which is no good, of course. And what is the purpose of a dashboard? It provides real-time data for you to make the smartest decisions possible. For example, in retail, up-to-date sales data lets you adjust inventory and cut expenses.
- Data Visualization
Static reports are usually full of text and tables, which can be hard to digest. Dashboards, in turn, use visuals like charts, graphs, and heatmaps. Such visuals make it easy to understand what’s working and what’s not.
- Collaboration and Transparency
Manual reports are often kept within departments. Dashboards, in turn, provide a unified view of data that everyone can access.
- Efficiency and Time Savings
Creating manual reports is time-consuming and prone to errors. Dashboards are quite the contrary as they automate data collection and reporting. Thanks to them, your team can focus on analyzing and acting on the data instead of just gathering it.
Dashboard Types
But what are dashboards used for exactly? This usually depends on the type of tool you are using.
Operational
These are mainly about keeping an eye on the day-to-day stuff. They show you real-time data on what’s happening in your business right now. For example, if you run a warehouse, an operational tool might show you current inventory levels, shipment statuses, and equipment performance.
Strategic
These look at the big picture. They help you track long-term goals and high-level metrics like revenue growth, market share, and client satisfaction. They are great for senior managers and executives who need to see how the business is performing against its strategic objectives.
Analytical
These are specifically designed to help data scientists and similar professionals uncover trends and patterns. They often have advanced features like drill-downs and interactive charts.
Dashboard Purposes
And what is the purpose of a dashboard, you may wonder? Well, the beauty of these tools is that they can serve multiple purposes. Here are a few examples.
Purpose #1: Tracking Performance Metrics
Dashboards are fantastic for keeping tabs on how different parts of your business are performing. For instance, think about a sales dashboard. It can show you monthly sales targets, conversion rates, and lead-generation efforts all in one place. This gives you a clear picture of how your sales team is doing.
Purpose #2: Trends and Patterns
These tools also help you identify trends that might not be apparent in static reports. For instance, a marketing dashboard can reveal seasonal trends in customer behavior. Based on these insights, the marketing team will further plan campaigns.
Purpose #3: Gamification
Although unobvious, dashboards can be used to make work more engaging and fun for your team. Leaderboards, achievement badges, and progress bars can motivate your team to reach their goals. For example, a sales dashboard might feature a leaderboard that shows top performers, encouraging competition.
Purpose #4: Accountability
When team members can see their own metrics and compare them with others, it fosters a sense of responsibility and ownership. For instance, a customer service dashboard can show individual performance metrics like response time and customer satisfaction scores. This helps team members stay accountable and strive for improvement.
Conclusion
All in all, dashboards can serve multiple purposes, from tracking performance metrics to enhancing decision-making. Now that you are aware of their different types, you can choose the right tools to meet your business’s needs and drive success.