Charts and graphs play a significant role in helping data professionals present data in a manner that their audiences can comprehend. They also help during data visualization when converting boring data sets into attractive visuals that communicate in a way that anybody can easily grasp. Given that there are different charts and graphs available, most people tend to confuse about how to use them.

Pie charts and Funnel charts are some of the most common charts used by data professionals and business owners to communicate critical insights clearly and concisely. Despite the multiple applications of these chart types, there are people who still find it difficult to discover what makes them different from one another. This is one aspect that needs to be addressed urgently to ensure that individuals can easily understand the two.

During data visualization, charts are used to communicate insights visually, allowing non-technical audiences to comprehend technical information. Pie charts and funnel charts are also used to help deliver information and extract valuable insights from boring data sets. Learning and understanding how these two types of charts operate can help you save a lot of time and effort during data visualization.

This article helps you to uncover meaningful information that will enable you to determine the difference between a pie chart and a funnel chart. Read this blog for more information that will enable you to solve this problem.

What is a Pie Chart?

A pie chart is a special type of chart that displays data in a circular format. It is considered a composite static chart designed to work well with a few data variables. This chart type is mostly used when representing sample data to your market audience. It is also a nice option when visualizing statistical data since it can display the distribution of water components in a given demographic area.

The categories of data on a pie chart are represented by slices with a size that reciprocates the data value. When creating a pie chart, you need to ensure that the size of the slice is directly proportional to the data value it represents. Note that this is one of the simplest charts that are easier to read and interpret since it does not have any technical data aspect. A pie chart is a suitable option if you have a limited number of data variables you intend to present.

The data values presented on a pie chart are outlined in the form of percentages. All the data values presented on the chart should be equivalent to 100%. Before making any conclusions from your data on the chart, ensure that they all add up to 100%.

When to Use a Pie Chart?

A pie chart is not a suitable option for all circumstances during data visualization. It is only used under specific scenarios outlined below.

Presenting Few Data Components:

A pie chart works explicitly well when you have a few sample data variables that you intend to present. If you have a huge number of data categories that you intend to present, the number of slices will also increase. This is likely to result in clattering, making it difficult to translate the data components.

Display Distinct Parts:

If you have a pool of data made up of distinct sets that you intend to present to your readers, a pie chart can help you display this data and translate the hidden information. The pie chart can help you to compare the impact of every distinct part to the general findings.

Simple Visualization:

When looking for a simple way of visualizing your data, the pie chart gives you an ideal mechanism that you can utilize to translate your data points. It allows you to interpret the contribution of every aspect of your dataset to the final results recorded.

No Time Representation:

During data visualization, a pie chart can be used in scenarios where there is no need to represent time. Even though other chart types have the option to represent time, a pie chart does not have this option.

What is a Funnel Chart?

A funnel chart is a graphical representation of how data changes from one stage to another. It is used in data changes from one point to the other based on various factors affecting the entire process. The funnel chart is mostly used in the sales and marketing department in the business industry to help marketers evaluate the number of customers who convert at the end of the process.

As the name suggests, a funnel chart looks exactly like a funnel that helps collect data variables from different departments and describes how it changes when it moves from one state to the other. At the top of the funnel, a huge number of consumers change gradually based on various factors. This chart type is used by marketing professionals to attract prospects from their target audiences and evaluate how the number changes as the chart narrows down.

When to Use a Funnel Chart?

A funnel chart is used in specific scenarios during data visualization. These scenarios include:

Visualize Customer Dropout:

When using a funnel chart in visualizing your sales and marketing activities, it can help you determine the rate of customer dropout. Customers tend to drop out at various stages and do not complete the whole process. The chart helps you to visualize the proportion of customers as they pass through different stages.

Identify Bottlenecks in a Process:

Funnel charts are important in helping you identify bottlenecks in various processes and possible solutions to fix them. It can help you identify a problem behind a reduced number of sales and offer suggestions to leverage the gap.

Conclusion:

Understanding the difference between a funnel chart and a pie chart allows you to understand how efficient which type is and when to use it. These two charts are completely different and are only used to present different data types during visualization. However, they all have a successful track record of helping data professionals and business owners track data and recognize changes that occur at the end.

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