Data Visualization Psychology: How to Create Interactive Dashboards

Eric Johanson
Eric Johanson
Table of Contents

Data Visualization Psychology: How to Create Interactive Dashboards

Introduction to Data Visualization Psychology

 

 

Consider this scenario- you are a decision-maker at a company who needs to analyze data to compare your business progress. You receive one report with multiple numbers and text and the other in a visual with concise data comparisons and easily understandable user tips at the top. Which one are you likely to understand faster and better? Without a doubt, you will choose the second one. Visualization is the fastest way the human brain processes data and filters the most relevant information.

Numerous studies have shown the impact of interactive data visualization on the decision-making process. Visual and interactive presentation of data can drive better, faster judgements and more effective decisions.

To visualize data effectively, analysts can leverage psychological principles to create dashboards that present data in a way that can influence and guide decision-making.

Let’s take a deep dive into how data analysts can create impactful dashboards by keeping in mind some simple psychological principles.

How we perceive data: Psychology of data visualization

I. Gestalt principles:

Gestalt principles are laws of human perception that describe how humans group visual elements and patterns and make sense of complex images and illustrations. Gestalt principles include the following rules:

Prägnanz: A German word meaning “pithiness”, it implies that the human brain loves simplicity and order.

Dashboard tip- Avoid overwhelming users with too many designs and create simple patterns that follow a logical sequence.

Proximity: Humans tend to view objects that are close together as a group.

Dashboard tip- Decide the highest priority of data you want to focus on in your report – and keep those data points closer. If there are multiple groups of criteria, separate them with distance.

Similarity: Objects with similar characteristics – size, shape, colour, etc – are viewed as related.

Dashboard tip- Use similar characteristics to show the relationship between criteria and encourage users to group data.
Continuity: If the elements are aligned on a line or curve, we tend to view them as a group.
Dashboard tip- Use bar graphs with the same colours so users can easily compare data points.
Closure: If information is missing from an image, our minds will fill in those gaps.
Dashboard tip- Use negative/white space to create separation and partial/dotted borders around data groups in a complex dataset to suggest a connection without overwhelming the user.
Figure-ground: People instinctively perceive objects as either figures/focal object in the foreground or as the background.
Dashboard tip- Ensure sufficient contrast between foreground and background so your charts are more legible.
Common-Fate: When lines or shapes move in the same direction, we perceive them to be related.
Dashboard tip- Use direction and movement to establish or negate relationships between parameters.
Isomorphic Correspondence: People interpret and respond to visualizations based on past experiences.
Dashboard tip- Stick to well-established rules (for example, blue colour for hyperlinks, etc.). And consider your user’s past experiences and notions, including cultural interpretations of colours, shapes, etc.

II. Cognitive load theory

Cognitive load theory explains how people learn, interpret, and store information. According to this theory, human memory has three parts: Sensory, working, and long-term memory. Out of these three, the working memory has limited capacity to process information simultaneously. Cognitive load happens when the working memory needs to process too much information. To avoid overwhelming your user with cognitive load, follow these points:

  • Limited information in one dashboard – keep the interface clean and minimal.
  • Present data clearly and concisely.
  • Break down complex data into small, manageable chunks.
  • Place the highest-priority insights (for example, Critical KPIs) at the top and the summary at the bottom.

Focus on what action the users could take based on insights.

With the knowledge of these basic principles, analysts can use storytelling through dashboards so that users can make the most of the information presented and make sense of it.

III. Colour psychology

It is common knowledge that colours evoke certain emotions, and each colour is associated with a specific psychological meaning.

For example:

  • Red: Strength, Enthusiasm, urgency, danger.
  • Green: Growth, positivity, harmony
  • Blue: Calmness, stability, trust, professionalism
  • Yellow: Optimism, caution, warmth, energy

Utilizing colour psychology in designing dashboards can be a very effective way to communicate important insights and help users identify information instantly.

Some real-world examples where dashboards can use colour theory for maximum impact:

Sales dashboards: Use yellow for prospective leads and green for customers. Or use a colour gradient from light to dark shades to show sales progress across regions.

Project management dashboards: Use blue graphs for the pipeline or planning stage, green for the work-in-progress stage, and red for pending or incomplete stages.

Inventory dashboards: Use red for low-stock alerts and grey/neutral colours for discontinued products.

Practical Tips for Designing Effective Dashboards

If you think applying all these psychological principles in designing dashboards seems complicated, it’s not! Here’s a summarized list of usable tips to help you create interactive dashboards that tell stories and influence decisions. A. Understand Your Audience: Tailor the dashboard to the specific needs and knowledge level of the users. Conduct user research to know their industry, product/service type, and brand persona. B. Choose the Right Visualizations: Select the appropriate chart type for the data (e.g., bar charts for comparisons and line charts for trends). Avoid unnecessary visual elements and too many colours and designs. Use minimal, gentle, and consistent colour schemes. C. Designing for Usability: Keep the navigation intuitive with clear labelling and contrasting colours to improve accessibility. Create responsive designs for different screen sizes. Add large, clickable, and interactive elements for users to explore and gain deeper insights. D. Iterative Design and Testing: Create prototypes and gather user feedback. Conduct user testing and continuously refine the dashboards.

Conclusion

We can see how considering how the human brain processes information can influence the impact of our dashboards. The arrangement of data points, presentation, and colours are all crucial considerations in designing visually appealing and meaningful reports. 

Keeping a few common psychological principles can transform your dashboards – from monotonous graphs with flat data to clear, compelling visuals with actionable insights that drive decisions. Creating effective dashboards can add significant value to the organization with more informed, data-driven decisions, better coordination, and effective communication.  

Try using these psychological principles the next time you create dashboards – and see the impact for yourself! 

If you need help creating high-impact, effective dashboards to present your data in a way that drives growth, let’s connect! 

 

Linkedin
Eric Johanson

Eric Johanson

Eric is an all-around Entrepreneur after getting a fine arts degree with minors in various fields like journalism, computer science, English, and physics. Eric also went to work as a web developer. Eric carries a diverse portfolio of experience, from small businesses to Fortune 50, startups to corporations that are 100+ years old, and a bevy of marketing, business, sales, and technology knowledge.!
Linkedin
Eric Johanson

Eric Johanson

Eric is an all-around Entrepreneur after getting a fine arts degree with minors in various fields like journalism, computer science, English, and physics. Eric also went to work as a web developer. Eric carries a diverse portfolio of experience, from small businesses to Fortune 50, startups to corporations that are 100+ years old, and a bevy of marketing, business, sales, and technology knowledge.!

Subscribe to Socium Blog

More Blogs Like This

Show More
Scroll to Top