The Power of Color in Data Storytelling: How to Influence Decisions and Drive Impact

Using Color to Make Your Data Speak and Stand Out

Intro:
Colors are much more than just nice-looking elements in a report. They’re like silent storytellers. When we use color smartly in data visualization, we’re not just making the dashboard look pretty, but we’re also guiding attention, shaping how people perceive the data, and nudging them toward making decisions. In this post, I’ll walk you through how color psychology can give your data storytelling a big boost, using simple examples and practical takeaways.

Why Color Matters in Data Storytelling:
If you're looking at a dashboard with lots of blue, but these tiny red dots are popping up here and there. Immediately, your eyes go to the red, right? That’s because red can signal urgency or something important. The magic of color , it can trigger emotions, push people to act, or highlight what matters without using a single word.

Studies show that people make snap judgments about visuals within 90 seconds, and almost 90% of that judgment is based on color alone. So, as data communicators, we can’t afford to overlook how color impacts how others perceive what we’re showing.

Understanding Color Psychology in Data:

• Red: Urgency, Warning, Decline.
  Think of dashboards showing sales numbers, red often signals a drop in sales or a rise in expenses.

• Green: Growth, Success, Stability.
  It’s the go-to for showing things going in the right direction like when sales are up or a project hits a milestone.

• Blue: Trust, Calm, Neutrality.
  Ideal for baseline data it doesn’t stir up emotions but keeps people engaged and focused.

• Orange/Yellow: Caution, Attention, Highlights.
  Use these for drawing attention to areas that need immediate action or are outliers.

It doesn’t stop with just the typical RGB colors. Colors like purple, teal, and gold can convey sophistication, calm, or a sense of luxury. Don’t be afraid to step beyond basic colors based on what the data is trying to say.

color palette

How Color Psychology Aligns with Brand and Design Evolution in Data Storytelling:
If you work in a company with a strong visual identity like I do, where the logo and branding is red and white, you realise very quickly that your choice of colors for data visualization needs to match the overall branding. It’s not just about looking good; it’s about conveying a message and building trust.

For example, in my organization, red is the dominant color, with white backgrounds and red fonts. That means I need to use colors in my dashboards that align with this brand while still making sure the data is clear. Red might signify urgency, but it can’t be the primary font color everywhere. If I use it too much, it loses its power.

This is why it’s so important to check if the design and branding are still aligned in your data visuals. As branding changes, like logo updates or shifting color palettes, our visual designs need to adapt too. Just like we refine data for clarity, our visuals should evolve to reflect these branding shifts.

A Framework for Color Selection: It’s Not One-Size-Fits-All
I often get asked by junior folks, “How do I pick colors for my dashboards or analysis?” There’s no magic formula, but there’s definitely a framework I follow. It’s not something I came up with on my own, but a thought process I picked up by reading a lot from the amazing DataViz community.

When you’re choosing colors, you need to think about:

• Brand Identity: Always align the colors with your company’s branding. It helps keep your visuals consistent with the larger company identity.

• Cultural Context: Colors have different meanings in different cultures. In India, red might be associated with luck, while in the West, it signals danger. Always keep the cultural perspective in mind.

• Readability and Accessibility: Don’t forget about colorblind accessibility. More than just a good design, make sure your dashboards are accessible to everyone.

The Evolution of Design and Colors in Data Storytelling:
Just like branding changes over time, our color choices for data visuals need to evolve too. Early on, I used bold colors red for decline, green for growth. But over time, I realized that context matters a lot. Red, for example, could show a decline in performance, but when mixed with a bold color palette, it could confuse the message.

This is part of the journey we all go through as data designers. It’s not just about following trends; we adapt as we understand more about what works for our audience. It’s about understanding the emotional effect of colors and selecting shades that help communicate your message clearly.

Inspiration from the DataViz Community:
As I’ve spent more time in the DataViz world, I’ve learned a lot from other practitioners

and experts. A lot of this knowledge has been around color selection. Reading blogs and attending talks from experienced designers has really helped me get better at choosing colors that align with the story I want to tell.

Tools like ColorBrewer, ColorHarmonies, and Adobe Color have made a huge difference in selecting the right palette. It’s all about picking the right tools for the job and adapting to the data you’re working with.

Common Pitfalls to Avoid:

• Too many colors: Stick to 2-3 main colors, with variations for contrast.

• Ignoring the context: Not every dashboard needs a red alert.

• Sacrificing clarity for style: A beautiful chart that no one can understand is a missed opportunity.

Actionable Takeaway:
Next time you’re designing a dashboard, ask yourself, what’s the key message I want to convey? Then, use color to highlight that. Whether it’s using red to show a drop in sales or green to highlight customer satisfaction, let the color do the talking.

The most important thing to always remember is that designs evolve. Just as the company brand might shift, your color choices should adapt to the context and needs of your audience.

Key Dashboard Designers and Influencers to Follow:

1. Andy Cotgreave – Senior Data Evangelist at Tableau.

   • Why Follow: Andy shares tons of insights on creating compelling dashboards, especially focused on Tableau users. He’s an advocate for design thinking in data visualization and regularly posts about the latest trends and tools.

2. Alberto Cairo – Professor and Director of Visual Journalism at the University of Miami.

   • Why Follow: Known for his book The Functional Art, Alberto is a thought leader in data visualization and storytelling. He shares inspiring work that merges journalism with data storytelling.

3. Stephanie Evergreen – Author of Presenting Data Effectively.

   • Why Follow: Stephanie specializes in creating clear, concise, and effective data visualizations. Her work is known for its simplicity and emphasis on making data accessible to a wide audience.

Further Reading & References:

• "Color Psychology in Data: The Role of Color in Data Visualization" by DASCA

• "A Guide to Design Blind-Friendly Colors in Data Visualization" by Plotset

• "Advances in Color Science: From Color Perception to Color Metrics and Its Applications in Illuminated Environments"

• The Impact of Color on Decision-Making

• Designing Accessible Dashboards – Datawrapper Blog

• "12 Great Data Visualization Color Palettes to Use" by wpDataTables

Color isn’t just decoration, it’s a tool. Use it wisely, and your dashboards won’t just inform they’ll engage, persuade, and drive action.