Data storytelling as a Key to Enhancing Stakeholder Engagement

MX Bites / October 18, 2024

The power of communication lies in its clarity and presentation. Likewise, the potential of data figures is projected when it tells a story that appeals to the emotions of people. In organizations, stakeholders are influenced to take action when facts and figures are well presented through effective data storytelling. 

This is revealed in recent research by LeapMesh, which shows that “71% of executives prioritize data storytelling skills for reporting to the C-suite or key stakeholders.” This is to help them make accurate and informed decisions that cater to the advancement of the organization. According to the same research by LeapMesh, data-driven stories can also boost audience engagement by 300%. This statistic shows how radically storytelling can increase audience engagement.

People want to respond to things that appeal to their emotions. Therefore, using storytelling to present data-driven insights is the most effective way to accomplish this. Let’s take a deeper dive into the importance of stakeholder engagement and how data storytelling can influence it.

Why does stakeholder engagement matter?

Before delving into the importance of data storytelling as a tool, let’s get to know more about stakeholder engagement. Why should you even care about it? When you know how important your stakeholder engagement can change the game for your brand, you will then see the need to employ data storytelling as a technique for enhancing stakeholder engagement. 

Stakeholder engagement involves the process of influencing individuals, groups, or organizations who are interested in the outcomes of a particular project, decision, or strategy that is related to your brand. Your stakeholders include customers, investors, employees, and community members involved in shaping the success of the company. 

Stakeholder engagement matters because

1. 1. It determines the accuracy of your decision-making.
   2. It builds trust and transparency
   3. It fosters collaboration and innovation
   4. It reduces risks associated with lack of resource management

How Data Storytelling Enhances Stakeholder Engagement

People always respond to storytelling because it appeals to their emotions and leaves a long-lasting effect. Data in its normal state is not fun to interact with. It’s easier to interact with data, and data is open to interaction with a wider audience when it is communicated in relatable terms. Hence, propelling people to take actions. The following ways are a breakdown of how data storytelling enhances stakeholder engagement:

• It makes data accessible and easy to understand. No matter how available data is, if it’s not understandable, then it’s equally not accessible. When data storytelling is used to communicate data facts, it breaks down the complexity by framing it in a way that aligns with the interests of the stakeholders. For instance, a table of sales records across several restaurants in the country will not make so much sense to your stakeholders until you explain their importance and how you came about the data figures. It could be how you explored the same market campaign across different regions and the reason for the difference in result. Your stakeholders can then respond based on their understanding of the data story.

• It establishes emotional connection. As mentioned earlier, data storytelling has the power to connect deeply with stakeholders because it influences their emotions to take actions. When you share a report of your business success with them using data stories, it is easier for investors to see the potential of your brand and take action to invest in it. Facts and figures only appeal to the logic and do barely anything to the emotions. When storytelling is introduced to establish emotional connection with important stakeholders, including employees, it brings a form of togetherness in the workplace.

• It builds trust, transparency, and credibility. Suspicion grows in the workplace when certain interactions on data figures happen, especially among data illiterates. In fact, it could be frustrating to be in an organization where the leaders communicate over your head, in your presence. It could mean they are trying to hide something from the rest or only need the intervention of a secluded set of people. In order to enhance transparency in the workplace and build trust alongside, it’s important to effectively communicate using data storytelling to carry everybody along. Stakeholders are more likely to engage with an organization they know they can trust.

• It encourages stakeholder participation. Stakeholder participation is a gift to any company. If you can influence your customers, investors, or employees to go all out for your company and actively engage, then you’ve won a big feat. Also, engaging stakeholders with compelling stories opens up opportunities for dialogue and collaboration. Data storytelling not only informs but also invites stakeholders to share their thoughts, ideas, and feedback, which overtime helps the company to grow exponentially.

Conclusion

Stakeholder engagement is pivotal to the growth of every company, as companies can only grow to the extent with which they can influence their stakeholders to take action. Since accuracy in decision-making is hinged on the understanding of data figures, it is important for data to be communicated effectively using data storytelling. By using narratives that combine emotional resonance with factual clarity, data storytelling can transform stakeholder engagement, foster trust, and drive informed decision-making.