A treemap is a data visualization tool that uses nested rectangles to display hierarchical data. The rectangles are sized and colored according to the value of the data point they represent. Treemaps are often used to visualize website traffic, product sales, or stock market data.
It is an efficient way to compare and contrast different items at different levels of detail. Treemap charts are used to display data in two dimensions. The width of the chart is used to represent the level of detail, while the height of the chart represents the quantity of data. Today, we’ll look at a treemap chart example and how it can benefit your business.
How to Create a Treemap Chart in Excel
To create a treemap chart in Microsoft Excel, first, you need to decide what data you want to visualize. Businesses can use many different types of data to create a treemap chart, but some of the most common are sales data, customer data, and product data.
For this example of a treemap chart, let’s examine how to create one using sales data. Create a data table with at least two columns. The first column will contain the data items, and the second column will contain the values for the data items. In the first row of the data table, enter the data items. In the second row of the data table, enter the values for the data items. Next, you’ll need to select the data table and, on the Insert tab in the Charts group, select the TreeMap chart.
Using the Information in a Treemap Chart
Once you have selected the TreeMap chart, Excel will generate the chart with the sales data you have included in your data table. This way, you can see the hierarchal relationships between the different product categories and how much each contributes to the total sales. You can also examine the performance of each product category over time and see which ones are growing or shrinking in popularity.
With this information, your organization can make more informed decisions about allocating its resources. For example, if the company is experiencing declining sales in a particular product category, it might decide to invest in marketing and advertising to try and revive interest. Or, if a product category is growing rapidly, it might decide to increase its production to meet demand.
The Benefits of a Treemap Chart
Treemap charts have many benefits for businesses. Let’s look at some of the notable benefits below.
These charts are easy to read and understand. This makes them a popular choice for businesses that need to quickly understand how their data is broken down and what it looks like.
They can be used to compare multiple data sets. For example, you could use a treemap to compare the sales figures for different products in your store. This would allow you to see at a glance which products are selling the best and which ones are not doing as well.
Treemaps can also be used to show changes over time. For example, you could use a treemap to track the sales figures for your business over several months. This would allow you to see whether your sales are increasing or decreasing and identify any trends.
Treemaps are also easy to customize. This means that you can use them to highlight the most important data to you. For example, you could use a treemap to show the sales figures for your top products.
Overall, treemaps are a great way to quickly and easily understand large data sets. This makes them a valuable tool for businesses of all sizes.
Utilizing Treemap Charts
The TreeMap chart is a valuable tool for businesses of all sizes. With it, you can better understand your customers and their purchasing behavior. This information can help you make more informed decisions about what products to develop and sell and how to market them most effectively. So, consider implementing this useful chart in your company.