There are a lot of components in business, and they all have statistics attached to them, which need to be shown to various entities including investors and potential buyers. Therefore, you need a way of portraying your point, especially when you’re making comparisons. Fortunately, Venn diagrams can be used to offer a visual representation of clear similarities. There are many different ways to use a Venn diagram including demonstrating similarities between prototypes. Throughout this article, we will explain what a Venn diagram is and outline a series of business usage.
What Are Venn Diagrams?
A Venn diagram is a means of portraying the relationship between two sets of information. Typically, they are illustrated using overlapped circles, with the overlapping parts being common features. Entrepreneurs love using Venn diagrams because they’re simple to use, highly visual, and effective for making comparisons. There are many different styles of Venn diagrams, and they all serve different practical purposes. However, when you break the most complex diagrams down, they’re simply showing you where the similarities are.
Customer Satisfaction
Customer satisfaction is the key component to business success. However, it’s not always the easiest goal to attain. Fortunately, thanks to the power of the Venn diagram, customer requirements can be compared with your product price and quality. Where each of the circles overlaps, you will have found the benchmark for pricing your product and you’ll be a step closer to keeping customers satisfied.
Audience Mapping
Before businesses design a product or service, they need to carry out market research and create an audience persona. The persona is a partially fictional profile detailing the ideal target audience – you can learn more about this here. Usually, your product will fit several personas, which is why you should create more than one profile and portray their similarities on a Venn diagram; overlapping sections are your audience’s sweet spot.
Product Comparisons
Creating the perfect product takes time and usually involves ideas from different people, which can cause conflicts. During these times of disagreement, a middle ground needs to be reached before progression is made, which is where the Venn diagram can prove useful. Taking all product ideas, data can be transferred onto a Venn diagram and be used to portray similarities – the middle ground.
Management Styles
According to Hubspot, there are four top-tier management styles: coaching, democratic, visionary, and transformational. Each management style differs slightly, but there is always a middle ground because managers need to command respect. However, not every employee will react well to the same management style, which means they need to be blended. You guessed it, a management style compromise can be found by portraying each data set on a Venn diagram.
Company Role Overlaps
Teamwork makes the dream work, which is why staff roles aren’t necessarily isolated to their titles. For example, an engineer will focus on developing software and assuring quality, but they’ll also have to get their hands involved in sales – by coming up with IT solutions. On the other side of the coin, a member of the sales team can share the engineer’s responsibility by reaching engineering solutions. When everybody understands how their role interacts with the wider company, they’re more likely to engage with the wider community of the company.
Social Media Analysis
There are countless social media platforms out there, and a business needs to choose carefully where to focus its attention. Coming to this decision means knowing where your audience hangs out, which can be assessed using existing customer information. For example, you can create customer contact profiles and list their communication platforms including Twitter, Facebook, and Instagram. Then, you can find out how many customers use all three platforms; the overlap is where you should target your content creation.
Sustainable Development
Venn diagrams can be used to demonstrate a business’s sustainability goals. To do this, you can take government requirements, social pressures, economic considerations, and environmental factors, and put them onto a Venn diagram. Then, you can clearly show where each component overlaps – where all four circles overlap is the space for your business’ sustainability plans.
Conclusion
There are countless moving parts when it comes to business, and sometimes they need comparing. For example, when showing investors your market research, you can place audience profiles on a Venn diagram to demonstrate the sweet spot. Alternatively, you may need to prove that there are no similarities, in which case a brainstorming session will equate to zero commonalities. Venn diagrams are used to show comparisons because they’re easy to understand and relatively universal.
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