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Maxwel Waweru
Maxwel Waweru

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HOW EXCEL IS USED IN REAL-WORLD DATA ANALYSIS

When people hear data analysis, they often imagine complex Python scripts, SQL queries, or advanced BI tools. However, in reality, the foundation of data analysis across most organizations—from global corporations to local startups—is Microsoft Excel.

If you're starting your journey into data, Excel is not optional—it is a core skill required across operations, finance, marketing, and analytics roles.

In this article, I’ll explain how Excel is used in real-world scenarios using a product performance dataset from Jumia, one of Africa’s largest e-commerce platforms.

what is excel

Microsoft Excel is far more than a spreadsheet tool. It is a multi-functional analytical platform that serves as:

A database – storing large volumes of structured data

A calculation engine – performing simple to complex computations

A data transformation tool – cleaning and reshaping messy datasets

A visualization platform – building dashboards and reports

Real-World Applications of Excel

1.Marketing

: Evaluating Pricing Strategy
A marketing team needs to determine whether discounts drive engagement.

Task: Analyze the relationship between discount percentage and customer reviews

Solution: Using PivotTables and scatter plots to identify trends.

Insight: Moderate-to-high discounts significantly increased customer engagement.

2. Merchandising

: Identifying Underperforming Products
The goal is to flag products that are discounted but poorly rated.

Task: Detect products with high discounts and low ratings

Solution: Conditional Formatting to highlight risk products instantly

3. Operations

: Data Cleaning
Raw data is rarely usable in its original form.

Task: Convert text-based values into numeric format

Solution:

Find & Replace to clean currency values

TEXTSPLIT to extract ratings

Key Excel Features Used

1. Data Cleaning
Removed “KSh” and commas from price fields

Extracted numeric ratings using TEXTSPLIT

Used ABS() to correct negative values

2. Calculated Columns
Discount Amount = Old Price – Current Price

Rating Classification using nested IF statements

Discount categorization (Low, Medium, High)

3. PivotTables
Used to summarize:

Average ratings by discount category

Discount distribution across products

4. XLOOKUP
Used to map:

Top-performing products

Associated prices and names

5. Conditional Formatting
Highlighted:

High-discount, low-rating products

Immediate visual alerts for decision-making

6. Dashboard Creation
Built an interactive dashboard with:

Charts linked to PivotTables

Slicers for filtering data dynamically

Scatter plots to reveal pricing patterns

Key Insights from the Analysis
Discounts increase engagement: High-discount products generated significantly more reviews

Discounts don’t guarantee quality: Some heavily discounted products had poor ratings

Optimal pricing range: Products discounted between 20–40% achieved the highest ratings

Strong customer satisfaction: Majority of products had ratings above 4.5

The Excel Mindset
Effective Excel usage goes beyond formulas:

Maintain a clean workflow (Raw → Working → Dashboard)

Use Excel Tables for dynamic updates

Document formulas for future reference

Focus on clarity and reproducibility

Conclusion
Excel remains one of the most powerful and accessible tools for data analysis. It bridges the gap between raw data and actionable business insights.

From cleaning messy datasets to building dashboards and uncovering trends, Excel enables end-to-end analysis without requiring advanced programming skills.

For anyone entering data-related fields, mastering Excel is one of the highest ROI skills you can develop.

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