Article by: Mike York, COO
We are drowning in explanations. Every deck explains the market. Every chart explains the consumer. Every dashboard explains what happened, in exquisite detail.
And yet, somehow, no one knows what to do.
That’s because explanation isn’t the job anymore. In 2026, the next era of insights isn’t about explaining the data. It’s about interpreting what it means when the data refuses to behave nicely.
I’ve received several inbox questions across multiple verticals in relation to my previous post: What It Means to Be “Insight-Led” in 2026, and the differentiation between having data and knowing what to do with it. Here goes nothing…
Explanation Answers “What Happened”
Interpretation answers:
- Why it matters now
- What changes if we act (or don’t)
- Where this breaks under pressure
Explanation is historical. Interpretation is directional.
One tells you what occurred. The other helps you decide.
Explanation Is Comfortable. Interpretation Creates Tension.
Explanation fits in a dashboard. Interpretation shows up in a meeting and makes things real awkward.
Explanation sounds like: “Satisfaction declined two points quarter-over-quarter.”
Interpretation sounds like: “This decline doesn’t matter yet, but if we ignore it, we’ll be in trouble by Q3.”
Only one of those leads anything.
Explanation Treats Data Like Truth. Interpretation Treats It Like Evidence.
Data doesn’t arrive with meaning attached.
It arrives:
- Partial
- Context-free
- And very confident-looking
Explanation assumes the data is telling the whole story. Interpretation assumes it’s telling part of one. That distinction matters.
Explanation Rewards Clean Stories. Interpretation Accepts Reality.
I’ve said it before: clean stories feel good. They also tend to be wrong.
Interpretation lives in:
- Contradictions
- Trade-offs
- “Yes, but” moments
If your insight resolves too neatly, someone probably edited out the important part.
Explanation Ends With a Slide. Interpretation Starts a Conversation.
Explanation says: “Here are the findings.”
Interpretation says: “Here’s what breaks if we’re wrong.”
One ends the meeting. The other actually changes something.
Explanation Scales. Interpretation Leads.
Explanation is repeatable. Interpretation is contextual.
Explanation can be automated. Interpretation requires judgment, experience, and a tolerance for discomfort.
Which is why explanation is everywhere, and interpretation is a rarity.
Explanation Is Safe. Interpretation Is a Risk.
Interpretation involves:
- Making a call
- Owning uncertainty
- Being wrong in public
Explanation can hide behind the data. Interpretation stands in front of it.
The Last Word
The future of insights isn’t more explanation. It’s better interpretation.
Not louder charts. Not fancier dashboards. Not longer decks.
But people who can look at imperfect data and say: “Here’s what this actually means, and what we should do next.”
Because in a world where everyone has access to the same information, the advantage no longer comes from knowing more. It comes from understanding better.
If your insights still stop at explanation? You’re reporting the past.
The next era belongs to those willing to interpret the future.
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SMARI is an award-winning Indiana-based market research consultancy that was founded in 1983 with the idea of guiding change and inspiring confidence. We are proud to work with SMEs as well as a variety of Fortune 500 brands. We are powered by our core values: integrity, community, perseverance, trust, passion, curiosity, and innovation. SMARI’s expertise encompasses complete project scopes, including instrument design, sampling & fielding services, reporting & analysis in the Healthcare, CPG, Retail, Food & Beverage, Manufacturing, and Financial Services industries, among others. Much has changed in our 40+ years, but our tagline and overarching mission remain the same—to guide change and inspire confidence. Start a conversation with us at www.SMARI.com.
