The discussions regarding storytelling and story are quite fashionable in the marketing circles. There are ambivalent feelings that I have about this all. On one hand, being lifelong advocate towards power of the story in any business, I think this is very encouraging. As for all the companies, having one story and then knowing that particular story are the crucial steps toward achieving the success. But on other hand, I am worried that so many marketers consider that telling story by means of advertising is adequate. It is not.
Indeed, those who think in this way is at their risk because there’s one latest kind of the company on rise which uses any story in strong and powerful way — as the result of it, they do run more profitable and efficient businesses.
Such new companies are called story doing companies as they do advance the narrative through the action and not communication. The story doing companies —TOMS shoes, Red Bull, Tory Burch, War by Parker, for example — do emphasize creation of the useful and compelling experiences — the new services, new products, and the new tools which advance the narrative through lighting up medium of the people. This means that when the people encounter any story doing company, often they want to discuss it with all of their friends. Story doing companies do create fierce evangelism and loyalty in the customers. The stories are primarily told via the word of the mouth, and they are amplified through the tools of social media.
So how is it that you know about any story doing company at the time you tend to see one? Given below are primary characteristics:
Lately, my partners along with myself at co: collective did initiate one project for determining whether there’s strong statistical evidence regarding the fact that story doing companies happen to be achieving some superior results. Also, we wanted a tool to be created which allows CEOs as well as the other among senior leaders towards applying such criteria towards any analysis of the company they own.
A difficulty encountered is best example of story doing being companies that are companies privately held, so data about financial performance isn’t publicly available.
Therefore we chose exactly 42 companies which are publicly-traded . such list does span 7 business categories: entertainment, food, retail, and beverage, electronic payments, airlines, consumer electronics,, as well as IT products/ services. Since the storytelling companies do outnumber the story doing companies, within each of 7 categories we did choose 5 storytelling companies as well as one company story doing based on criteria was described above. Story doing companies happen to be American Express, Target, Walt Disney, Apple, Starbucks, IBM and Jet Blue.
Results coming out were quite compelling. As expected, the story doing companies do generate substantially increased number of the mentions in the social media.
Such ability of lighting up medium of the people in positive way does allow the story doing companies into spend less money substantially on the paid media each dollar of the revenue.
And also they do wring much value from that spent during a number of the mentions within social media each dollar spent.This has resulted in the storydoing companies to be growing faster compared to the storytelling counterparts they have in terms of revenue.
This only is start to the research. We could only imagine adding some companies privately owned for which we are missing the financial data will yield even improved results compared to those that are reported here. Either it would turn to really be true, else not; time would tell. But according to the evidence that we have up till now, the conclusion is that the story doing companies tend to be on something quite compelling. CEOs seeking to deliver improved financial results toward their shareholders will do well if they took heed.
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