Storytelling In Marketing: Why It's Important & What Is The ROI?

Research from co:collective looked at the impact of brand storytelling on the financial performance of 42 publically traded companies.  They found brand storytelling to have a significantly greater impact on brand engagement than traditional advertising. This higher level of engagement lead to increased ROI. Here are a few highlights, as demonstrated by Type A Communications:  In 2011, when comparing the number of social media mentions for traditional branding/advertising messages vs storytelling, the latter approach garnered 1900 percent more mentionsOf those, storytelling prompted 10 percent more positive mentions These companies spent almost two-thirds less on paid media per dollar of revenue From 2008-2013, these companies experienced almost double the number of social media mentions compared with traditional branding/advertising approaches Their annualized revenue growth rate from 2007-2011 was 70 percent higher. And their annualized share price growth was 227 percent higher.

Significant Objects was an experiment demonstrating the objective measurability of brand storytelling on an object’s value.

The experiment was created by Rob Walker and Joshua Glenn as a literary and anthropological experiment to measure the subjective, objectively. Walker and Glenn bought items at garage sales, flea markets, etc., and took them back to their team of writers where they created compelling, impactful stories about each item and then re-sold them (with the added story) auction-style on sites like eBay.  The difference between the original purchase price and the resale (story) price is what served as the objective measurement on how stories affect ROI.  Pretty cool. And the results? Even better.  The average price for an original object in the experiment was $1.29. The average resale storytelling price was… (wait for it) … $36.12. That’s an increase of 2,700 percent! One of their most significant sales was a snow globe that was purchased for one dollar and later sold for $59. 

When Tiffany & Co. masterminded the brand storytelling campaign, “What Makes Love True,” they were not marketing any specific products. Rather, the campaign was designed to give Tiffany & Co. “ownership” on true love, which was geared towards increasing company value and perception.  The brand created a microsite that allowed people to type a love message for their significant other and watch it appear in on a geo-location map. In less than a month, Tiffany’s stock prices had risen $10/share (Fast Company). The company later introduced a social media element that allowed people to submit photos via Instagram with the hashtag #TrueLovePictures and on Twitter with #WhatMakesLoveTrue. Within months, there were thousands of shared photos, the top 10 amassing nearly 150,000 likes (Sproutworth).

How To Create Brand Stories With Amazing ROI

Give Distribution Power To Your Story

More Superb Business Storytelling Examples

The P&G brand did a fantastic job with this inspiring and empowering storytelling campaign. The video has received 80 million views worldwide (Adweek) and was ranked the top digital campaign of the Super Bowl based on an analysis of mentions on a variety of social networks and Internet platforms.

The true power of social media is found when it collides with great brand storytelling. Can you avoid the collision and still find value in each? Sure, but in the end, it’s the combination that will show you the biggest return. #LikeAGirl shows brilliantly how to use social media to power your brand storytelling, and vice versa.

How The Story Ends

We picked up a similar story originally featured in the German Huffington Post. A young man had an old Opel Tigra (actual photo above) manufactured in 1997 and wanted to sell it on Ebay. Instead of simply stating the basics, as most people do, the guy used the description space to tell a story.

A blog post by The Social M’s translates the man’s story, which was about his pregnant girlfriend insisting on his selling the car because it is too small for a family; his “Too Fast and Too Furious” encounter with the police at age 18; and the downsides of the car: the engine that makes funny noises, the worn leather seats, the fact that you cannot read the clock or the temperature – “but who needs that anyway, we all know how cold it is in good old Germany!”  He writes about his relationship with his father and his friend who advises him to sell the car to a hobby car enthusiast as it is neither new or very good. “It is a long, very personal and entertaining story,” writes Susanna Gebauer, who translated the story. It was picked up on several other German news sites as well.  “Rarely has an auction of an old car on Ebay gotten more attention since that VW Golf, which originally belonged to Pope Ratzinger and sold for almost 190 thousand Euros,” Gebauer continues. P.S. That’s around $216,177 US dollars today.  Research shows that a car like this normally costs between $340 (300€) to $1,140 (1000€). That being said, $2,275 (2000€) would have been a pretty good price.  Considering the car had no famous former owners or any other extras apart from a great story, it can be concluded that every cent over was due to the great story told. The auction finished with an incredible amount of $63,432 (55750€). The story included around 3200 words, which sums up to an ROI of almost $20 (17€) per word.

Studies show that companies driven by a strong purpose, particularly a good brand story, grow their revenue four times faster, create seven times more jobs, and increase stock prices 12 times faster (Type A Communications). Now that you have seen some real life examples, let’s talk about how you, too, can ensure a return on your brand storytelling. Here are some important considerations to make when building out your strategy:

This is not as obvious as it sounds, just bear with us. Robert Davis, Executive Director, Content Marketing & Advanced Video Practice at Ogilvy PR once said, “ROI must be built into the creation of your story” (The DMA)  While you can’t use a mathematical equation to create a good brand story, Davis reminds us that ROI should be considered from the very start. This means knowing where your story fits in the overall content marketing plan, defining your goals and objectives, knowing your KPIs and how you will measure success. Davis says:

While a high ROI can’t be guaranteed, it can be achieved through a carefully crafted and well thought out strategy.

This goes along with the previous point and is something that has always worked well for us. Strategizing can be a long and grueling process, but if you can figure out where you want to end up, then getting back to the start is like filling in missing pieces of the puzzle. Sometimes you have to imagine the bigger picture to make the small stuff really count.  Jay Baer, President of Convince & Convert, said,

A clear destination can actually inform your brand stories and lead to a much more focused point of view. Ask yourself, “What is the desired outcome?”

Leonardo Da Vinci was both a great artist and scientist, and if he were around today, he’d be a great storyteller, too. Approach your brand storytelling like Da Vinci. Allow the humanity and emotions to flow freely, but not so far away that you can’t reel it in, break it down, and measure the impact.  Numbers are important, but they are not what makes a good story, or else you’d just end up with a quota of words and images arranged with no regard to creativity, individuality, or emotion — the main driver of consumer decisions.  We are all fixated on numbers, but it’s human-to-human connections that are the heart of marketing. Brand storytelling is a technique that can reinforce those connections (Quicksprout).

Your brand stories don’t always have to be about you; in fact, the majority of them shouldn’t be. Brands have many stories and the most powerful ones are often customer success stories. Over time, these stories build a solid foundation of trust around your brand. Ekaterina Walter, bestselling author and Co-founder/CMO of Branderati, affirms, “Advocacy, done right, becomes true influence. And influence is what impacts behaviors. Because the ultimate goal of marketing is to not just to tell a great story, but to tell a story that would make people want to get to know a brand and buy the product.” (MackCollier)

People love to talk about themselves, so don't be afraid to get personal with your audience (to an extent of course -- don't be intrusive). Not only will people share their stories and experiences with you, but they will love that you care.  According to Bazaarvoice, 64 percent of millennials and 53 percent of baby boomers want more options to share their opinions about brands, while other studies show that consumers trust UGC (user generated content) more than all other forms of media (HubSpot).  Get creative with your approach and consider a UGC campaign.

One of our favorite examples is Starbucks' White Cup contest, which prompted 4,000 customers to submit entries over the course of three weeks (that's alotta coffee).

Can brand storytelling deliver a high ROI? Yes, it can — through thoughtful strategy that factors in ROI from the start. Use your head and your heart, and allow the relationship between your brand’s goals and your user’s desires flourish.  Returns can be slow, but don’t let that discourage you. Remember: Rome wasn’t built in a day — neither are great brands.

Even the best brand stories need matched delivery. This includes voice, tone, wording, language, style, and imagery among other things. Good storytelling captures attention, draws people in, keeps them engaged, and builds a bond between listener and teller. Show your story; don’t just tell it. Learn how to set the stage, create a mood, appeal to the senses, and use a hook ending that keeps the listeners wanting more (Amanda Lewan).

Make sure that your employees are invested in the story and carry it with them both online and off. Employees are perhaps your biggest brand advocates and are crucial to communicating with customers. Consider them a mouthpiece for sharing your story, but more than that, they should understand why the story is so important and how it will help the success of your brand (small business pr). This education is key to consistency and, ultimately, the virality of your brand story.

It's important to remember that your customers are not just transactions but real, living, breathing human beings who crave connectivity with others (note: other humans, not corporations). So show your humanity! But first, do your research.  Find out which platforms your customers like to hang out on and how they engage. More than just research, actually talk to them. Find out their favorite networks, the brands they're following, who they're interacting with and what manner. Why are they on social media in the first place? What do they value most from the brands they follow?  CEO/Founder of TheBuzzPlant, Bob Hutchins, says that everyone in your target audience has, “a desire to share and connect. But where they go for this end can vary greatly. Do your research!”Just as companies continue to grow, so do stories. Continue to add relevant and up-to-date anecdotes for context, and “freshness.”

The thing about stories is that they keep on going and keep on telling. Best of all, they continue to connect with listeners. Only this can't happen if you get so stuck in your story that you never go back to it. Neil Patel writes:

Just as companies continue to grow, so do stories. Continue to add relevant and up-to-date anecdotes for context, and “freshness.”

Remember what we said about user-generated content? GoPro encourages its social media followers to submit their best GoPro photos and videos for the chance to be featured in the brand’s photo/video of the day, many of which get posted across multiple accounts. To further entice fans to submit, the winners earn 50% off two items at its online store.

General Electric posted this captivating brand storytelling image to its Instagram account to drive traffic to its YouTube channel, just one of its amazingly successful social accounts. GE’s social presence shows that no matter what industry you’re in, there's always a story. It's all what you make of it.