Businesses without this one Skill Fail
A business needs people with different kinds of skillsets to flourish. For the sake of simplicity you can narrow down the skillsets to marketing, accounting/finance, product development, operations, and sales. But there’s a key skill that is more important than all other skills combined and that is crafting a compelling narrative around your company's vision. It’s how money is raised on private and public markets and where generational wealth is created for a lucky few.
Good story-telling makes or breaks companies – Storytelling in the stock market influences investor confidence, drives stock prices, and shapes market perceptions. A compelling narrative can boost investor enthusiasm, justify higher valuations, and stabilize a company's stock during crises. Companies that master storytelling can attract investment, strategic partnerships, and top talent, ultimately supporting long-term growth and success. A good example of this is Amazon. Amazon has consistently told a story of relentless innovation and market expansion, from online retail to cloud computing and artificial intelligence. This narrative has justified its high valuation, despite periods of low profitability.
Crafting an effective narrative is communicating your companies vision to your own people and the outside world — it’s bridging the gap between the current state of things and an ideal world in which your company plays an important role in.
Steve Jobs was a master storyteller, known for his ability to captivate audiences with his product launches and keynotes. His famous "Here's to the crazy ones" ad campaign and the unveiling of products like the iPhone and MacBook are prime examples. Jobs' storytelling was centered around simplicity, innovation, and the emotional connection between people and technology.
Nike is renowned for its powerful storytelling that goes beyond just selling shoes and athletic wear. Their campaigns often focus on the triumph of the human spirit, motivation, and overcoming obstacles. The "Just Do It" slogan encapsulates their narrative of determination and athletic excellence. Nike’s ads frequently feature real athletes and inspirational stories, making an emotional connection with their audience.
Coca-Cola’s storytelling revolves around happiness, friendship, and sharing. Their advertisements often depict moments of joy and togetherness, whether it’s during a holiday season or a casual summer day. Coca-Cola’s campaigns, like "Share a Coke" and "Taste the Feeling," focus on the emotional and social aspects of enjoying a Coke.
It’s easy to shrug these companies off and just take their massive success for granted, but these massive giants had to start somewhere and they were able to build such size because their vision was communicated effectively, in a way that resonated with a core audience, provoking a deep-seated urge to take part in it – that's how they went from regular players to the only relevant players.
Business used to be purely about resources – a handful of entrepreneurs in the gilded age secured land, oil, steel or other precious metals to build out their empires. The internet has allowed business opportunities to be available to any one, making markets more competitive in a good way. And the competition is not for physical resources but for winning over the hearts and minds of millions. It's a war on attention. And nothing is more powerful in attracting attention than a well-crafted story.
It is why big companies spend millions on ad agencies, brand consultants and creative directors – the skill is in such high-demand because so few are exceptional at it. And because so many companies get this part of the business wrong, getting it right can give you an immediate competitive advantage.
Blackberry is an example of a company that failed to adapt and come up with a story that would captivate enough people to buy their phones. BlackBerry was once a dominant player in the smartphone market, particularly known for its secure email services and physical QWERTY keyboards.
However, the company struggled to maintain its market position and eventually lost its relevance. One significant factor in BlackBerry's decline was its failure to craft a compelling narrative that resonated with consumers as the smartphone market evolved. BlackBerry was strongly associated with business professionals and enterprise solutions. While this was initially a strength, it became a limitation as the smartphone market expanded to a broader consumer base. BlackBerry failed to tell a story that appealed to the everyday user.
Stories matter in business because consumers make buying decisions with the part of the brain responsible for emotions. Neuromarketing studies using techniques like fMRI have shown that when people make purchasing decisions, the emotional centers of the brain, such as the amygdala, are highly active. This suggests that emotions play a crucial role in the decision-making process.
So companies that try to appeal to their audience with statistics and rational arguments will be left with empty bank accounts and bankruptcy lawyers breathing down their neck. It is the harsh truth of an incomplete business.
There’s power in leveraging effective story-telling wherever you market / sell and build your brand. Happy selling and happy story-telling!
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