By R. Ravikumar, Chartered Accountant
When viewing television, we see hundreds of advertisements that are constantly persuading us to buy or use something. There is something common between them. In the few and costly seconds that they are on air, most advertisements (Ad) tell stories: of a daughter surprising her parents with an expensive gift from her first salary, of an underprivileged child making it big, of obtaining a loan with ease to buy a car or about the memories of a family member in a life insurance Ad. When the target customers actually buy the product or service, their decision is based on its attributes such as price, quantity or other features, but yet, barring some exceptions, Ads seldom talk about these. Instead, the seller tells us stories. Why is this so? Should the Ads not be focussing on the very criteria we use to make the decision?
There’s a reason for this. Stories carry emotions, and people instantly connect with them. A survey by a Stanford University professor showed that at the end of a presentation, stories told were remembered by 63 per cent of the audience, whereas only 5 per cent recollected data or facts. Yet, as finance professionals, we attach huge importance to data. Neuroscientists have confirmed that decisions are often based on emotion, not logic, and people hear statistics but feel stories. Feeling makes an emotional connection with the audience and leads to decisions.
