The impact of storytelling in creating firm and customer connections in online environments

Purpose: Organizations can benefit significantly from the growing capabilities of the internet. As the Web facilitates purchasing and reduces the costs of marketing, companies can connect with customers through the use of storytelling. This study aims to examine how small businesses leverage the use of storytelling to engage with customers and drive revenue and online reputation management. Design/methodology/approach: Both qualitative and quantitative insights are offered in two studies. In Study 1, interviews were conducted with business owners to explore the efforts made by their companies to connect and engage with consumers online. Study 2 builds on the findings from Study 1 and uses survey methodology to test a model which outlines how storytelling can foster engagement with customers. Findings: Results indicate that story content is positively related to emotional content and the personal connection an individual feels toward a firm’s products. Furthermore, user-generated content moderates the relationship between story content creation and personal connections. Findings also demonstrate that personal connection is essential to customer engagement. Ultimately, engagement can lead to revenue generation from social commerce as well as increased reputation management activity. Originality/value: This research demonstrates how small businesses can use the power of storytelling to immerse and transport audiences in such a way that customer beliefs and attitudes toward the firm are impacted in a favorable way. By telling its brand story well, firms have the power to increase the value of their products.