Good writing pays off
As a former journalist, questioning information is in my DNA and finding data that effectively proves a point is deeply satisfying.
This HBR article, Simple writing pays off (literally) filled me with joy. It examined several research papers into corporate writing in the financial services industry and found investors are drawn to simple, clear writing.
“Complex writing is off-putting – people tune out and find it dull, a fact confirmed by neuroscience research”
You can read the article in full, but if you’re short on time, here are the key points:
Simple writing helps companies make more money, because their customers understand their key messages and make informed decisions
Using clear and simple language in financial disclosures means companies attract more investors, cut the cost of their debt and equity, and potentially save money on audits.
Poor corporate writing lost audiences because their documents were too difficult to read.
Financial reports with a one-standard-deviation drop in readability created a 2.5% drop on market value
The cost of bad writing correlates to how our brains work. Our minds need an appealing stimulus – a good piece of writing – to respond with the positive neurochemicals that motivate us to keep reading.
The HBR article cites research that focused specifically on corporate writing within the financial services sector in the US. I genuinely believe these findings apply to every industry. The more your audience understands, the more likely they will be to engage with your organisation.
To simplify your corporate writing, try using these tools:
Active voice
Short sentences
Contractions
Book a call with us to learn how we can help make your corporate writing more effective.
