Story telling has unbelievable power, and can be used on any toddler, school-age children, or adult. The only age-dependent changes you will make are to adapt your language (naturally) to suit the audience. But let's stick with kids for this example.
Story-telling is an amazing way to create change inside of someone. The "change" that you can cause is really open-ended. Perhaps your child is very excited and you need to calm him down before bedtime. The right story can accomplish this in a heartbeat! Or maybe you signed your child up for swimming lessons and you know he or she is really nervous. Perhaps you want to overcome that nervous feeling inside of your child but you have no idea how to accomplish this.
Story telling can help you guide your child to overcome a fear or anxiety just as easily as it can calm him or her down before sleep. The trick is in what message you deliver within the story. The key to delivering a story to a toddler is to either tell a story that is directly related to the problem they face, or something where their unconscious mind will easily make the connection.
For example if you knew your child is afraid of swimming lessons you might tell a story about a baby frog, or a baby duck who was afraid of the water, but somehow overcame the fear. You would embed as many elements into the story to match your child's internal experience. This would unconsciously create comfort for your child.
These stories are also called "isomorphic metaphors". The secret to a metaphor is to never explain it's meaning. Never never never tell your child what the purpose of the story is. Trust me on this. If there is anything I've learned in the last 15 years with regard to using these communication tools, it is to never explain a metaphor. Not to a child, and not to an adult.
If you have read any guides, articles or books on parenting toddlers, I'm betting that nobody told you how much you can accomplish by telling a story. This is because my methods are NOT based on child psychology. Child psychologists can try to tell you why a child behaves a certain way, or why a child has a certain anxiety or belief. I am a believer of just fixing things, not asking a million "why" questions. Story telling is a great way to fix a problem (fix it, not hide it).
If you are having some sort of problem with your kids (we've ALL been there) ... then what matters more? Knowing "why" the problem exists, or finding a WAY to make it better?
My audio course, Talking to Toddlers, will teach you many more of the things you need in your "bag of tricks" to tell amazing stories to help your children. So you won't just tell a story. You'll understand how to embed commands, how to evoke "peak states" in your child, and how to "anchor" the peak states so you can bring them back to that same state of mind later on.