Explainer videos have become one of the most widely used marketing tools today. Companies use explainer videos to introduce new products, explain their company objectives and share relevant content with potential customers. The reason explainer videos are increasingly being used is that their ROI is staggering. A short video can transform a struggling company into a profitable one almost overnight. There are quite some benefits of creating an explainer video, and we will look at some right here.
Increased Conversion Rates
A survey conducted by Video Rascal showed that 85% of people would buy a product that has an accompanying explanatory video. Companies aiming for sales usually put the explanatory video on their websites landing page. This way a potential customer can find all the information they want on the product quickly, and this will facilitate a snap decision to buy the product.
Increase the company’s visibility
Websites that have an explanatory video are 50% more likely to appear on Google’s first page. A good video also increases the time the user spends on the web page which is another factor in Google rankings. In fact, web users are 40% more likely to select a video thumbnail than a text link.
Gives you a perfect pitch every time
A short explanatory video gave an unknown virtual storage company, 50 million clients, a valuation of 4 billion dollars and millions in funding including offers from Apple. A well-made explanatory video can communicate clearly what you think the consumer wants to know. In the video, you can explain precisely what your company sells and why the consumer needs it. The best part is that the information can be used over and over again without mistakes for numerous customers.
Claims and retains attention
The average attention span of average internet users is very short. This is the problem of choice. Internet users have so much choice that holding their attention to something is a challenging endeavor. An explanation video is a way to grab users attention without slowing down the load time of your web page. You do not need banners, animations or colorful fonts on your website to retain a customer anymore. Old Spice increased sales by 107% by using an explanatory video that went viral with over 42 million views. Humans retain 50% of the information they see. Explanatory videos, therefore, help increase word of mouth referrals. When a customer views the video and remembers it enough to tell a friend, then a sale may result from the interaction. This is still one of the leading ways of acquiring new customers.
If one customer likes your video and shares it, that opens up around 10,000 new potential customers. If it is a really good video, you can land the elusive million target audience with a viral video.The video can be a stand-alone marketing tool on social media sites the same way a link can be in an email signature. People can watch the video without you having to convince them to visit your website. This way the customer does not feel as if you are hard selling them your product.
Return on Investment
This is probably the best part of explanatory videos. Dropbox increased their revenue to $24M using a video that cost the company $50,000. CrazyEgg increased their revenue by $21,000 in a single month. This is a much better ROI than using most advertising agencies.