The claim to fame for explainer videos is increased conversion rates. We have produced over 150 videos and I’ve seen some 3x those rates and while others have seen no improvement.
Best practices are often not.
What I mean by that is, unfortunatly, there aren’t any blanket rules that work in all cases. There are too many variables at play including …
- traffic source (a biggie)
- the call to action
- the length (shorter = better IMHO)
- the follow up
- the product
Let me tell you what I have seen work …
Using an explainer video as sales collateral: Sending a prospect a video or having them review it before a call gets you that much further down the sales conversation. This works just as well when raising money with investors.
B2B Sales: Where there is more than one stake holder, the video makes it much easier to get attention internally, speeding the sales cycle. The video can be circulated internally and that is a resource the other guy might not have.
Messaging: I’d say about 20% of the companies who come to us can pitch their business well in under 20 seconds, which is about the attention span you can expect online at at cocktail parties. Committing to producing a video means you have to work on this pitch, which has a plethora of benefits. Chief amongst them, if the benefit can be explained simply, it if far easier for people to parrot that explanation and spread WOM. Of course, you don’t have to make a video just to work on your pitch but it often turns out to be the first time someone really has concentrated on that pitch.
Paid search: Paid search channels are not as crowded for video as they are for other channels (display, keyword). Today, there is an opportunity to buy cheaper relevant traffic if you have a video. Of course, there is a cost involved in making that video, so you need to do the math.
Doing the math isn’t straightforward. Lets assume that our video doubles conversions as has been reported by some clients. In effect, that is reducing your cost of sale. So lets say you have $10,000 to spend on your entire paid search campaign. Comparing spending all of that money on search vs allocating some to a video and paid search.
|Clicks -> Sale||10%||20%|
|Ad Cost / Sale||$40||$29|
In these examples, doing a video makes sense. At a 2x improvement in conversion the break even point is $6,000, and here we are spending $10,00 in total.
Of course, that video also helps with conversion rates on organic and referral traffic but I’m ignoring that here.
I have put together a simple google doc you can play with at …