Amidst the cut-throat competition, brands are struggling to increase their brand awareness and thus, sales and revenues.
For years, businesses have used traditional marketing instruments such as PPTs, and lengthy text-based resources to attract customers, but sadly, they have still experienced average sales.
With growing times, the need for an effective marketing instrument arose that can help businesses not only enjoy significant fat revenues but also benefit them from the branding and market positioning perspective.
Thus, the usage of animated sales videos became mainstream, with businesses preferring it for engaging their customers and then converting them into paying ones.
The reason is – these videos help brands break down complex information about their product and explain it to their customers in a language and manner which they understand better.
Videos contain appealing visuals in the form of infographics, thus helping the target audience comprehend the business’s product in a much more refined manner as compared to old-school explanations.
Indeed, there’s so much more about how explainer videos have played a role in boosting the revenues of many businesses – Dropbox being the biggest example [more on that later].
Before we share with you the best types of explainer sales videos and other stuff, let’s first understand why explainer videos are important from the sales front:
The Role of Sales Explainer Videos in skyrocketing product sales:
Believe it or not, sales videos are an extremely powerful tool for brands wanting to generate leads and increase revenues.
Look around and ask any business owner what they want. For obvious reasons, there’s only one thing, and that is nothing but more sales.
With explainer videos, they can get rid of this worry by leveraging the power of appealing characters, product-oriented icons & infographics, and smooth animation that can capture the essence of the product to be sold.
To ensure sales figures multiply with steady growth, product owners must ensure and get their marketing & branding right.
Engaging prospects while selling them is a crucial task many brands tend to ignore or fall short of. If your future customers aren’t even paying attention to your product, it’s unlikely they will stay on your website.
Despite the nightmare of decreasing human attention spans, explainer videos provide an exciting and realistic opportunity to brands for grabbing users’ attention within just 8 to 10 seconds.
For years, many world-known startups, enterprises, and MNCs have leveraged the power of videos in attaining their sales targets.
Here’s a story about a similar startup which is today one of the biggest cloud storage providers in the world – Dropbox
Dropbox Explainer Video Case Study:
Probably, this has to be one of the most famous and watched explainer sales videos of all time.
Because why not? Who wouldn’t love reading a case study on how a single video helped acquire a mammoth 10 million customers?
Dropbox in its initial days, chose different marketing strategies and ways such as Google Ads and referral campaigns using email and social media.
The first choice of running ads did bring them many customers but they soon realized their CAC [customer acquisition cost] was badly burning their pockets.
However, the second way of inviting new users through existing ones and rewarding them with free storage spaces resulted in a decent inflow of users but still, it didn’t satisfy their sales goals.
And as any business owner would do, they attached the video on their homepage and provided only 2 options at that time: One to view the video and the second – Sign Up.
For years, their website remained the same with the video attached which is an intriguing factor in itself. As per statistics provided by them, the video was viewed on average a whopping 30,000 times a day!
Now let’s look at what the video achieved in terms of numbers and revenues:
- 100 million users: Over the years, Dropbox was able to acquire almost 100 million users not entirely based on their explainer video but still, the video played an instrumental role in empowering them to conquer such a giant userbase. As per 2022 statistics, the company currently has a user base of 700 million registered users.
- $48,000,000 in Revenues: The number is gigantic in itself as it speaks a ton about how explainer videos can largely help brands increase their sales and rock their revenue projections. With an investment of $50,000, Dropbox managed to clock in huge revenues.According to Backlinko, Dropbox generated a staggering $999.3 million per year in revenues from clients based in the United States alone.
- 25 million video views: Apart from their website, this iconic video was viewed by a record number of visitors across the internet. This propelled their growth over the years into transforming them as the go-to choice for cloud storage by leading global brands.
This case study has a ton of learnings and takeaways for businesses wanting to acquire customers for their new product, boost brand awareness, and increase revenues.
Let’s understand in detail the importance of sales explainer videos and how they can help businesses achieve their goals:
1) Help you increase product understanding:
With sales videos, brands can capitalize on their power of visual storytelling and short lengths to showcase the features and benefits of a product or service in an easy-to-understand manner.
These videos possess the power of animations and can easily depict real-life scenarios using illustrations and characters to provide a clear and concise explanation of how a product works.
Moreover, when prospects are demonstrated products while relating them to the problems they are facing currently, it helps increase their confidence in making a purchase.
2) Help you increase customer engagement:
Grabbing your target customer’s attention is much easier with explainer videos as compared to written text or boring presentations. This is due to the involvement of infographics and animations performed that make viewers stick to their screens and keep them interested.
Furthermore, the attention thus grabbed persuades them to complete watching the video in the majority of cases. While their attention is on the videos, the value proposition of the product and the key features can easily be communicated using visuals.
When a viewer completes watching a video, he/she is likely to take any action leading to engagement on the CTAs attached resulting in a higher conversion rate and ultimately, sales.
3) Help you increase brand awareness:
Sales videos can help increase brand awareness by developing a memorable and shareable visually rich scenario of a company’s product in the minds of target customers.
What’s even better is that these videos can be repurposed and distributed on social media platforms, get embedded in email marketing campaigns, and even used in branding and advertising efforts.
Videos are among the highest shared media format today. Increasing the reach of a brand’s core message through videos can result in a business connecting with new audiences and establishing itself as a market leader in their industry.
If executed effectively, these videos can leave a lasting impression on potential customer sets and gradually boost the chances of them becoming the next brand advocates.
3 types of Sales Videos Brands can choose for Growth in Revenues:
1) Customer Testimonial videos:
These videos feature satisfied sets of customers who have already used a brand’s product and are expressing their satisfaction.
The positive experiences shared by a brand’s former customers can build social proof, and instant credibility, and instill trust in the minds of potential product users.
In today’s world, customer testimonial videos are one of the most powerful marketing tools brands can use to conquer newer audiences.
2) Live + Animated Commercials:
These are one of the highly preferred types of sales videos used by brands globally.
Such videos portray a real setup of an individual or a group of individuals regarding how their workload is being reduced or problems faced by them eliminated by the facilities offered by the product or service.
This type of sales video carries the highest levels of authenticity and efficiency and demonstrates ground-zero use cases in a versatile manner.
3) Animated Explainer Videos:
Animated videos are one of the highly preferred choices of B2B marketers worldwide.
These are short marketing and sales videos often used to generate awareness, attract the attention of customers, and produce sales-oriented actions at various places such as landing pages, sales funnels, email campaigns, etc.
They help businesses break their complex technical or SaaS products into digestible pieces for easy grasp.
In simple words, you can consider sales explainer videos to be creative and engaging replicas of Elevator Pitches.
Because why not? The reality is, your target audience can easily be converted into your paying customers if you deploy the correct marketing instrument which in this case, are explainer videos.
If you want us to help you in increasing sales and generate leads for your product or business, get in touch with our expert for a Free 15-min consultation call.