There is a new trend that is growing rapidly in online marketing: explainer videos. This is a new tool that online marketing managers are using at increasing rates because they have been shown to benefit websites and website statistics in many ways, including increasing a website’s conversions rates, clarifying just exactly what a product is and what makes it so great, and boosting overall sales and revenue—the ultimate goal with any advertising campaign.
Conversion Rates in Online Marketing
In online marketing, tracking conversion rates is one of the most important things that you need to be doing to make sure your campaign is running correctly and that your business is getting the absolute most bang for your marketing buck.
You can track your website’s conversion rates using a tool like Google Analytics to see how many people who visit your site click on a certain link, which indicates that they performed the desired action, which is to make a purchase or download an item.
The conversion rate, simply put, is the percentage of the total number of people that visit your site who turn into buyers. The higher your conversion rate, the more effective your website is at converting casual “window shoppers” to actual customers and actual profit.
An explainer video is a video where an expert or even a customer advocate for your product explains the product and why everybody should purchase it. Explainer videos work wonders in boosting this conversion rate because they do several things.
First, they raise excitement about the product. Second, they also keep track of what items consumers are interested in. Your company probably already keeps a very accurate count of how many sales each product has per day, month, year, etcetera. But an explainer video actually goes a step beyond that to keep a count of how many views the video has, which equates to how many people are interested in possibly buying a product.
This allows you to compare the number of people who are interested in one particular product with the number of people who purchased that particular product. This is like a more specified, per-product version of the conversion rate, which can be a major asset in improving your strategy.
By keeping track of how efficient your marketing strategy is, including the efficiency of the explainer video or videos, you will be able to constantly make improvements to your strategy, which is crucial in boosting conversion rates.
Explainer videos also boost conversion rates for products by being a simple way for consumers to see the product and hear a real person talk about the product. It is sort of like how you are more likely to buy an appliance or electronic if you go into the store and talk to an associate who knows much more about that particular product and the field than you know about it, than if you were to simply see a picture of the appliance or electronic and a basic description and have to base your decisions off of that. According to a recent survey, a whopping 85% of customers are more likely to purchase a product once they’ve seen an explainer video for it.
Clarification and Retention
Explainer videos also help sell products by clarifying exactly what they are for and how they are different from other similar products on the market. An explainer video should go over the basic function of the product, and it should also strive to clarify any misunderstandings that people might have about the product.
The video can also incorporate interesting facts about the product, and should absolutely include descriptions of the aspects of the product that make it the best one out there. While you should not directly knock you competition in the explainer video, because this will come off as negative and unpleasant to consumers, you should expertly point out the product’s stand-out features and qualities.
Explainer videos are also very useful in helping customers retain the information that they learn about your products. On average, people remember only 10% of what they hear, but they remember 50% of what they see and hear. While 50% may seem low, this is a 40% increase over advertising that they may hear while casually watching television and not really paying attention or listening to a streaming music service or the radio.
Some people also retain more information this way over reading information about a product. Since consuming the information is much easier and quicker for most people than reading through a full description and review of a product, more people are also likely to watch the full length of the explainer video than to completely and thoroughly read through an information page without skimming.
This retention of information helps your business in two major ways. First, the customer who just viewed and heard all of this information about the product now has your product top-of-mind. This means that if they did not decide to purchase the product during this trip to your store, they are likely to return when their need or desire for the product increases, rather than searching for the product elsewhere. The customer will intuitively link the product for which they just viewed a video with your company.
This is also greatly beneficial to your business when it comes to word-of-mouth advertising. Even in today’s internet age, word-of-mouth is a powerful tool that you want to utilize whenever you can, as efficiently as you can. Explainer videos increase positive word-of-mouth advertising because of their high retention rate.
When in conversation with a friend or family member, the customer’s memory is highly likely to be jogged by something in the conversation and brought back to the great explainer video for the cool product that they just watched. They are likely to bring up the product and the information about the product that they just learned from the video in the natural course of a casual conversation because the video allows them to better retain all of that information.
These are only a couple of reasons why explainer videos are rising to the top in popularity for online marketing. If you operate an online business or a business with a website, an explainer video will help put you ahead of the game.