Explainer Videos Boost Business: Here’s How!

Businesses are constantly seeking innovative and effective ways to engage with their audience. One medium that has gained tremendous popularity over the years is explainer videos. These short, engaging videos have become a marketing staple, transforming how businesses communicate with customers, simplify complex information, and drive conversions. But how exactly do explainer videos help businesses thrive in such a competitive environment?

Whether you’re a budding startup or a multinational corporation, understanding the power of explainer videos can provide a significant competitive edge. With strategic usage, you can harness the full potential of this engaging format and grow your brand like never before.

Types of Explainer Videos

Explainer videos come in several different formats, each suited to the unique goals of the business and its audience. Let’s explore the most popular types and how explainer videos help businesses when tailored to the right audience.

• Animated Explainer Videos: These videos use 2D or 3D animations to illustrate processes, products, or ideas. Animation is incredibly versatile, making it perfect for companies that need to simplify complex topics or make abstract concepts more relatable. For instance, tech companies often use animated explainer videos to explain their offerings without overwhelming viewers with technical jargon.
• Live-Action Explainer Videos: For businesses that prioritize building personal connections, live-action videos showcase real people and real environments. This is particularly useful for businesses in industries like real estate, healthcare, or hospitality, where a human touch is essential in establishing trust with the audience.
• Kinetic Typography Explainer Videos: These explainer videos use animated text to deliver messages. While minimalist in style, kinetic typography videos are attention-grabbing and effective when businesses want to emphasize a strong message without using characters or detailed visuals.
• Demo Explainer Videos: These videos record the user interface of a digital product, such as software or apps, to show the audience how to use it. Screencast videos are particularly popular in SaaS companies where user interfaces and functionality need to be demonstrated.

Choosing the right type of explainer video for your business can make all the difference in how well your message resonates with your target audience. Businesses can also combine different formats for a more dynamic viewing experience, reinforcing the message while keeping viewers engaged.

How Explainer Videos Help Businesses Increase Engagement

One of the most significant ways how explainer videos help businesses is by significantly increasing engagement across platforms. Engaging content is critical for businesses to connect with their audience, and explainer videos are designed specifically with engagement in mind.

Studies consistently show that viewers are far more likely to watch a video than read large blocks of text. In fact, Studies have shown that people retain 95% of a message when they watch it in a video compared to only 10% when reading it in text. This is because explainer videos capture the viewer’s attention within seconds and maintain it through a mix of storytelling, visual appeal, and clear messaging.

By using explainer videos, businesses can engage potential customers on a variety of platforms:

• Website Landing Pages: Placing an explainer video on your homepage or product pages can increase the average time visitors spend on your site. This is critical for decreasing bounce rates and encouraging users to explore your offerings further.
• Social Media: On platforms like Facebook, Instagram, and LinkedIn, explainer videos offer highly shareable content that can reach a wide audience. Videos are more likely to be shared, liked, and commented on than static content, helping your brand grow organically.
• Email Campaigns: Including a video in your email marketing can increase click-through rates. Explainer videos act as a hook, making email content more interactive and engaging for recipients.

Ultimately, explainer videos tap into human psychology by combining auditory, visual, and emotional stimuli to engage viewers and motivate them to take action. This high level of engagement directly translates to better performance across marketing campaigns.

Explainer Videos and Improved Brand Awareness

Brand awareness is crucial for any business aiming to stand out in today’s competitive market. Explainer videos offer a unique advantage in building brand recognition and consistency.

How explainer videos help businesses build brand awareness lies in their ability to visually represent your brand’s personality. By using consistent colors, fonts, and logos, you reinforce your brand identity. Coupled with a well-crafted message, explainer videos make it easier for customers to remember who you are and what you stand for.

Here’s how explainer videos can improve brand awareness:

• Visual and Auditory Recall: Unlike static content, explainer videos use both sight and sound to create lasting impressions. When potential customers hear your message, see your logo, and experience your brand in motion, they are more likely to remember it.
• Consistency Across Platforms: Explainer videos can be repurposed and distributed across various platforms. From social media to YouTube to your website, explainer videos allow businesses to keep their brand message consistent no matter where they appear.
• Viral Potential: Because explainer videos are concise and engaging, they are more likely to be shared by viewers, helping your business reach audiences far beyond its original scope.

Strong brand awareness leads to customer trust, loyalty, and repeat business—all of which are fundamental to long-term success.

Boosting Conversions with Explainer Videos

Perhaps one of the most direct ways how explainer videos help businesses is by increasing conversions. A well-crafted explainer video can turn casual viewers into paying customers. But what exactly makes explainer videos so effective at driving conversions?

• Explainer Videos Provide Clarity: When potential customers land on your website, they might be interested but unsure about whether your product or service is the right fit for them. An explainer video can quickly clarify your value proposition, showcasing how your solution addresses their specific pain points.
• Clear Calls to Action (CTAs): Explainer videos can guide viewers toward a specific action—whether it’s purchasing a product, signing up for a newsletter, or booking a consultation. By ending your video with a strong, clear CTA, you make it easy for viewers to know what to do next.
• Storytelling That Resonates: Explainer videos don’t just present information—they tell a story. Whether it’s a customer success story, a day-in-the-life scenario, or a step-by-step demonstration, videos create an emotional connection with viewers. When customers feel emotionally connected, they’re more likely to convert.
• Mobile Optimization: With more consumers shopping and researching on mobile devices, having a mobile-optimized video is crucial. Explainer videos are easily viewed on smartphones, making it convenient for users to watch and convert on the go.

Simplifying Complex Information

Businesses often struggle to explain intricate products or services to their customers, especially if they are in technical, scientific, or highly specialized industries. This is where explainer videos truly shine. One of the primary ways how explainer videos help businesses is by taking complex information and breaking it down into easily digestible chunks.

Whether your business deals in software, financial services, medical devices, or even legal services, explainer videos can help simplify the message, ensuring that even a non-expert audience can grasp the key points. They do this through:

• Visual Storytelling: Instead of overwhelming viewers with text or data, explainer videos use visuals to demonstrate how a product or service works. For instance, a software company could create an animated explainer video that walks potential customers through a product’s interface, showing them how it functions step by step.
• Analogies and Simplified Examples: Explainer videos often employ analogies or real-world scenarios to help audiences understand complex ideas. For example, a financial services firm could use animation to liken portfolio diversification to putting different types of fruit in a basket, making it easier for customers to relate to.
• Interactive Elements: Some businesses incorporate interactive features in their explainer videos, allowing users to click on certain sections for deeper explanations. This is especially useful for complex or multi-feature products where different aspects may appeal to different audience segments.

In essence, explainer videos bridge the gap between expert knowledge and consumer understanding. By making complicated information approachable and memorable, they not only enhance comprehension but also increase the likelihood of conversion.

Enhancing Customer Retention

While explainer videos are often seen as tools for attracting new customers, they are equally powerful for retaining existing ones. Customer retention is essential for long-term business success, and explainer videos can play a vital role in keeping your audience engaged post-purchase.

• Product Tutorials and How-Tos: After purchasing a product or signing up for a service, customers may need guidance on how to use it effectively. Providing explainer videos that demonstrate how to use your product not only reduces customer frustration but also increases their satisfaction. This is particularly important for software companies where users may require ongoing training to unlock the full value of the product.
• Feature Updates: As businesses evolve, products and services are often updated with new features. Rather than bombarding users with lengthy emails or technical documents, businesses can create explainer videos that introduce these features in a visually engaging way. This helps keep your customers informed and excited about continued use of your product.
• Onboarding New Customers: A smooth onboarding process can significantly improve customer retention rates. Many companies now use explainer videos as part of their onboarding process to guide new users through the setup phase. This not only reduces the number of support requests but also ensures that customers are getting the most out of their purchase from day one.
• Continuous Engagement: Beyond tutorials, businesses can use explainer videos to maintain customer interest. Educational content, tips and tricks, or case studies presented in video format keep customers engaged with your brand, building long-term loyalty.

SEO Benefits of Explainer Videos

In the age of search engines, visibility is everything. Another significant way how explainer videos help businesses is by enhancing their search engine optimization (SEO) efforts, helping companies rank higher on search engines like Google. Here’s how explainer videos can directly impact your SEO performance:

• Increased Time on Page: Google and other search engines use various metrics to determine the relevance and quality of a website. One of these metrics is “dwell time” or how long a visitor stays on your site. Embedding an explainer video on a page can increase the amount of time visitors spend on it, signaling to Google that your content is valuable and keeping users engaged.
• Higher Click-Through Rates (CTR): Including videos in search results often leads to higher CTRs, especially when video thumbnails appear on the search engine results page (SERP). If users see an appealing video in their search results, they are more likely to click on it, which can increase your site’s organic traffic.
• Backlink Generation: Explainer videos are highly shareable, and when other websites link to your video content, it helps generate backlinks. Backlinks are a major ranking factor for SEO. The more quality backlinks your site has, the higher your authority, and the better your site will rank in search results.
• Rich Snippets: In some cases, Google may display videos as rich snippets in search results. These are enhanced listings that give users a preview of the video content, making them more likely to click on your website.

By leveraging the power of explainer videos to improve SEO, businesses can attract more organic traffic, which leads to higher brand visibility, increased leads, and ultimately, more conversions.

How Explainer Videos Foster Trust and Credibility

In today’s consumer-driven market, trust is one of the most valuable assets a business can have. Customers are more discerning than ever, and establishing credibility is crucial for closing sales and building long-term relationships. How explainer videos help businesses foster trust is simple: by providing transparency and a human touch.

• Showcasing Product Value: An explainer video gives your potential customers a firsthand look at your product or service in action. By demonstrating exactly how your offering solves their problems, you build trust and eliminate any uncertainty about what your business can deliver.
• Featuring Testimonials and Case Studies: Many explainer videos include customer testimonials or real-world case studies. This social proof reassures potential customers that others have used and benefited from your product or service, helping to build credibility and trust.
• Professionalism: A well-produced explainer video sends a strong message about the professionalism of your business. Investing in high-quality video content shows customers that you take your brand seriously, and it leaves a positive impression of your company’s capabilities.
• Transparency: Explainer videos can also highlight your company’s values, mission, and vision. Customers appreciate businesses that are open and honest, and an explainer video allows you to communicate these aspects in a clear, relatable way.

Trust is a key driver of purchasing decisions, and explainer videos can make all the difference when potential customers are on the fence about your brand.

Cost-Effectiveness of Explainer Videos

Explainer videos are not just effective—they are also cost-efficient, especially when you consider the return on investment (ROI) they can deliver. Compared to other forms of advertising and content creation, explainer videos often provide better value for businesses of all sizes.

Here’s how explainer videos are cost-effective:

• Long Shelf Life: Once produced, explainer videos can be used across multiple platforms for extended periods. Whether on your website, social media, or in email campaigns, a single explainer video can serve many functions over time.
• High ROI: According to recent statistics, businesses that use explainer videos report higher ROI from video marketing compared to other formats. The boost in conversions, engagement, and SEO rankings justifies the initial investment in video production.
• Scalability: Explainer videos can be adapted and repurposed as your business grows. For example, a video introducing your company can be updated with minimal effort as your products and services evolve.
• Cost Savings on Customer Support: By using explainer videos to educate customers about your product or service, you can reduce the need for extensive customer support. This not only saves time but also minimizes the costs associated with handling common customer inquiries.

For small businesses on tight budgets, investing in a high-quality explainer video can yield long-term benefits without the recurring costs associated with traditional advertising methods.

Explainer Videos for Internal Communication and Training

It’s easy to think of explainer videos as purely external marketing tools, but they are also incredibly useful for internal communication and employee training. How explainer videos help businesses goes beyond customer-facing benefits—they can streamline operations and improve team efficiency as well.

• Training New Employees: Onboarding new team members can be time-consuming and resource-intensive. Explainer videos provide a consistent and scalable way to introduce employees to company procedures, policies, and tools. By using engaging visual content, you can ensure that every new hire receives the same information, minimizing onboarding time.
• Explaining Internal Processes: Complex internal processes—such as software implementations or compliance protocols—can be simplified through explainer videos. Employees can watch these videos on-demand, reducing the need for repeated training sessions.
• Team Collaboration: Explainer videos can be used to communicate project updates, launch new initiatives, or share best practices across departments. This creates a more collaborative and informed workforce, boosting productivity.

Brewing Explainer Videos

Explainer videos offer businesses a powerful tool for capturing attention, simplifying complex information, and boosting conversions. From marketing to internal communication, the benefits of explainer videos extend across every aspect of a business’s operations. Their versatility, cost-effectiveness, and ability to foster trust make them indispensable in today’s digital age.

As the digital landscape continues to evolve, businesses that incorporate explainer videos into their strategies are better positioned to engage their audiences, build brand loyalty, and drive growth. The ways how explainer videos help businesses are endless, and there has never been a better time to invest in this highly effective medium.

At Digital Brew, we’ve been helping businesses with explainer videos for more than 12 years. Because if there’s one thing we love more than making great videos, it’s making videos that help you make money. So if you’re ready to get your own video, or just want to know a little bit more about our process and what we bring to the table, we’d love to hear from you. You can always reach out to us here.

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