Why Your Business Needs Explainer Videos (With Examples)

Why Your Business Needs Explainer Videos

How-to videos have grown in popularity to become a chief tool in our learning experiences. They condense lengthy explanations. They clearly navigate complex terms with visual aids. And they’re beloved across audiences. Of the content categories on YouTube, how-to videos are the most popular, even surpassing music clips and gaming.

It’s obvious video is king when it comes to clear communication. Your customers will prefer — and appreciate — an explanation of your protocols, policies and services via video, too.

This pays dividends in terms of ROI. Satisfied customers who fully understand your message drive better business results. A new customer confused by what exactly it is you provide might miss out on some of your brand’s benefits. Miscommunication not only dampens the customer experience — it hurts your bottom line.

We’ll show how explainer videos take your customers from unsure to informed, and why it’s essential for your business. Read on for our in-depth explanation of explainer videos, plus examples from different industries.

What Is an Explainer Video?

Explainer videos relay information to the viewer by combining insightful text with engaging visual aids, critical for quickly processing information. Science shows we primarily learn through pictures — 90% of information transmitted to the brain is visual.

We not only understand, but retain, information explained with visuals more than text. One study found that we remember almost 65% of visual information after three days but only 10%-20% of written information.

In the spirit of visual learning, this video from Mr. Cooper is a perfect example of a well-made explainer video.

Imagine you’re a new customer purchasing a mortgage plan for the first time. You promptly receive an email from your provider explaining how they handle your payment changes. Your first thought may be “Wait, I have payment changes? Where are these numbers coming from?”

But this explainer video easily explains escrow before diving into the services provided. After watching, the viewer has a solid understanding of escrow and common pain points, like taxes and insurance payments that often vary. They’re then able to understand why Mr. Cooper paying for those unexpected fees is beneficial.

And that’s not the only use case. Here are some other opportunities to leverage explainer videos.

  • Employee onboarding: Explain company protocols, where to find resources, and other information critical for new team members.
  • Tutorials: Teach the viewer something new — or refresh their skillset — with the help of visual aids and voiceovers.
  • Mission statements: Tell a compelling story of your company’s values and priorities to inspire and engage viewers,

The bottom line? A picture is worth a thousand words, but a video explains them even better.

How Data Clears Up Confusion

While video is key to not only educating but engaging your customers — generic videos only scratch the surface.

Videos that explain a viewer’s unique situation through dynamic data saves them from information overload. In an age where our attention span is getting shorter, videos need to quickly get to the point before losing the audience’s interest. You can keep your video short and relevant by personalizing it with powerful customer data.

It’s called Personalized Video, and it’s perfect for explainers precisely because it cuts through excess info to get to the point faster.

An explainer video can — and should be — tailored to the individual watching it. It’s easy to do with today’s innovative technology that combines helpful visuals with impactful data to create an explanation relevant to every viewer’s unique situation.

Why video is critical for successful channel marketing

So while a generic video may show your audience stuff they probably need to know, making your message data-driven ensures they see and hear exactly what they need — and actually understand it.

Here are all the reasons why personalized explainer videos are essential for your business.

Streamline Complex Messages

You don’t want to miss any important details when introducing new information to your customers. But as we mentioned before, you don’t want to make your message too long or complex. Thoroughness is important, but so is clarity.

While clear communication is essential in any industry, it’s particularly important in those industries that have complex messages. Healthcare is one of these.

For example, NHS sent out a video explaining information relevant to each viewer to help with navigating their Type 2 diabetes.

A generic explainer video requires searching for relevant information and then applying it to your specific situation — crunching numbers, taking a look at your health records and spending more time researching the steps you need to take.

But a personalized explainer video keeps the message straightforward. What did my blood pressure first look like? Has it improved? Where does it need to be? Watching this video tells the patient exactly what they need to know by leveraging their unique data.

Knowing the specific steps they can take, viewers feel empowered and enabled to take action in leading a healthier lifestyle.

And they’re not only educational. They’re engaging. Colorful graphics make learning a visually stimulating experience that captivates the viewer instead of boring them.

Answer Questions Before They’re Asked

Don’t just answer your customers’ questions ASAP. Answer them before they’re asked. You know your product or service better than anyone else — give your customer information they may not even know they need.

Even if your viewer has yet to ask, proactively sharing best practices shows you’re always thinking of your customers. The personalized explainer video above not only guides the customer through their bill but goes a step further and gives tips for conserving water.

And because explainer videos provide clear, actionable steps, customers feel more confident knowing how to reduce their water usage. It’s just one of the ways utility companies are helping customers go green.

This helps with brand love and loyalty too. Customers realize your brand isn’t treating them as a quick cash grab — you’re sending them valuable information that really helps.

Data-Driven Explainer Videos That Work

Video is engaging and easy to follow. Data is powerful and keeps your message relevant. Combine the two for an effective explainer video that clearly and concisely gets your point across.

What if you have millions of customers around the globe? No worries. You can educate every customer 1:1 with our fully open, enterprise-grade platform. It’s easy to use — minimal explanation needed. Learn how personalized explainer videos can give you a healthier bottom line, lower churn rate and more.

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Rachel Horner

Rachel Horner is a data-driven digital marketing content writer. Using her storytelling skills, she creates and curates content that empowers brands.