Most people have heard of Dropbox by now, a simple service that lets you host and access your files no matter where you are in the world. Now valued at almost $10 billion, it is easy to forget that less than nine years ago, Dropbox was a relatively small startup that was struggling to find its footing.
Everything changed in 2009, when Dropbox decided to dramatically alter their promotion and marketing strategies. The main change was this: they took down almost every single thing on their website, and replaced it with a simple paper-cut explainer video that was two minutes and seventeen seconds long. For several years, this is all there was on the page, no links, no banners, no images. Just a video and a download button.
The video generated more than 30,000 views almost daily, and has been viewed more than 40 million times overall by now. As a result, Dropbox realised that their conversion rate – the number of people who visited their webpage versus the number of people who signed up for their service – had skyrocketed, to 10%. Doesn’t sound like a lot, does it? Let’s do the math. In five years, they had 100 million registered users. According to an estimate in 2011, every customer was generating about $4.80 of revenue per customer, which meant a minimum additional revenue of $48,000,000 per year, with a 137-second video.
If you’re wondering if an explainer video is the right way to go for your business, here is some information that might be useful.
According to Nielsen Research, Training and Consulting Group, the average user only spends about 10 to 20 seconds on a site. If you don’t capture their attention in that timeframe, you’ve lost them, and as we know, visual information is processed 60,000 times faster than text.
Only 20% of people remember the information they read and only 10% remember what they hear. But a whopping 80% of people remember what they saw.
One of Internet Retailer’s studies showed that product videos increase the likelihood of a purchase by 85%. Another one of their studies from 2012 showed that 46% of people will share a video on Facebook, and 40% will e-mail links.
According to the Invodo 2014 Video Commerce Benchmarks Report, video viewers are 1.6 times more likely to buy a product than others. In addition, 96% of customers believe that video helps them make purchase decisions
Cisco, in its VNI Global IP Traffic and Service Adoption Forecasts for 2014-2019, states that by 2019, video will make up to 80% of all traffic compared to 67% in 2014.
Videos that use animation let you visualise virtually any information you want, giving you an unparalleled advantage in reaching your customers. They are also far less obtrusive as advertising, letting you tell a story and entertain your customers while marketing your product.
Klientas can offer you high-quality and competitively priced explainer videos that can create striking visuals with mass-appeal, giving you a simple and effective way to boost sales and reach your customers.
