Nov 18, 2022
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How to Increase SaaS Video Conversion Rate With Explainer Videos
In data-driven marketing, there is an old saying: Seeing is believing. But for SaaS founders, the SaaS video conversion rate is the factor that directly impacts revenue. Recent studies show that 73% of SaaS homepages do not have a product video, which keeps their SaaS video conversion rate significantly lower.
Without a video, a large portion of ad spend and organic traffic goes to waste. The data clearly shows that an optimized product video can significantly boost both conversions and overall growth.
1. The Data: Video vs. No Video
In the SaaS industry, Conversion Rate is the metric that determines whether your CAC (Customer Acquisition Cost) will be profitable or not. Wistia’s 2026 report has uncovered this clearly.
Average Conversion Rate WITH Video: 4.8%
Average Conversion Rate WITHOUT Video: 1.9%
This means that adding a video increases your conversion probability by 2.5x. To understand this impact better, let’s apply it across different traffic volumes. We will assume an ARPU (Average Revenue Per User) of ₹2000.
Example Calculation
If you have 1000 visitors:
Without Video: 1000 visitors × 2% (approx) = 20 users × ₹2000 = ₹40,000 MRR With Video: 1000 visitors × 4.8% = 48 users × ₹2000 = ₹96,000 MRR
Net Difference: A single video generates an additional ₹56,000 in revenue every month.
In one year, this gap becomes ₹6,72,000. Would you want to leave that much revenue just because you don’t have a video?
2. Why Most SaaS Companies Don't Have One
Even with such a clear ROI, why do 73% of companies not create videos? To find out, we conducted 25 founder interviews.
Most founders mentioned two main reasons:
High Cost: The cost of creating a quality video (which can go up to around $3,000) feels too expensive. Time Consumption: The process from scripting to animation takes 4–6 weeks.
But when we did a deeper analysis, the real reason turned out to be something else. The process doesn’t match how SaaS companies iterate. SaaS products are updated every week, but video production is a static process. Founders fear that by the time the video is ready, their UI will already have changed.
The rigidity of traditional production does not align with the agility of SaaS.
3. What an Optimised SaaS Product Video Looks Like
If you are creating a video to increase conversions, it should not just be visually appealing, but also functional. A winning SaaS video has these 4 pillars:
Problem-First Framing: The video should start with the user’s pain point, not features. Show the problem first, then present the solution.
Under 90 Seconds: SaaS buyers have limited time. You must deliver value within 90 seconds.
Clear Single CTA: Sign up for free or Book a Demo. Do not confuse the user at the end; ask for only one action.
Measurable (Embedded Analytics): You should know where users are dropping off. Only analytics can help you optimize the video.
Our Research
Conclusion SaaS video conversion rate is not just a marketing metric; it is the key to your growth engine. The data is undeniable: without a video, you are leaving significant money on the table.
Frustrated with outdated, slow, and expensive video production? Join the waitlist for the tool that automates this entire process. Now your video will update at the same speed as your product.
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FAQ 1. What is the SaaS video conversion rate?
The SaaS video conversion rate refers to the percentage of website visitors who convert into trial users or customers after watching a product video. It measures how effectively a SaaS video influences user action and directly impacts revenue growth.
2. How much can a SaaS explainer video improve MRR?
A well-optimized SaaS explainer video can significantly boost Monthly Recurring Revenue (MRR). In many cases, it can increase conversions enough to generate thousands of extra revenue per month, depending on traffic volume and pricing model. Even small improvements in conversion rate can lead to large MRR gains over time.
3. Why do most SaaS companies not use product videos?
Most SaaS companies avoid product videos due to high production costs, long creation timelines, and frequent product updates. Since SaaS products change rapidly, founders often feel videos become outdated quickly, making the process seem less flexible compared to their agile development cycle.
4. What is the average conversion rate with and without video?
On average, SaaS websites with product videos have a conversion rate of around 4.8%, while those without videos average around 1.9%. This clearly shows that adding a product video can increase conversions by nearly 2.5x.
5. What type of SaaS video performs best for conversions?
The best-performing SaaS videos are short, problem-focused, and clearly structured. Videos that highlight the user’s pain points first, explain the solution simply, stay under 90 seconds, and include a single strong CTA usually deliver the highest conversion rates.
Whiteboard Animation Video Maker in Hyderabad – Turn Ideas into Powerful Visual Stories 🎥
In today’s fast-moving digital world, grabbing attention is everything. That’s where a whiteboard animation video maker in Hyderabad can make a real difference.
Imagine explaining your business, product, or service through simple yet powerful hand-drawn visuals that keep your audience hooked from start to finish. Whiteboard animation videos are not just creative—they are highly effective in storytelling, engagement, and conversions.
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Master the Art of Engagement: Why Your Brand Needs Explanatory Videos
In today’s fast-paced digital landscape, capturing attention is harder than ever. Explanatory videos short, high-impact marketing tools have emerged as the gold standard for demonstrating product value and simplifying complex concepts. Whether hosted on a landing page, shared across social media, or featured on app stores, these videos bridge the gap between curiosity and conversion.
The Power of Visual Storytelling
At Auro Creative Studio, we believe that if a picture is worth a thousand words, an explainer video is worth a million. These videos do more than just showcase a product; they solve problems. By outlining specific benefits and demonstrating real-world applications, businesses can build immediate trust with their audience, regardless of their industry or budget.
Why Animation is the Ultimate Solution
When ideas are too complex for live-action, animation steps in as the most versatile medium. It allows us to visualize the "impossible" from the inner workings of a microscopic device to abstract software workflows. Animation provides a limitless canvas for imagination, ensuring that every small piece of your product is outlined with precision and creativity.
Conclusion
Explanatory videos are no longer a luxury; they are a strategic necessity for growth. By blending high-performance design with clear messaging, Auro Creative Studio helps brands transform difficult problems into engaging visual stories that resonate.
Why Explanatory Videos are the Ultimate Fuel for Your Business Marketing
In a digital world where attention is the rarest currency, explanatory videos (or explainer videos) have emerged as the most effective tool to capture and retain audience interest. These short, engaging marketing videos are designed to demonstrate how a product works and highlight the benefits it offers to the user. From landing pages to social media feeds, they are everywhere for a reason: they work.
The Power of Visual Storytelling
Explainer videos succeed because they stimulate both auditory and visual senses. This dual-sensory approach is proven to increase message retention compared to plain text. Whether you need to explain complex technology, a medical process, or the mechanics of a new app, animation is the most adaptable method. It allows businesses to visualize the "invisible" or the "difficult-to-recreate," making even the most complex concepts accessible and straightforward.
How They Drive Business Growth
Implementing explainer videos into your strategy offers several practical benefits:
Boosted Conversions: They help bridge the gap between curiosity and a purchase.
Built Loyalty: Clear communication builds trust with your brand.
Social Sharing: Engaging animations are highly shareable, increasing your organic reach.
SEO & Email Performance: Search engines prioritize video content, and including a video in email campaigns significantly increases click-through rates.
The Professional Process
Creating a high-quality explanatory video is a journey of precision. At Auro Creative Studio, we follow a structured path: understanding requirements, storyboarding, scriptwriting, animation, voice-over, and final editing to ensure your message lands perfectly.
Bring Your Brand to Life with Creative Animations
In today’s fast-moving digital landscape, static visuals just aren’t enough to hold attention. That’s where creative animation services step in transforming your ideas into lively, impactful content that speaks directly to your audience. At Auro Creative Studio, animation isn’t just about movement; it’s about crafting stories that connect, inform, and inspire action.
Whether you’re launching a new product, explaining a complex concept, or boosting your social presence, animations give your brand a dynamic edge. From social media promotion videos that hook viewers in seconds to explanatory animations that simplify challenging topics, every frame is designed with purpose.
Auro Creative Studio also infuses projects with visual effects (VFX), adding depth and excitement that draw viewers deeper into your narrative. These carefully designed visuals help enhance your storytelling and elevate overall engagement.
By combining creativity with strategic design, animation becomes more than just eye-catching content it becomes a powerful communication tool that enriches your brand voice. Whether you’re a startup or an established business, animated content from a skilled team can make your message memorable and impactful.
Let your brand move, engage, and resonate with audiences through the magic of animation.
Explainer videos have become one of the most effective ways for businesses to communicate clearly in a world overflowing with information. Whether it’s explaining a product, walking someone through a process, or breaking down something semi-technical, explainer videos help audiences understand faster, remember more, and feel more confident taking the next step.
From government websites to startups, explainer videos are everywhere, and for good reason. They turn complex ideas into clear, digestible stories that feel approachable rather than overwhelming.
See more: https://visualtargets.com.au/explainer-videos-explained-types-uses-and-examples/