explainer videos

The Role of Explainer Videos in Business Growth

What if you’re standing in front of potential investors with just 60 seconds to explain your business idea. You start talking buzzwords, numbers, and features, but their expressions remain blank. Then you play a short, animated video. Within 90 seconds, the room shifts—nodding heads, attentive eyes, even a few smiles.

This is what the role of explainer videos in business growth is—they disrupt noise and they drive action. Now, as competition tightens and attention spans get shorter, businesses need to find a more efficient means of communicating. When done right, explainer videos can drastically increase engagement, build trust, and speed conversions.

In this blog, we will discuss the increasing usage of explainer videos by different industries, as to why they are effective, and the effect that they have on business expansions, as well as the finesse that agencies like Visual best achieve in creating them.

What Are Explainer Videos?

An explainer video is a concise, interesting video that offers a business idea, product, service, or concept in a very digestible form. These videos usually last for 60 – 120 seconds, using storytelling, visuals, and narration to explain complicated topics quickly and simply.

Types of Explainer Videos Include:

• 2D/3D Animation: Ideal for tech, SaaS, and app-based businesses.
• Whiteboard Animation: Great for educational or conceptual topics.
• Motion Graphics: Useful for visualizing data and abstract ideas.
• Live-Action Videos: Often used for testimonials or human-focused messaging.
• Screencast Videos: Perfect for software demos and tutorials.

The core role of explainer videos in business lies in their ability to simplify information and make it engaging for target audiences.

According to Wyzowl, 95% of people retain information from video, compared to only 10% from text.

Why Explainer Videos Drive Customer Engagement and Sales

1. They Grab Attention Instantly

The creative advantage offered by explainer videos, with the current average of only 8 8-second attention span. Dynamic visuals and sound can capture attention for the first few seconds, something that heavily texted content does not always accomplish.

2. They Simplify Complex Information

Explainer videos change jargon into messages. This makes them indispensable to break down functionality for non–techies, for industries such as the one you are in, AI, SaaS, etc.

3. They Drive Better Retention

Humans are visual learners. Research proves that 80% of vision and only 20% of reading are remembered by people. This makes the explainer videos an excellent tool to train, onboard, and educate about products.

4. They Increase Conversion Rates

When users understand your product or service easily, they are more likely to take action. A landing page, accompanied by a good explainer video, can increase the conversion by up to 80%.

5. They Improve Trust and Credibility

Explainer videos create authority and authenticity. In both cases, whether the voiceover is from a founder or a slimmed-down visual script, they create transparency. That’s a strong force pushing customers towards a purchase.

6. They Help With SEO

Google favors websites with videos. A page with video content is 53 times more likely to reach the front page of Google search results. Plus, increased on-page time and reduced bounce rates signal relevance to search engines.

7. They Align With Customer Preferences

According to Wyzowl, 72% of customers prefer learning about a product via video instead of text. The role of explainer videos in business growth isn’t just in engagement—it’s deeply tied to marketing effectiveness and user behavior.

Real-World Examples of Businesses Growing Through Explainer Videos

Dropbox

At the beginning of Dropbox’s career, explaining cloud storage was a shaky task. Rather than complexities in texts, they had a straight animated explainer video on their homepage. The result? An increase of 10 million users, most of whom are attributed to video.

Crazy Egg

The Crazy Egg heatmap tool benefited from an explainer video to increase its conversion rate by 64%. They answered buyer hesitations in under 2 minutes by explaining how their tool worked.

Dollar Shave Club

Dollar Shave Club went viral with humor and simplicity, releasing a viral explainer video which generated 12000 orders in 48 hours. This success highlighted the potency of storytelling if it is in a visual form.

HubSpot

HubSpot had a sequence of product explainers on its website. The result? More qualified leads, lower bounces, fewer customer service requests; all of them are signs of explainer video-led growth.

How Visual Best Creates High-Impact Explainer Videos

At Visual Best, we believe that explainer videos should do more than inform; they should convert, connect, and clarify. Our approach syncs storytelling, data, and design all into a coherent visual strategy to drive actual business outcomes.

Our Process

1. Discovery & Research: We know about the brand’s voice, target audience, and business purposes.
2. Scriptwriting: Our writers are prepared to create keen, convincing scripts based on a customer’s pain points.
3. Storyboarding & Style Design: Each frame is custom-made; there are no cookie-cutter templates.
4. Animation & Voiceover: We pair up high-quality visuals with professional voice talents.
5. Optimization: Final edits are done in formats for websites, social media, and campaigns.

The special role of explainer videos in business is not merely in visual interest, it is in the alignment of storytelling to commercial goals. That’s exactly where Visual Best is a pro.

Need quick help in understanding how Explainer Videos can power your brand to newer heights?

Want to see how storytelling improves brand engagement? Read more about storytelling in design.

Using Explainer Videos Across the Buyer Journey

Explainer videos are not only introductory tools – they are versatile assets to be used at every touchpoint in the customer journey. From awareness creation to better post-sale engagement, the use of explainer videos is a continuous, engaging, and persuasive narrative that will guide potential customers to convert and even more.

Now let’s look at how explainer videos work in each stage of the buyer’s journey—and how they enable the role of explainer videos in business growth beyond surface-level branding.

Awareness Stage: First Impressions Matter

In the funnel at the top, your audience is new to learning about your brand or product. They may not be actively on the quest to get your solution, but they are recognizing a need or even exploring alternatives.

At this stage, the brand-level explainer video is of key importance in making a great first impression. These videos should be mission-focused, problem-solving, and value proposition-focused, not too much detail about the product itself. Keeping the tone loose comes through clearly and visually, benefits-driven work works well here.

Ideal placements include:

• Homepages and landing pages
• Paid social media ads (Facebook, LinkedIn, Instagram)
• Introductory email campaigns

This type of explainer video helps humanize your brand and plant the seed of trust early on.

Consideration Stage: Showing What Sets You Apart

After the prospects are inspired by your offering, they will enter the stage of consideration, features, price, and alternative comparisons. In business, the function of explainer videos is to explain plainly how your product is different (and better).

In this stage, explainer videos play an important role in terms of features. These videos would highlight some unique functionalities, workflow benefits, integration possibilities, or use cases that will be written for buyer personas.

Ideal placements include:

• Product detail pages
• SaaS comparison or competitor analysis pages
• Product tour sections or explainer hubs

By visualizing the experience and explaining your USP (unique selling proposition), these videos help reduce uncertainty and increase the likelihood of conversion.

Decision Stage: Building Confidence and Trust

Closer to the bottom of the funnel, the customer is nearly primed to convert, but he still needs a bit of swaying. Here are the testimonials, the case studies, and the lead founder video, which have become very powerful tools.

These videos give authenticity and credibility, and this is best shown when the individual videos feature their real customers talking about the benefits or a founder passionate about what is behind his/her brand.

Ideal placements include:

• Proposal decks or client pitch emails
• Retargeting ad campaigns
• CRM-integrated content sent during negotiation phases

Trust is often the final hurdle, and a well-crafted testimonial or founder explainer can give your business the edge it needs to close the deal. 

Post-Sale Engagement: Retain, Educate, and Delight

Explainer videos play a part in business growth beyond the point of sale. Indeed, many brands do not consider the power of video content to foster long-term satisfaction and loyalty from customers.

Tutorials, onboarding explainers, or the like, as well as product walkthroughs, are critical in making new users feel supported and confident. These videos lessen the requests for support, shorten the onboarding process, and create e community, making users the brand advocates.

Strategic placements include:

• Welcome email sequences for new customers
• In-app guidance or learning portals
• Private community channels and customer success touchpoints

According to Think with Google, nearly 50% of internet users look for product-related videos before visiting a store. This shows that explainer videos influence behavior both before and after purchase.

Also Read: Why Explainer Videos are Essential for Startups?

Common Mistakes to Avoid with Explainer Videos

Though the use of explainer videos is considered one of the best instruments of digital communication, the success of such a tool is based on the way it is implemented. A poorly done explainer video will have negative effects on user perception, decrease user engagement, and undermine your marketing plans. Knowing these pitfalls is important to ensure the best use of explainer videos in business growth.

1. Using Generic Scripts and Templates

Most companies go wrong through the use of pre-written scripts or the use of one-size-fits-all templates. Such a generic approach usually leads to content that is impersonal and does not convey the brand’s voice. Explainer videos need to reflect your unique value proposition and speak to the specific objections of your audience. Personalization increases relevance- your message is more persuasive and memorable.

At Visual Best, we develop each script from scratch in line with the company’s messaging strategy and the customer persona. This custom approach increases authenticity and ensures the video talks to the viewer directly.

2. Over-Explaining or Using Excessive Jargon

The key purpose of explainer videos in business is to simplify. Saturating the viewers with technical terms, long-winded explanations, or rubbish can lose the attention of the viewers quickly. Clarity should be the umbrella term that guides the whole process.

Good videos speak only of the most important information, what the product or call to action does, why it is important, and what the viewer can do. Simplicity with an impact in content leads to increased engagement and better understanding.

3. Poor Voice-Over or Amateur Animation

The best script would be in vain if spoken with poor visuals or professionalism. An in-organization monotone voice over, mismatch in pacing, or vintage animation all become an unfortunate, unpolished brand image. In the era of HD content and consumers who are smarter when it comes to spending, the quality bar is now raised higher than ever before.

This is why Visual Best insists on premium production standards throughout all projects, from voice talent selection to the specifics of animation. Our videos are professional and line up with each brand’s persona to maintain credibility.

4. Missing or Weak Call-To-Action (CTA)

The call-to-action is one of the most important elements of any explainer video. Once you have captured the viewer’s attention and described your value proposition, but not led them to the next step, you are wasting the opportunity.

Whether it’s scheduling a demo, signing up for a trial, or diving deeper into the content, a CTA that is clear and compelling echoes the business objective. A CTA that works well links the gap between engagement and conversion, making it an integral part of making the best explainer videos in your marketing funnel.

5. Ignoring Brand Consistency

Brand recognition and trust are established by repeat visuals, tone, and message. Explainer videos that follow neither set of guidelines (brand or design) result in an inconsistent user experience.

To see the value of explainer videos in business growth, consistency needs to be given in all touchpoints. Visual Best values brand alignment in any video project project-intended design, narration, and tone are consistent with the brand’s personality and guidelines. This will result in better brand recall and more integrated marketing campaigns.

We avoid most of these pitfalls at Visual Best because we tailor each project from the ground up so that each one works with brands and performance on platforms.

Read This :Top 7+ Explainer Video Companies

Measuring the ROI of Explainer Videos

One of the most strategic aspects of investing in video marketing is the ability to measure performance and ROI in clear, data-backed ways. Unlike traditional content, the use of explainer videos provides rich metrics that allow businesses to analyze viewer behavior and identify which touchpoints drive actual results.

To understand the role of explainer videos in business growth, it’s important to look at key performance indicators (KPIs) that reflect both engagement and revenue impact:

1. Engagement Rate

This metric is about the length of time that users watch your video, and if they watch it to the end. High rates of completion present an indication of strong content relevance and clarity. Platforms such as YouTube Analytics, Wistia, and Vimeo measure average watch time, where people leave, replays, etc., which provides something to look at to see if what you are saying is hitting the right spot.

For instance, if you have a 90-second video and your explainer video has a 70% completion rate, it’s a powerful indicator of both interest and message effectiveness.

2. Conversion Rate

At the end of the day, most explainer videos aim to create action, whether it’s a signup, the purchase of a product, or the request for a demo through your channels. Using A/B testing or heatmaps to discover how many users convert when watching your video (you can measure these things), you can measure its effect.

A SaaS company may be able to put an explainer video on the landing page, and conversions will increase from 6% to 10% (66% uplift), directly linked to the video. This is directly connected to the role played by explainer videos in business, where clarity often results in conversions.

3. Click-Through Rate (CTR)

If your video has embedded calls-to-action (CTAs), “Book a Demo”, “Learn More”, etc., then CTR helps you measure if a viewer is advancing down the sales funnel. Greater CTR means that, apart from explaining the offering (blue carpet cleaning), your video motivated viewers to take immediate action.

An excellent CTA at the end of an explainer video can seal the deal by significantly helping with navigation around the site and lead funnel flow, which is very valuable for e-commerce and lead-gen businesses.

4. Bounce Rate Reduction

Videos make the users want to stay on your site longer, thus lowering your bounce rates. The chances are that when a user lands on a page with a relevant, well-placed explainer video, he/she will not leave at once but will look for other content.

Lower bounce rates signal relevance to search engines, improving your website’s SEO and ranking, which ties into the broader use of explainer videos in long-term digital growth strategies.

5. Support Ticket Reduction

When users understand exactly how something works, they will not have to seek help. Companies that use explainer videos in their onboarding process usually experience a reduced number of inquiries, their support teams call less, and higher customer satisfaction.

For example, a CRM tool could see its basic support requests reduced by over 30% upon the incorporation of short explainer tutorials into the dashboard – a good example of how explainer videos increase customer experience and operational efficiency.

Add video, and businesses grow revenue at a significantly faster rate (49% faster than if not used). By integrating explainer videos into your digital ecosystem, you will not only enjoy more clarity, but you will also enjoy more at the bottom line.

Conclusion

Whether it be to make your product pitch simple or to influence purchase decisions, the use of explainer videos is no longer optional, it’s a necessity. They are conversion tools, trust builders, and customer service multipliers wrapped in one.

The rise of explainer videos in business growth will only grow since more consumers need videos that are faster, clearer, and more engaging. At Visual Best, we assist you in unlocking this potential by producing high-impact, custom-built explainer videos that work.

Whether you’re starting a product for the world-shakers or growing your enterprise’s global presence, we’ll help you conceive your story and create visible growth.