Video consumption is soaring amongst online audiences. From 2013 to 2014, 43 percent more videos were watched online. For e-commerce businesses, this translates into an immense opportunity to market products and services to consumers.
However, jumping right into video marketing with random tactics won’t be helpful. Companies must understand and appreciate the importance of approaching video technology in a strategic manner. If not, you risk wasting time and money on frivolous schemes.
In the Forrester report, “Market Overview: Online Video Platforms for Sales and Marketing,”
researchers found that “video is highly effective at drawing audiences, maintaining their engagement, and converting them.” With the help of video, Verizon Wireless experienced a 16% lift in conversions on its product pages.
Whether you’re in a marketing, sales, or IT role, learning about the impact of video will offer key insights on how to implement video campaigns, gain customer feedback, and transform information into viral content.
Why Video Matters
Video gives customers a close peek into your products and company culture. It reduces a potential consumer’s hesitancy to purchase services or sign up for trials. In other words, better presentation generates a greater level of comfort.
A study published by Unbounce shows “that including an explainer video on your landing pages can increase conversion rates between 10 and 20%.” Like every business, your company has a unique story to share. Start by telling a story about your mission and vision.
Explaining why people should shop with you will humanize your brand and will be relatable to customers. In fact, according to comScore, “website visitors are 64% more likely to buy a product on an online retail site after watching a video.”
Moreover, Google loves video. Google includes video, news, and maps along with regular search results. If you want to outrank your competition in search engines, include video on your website.
Anthony Lam, a corporate video production specialist, believes videos are important to your business marketing strategy. He states that “most companies make the mistake of putting it off.” He advises that you get started early and focus on one message.
Video and Conversion Rates
Billions of people view videos online daily. But how does that affect your bottom line? Well, the good news is that videos have proven to increase conversion rates dramatically.
In 2009, Shoeline added videos to help showcase its products. With a simple change, the online retailer experienced a 44% increase in online sales conversions. For Living Direct, inserting video into its marketing strategy increased the time spent on the site by 9%.
Zappos leverages the use of videos on its product pages. For items with video demos, sales increased between 6% and 30%.
AO, UK's largest online kitchen appliance specialist, has achieved success with videos as well.
Matt Lawson, Head of Conversion at ao.com, says "Video gives us the opportunity to wow our customers and this in turn delivers results.”
Lawson continues, “We have tested and proven that when someone watches our video reviews they’re 120.5% more likely to buy, spend 157.2% longer on the site and spend 9.1% more per order. So my focus this quarter is increase customers watching video. Simple.”
Videos are one of the most effective ways of demonstrating a product, which benefits your customers. Take advantage of the incredible possibilities to increase your conversions.
Personalization Offers Greater Returns
Nearly 59% of online shoppers say it is easier to locate products in personalized e-commerce stores. In addition, 45% of consumers are more likely to shop on a site that offers personalized recommendations.
Build a video strategy that reflects the customers’ behavioral preferences. Personalized experiences give each individual customer a unique journey at your online store.
Personalized video affords marketers the benefit of customized targeting. Now, videos are created to focus on real-time circumstances, like events or the time of day.
The video tech company Eyeview helps companies with personalized video ads. In its consumer study, “the ads resulted in a 100% more favorable view of the brand, together with a 73% higher chance of recommending it, and a 37% increase in the likelihood that the customer would visit the store again.”
Everyone wins with personalized videos. Consumers receive relevant information to aid in their purchasing decisions, while companies increase their reach.
Overall, video helps build trust and authority for customers. People tend not to shop where they feel uncomfortable. Video extends a virtual welcome into a company’s brand. Using video on your site can help you reduce bounce rate and give shoppers the best product information.
Optimize Your Videos For Better Results
Based on Vidyard’s video benchmark report, 71 percent of marketers said their video content’s conversion performance was either somewhat or much better compared to other types of marketing content. The common-sense approach is to start producing relevant content for your customers.
Create a video section on your website. By placing your videos in one location, customers won’t be forced to mindlessly find content. “You can still show them on individual e-commerce pages, but make sure there’s one distinct area that your videos can live,” says Jon Spenceley, community marketing manager at video hosting and marketing platform maker Vidyard.
Video collections can be consolidated in different places. Williams-Sonoma has more than 33,000 subscribers on its YouTube Channel, while Toys “R” Us has a gallery of its product videos on a separate mini-site.
Businesses tend to forget to tell consumers to take action. Therefore, build calls to action (CTA) within your product videos. CTAs could constitute a series of YouTube annotations or a a short link signaling viewers to a product page.
Keep in mind that these videos should give consumers useful information. Educate your shoppers; don’t bore them.
Create A Video Today
Within the last few years, video marketing has transformed how we interact with consumers online. It shows no signs of disappearing anytime soon.
Empower your consumers in their purchasing decisions. Create product videos and personalize the experience. By catering to your shoppers’ needs, your business will experience profitable returns.