Acquiring business customers can be expensive, but without them your business can’t scale or turn a profit. One of the perennial questions a business of any size tackles is how to land new customers without eating into profits too much.
There are lots of great ideas out there to increase your ROI when it comes to customer acquisition. But one of the best ways to lower costs–especially if you’re selling a product–is through video. Let’s look at a few reasons why video can be an effective and inexpensive way to acquire new customers.
Businesses in your target market need to know what your product is, what problem it solves, and a bit about how it works before making a purchase. Traditionally, live sales demos were the way to go—you get your sales people in front of potential customers and clients at a trade show, over a video conference, or in their offices to show off what your product has to offer.
But this route can eat up a lot of time, both for you and potential clients, when it comes to scheduling a demonstration and then doing it. That’s time you both could spend doing your jobs and working on your businesses.
Instead, put your time into demonstration videos that you can send to potential clients in email marketing or post online. No need for coordinating several busy schedules or paying a salesperson to do the same presentation over and over—a definite cost-cutting benefit.
Videos put a human touch on your product. Of course, live demonstrations do the same. But you risk sending out someone inexperienced, a low performer, someone who may be having an off day, or who may make a mistake or offend someone. With a video, you have one spokesperson carefully selected to relate to your target market, helping them create a connection and relationship with your brand.
A series of similarly toned demonstration videos—each with quality scripts you approve—share your message and set the stage for customer expectations. Beyond that, research shows 58% of shoppers trust companies with product videos. They understand what they’re buying and trust you have confidence in your product and how well it works.
Placing a video on your website quickly and easily explains what you’re selling in a visual way that’s more accessible than landing-page copy. It encourages engagement with your brand from the moment web traffic lands on your site and increases how much time visitors spends there, which can, in turn, boost your search engine results—and your sales.
As an example, my company’s industry is dominated by the decade-old Quickbooks vs. Xero debate between two large, mature companies. Because the monthly price points on products that have already scaled like theirs are low, ours must match—and high conversion becomes extremely important. Because customer lifetime value doesn’t justify live demos or excessive ad spend to drive traffic, video allows us to gain some of those conversion benefits in a scalable way.
Simply having a product video on your landing page has the power to increase conversion rates, and studies have shown that companies using video have a lower cost-per-customer acquisition than those that don’t use video.
Product videos can reach customers where live demonstrations simply can’t: their social networks. Videos aren’t only great tools to use on your landing page or e-commerce site, but also in your online advertising. You can buy inexpensive advertising on Facebook and YouTube to reach a targeted demographic.
Creating product videos can be an investment. Hiring on-camera and off-camera talent, production costs, etc. pile up. But ultimately, you’re creating a tool that catches attention and acquires new customers—lowering acquisition costs, improving unit economics, and over time, giving you great returns on your investment.