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It’s easy to say “hi” to someone you just met but can you actually strike an interesting chat, keep it going and set up a coffee date—all in the same conversation?
The same idea can be applied to any business. How can your business make a customer’s experience memorable enough to keep them coming back?
Acquiring new customers is expensive. In contrast, making an effort to keep your existing customer base can help bring in more business. It seems the average company needs to invest six times more to acquire new customers than keep current ones.
Customer retention can make your business more profitable—with a mere 5 percent more customer retention, you can expect a 25 to 95 percent increase in your profits. It can also help boost brand loyalty and generate referrals from other leads through word-of-mouth marketing.
If you haven’t jumped on the video marketing bandwagon, this article will give you powerful tips on how to use videos for engaging customers and forming a lasting relationship with them. So let’s dive right in.
How video marketing and customer retention align
Given the shrinking attention spans of the customers, it's important to send out messages that are easy to remember. When your customers can remember your brand from memory, they are more likely to be loyal to it.
Video marketing has a unique advantage over other forms of messaging.
It promises a higher brand recognition given that 80 percent of customers can recall a video advertisement seen in the past 30 days compared to other formats. Videos are also powerful selling tools that can increase conversions by 80 percent. They also help you create an image or identity to gain your customers’ trust and loyalty.
Videos aid in customer retention as you can use them to share complex topics in a simpler and more engaging way. For example, no one enjoys reading through tons of pages to understand a product demo. But breaking down the demo into snackable chunks of video helps customers to understand it faster and remember it for a longer time. It also makes them empowered. As a result, the customers are more likely to stick to your brand.
Successful brands make consistent efforts to make sure that customers remain engaged and keep coming back for more. Using videos can help you to establish the first point of contact with the customers. For example, a welcome video thanking the customers for choosing to do business with you humanizes your brand and evokes a positive reaction.
Video marketing is also effective for attracting potential customers and retaining them. 64 percent of potential customers decide on purchasing after watching a brand video.
What type of videos will keep customers interested?
Here are some video ideas you can try to help improve your customer retention.
1. Tutorial videos
Also known as demo videos, these videos are great for providing information about your product or service without any frills attached. Using proper video editing techniques, you can use them for showcasing the benefits promised and guide your customers on how to use the product effortlessly.
The step-by-step guidance provided by such videos makes the information easy to retain and checks all the boxes. Take, for instance, the tutorial videos by Nespresso. These videos tell the customers how they can recreate their favorite iced coffee drinks at home using their product. It nudges the customers in the desired direction—purchase Nespresso, create these signature recipes, and keep coming back for more.
2. Brand awareness videos
Informative videos that highlight what your brand is all about are powerful customer retention strategies that a marketer can use. you can narrate the story of your business in a relatable manner and pitch to your customers why they should choose you over your competitors.
Take inspiration from the video by Dollar Shave Club.
The video uses the right type of language to make it more suitable for the target audience—young professionals who are in the market for purchasing razors. The video starts by highlighting the sky-high price of razors, a problem faced by every razor user. Then it touches upon how Dollar Shave Club can help save money. The founder of Dollar Shave Club speaks directly to the camera and explains how Dollar Shave Club can be beneficial for regular users.
The video also doesn’t shy away from introducing a healthy dose of humor. From ridiculing razors that come with too many features to how Dollar Shave Club has made ordering razors a hassle-free process, the video tickles your funny bone. It also highlights the story of the brand and how it supports the employees.
The video incorporates fail-safe customer retention strategies and goes a long way in boosting customer loyalty, increasing brand awareness, and the lifetime value of the product for the customers.
3. Corporate social responsibility (CSR) videos
CSR is an excellent way to build goodwill for your business. It's an effective customer retention strategy as consumers increasingly want to be involved with brands that not just care about their business but also care about those around them.
Small businesses can also use this tip to enhance credibility and relationship with existing customers. Watching businesses do their bit for society increases the trust of the customers. To demonstrate your social initiatives, try broadcasting CSR videos as part of your video marketing campaign.
You can draw inspiration from Equinox, a US-based fitness company. Their CSR initiative provides financial assistance to war veterans. The video showcases the work done by them towards this initiative and the impact so far. Such videos are an effective way to strike the right chords with your customer base and tell them your social responsibility as a brand.
Here's how Lego did it.
4. Product explainer videos
This is one of the most common formats to enhance video marketing for customer retention. These videos are incredibly straightforward—they jump right in to identify the customers’ pain points, what the product offers to resolve them, and the key benefits of using the product.
The stepwise breakdown makes it easier for customers to follow and even encourages them to try out the product.
The Spotify US launch promo video is a fabulous explainer video that tells the audience precisely what they want to know—what is Spotify and how does it work?
Learn how to make an explainer video for your business from scratch.
5. Customer testimonial videos
What’s better than getting a video testimonial from a loyal customer?
Not only does this video marketing tactic help you to retain existing customers, but it also sends a strong message to potential customers!
Such testimonials instantly boost the confidence of your existing customers, make them feel a part of your business, and encourage them to continue their relationship with you.
Here’s a client testimonial video from the online collaboration tool Slack. The video features a user who talks about the various pain points that Slack addresses and how it has made a difference in his life. Hearing it straight from the horse’s mouth is always helpful for new and old users of your product.
Use Clipchamp’s testimonial video maker to create videos in minutes.
Engage customers with video marketing
Retaining existing customers is challenging. The video marketing tips and tricks shared above may help keep the flame alive whether they are losing interest or not.
Maintaining customer engagement never ends. It helps to focus on the relationship you build with your customers, not the increase in sales you are expecting to get.
Find out what they want and expect, give them meaningful information, and make their experience your priority—the profits are sure to follow.