7 Reasons Why Your Business Needs an Explainer Video

7 Reasons Why Your Business Needs an Explainer Video
Table of Contents

As a B2B brand, wouldn't it be great if you could explain complex concepts to potential customers more clearly? Explainer videos can help you as they are a great way to describe your business to prospects and customers quickly, creatively, and engagingly.

To support our statement, we will present some numbers. Look at the following statistics provided by the G2 website:

  • Marketing professionals agree that video marketing increases brand awareness by 53%.
  • 52% of marketers believe video builds trust between a brand and its customers.

What Is an Explainer Video?

An explainer video is a short (typically 60-90 seconds long) video that explains your business and how it benefits customers or prospects. 30 Second Explainer Videos are also becoming popular in recent times. An example from Pipe, a platform that helps transform recurring revenue into up-front capital for growth, is given below.

It often features an animated character guiding viewers through the story of your product or service, and can even include audio clips for a fully immersive experience.

Explainer videos are incredibly powerful marketing tools because they can quickly capture attention and explain complex ideas in a fun and easy way.

Plus, with their high shareability on social media, explainer videos are an effective way to strengthen your brand’s reputation and reach new business audiences.

Before we learn about the benefits explainer videos offer, let’s quickly see how an explainer video production company can help you create an animated explainer video if you are new to the medium.

7 Reasons why your B2B business needs an Explainer Video

It’s important to understand how an explainer video can help your B2B brand succeed before you decide to take the plunge. In this section, we discuss the advantages of having a creative explainer video in today's competitive market and why it is essential for you and your B2B business.

1. Brand awareness

With the ever-growing digital landscape, brand awareness is becoming increasingly important for B2B businesses. They need to be conscious of their brand identity and ensure that their message is getting out to potential customers.

By establishing a strong presence in a crowded market, B2B brands can better engage with their target audience and create more opportunities for success.

A. Importance of brand awareness

Improving brand awareness within the B2B space has many positive implications:

  • First, it can help build trust with customers and bring more leads into the sales funnel by increasing your brand’s visibility, reputation, and credibility in the marketplace.
  • Second, greater visibility will also result in an increase in website traffic which will ultimately lead to higher conversion rates.
  • Third, having an established presence online allows businesses to become more competitive because they have access to a larger customer base who are already familiar with their product or service offering.

B. How explainer videos can help

Explainer videos have become an increasingly popular marketing tool used by businesses to increase brand awareness. They can be used to:

  • Simplify message: They make your message easy to understand and remember. Through animation, music, and voiceovers, you can engage viewers while simultaneously promoting your products and services.
  • Engage audiences: They help keep them engaged long enough for them to remember your brand. Through this method of marketing, companies can educate their audience on their offerings, demonstrate how their products work or even share success stories from customers who have already utilized their services.
  • Better communication: They show potential customers what you offer visually, making it easier for them to understand. You can also provide subtitles to help viewers who do not speak English understand the visual message. When they need something related to your brand, they are more likely to remember your brand.

Watch this explainer video from Lenovo Go, a suite of remote-first accessories to boost productivity on demand and how the brand enables people to make the world their office.

2. Reach

In the era of online marketing, improving SEO rankings is a key factor in helping B2B businesses to reach and engage with their target audience. SEO ranking is what determines where a business appears in the Search Engine Result Pages (SERPs) when a customer searches for something related to their industry.

A. Importance of improved SEO ranking

Boosting search engine visibility can:

  • Help drive organic traffic to your website, increase brand awareness, and generate new leads. The higher a business ranks on search engines, the more likely they are to be seen by prospects looking online for solutions.
  • Make potential customers your website easy to find and navigate, and make them trust the company more and consider them as an option for their needs.
  • Help build credibility in the eyes of customers because Google thinks so!

B. How explainer videos can help

The use of explainer videos helps businesses engage customers, as well as increase SEO rankings - the metrics used by Google and other search engines to determine website visibility.

  • An explainer video about the company’s offerings can help potential customers gain an understanding of what the business provides.
  • It boosts SEO rankings as users tend to spend more time on websites that include video content, which indicates to the search engines that the website is providing quality content and is therefore worthy of higher visibility amongst its competitors.
  • They are shared across social media channels boosting organic traffic, which can lead to improved SEO performance.

Watch this explainer video example Twixor, an enterprise-grade CX Automation Platform.

3. Customer Engagement

Customer Engagement is important for companies to build long-lasting relationships with their customers, which can boost sales, increase profits, and improve customer satisfaction.

A. Importance of customer engagement

Meaningful interactions with customers enable companies to gain valuable insights into what their customers want and need. Companies can use these insights to create better products or services that will meet the demands of their target audience.

Additionally, when customers feel appreciated by organizations, they are more likely to recommend them to others and remain loyal in the long term — all factors that contribute positively towards increased profits for B2B businesses.

B. How explainer videos can help

Explainer videos can help businesses of all sizes to engage their customers and create an improved user experience by:

  • Conveying complex topics that may otherwise be difficult for consumers to understand.
  • Making it easier for customers to remember product details and benefit from the offered services or products faster.
  • Helping businesses showcase their brand personality and values, which further improves customer engagement and creates trust between them and the business.

Watch this explainer video example created by Explainer Video Hero for myCOI, the Certificate of Insurance (COI) software, that takes on a complex subject and simplifies it for the viewers.

4. Lead generation

Lead generation is an essential part of any business, but it is particularly important for B2B companies. It helps them identify potential customers and capture their interest and nurture those leads into conversions.

A. Importance of lead generation

B. How explainer videos can help

Explainer videos help businesses to maximize their lead generation by:

  • Making complex topics appealing to potential customers.
  • Using visual storytelling techniques and clear messages to demonstrate how a product or service works, without overwhelming viewers with too much information.
  • Addressing customer needs and interests directly.

Watch this explainer video example from Lyne.ai, the AI-powered sales personalization platform, that addresses customer pain points with cold emails and explains how the product can address them.

5. Conversion Rates

B2B brands should look to increase conversion rates for a variety of reasons. Conversion rates are a key metric for determining the success of an online marketing campaign and can indicate how successful your website is at engaging and converting visitors into customers.

A. Importance of conversion rate

Achieving higher conversion rates can help drive more sales, create more loyal customers, and establish long-term relationships with your target audience.

A high conversion rate will also result in greater ROI on your marketing campaigns. By increasing the number of people who take desired actions on a page or website, you're creating more opportunities for sales and increased revenue generated by each visitor to your site.

With optimization tactics such as A/B testing, B2B brands can develop strategies that both improve the user experience while simultaneously driving better results from their creative assets.

B. How explainer videos can help

Explainer videos are an effective way to increase conversion rates because they help:

  • Introduce customers to your brand and product offering or show why customers should choose your services over others.
  • Viewers take action by providing clear instructions on how to purchase or sign up for a service.

Watch this live-action explainer video created by Explainer Video Hero for Book Like A Boss, the Booking Page Builder, that explains the benefits of the product and ends with a clear call to action to sign up for a free trial.

6. Customer Retention

Customer retention is becoming increasingly important for B2B brands in a competitive landscape. Since customer loyalty drives profits, businesses need to understand how to strengthen customer retention and focus on retaining customers instead of acquiring new ones.

A. Importance of retaining customers

Having strong customer relationships can be the difference between success and failure for a business, as loyal customers are more likely to buy from the same company again or recommend it to someone else.

To ensure customer satisfaction, B2B brands need to:

  • Look at ways they can constantly build upon the relationship they have with their customers and reinforce it over time.
  • Provide superior service and support, listen to feedback, understand their needs, and offer incentives such as discounts or rewards programs that will make them value the relationship even more.
  • Create an effective communication strategy to keep customers engaged throughout their entire journey with your brand.

B. How explainer videos can help

With the power of animation, explainer videos make complex topics easier to understand and provide:

  • A condensed version of a product or service that can help create an emotional connection with customers, hooking them in for the long haul.
  • A unique opportunity to demonstrate their products and services in a short amount of time. By utilizing visuals and sound together, businesses can give viewers an overview of their offerings in just minutes — something that would typically take much longer if done through written content.
  • A brief but comprehensive summary for viewers to gain understanding without needing too much background knowledge on the subject matter.

Watch this explainer video example from Notion, a platform that helps individuals and teams manage tasks, collaborate, and stay up to date on projects.

Notion provides a whole lot of functionality from customizable interfaces and sharable workspace to collaborating in real time and making connections across time zones. And the video makes it easy for viewers to get a comprehensive overview of their product.

7. Return on Investment

Video marketing has quickly become one of the most effective ways for B2B brands to market their products and services online. It’s no surprise that businesses are turning to video content to reach their target audiences because it provides good ROI.

A. Importance of ROI

An important concept in maximizing marketing results is Return on Investment (ROI). Hence, it's essential to understand how and why ROI can help grow your B2B business and brand visibility.

With the right ROI-based plan, you can create an environment where your budget works smarter, not harder, and your profits expand without increasing spending.

B. How explainer videos can help

Explainer videos are a powerful tool that can help businesses to increase their return on investment (ROI) in marketing because they help businesses:

  • Take advantage of the power of storytelling and targeted messaging.
  • Engage viewers visually and entertain them to make it easier for them to remember important information.
  • Stand out from their competitors by demonstrating why they are the best choice for customers’ needs.
  • Capture their attention more quickly — and more effectively than traditional methods like text-based advertising.

Watch this animated explainer video example created by Explainer Video Hero for Spinify, the Sales Performance Management Software, that uses targeted messaging and engaging visuals.

What are the different types of Explainer Videos?

Following are the main types of explainer videos that you can use to easily create visually appealing and engaging content:

1. 2D Animation

2D animation is often used in cartoons and other types of animated content and does not require complex tools or equipment to produce. Aside from its simplicity, 2D animation also offers a high degree of flexibility when it comes to creating characters and scenes.

Watch this 2D animation video explainer video example from Acast, a podcast platform.

2. 3D Animation

3D animation typically involves modeling the characters, rigging them with bones and controls, animating the scenes, adding textures and lighting, and then finally rendering the completed product. A 3D animated explainer video can provide a level of realism not possible with other methods.

Watch this #D animation explainer video example from Stagefox, the platform to improve the connection between customers and businesses.

3. Motion Graphics

Motion graphic animation can communicate complex topics and ideas in a visually engaging manner to create an illustrated narrative that is engaging and informative. Motion graphics offer different visual perspectives and capture the attention of the audience and draw them into the story.

Watch this motion graphics explainer video example created by Explainer Video Hero for Ibexa, the B2B Digital Experience Platform.

4. Whiteboard Animation

Whiteboard animation videos can communicate their message quickly and effectively. They are also more economical to produce than other types of video. These videos combine storytelling with engaging illustration and animation to make it stand out from the crowd.

Watch this whiteboard animation explainer video example from Optimal Digital Marketing Solutions.

5. Live-action

Live-action explainer videos are especially effective when you want to grab attention and leave a lasting impression. By using real people instead of animation, viewers can easily relate to the content being presented. They are particularly useful for complex concepts or detailed step-by-step instructions that require more than just text on screen.

Watch this live-action explainer video example created by Explainer Video Hero for Book Like A Boss, the booking page builder.

How to create an explainer video by hiring a professional explainer video service?

If your business does not know how to make an explainer video or want to outsource the work, you can hire an animated explainer video company such as Explainer Video Hero that can create a high-quality explainer video via remote video production in less than two weeks.

The explainer video pricing varies depending on the explainer video company you hire. With a top explainer video company like EVH, for example, explainer video cost per minute is as follows:

  • Animated Explainer Video - $2,000
  • Live-action Explainer Video - $1,000


Explainer videos are an essential tool for B2B brands, helping them to quickly get their message across to potential customers and give them a glimpse into the value they offer.

They can make complex concepts intelligible, create brand affinity, generate leads, and even drive sales.

Finally, if you want your business to stand out from the crowd, an explainer video is the way to go.


1. Why are explainer videos important for B2B brands?

Explainer videos convey what would otherwise be long-winded, difficult-to-understand ideas into compelling visuals that make it easy for viewers to recall key messages. Through vibrant colors, fun illustrations, memorable characters, and intriguing storytelling, explainer video animation can help introduce new business offerings and even generate leads for potential customers.

2. Why are explainer videos so useful?

Have you ever found yourself on a website trying to figure out what a product or service offers? Or have you seen an ad that mentioned something but didn’t fully explain it? That’s where explainer videos come in — best explainer videos are brief, easy-to-understand videos meant to give an overview of a complex concept.

3. How do explainer videos help engage with customers?

Engaging with your prospects and customers and explaining to them the purpose, goals, and value of your business quickly is vital. An animation explainer video is a perfect way to quickly capture your audience's attention and engage them with the story of your brand. You can get creative and let your customers know why they should choose you with an explainer video.

4. What makes a good explainer video?

Clear, gripping visuals, catchy music, and entertaining storytelling will make sure your message gets heard and remembered. In addition, the explainer video should be concise. More importantly, keep in mind that your audience is your hero and your content should direct your energy toward convincing them that your product can solve their business problems.