The Benefits Of Using Video Marketing
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1 Better Leads, More Revenue: The Value Of Video Marketing Inside perspectives into how video drives higher responses, leads and conversions Sponsored by White Paper
2 Video has long been a top-of-funnel lead generation workhorse due to its ability to capture the attention of buyers with entertaining, visual and bite-sized content. However, video s reputation throughout the entire funnel is rock solid. Ultimately, the ability of video to capture more leads and deliver higher conversion rates throughout all of the stages of the buying journey has a direct effect on the bottom line. Video was cited as the most-used type of content by 92% of respondents to Software Advice s annual B2B Demand Generation Benchmark report. And marketers who do use video are seeing stellar results. Aberdeen Group s report, Pardon The Disruption: The Impact Of Video Marketing, found that organizations that employ video marketing tactics grow their revenue 49% faster than organizations that do not use video as part of their marketing campaigns. Leading marketers are using video in a variety of ways. According to another Aberdeen Group study, The Impact of Video on the Hidden Sales Cycle, some areas where video is being used effectively include: 37% use videos on the company blog; 41% post videos on social media; 74% include videos on their company website; and 83% generate original video content. 2
3 As more and more people are enjoying and becoming used to the sound-bite style of content that populates their personal social media feeds, they will readily jump in and watch a short video highlighting business topics that interest them, said Jason Stewart, VP of Strategy for ANNUITAS, a marketing consultancy. Marketers can use video to accelerate the buyer s journey by examining where deals are stalling, experts noted. When marketers examine the buyer s journey and discover where it is bogging down, it s a safe bet that deploying video in the places where buyers bog down will help move them through faster, noted Jerry Rackley, Chief Analyst for Demand Metric, a research firm. This E-book will look at best practices for using video as a powerful marketing tool throughout the buyer s journey: Top-of-the funnel: Video is a great visual medium to get your brand noticed and deliver a fun and informative user experience. Video can build awareness and generate leads through ads and calls-to-action in video posted on social media. Mid-funnel. At this stage, marketers need to target the entire buying team, not just individuals. As these decisionmakers go through their buying journey, they are often sharing content with their colleagues, and video can help accelerate deals through the funnel. Late-stage. Video can shine at this stage of the buyer s journey, as prospects are looking for content to help them differentiate one vendor partner from another. Customer retention and upsell/cross-sell opportunities. Video can help educate new customers about the features and functions of a product, and refresh existing customers on capabilities they may not be maximizing. As more and more people are enjoying and becoming used to the soundbite style of content that populates their personal social media feeds, they will readily jump in and watch a short video highlighting business topics that interest them. JASON STEWART, ANNUITAS 3
4 What Makes Video An Effective Content Tool? [Video] can more efficiently engage your emotions than written or audio content. MATT HEINZ, HEINZ MARKETING The visual aspect of video sets it apart from other content types, such as E-books and white papers, according to experts. The single most effective thing about video is that some of your buyers prefer it to the written word, said Stewart. There is a lot to be said for short videos as an effective tool to share your message. Video also helps make an emotional connection with buyers, which is not possible with the written word. Video has the unique ability among content formats to engage multiple senses, said Matt Heinz, President of Heinz Marketing, a marketing consulting firm. It can more efficiently engage your emotions than written or audio content. The interactive features of video also make it a must-have content type, experts noted. Hands down, the ability to engage the audience is the most important attribute of video, Rackley said. Better engagement of customers and prospects across the funnel stages brings with it a whole slate of desirable outcomes: awareness, recall, conversion and advocacy. Videos that go beyond talking heads and convey personality are most likely to connect with viewers. Video gives you a chance to communicate and persuade in a way that can almost match a face-to-face meeting, said Bob Lee, Director of Product Marketing for Ustream. 4
5 How Video Impacts The Bottom Line Some marketers shy away from video To impact the bottom line, video because they think it is costly and content has to resonate with a variety difficult to produce and doesn t yield of audiences, experts noted. better results than other content The simplest, most straightforward types. In reality, video has the ability way that video can impact the bottom to capture more leads and deliver line is that marketers must produce higher conversion rates at all stages of content in the formats that their the buying cycle, and this has a direct buyers prefer, said Stewart. A mix effect on the bottom line. of content types to appeal to all the Companies using video require 37% buyers on the committee is essential, less visitors to achieve the same results and video is fast becoming one of the and deliver those results with a 19% standard types they need to produce. lower cost-per-customer acquisition Getting more prospects through the than those not using video, research funnel more quickly with fewer leads from Aberdeen Group revealed. has a significant impact on ROI. Half of Video is a more attractive mechanism the respondents to Demand Metric s to start a conversation, because you 2015 Video Content Benchmark Study can open it with just a simple click, Lee said video ROI is improving; 23% said it explained. This expands the width of is staying the same, and just 1% said the your funnel and gets more people in, so ROI is decreasing. The remaining 26% you have the potential to get a lot more did not know the ROI of their video. sales opportunities if you do the right things through the rest of the funnel. Video is a more attractive mechanism to start a conversation, because you can open it with just a simple click. BOB LEE, USTREAM These improved efficiencies and lower acquisition costs, applied to the same number of opportunities, can increase company revenues by up to 20%, according to Aberdeen Group. 5
6 Top-Of-The Funnel: Keep It Light And Educational While video drives engagement and conversions at all stages of the buying cycle, the most common use is at the top of the funnel as an appealing way to engage prospects with entertaining and educational content. Video can build awareness and generate leads through ads and calls-to-action in video posted on social media. Top-of-the-funnel video should be used for awareness, evangelism and education, preferably with a lighter tone. There shouldn t be overt product messages, but it s great to hint about how our stuff is what you need, said Ustream s Lee. A hard sales pitch at this stage can turn off buyers, observers noted. At this stage, short videos about topics of interest that focus on education and thought leadership can be very effective at establishing credibility and trust as long as they are not too sales-oriented, said ANNUITAS Stewart. Using video at the top of the funnel can benefit marketers in a variety of ways: Video marketers enjoy 27% higher click-through rates and 34% higher web conversion rates compared to non-video users, according to Aberdeen Group s research. Nearly three-quarters (74%) of marketers say that video converts at a better rate than other content types, according to Demand Metric s 2015 Video Content Marketing Benchmark Report. More than half (57%) of B2B buyers rate video as a valuable tool for researching B2B buying decisions, according to Demand Gen Report s (DGR) 2015 Content Preferences Survey Report. 99Drive brand awareness; 99Educate and evangelize; and 9 9 Capture interest and leads. 6
7 According to Rackley, the top types of video content currently being produced at the early stage of the funnel are explainer videos and product feature videos, according to Demand Metric s 2015 Video Content Marketing Benchmark Report. Coming in third were customer testimonials. The feel should be authoritative, but not overbearing. The tone will usually be educational and matter-of-fact, because buyers are simply looking for information to fill a knowledge void, Rackley said. The more practical and useful, the more effective video content is likely to be at this stage. Heinz provided several examples of using video for building brand recognition and providing thought leadership. For educational content that drives awareness and builds credibility, the Whiteboard Friday series by Moz, featuring Rand Fishkin, has been amazing. For lead generation, check out what Act-On Software has done. They re generating 30% of their sales leads from video now. There shouldn t be overt product messages, but it s great to hint about how our stuff is what you need. BOB LEE, USTREAM 7
8 Mid-Stage Of The Funnel: Shareable Content Directed At Teams As decision-makers go through the buying process, they often share content with their colleagues, and video can help accelerate deals. Use of video in the middle of the funnel has several benefits: Video ranks high when it comes to shareable content, according to DGR s 2015 Content Preferences Survey, with 50% of respondents reporting that they shared them often, and another 20% saying that they shared them frequently. Almost two-thirds of sales organizations report that their team members use data about video viewing behavior to tailor interactions with prospects, according to Demand Metric. 71% of marketers use video for sales enablement, according to Aberdeen Group. This ensures that prospects are getting a consistent and engaging message to help move them through the buying cycle. 99Educate prospects about issues and solutions; 99Establish credibility; and 9 9 Qualify and accelerate prospects through the funnel. 8
9 As prospects move into the consideration stage of the buyer s journey, views are still important, but it is essential to gain some insight into viewing behavior. You re looking for a conversion, but this time the conversion is probably from a lead to a qualified lead, Rackley said. Video viewing behavior, such as viewing duration and re-viewing, are great lead scoring criteria, he noted. While videos at every stage need to be authentic, at the mid-stage of the funnel experts suggest bringing in customers in similar roles and industries facing similar challenges. The discussion should be forthright and authentic and really make a connection with the decision-maker, said Laura Ramos, VP, Principal Analyst for Forrester Research. Storytelling should happen at every stage of the funnel, but mid-funnel engagement should address some of the key challenges that the prospect faces and how the solution has helped similar companies overcome these obstacles. Customer testimonials that are engaging, rather than just someone speaking into a camera, have the greatest impact, Ramos said. Marketers should try whiteboarding and other ways to help the prospects understand how the story being told relates to their particular challenge. You re looking for a conversion [at this stage], but this time the conversion is probably from a lead to a qualified lead. JERRY RACKLEY, DEMAND METRIC 9
10 Late-Stage Funnel: Getting Comfortable With The Brand Video can provide product demos and testimonials from customers facing similar challenges as buyers narrow their choices at the later stages of the buying journey. short list of prospective vendors. Video offers marketers a great opportunity to quickly capture prospects attention and differentiate their product. Short articles summarizing the video and accompanying the download are a great way to overcome hesitation. JASON STEWART, ANNUITAS Use of video in the later stages of the sales cycle when buyers are closer to decision-making is effective because: Customer references and endorsements can explain how a product or service is benefitting a customer in an industry similar to the buyer s; Internal experts can provide details about the product and offer comparisons with similar solutions; and Video puts a face to your brand, and making a personal connection is important at this stage to move the deal forward. One of the best applications of video I ve seen is companies using very shortform videos to engage C-level targets, Heinz said. The C-suite is far more likely to watch a 30-second video than read through a 15-page white paper. That isn t to say that marketers shouldn t provide other types of content, such as white papers and E-books, at this stage, but they can be paired with a short video on the same topic. Short articles summarizing the video and accompanying the download are a great way to overcome hesitation and keep your prospects happy and engaged, said Stewart. In the decision stage, prospects have usually already made up their mind about a solution, but now they look past the solution to the brand. They are looking for an emotional connection and the tone has to be more persuasive than in previous stages, Demand Metric s Rackley said. The video should answer these questions: What does the brand stand for? What are its values? This is where cultural content video can be very helpful. At this stage, decision-makers with limited time are weighing in on the 99Address questions and concerns; 99Differentiate the product; and 9 9 Convey commitment and credibility to help close the deal. 10
11 Customer Retention And Upsell/ Cross-Sell: Keeping Customers Happy, Informed And Engaged Video can be used to quickly address a technical issue to reduce customer frustration. Because of its entertaining and personal nature, video is an ideal tool to help customers make the most of the product or service they have purchased. Post-sales video is highly effective in several ways: Video can be used to quickly address a technical issue to reduce customer frustration. It is most likely that other customers have experienced a similar challenge, so video that addresses FAQs can be an effective and efficient customer service support tool; A sneak peek of a new product or service can be easily shared on video to keep customers engaged, informed and advocating for your product after the sale; and with the solutions they have purchased and are using them to their full potential. If they don t get the most out of their purchase, they are unlikely to buy more or recommend a company to their peers. A great use of video for customer retention is for a how-to demonstration not only for training, but also demonstrating how much better things could be with extra features or addons, said ANNUITAS Stewart. Stewart noted that a video can be a great springboard for asking customers if they got what they expected from their purchase. Perhaps they don t realize how a particular feature can benefit them, so you can show them how their experience could be enhanced. Special messages from the CEO or management team can keep customers abreast of company news and developments. While this doesn t replace the need for human interaction with customers, a video addressed to them can provide a quick and personal way to stay connected. One of the biggest challenges of the customer onboarding process is ensuring that customers are satisfied 11
12 Conclusion: Video Drives Prospects Through All Stages Of The Buying Cycle While video is a great tool for topof-funnel lead generation, it can significantly enhance engagement and drive conversions at every stage of the buying cycle and beyond. Video works because it provides an emotional connection in an entertaining and easily digestible format. There are clear benefits to video that span all stages of the buyer s journey. Video content provides more qualified leads that yield better sales opportunities than other types of content. Video outperforms other content types, including E-books and webinars. For example, companies using video in their marketing campaigns report a 19% reduction in cost-per-lead, according to Aberdeen Group, which has a significant impact on marketing ROI. Video also improves conversion ratios, which results in more deals from fewer leads. That is a tremendous boost to help marketers find leads that will be more likely to close rather than simply filling the top of the funnel. Another benefit of video is lower customer acquisition costs, as marketers spend less to capture leads and convert them using video than other content types. In addition, there are solid reasons that video is the go-to content type for specific stages of the buying cycle: At the top of the funnel, video can create brand awareness and educate prospects about issues impacting their companies; Video at the mid-funnel stage can differentiate the product and offer shareable content for the entire buying team; In the late stages of engagement, video can help make a personal connection and establish credibility to help close the deal; and Post-sale videos can educate new customers and introduce existing customers to new features and products that can benefit them. Once a lead has converted, video enhances customer retention with better informed, engaged, effective and happy users. From first touch to customer marketing, video plays a key role for modern marketers with an eye toward data-driven campaigns with solid ROI. 12
13 About Demand Gen Report 411 State Route 17 South Suite 410 Hasbrouck Heights, NJ P: F: Demand Gen Report is a targeted e-media publication spotlighting the strategies and solutions that help companies better align their sales and marketing organizations, and ultimately, drive growth. A key component of the publication s editorial coverage focuses on the sales and marketing automation tools that enable companies to better measure and manage their multi-channel demand generation efforts. About Ustream 410 Townsend Street Suite 400 San Francisco, CA P: Ustream is a leading provider of live and on-demand video solutions. Ustream s cloud-based platform combines high-quality video streaming, enterprise-grade security and scalability to reach millions of viewers. From internal meetings to press conferences to worldwide entertainment events, Ustream is the platform of choice for clients including Facebook, HBO, Cisco, Sony, Intuit, NASA, and Samsung. Ustream was founded in 2007 and is located in San Francisco and Budapest. 13
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