Introduction
Every business has a “moment of truth.”
It’s the split second when a potential customer decides whether they understand what you do and whether they care enough to keep listening. That moment might happen while they’re scrolling through your site, watching a product launch, or sitting through a sales pitch.
Most brands lose that moment. Not because their product isn’t good, but because their story isn’t landing fast enough.
Explainer videos exist to win that moment. They compress hours of explanation into a visual journey your audience actually enjoys. They tap into the brain’s love for stories, motion, and emotion, making it impossible to forget what they just saw.
It’s why a short animated video helped HubSpot turn “inbound marketing” from a niche term into a global movement. And why companies like Notion and Airtable still launch features with bite-sized videos that rack up millions of views before the press release even drops.
In this blog, we’re breaking down nine ways explainer videos help businesses not just talk, but truly connect and how that connection turns into conversions, sales, and growth.
Why Explainer Videos Are Essential for Modern Business Growth
Explainer videos help businesses simplify complex products, boost conversions, and improve customer engagement. They present clear, engaging narratives that enhance brand recall and awareness.
These videos nurture leads across the marketing funnel and support B2B decision-making. They improve SEO by increasing dwell time and reducing bounce rates. Startups use them to pitch investors and secure funding.
Animated and live-action formats adapt to different audiences and platforms. They deliver measurable ROI through higher lead quality, faster sales cycles, and increased revenue. In 2025, interactive and AI-assisted explainer videos are driving stronger performance across industries.
According to Cisco, video will account for over 82% of all consumer internet traffic in 2025. And 93% of professionals say video converts as well or better than other content formats, especially when it comes to driving actions and engagement.
From B2B SaaS simplifying onboarding to fintech demystifying financial services, healthcare building patient confidence, and e-commerce converting browsers into buyers, explainer videos are proving their value everywhere.
With that context in place, let’s break down the specific, measurable ways explainer videos help businesses succeed.
9 Ways Explainer Videos Help Businesses Succeed
From simplifying technical concepts to boosting conversions and strengthening brand recall, the right explainer video can influence every step of the customer journey.
Below, we break down nine powerful ways they can help you win more attention, trust, and sales, starting with the ability to make the complex feel simple.
1. Simplify Complex Products & Services
If your product or service takes more than a few seconds to explain, you risk losing attention before you’ve even started selling. This is especially true in SaaS, engineering, and fintech industries, where the “what” and “how” can feel overwhelming to prospects.
Explainer videos cut through that complexity. Animations, motion graphics, and visual storytelling transform dense technical workflows into engaging, digestible narratives.
For example, in the Adobe eDAM Solution Explainer produced by Red Bangle, a complex digital asset management solution was simplified into a crisp 2D narrative. Instead of drowning stakeholders in technical jargon, the explainer showed how a global chocolate retailer could streamline thousands of multimedia assets, images, videos, GIFs, and audio, into a single organized system.
By visually demonstrating the asset lifecycle, automation features, and real-world impact (like faster campaign launches and reduced manual effort), the video made it easy for diverse teams, from creative agencies to sales, to instantly grasp the business value.
When you help prospects and users “get it” faster, you shorten sales cycles, reduce training time, and build confidence in your product.
2. Boost Conversions at Every Funnel Stage
Explainer videos work at every point in the buyer journey. At the top of the funnel, short and visually engaging formats, like 2D animation or kinetic typography, can grab attention and introduce your value proposition.
In the middle, formats like whiteboard explainers or motion graphics can dive deeper, educating and addressing objections. At the bottom, live-action or hybrid explainers can showcase real-world results, building trust before a decision.
The Vymo SME Banking explainer video is a strong bottom-funnel example. Instead of presenting abstract product claims, the video tells the relatable story of Elliott, a small business owner whose growing bakery outgrows its bank’s services. The narrative brings to life both the customer’s frustrations and the bank manager’s challenges. Enter Vymo, positioned as the solution that empowers relationship managers with better visibility, proactive insights, and automated engagement tracking.
This staged approach ensures your videos don’t just “look good” but actively move prospects closer to conversion by delivering the right message at the right time.
Also read: 3 Videos To Win Customers At The Middle & Bottom Of The Funnel
3. Increase Customer Engagement & Retention
When a video tells a story instead of just listing facts, it naturally commands higher watch times. Viewers stay hooked because they’re not just consuming information, they’re following a narrative. And the longer they watch, the more likely they are to return, whether it’s to re-watch the same piece or explore more of your content library. Over time, this creates a rhythm of interaction that builds loyalty.
Engagement metrics matter, for marketers, likes, comments, and shares are the most tracked metrics (43%), followed closely by watch time (39%). These signals indicate what keeps viewers watching and coming back.
Also, videos under 1 minute have the highest average engagement rate at 50%. Engagement steadily declines as video length increases, dropping to just 17% for videos over 60 minutes.
But engagement isn’t limited to your owned channels. A well-crafted video is inherently shareable. If it makes someone feel inspired, curious, or understood, they’ll share it in group chats, tag friends on social media, or post it in professional communities. This sparks organic conversations that your brand doesn’t have to pay to start, yet you benefit from every mention and tag.
And here’s where the real business impact comes in: strong engagement metrics (like multiple replays or high average watch times) often correlate with increased purchase intent. Viewers who stay longer are also the ones revisiting product pages, engaging with follow-up emails, and ultimately making repeat purchases.
4. Build Stronger Brand Recall & Awareness
Brand recall isn’t just about someone recognizing your logo, it’s about embedding your identity into their memory so deeply that they think of you first when they have a need. An explainer video is one of the most powerful ways to achieve this because it combines three memory triggers: visuals, sound, and storytelling.
67% of marketers say video has become more important to their business in the last year. About one-third (32%) say the importance remains the same, while 1% say video is less important.
By consistently using your brand colors, typography, and tone of voice across every frame, you create a visual and auditory imprint. Think of it as giving your audience a signature they can recognize in a crowded feed, even without reading your name.
Over time, this familiarity turns into preference. The next time your audience sees your brand or even just your color palette, they’re more likely to recall your messaging and associate it with trust.
And once your brand is top of mind, awareness becomes the perfect foundation for nurturing leads into long-term customers.
5. Educate & Nurture Leads
Explainer videos are one of the most versatile tools for lead education. When integrated into email drip campaigns, they can boost click-through rates by up to 65 % and improve open rates by 19 % when the word “video” is used in the subject line.
In webinars, they can serve as a visual anchor to explain complex ideas or workflows, making the presentation more memorable. In gated content, they can act as high-value assets that not only attract sign-ups but also deliver immediate clarity and value.
For instance, in Red Bangle’s Infosys Extended Storefront animated explainer, the combination of crisp motion graphics and clear narrative broke down intricate retail tech workflows into relatable, easy-to-follow steps.
Unlike text-based content, videos combine visual and auditory learning, which makes them ideal for simplifying technical topics. They can address objections upfront, demonstrate real-world applications, and keep leads engaged long enough to absorb key information.
When planned strategically, each video serves as a step in the lead’s journey, moving them from initial awareness to informed consideration, and ultimately, readiness to convert.
6. Support B2B Decision-Making
In B2B environments, decision-making rarely rests with one person, it’s often a committee of stakeholders, each with different priorities and levels of technical knowledge. Explainer videos help bridge this gap by presenting a consistent, easy-to-understand narrative that every stakeholder can access on their own schedule.
Instead of repeating the same points in multiple meetings, sales teams can share a reusable resource that ensures alignment and speeds up consensus-building. Red Bangle’s Vymo for SME Banking explainer achieved exactly this, delivering a clear, contextually relevant narrative that relationship managers could share internally to showcase business impact without technical jargon.
By distilling complex offerings into clear, digestible formats, videos help each stakeholder see not just the features, but the real business impact. The result is a smoother, faster decision cycle with fewer miscommunications and more confidence in the purchase.
7. Enhance Startup Pitch & Investor Communication
For startups, every pitch is a chance to make a lasting impression and you often have only a few minutes to do it. Explainer videos condense your vision, product, and market potential into a compelling narrative that’s easy to grasp. They help investors see not just what you’re building, but why it matters and how it stands apart.
By using clear visuals and concise messaging, videos make complex business models more tangible and remove barriers to understanding. They also create an emotional connection that numbers alone can’t achieve, allowing investors to engage with your story on both a logical and intuitive level.
The Red Bangle Explainer video itself is a perfect case in point, distilling the company’s global production capability, tech platform, and value proposition into under two minutes. By combining sharp visuals with a clear story arc, it made the service offering instantly tangible and memorable.
For startups, this approach means investors not only understand the product but also connect emotionally with the vision, increasing the likelihood of funding conversations moving forward.
8. Improve SEO & Website Performance
Your website is often the first point of contact for potential customers or partners, and first impressions matter. Explainer videos can transform static web pages into interactive experiences that encourage visitors to stay, explore, and take action. They make information accessible to different types of learners and give visitors a reason to engage immediately rather than bounce away.
From an SEO standpoint, videos can increase dwell time, reduce bounce rates, and generate more backlinks when shared externally, all signals that can improve your search rankings. Optimized video titles, descriptions, and transcripts can also help capture long-tail keyword traffic, driving organic visibility without heavy ad spend.
Over time, this combination of improved discoverability and enhanced on-site experience can translate directly into higher conversion rates and stronger brand authority.
9. Deliver Measurable ROI & Sales Impact
A well-planned explainer video campaign should be tied to clear, measurable outcomes. This means going beyond vanity metrics like views and likes, and focusing on business-impact measures such as:
- Conversions: How many viewers take the intended next step after watching, whether it’s signing up, booking a demo, or making a purchase.
- Lead Quality: Whether the leads generated are more aligned with your ideal customer profile compared to other channels.
- Revenue Lift: The incremental sales directly influenced by the video’s presence in the buyer journey.
One way to calculate ROI for explainer campaigns is by comparing the total revenue generated from video-influenced conversions to the total production and distribution costs. This creates a clear view of the campaign’s financial performance and its role in the broader marketing mix.
You could even visualise this through a simple before/after table showing how metrics improved post-campaign, making it easier to communicate value to stakeholders and secure future investment in video initiatives.
How to Integrate Explainer Videos into Your Marketing Strategy
A great explainer video isn’t just made, it’s positioned, distributed, and tracked with purpose. Here’s a practical framework to weave them into your marketing plan so they actually drive business results.
1. Identify → Create → Distribute → Measure
Before you even think about storyboards or voiceovers, you need a clear plan. An explainer video is like a campaign, it has an objective, a target audience, and a distribution strategy. Skipping this step often leads to “pretty but purposeless” videos.
Identify your goal
Be crystal clear about the purpose before you hit “record.” Are you trying to generate awareness, educate leads, or close deals? The goal will influence the video’s tone, length, format, and call to action.
Create with intention
Choose a style that matches your audience and message. Animation works best for simplifying technical ideas, live-action adds a human connection and hybrid styles give you the best of both. Keep the script tight and the visuals focused on your core message, not decorative fluff.
Distribute where it counts
Don’t stop at uploading to YouTube. Repurpose and place the video across the channels where your audience already engages:
- LinkedIn for targeted B2B reach
- Email for direct, personalized delivery
- YouTube for long-term discoverability
- Website landing pages for instant context and conversions
Measure and refine
Views alone aren’t success. Track engagement, drop-off points, and conversions to see how the video impacts your goals. Use those insights to improve future scripts, visuals, and placements.
Treat each video as part of an evolving system, not a one-off deliverable. The learnings you get here will compound over time, making every new video more impactful than the last.
2. Funnel Stage Mapping
Not all explainer videos should do the same job. Where your audience is in their buying journey should directly shape the video’s message and format. This is how you make sure the right story reaches the right person at the right time.
- Top of Funnel (TOFU): Your goal here is visibility and curiosity. Short, snappy videos with a brand-first narrative work best to draw in cold audiences.
- Middle of Funnel (MOFU): Now your audience knows who you are, this is the time to educate and build trust. Use explainer videos to show how your product works, address pain points and guide prospects toward a solution.
- Bottom of Funnel (BOFU): Here’s where you seal the deal. Use customer testimonial videos, real-world case studies, or ROI-focused explainers to give decision-makers the confidence to move forward.
When you map your videos to the funnel, you stop guessing about what to say and start speaking directly to the viewer’s current mindset and needs.
3. Style Selection Guide
The same story can be told in many ways, but the style you choose can make or break how well it lands with your audience. This isn’t just about aesthetics, it’s about fit, clarity, and relatability.
- Animation: Perfect for complex, abstract, or data-heavy topics. Animated visuals strip away distractions and let you control exactly what the viewer focuses on.
- Live-action: Best when you want to build a personal connection or show your team, process, or real-world product in action.
- Hybrid: Combines the strengths of both, the clarity of animation with the human touch of live action. Great for versatile campaigns targeting multiple audiences.
Choosing the right style is about more than personal preference, it’s about aligning the medium to the message so your video feels natural, not forced.
Now that you know how to integrate explainer videos into your marketing strategy, the next big decision is who will bring that vision to life. The right partner doesn’t just execute, they collaborate, challenge assumptions, and ensure every frame works toward your business goals.
Let’s break down how to choose an explainer video partner you can trust.
Choosing the Right Explainer Video Partner
Once you’ve mapped out how explainer videos will fit into your marketing strategy, the next step is finding the right creative partner to bring that vision to life. This isn’t just about hiring someone to “make a video”, it’s about teaming up with experts who understand your audience, your brand voice, and your business goals.
Your Evaluation Checklist:
- Proven industry experience – Have they worked with brands in your space and delivered measurable results?
- Storytelling & scriptwriting expertise – Can they translate complex ideas into clear, engaging narratives?
- High-quality production – Whether animated, live-action, or hybrid, does their work reflect professional polish?
- Collaborative process – Do they involve you in creative brainstorming, storyboarding, and feedback loops?
- Transparency – Are pricing, timelines, and deliverables clearly communicated upfront?
Red Flags to Avoid:
- Generic, template-based videos that ignore your brand identity.
- No clear creative direction or storyboard process before production starts.
- Lack of data or examples proving ROI from past projects.
Why Partner with Red Bangle:
At Red Bangle, you’re not just working with a production house, you’re collaborating with a creative ally. Our consultative briefing approach ensures we deeply understand your objectives before a single frame is designed.
As Lakshmi Rebecca, Founder at Red Bangle, explains:
“Often, clients come to us asking for an explainer video without knowing what kind they need. We help them zoom out, understand their funnel stage, and then recommend whether they need a top-of-funnel teaser, a product demo, or even just a testimonial. The format should always serve the objective.”
With a global network of top creative talent, we’ve produced everything from SaaS onboarding explainers to high-impact startup pitch videos, all crafted to stand out and convert.
[See our work and learn more about our process → Explore Red Bangle’s Explainer Video Services]
The sooner you start, the faster you’ll see results, and with the right partner, your explainer video can start delivering measurable impact in weeks, not months.
Why Now Is the Time to Invest in Explainer Videos
The businesses winning in 2025 aren’t just selling products, they’re telling stories that stick. And explainer videos have become one of the fastest, most effective ways to make that happen.
Let’s recap on how explainer videos help businesses:
- Turn complex ideas into clear, engaging narratives your audience remembers.
- Boost conversions, lead quality, and sales velocity across the funnel.
- Increase dwell time and reduce bounce rates, improving SEO performance.
- Adapt seamlessly to any platform, from LinkedIn to YouTube to email.
- Deliver measurable ROI through higher engagement and faster deal closures.
Right now, more decision-makers are engaging with video content than ever before. If your competitors are already using explainer videos to connect with prospects and you’re not, you’re leaving mindshare and market share on the table.
Whether you’re a startup looking to impress investors or an enterprise ready to improve product adoption, the right explainer video can change the game.
Ready to get started?
Get a custom quote today and see how Red Bangle can turn your ideas into videos that convert.
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