The difficulty in proving the value of video marketing is unique. Even if you create the perfect video explainer and it is viewed a million times, it may not result in any sales. So can you consider that a success? No, obviously.
We will discuss some of the key performance indicators to monitor when launching your video marketing campaign. But how do those key performance indicators relate to your return on investment? How do you know if your video marketing efforts are paying off?
Your video marketing objectives ultimately determine that. So before you make a video explainer, you should plan out your video marketing strategy, including how you’ll measure success.
However, the key to knowing if your video is successful is to meticulously track your visitors throughout the customer’s journey, from the moment they discover your brand to the moment they buy your product or service.
Fortunately, we have some pointers to help you calculate the ROI of your video.
Attract New Customers
At this stage, key performance indicators (KPIs) to track include views, impressions, unique users, brand awareness lift, and ad recall lift. These KPIs are at the top of the funnel and are the most difficult to correlate to cold, complex sales.
But it’s also one of the essential steps in the marketing funnel: attracting customers through video explainer means introducing your brand to viewers who have never heard of you before and convincing them they have a problem. Because users at this stage aren’t ready to buy, tying your views to direct sales can be difficult and usually results in some error.
However, there are some methods you can use at this stage to estimate your ROI. For example, if you’re using paid distribution, you can use a calculator l to calculate your cost per view. Then you can figure how many pictures your video explainer requires to become profitable.
You can also calculate your actual conversion rate by dividing the total number of goal completions (for example, a complete view of your video) by the total number of visits from your target market.
Engage Your Audience
At this stage, you should concentrate on key performance indicators (KPIs) such as view-through rate, watch time, and increases in favorability, consideration, and brand interest. These last three metrics are frequently assessed using short questionnaires launched on platforms such as YouTube and Facebook.
At that point, why not go the extra mile and include a second question. Again, your response ratios may not be ideal, but they will provide you with an excellent and absolute sense of how likely your viewers are to purchase your product — and thus, your ROI.
Nurture Your Prospects
Measuring your ROI at this stage is probably the easiest. Absolute metrics such as clicks, calls, signups, and sales should be tracked. Your video explainer will include a clear call to action (CTA) and a link to your website or service pages.
If your video explainer is compelling, it will have a high click-through rate (CTR) and conversion rate, and the number of steps between these actions should be kept to a minimum at this stage.
Delight Your Clients
Your customers in this location have already converted. At this stage, your success metrics should be particular to your goals. It all comes to the right CTAs because they can help you achieve a lot. Also, try to keep track of your click-through rate and apply your standard CTR-to-conversion ratio.
At this stage, keep an eye on your return visits, social engagement, and favorability lift. Again, your ROI should be evident with tried-and-true tracking. However, a large part of the delight stage is just that: delighting.
If you’re thinking about making your first video explainer, make sure you have a plan for measuring your success. Investing money, time, and valuable resources in its creation without a method for calculating your ROI can be disastrous. Set your company up for success right from the start.
The Right Fit
To help you find the right fit to get a higher ROI on your video marketing strategy, Video Explainers is the best resource. Video Explainers has a reputation of being the best video marketing company promising engaging content with an ROI beyond your expectations.
We’ve created over 7,000 videos and can assist you in getting started. So, schedule a free consultation with us today to get started.