SaaS competition is fiercer than ever, and old-school marketing isn’t making an impact. While many companies pour time and money into elaborate campaigns, the SaaS brands winning today are doing something simpler: they're using explainer videos to turn curious visitors into paying customers.
In today's rapidly evolving market, where  91% of businesses now use video as a marketing tool, those who master video-first strategies aren’t just keeping up. They’re doubling trial sign-ups and transforming casual visitors into paying customers. If you work in SaaS and find yourself torn between building awareness and driving decisions, knowing how to use explainer videos isn’t just a nice‑to‑have anymore, as it’s quickly becoming a must if you want your company to stay in the game.

Why Explainer Videos Are the SaaS Growth Engine You Might Be Missing

Why SaaS Conversion Rates Are Declining

The numbers tell a pretty sobering story about just how tough things are for SaaS companies right now. When you consider that the average SaaS conversion rate is stuck at just 1.1 %, and most B2B companies only see 15‑25 % of trial users actually becoming paying customers, there’s barely any room for mistakes these days. At the same time, nearly everyone, namely 95 % of consumers in fact, has turned to an explainer video to understand a product or service, yet plenty of SaaS companies still haven’t tapped into this huge opportunity.

The problem isn't just about low conversion rates, because it's about the growing disconnect between how SaaS companies present their products and how potential customers prefer to consume information. Let’s face it, old‑school, text‑heavy landing pages and bland screenshots don’t even come close to the impact of video.

Why Video Works So Well for SaaS

To get why explainer videos are such a game‑changer for SaaS companies, you have to dig into how B2B decision‑makers actually think and make choices. People remember a large percentage of what they see in a video, but when it’s just text, that number drops to 10 %. That gap matters when you realise most SaaS products need to break down complicated tech ideas for decision‑makers who barely have a minute to spare.

Our brains are wired for visuals, and we process images up to 60,000 times faster than text. That’s exactly why video is such a powerful tool for SaaS companies looking to get their value across in a flash. On top of that, 73% of people would rather watch a short video than read text. For SaaS products that need to explain functionality quickly, video bridges the gap between interest and action.

What’s Fueling the Shift to Video‑First Marketing?

The shift toward video‑first marketing isn't just a trend, because it's a fundamental change in how businesses communicate with prospects. By 2024, video is expected to account for a staggering  82 % of all internet traffic. And here’s the kicker: companies that use video aren’t just keeping up, as they're growing their revenue nearly  50 % faster than those that don’t. For SaaS marketers, this is a clear pivot point. Short-form video, in particular, has exploded thanks to mobile-first engagement, with three out of four views now happening on smartphones.

For SaaS teams, that means your explainer video strategy must be fast, mobile-optimised, and deeply aligned to buyer intent.

How Explainer Videos Drive Higher SaaS Trial Conversions

How Much Do Conversion Rates Improve?

The impact of explainer videos on SaaS trial sign‑ups isn't just anecdotal, as it's backed by compelling data that demonstrates tangible business results. EyeView’s research found that simply adding a video to your landing page can lift conversion rates by as much as 86 %, and in some cases, studies have seen boosts of up to 80 % specifically for subscription or sign‑up goals.

But things get even more interesting when you look at how individual SaaS companies are putting these strategies into action. Companies that weave explainer videos into their onboarding see trial‑to‑paid conversion rates jump by 16  percentage points. Even better, switching to a video‑first approach can shave a full third off the average time it takes users to get up and running. All of these gains feed straight into the bottom line, and some SaaS companies even say their explainer videos have pulled in millions more in revenue just by boosting conversion rates.

Case Study: How Dropbox Transformed Sign-ups with One Video

You can’t talk about explainer video success without bringing up the legendary Dropbox case study. Back when Dropbox was shelling out a staggering $233 to $388 in Google AdWords just to land a single customer, for a product that only cost $99, they knew something had to change.

Dropbox put $50,000 into a straightforward, two‑minute explainer video, and the payoff was nothing short of remarkable. That single video bumped sign-ups by 10%, ultimately helping Dropbox add 10 million users and an estimated $48 million in revenue, all from a $50,000 investment

This example showcased several key principles that modern SaaS companies can apply:

1. Problem‑Solution Clarity: The video kept things straightforward, as it started with a problem viewers could relate to, then clearly showed how Dropbox swoops in to fix it.
   
2. Simplicity Over Complexity: Instead of cramming in every feature, the video zeroed in on what mattered, namely the main value it offered.
   
3. Human Connection: Instead of just listing features, the video tapped into real‑life situations that made viewers think, “Hey, that’s me,” thereby building an instant emotional bond.

Want results like this? At VideoPulse, we help SaaS teams craft high-converting videos that work at every stage of the funnel.

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How to Craft SaaS Explainer Videos That Actually Convert: A Practical Framework

How the Problem‑Solution‑Benefit Approach Really Works

The best SaaS explainer videos don’t just list features; rather, they tell a story, walking viewers from recognising a real problem to seeing exactly how the solution works. Known as the Problem‑Solution‑Benefit approach, this framework lays out a clear, logical story that really clicks with B2B decision‑makers.

• Problem Identification (0‑20 seconds): Start by shining a spotlight on a real, everyday frustration your audience actually faces. Skip the vague industry talk and zero in on the real, everyday situations your prospects actually deal with. Your goal is to get viewers nodding along, thinking, “Yep, that’s me.”
  
• Solution Introduction (20‑60 seconds): Show how your SaaS product is the obvious fix for the problem you’ve just highlighted. Skip the laundry list of features and zero in on what really matters, namely the main value your product delivers. Don’t just talk about how your product solves the problem, rather let people see it in action.
  
• Benefit Demonstration (60‑90 seconds): Wrap things up by showing, in plain terms, exactly what users can expect to gain. Skip the empty buzzwords, and instead show real numbers and concrete results. By the end of this section, your audience should know exactly what’s in it for them and feel motivated to take the next step.

Key Elements of High-Performing SaaS Explainer Videos

• Clear, human scripting that avoids jargon
• Visual storytelling with product shots or use cases
• Ideal video length of 60 to 90 seconds
• Professional polish: great lighting, crisp audio, and strong branding
  

How to Tailor Your Video Strategy for Each Platform

• Landing Page Integration: Where and how you place your explainer video on a SaaS landing page can make all the difference. Put your video front and centre, right at the top of the page, paired with just a bit of clear, to‑the‑point text. Keep the page clean and clutter‑free so visitors’ eyes go straight to the video, and then right to your call to action.
  
• Email Marketing Enhancement: Adding explainer videos to your email campaigns can send click‑through rates soaring, sometimes by as much as 300 %. For SaaS companies, it’s all about using short, focused videos that spotlight a particular feature or use case, rather than trying to cram everything into one big overview.
  
• Social Media Adaptation: Bite‑sized explainer videos tend to shine on platforms like LinkedIn, where you’ll actually find B2B decision‑makers paying attention. Keep these bite‑sized videos centred on just one main benefit, and use them to nudge viewers toward your more in‑depth content.
  
• Sales Enablement: For sales teams, explainer videos are a game‑changer, as they keep your messaging consistent and make it much easier for prospects to actually picture how your solution works. Ask any sales team and they’ll tell you: demos backed by video consistently close more deals than the old‑school slide deck approach.
  

Using Explainer Videos to Improve Onboarding and Trial Conversions

Static checklists are easy to skip. But short, visual walkthroughs keep users moving. Great onboarding is where explainer videos quietly do some of their best work. They guide, clarify, and help users unlock value faster.

Video-led onboarding has been shown to:

• Increase completion rates by 20 to 40%
• Cut time-to-first-value by 30% or more
• Reduce basic support tickets
• Lift trial-to-paid conversions significantly

Where should you embed these onboarding videos?

• In welcome email sequences to set clear expectations
• As in-app overlays and walkthroughs triggered by user actions
• Through progress-based nudges that guide next steps
• At key milestones to celebrate and keep momentum going

Watch Out for These Common Mistakes That Weaken SaaS Video Performance

When You Cram In Too Many Features

A classic misstep for SaaS companies? Trying to cram every single feature into just one explainer video. Trying to pack in too much at once just overwhelms viewers and leaves them feeling lost. Instead, zero in on a single problem and its solution for each video.

How to fix it: Instead of cramming everything into one video, make a handful of short, focused videos, with each one tackling a single use case or feature.

Losing Sight of Who You’re Talking To

When an explainer video tries to speak to everyone, it usually ends up connecting with no one at all. If you’re a SaaS company, you can’t afford to be vague, so get specific about who you’re talking to, and shape your message so it actually speaks to them.

Here’s how to fix it: Take the time to build out detailed buyer personas, then craft videos that actually address the real problems and needs your target audience faces. Speak to your audience in a way that matches their experience, using words and examples they’ll actually relate to.

Weak or missing call to action

A lot of explainer videos miss the mark by skipping a clear, compelling call to action. Even the most captivating video can fall flat if you don’t spell out exactly what you want viewers to do next.

How to fix it: Spell out exactly what you want viewers to do next with clear, action‑driven calls to action. If you’re in SaaS, that call to action could be as simple as “Start your free trial,” “Schedule a demo,” or even “Create your account.”

Ignoring mobile optimisation

Since three out of four video views now happen on mobile devices, it’s absolutely essential for SaaS companies to make sure their explainer videos look and work great on phones and tablets. That means paying attention to things like aspect ratios, making sure your text is easy to read, and ensuring your videos load quickly.

Here’s how to fix it: Play your videos on different devices to make sure they look good everywhere, and tweak them for vertical viewing when it makes sense. Make sure your most important visuals actually show up clearly and are easy to read, even on small screens.

When Your Video Just Doesn’t Look or Sound Right

You don’t need a blockbuster budget to make a great video, but if the production quality falls flat, people will notice, and your credibility can take a real hit. Some of the usual culprits? Muddy audio, branding that’s all over the place, and visuals that just don’t look polished.

How to fix it: Make sure you cover the basics, such as crisp audio, a consistent look and feel for your brand, and visuals that actually look polished and professional. It’s often worth teaming up with video pros who get the unique ins and outs of SaaS.

What’s Next? How SaaS Video Marketing Is Rapidly Evolving

AI-Personalized Video

The next big leap for SaaS explainer videos? It’s all about AI‑powered personalisation, meaning content that feels handpicked for each viewer. AI can sift through viewer data and tweak video content on the fly, tailoring what you see to your personal preferences, habits, and interests.³⁰ With this technology, video content isn’t just personalised, because it feels tailor‑made for each viewer, driving engagement and conversions through the roof.

We’re now seeing SaaS companies dip their toes into AI‑generated videos that call out a prospect’s company by name, highlight industry‑specific scenarios, and tailor value props to each viewer. Some companies have seen their engagement rates skyrocket, sometimes by as much as 200 %, after rolling out these personalised videos.

Bringing Video to Life with Interactive Experiences

Interactive video is shaking up the way SaaS companies connect with potential customers. With interactive features, viewers can pick their path, dive into the details that interest them most, and actually interact with the video instead of just watching passively. This kind of approach pulls people in, making the whole experience more engaging, and as a result, conversion rates climb.

Here’s how forward‑thinking SaaS companies are doing it: they’re adding interactive elements like clickable hotspots, decision trees, and even built‑in forms right inside their explainer videos. Suddenly, viewers aren’t just watching, they’re getting involved.

Why Short‑Form Video Is Taking Over B2B Marketing

Short‑form videos are quickly turning into a must‑have for B2B SaaS marketers. Busy decision‑makers don’t have time to waste, because they want punchy videos that get to the point and share real insights in less than a minute.

SaaS companies are now slicing their explainer videos into short, punchy clips tailor‑made for social media. These bite‑sized videos hone in on one main benefit and nudge viewers to check out the full, in‑depth content.

Customer Success Video Strategies

More SaaS companies are teaching their customer success teams to craft personalised video messages, walk users through the product on camera, and even send out celebratory videos when customers hit key milestones. By putting people at the heart of their strategy, companies forge deeper connections with customers, and as a result, those customers tend to stick around longer.

Take the Lead with Video-First Growth

The SaaS companies that will dominate tomorrow’s market are those that master video-first strategies today. Don’t wait for your competitors to leave you behind. Ready to transform your SaaS trial conversions with a professional explainer video or double your SaaS trial conversions?  

VideoPulse specialises in creating high‑converting video content that doubles trial sign‑ups. Book a strategy session with VideoPulse today to discover how our data‑driven video approach can accelerate your SaaS growth.