Marketers have been buzzing about video for quite some time now. However, producing quality videos can be a considerable investment, especially if you need a volume of them. So is it worth it?
Adam Ware, CEO and founder of SwellPath, a digital marketing and analytics agency that works with clients like WebMD, Nike Vision, and Jive Software, would argue yes. Alex recently consulted a performance footwear and apparel brand for athletes that was trying to determine the return on investment of adding video to the product pages of their e-commerce site. Through his analysis of customer behavior, Alex found that watching the videos makes a visitor 96% more likely to convert!
Read on to take a closer look at how he uncovered this insight.
What was the challenge that your client faced?
The broad challenge was deciding how best to utilize resources to provide information about specific products. Narrowing in on the product-detail pages of the site, the challenge was how to use real estate in the most effective way. Finally, we had to determine whether creating and publishing product-focused videos on the site was a worthwhile investment.
How was this challenge impacting your client’s company?
Video is a popular medium, and a tantalizing investment for ecommerce sites. Stakeholders at several levels were curious about the potential effectiveness, and everyone had their own theories as to the impact it would have. To try to quantify what that impact would be was important.
What, if anything, was your client doing at the time to address this challenge? Why wasn’t it working?
There was already fairly solid analytics on customer behavior in place, but nothing terribly granular on the product-detail pages. The analytics program hadn’t advanced to the level where in-page analysis was ubiquitous throughout the site.
Can you describe the solution you implemented to address your client’s challenge?
It wasn’t anything terribly sophisticated, but more about the dedication of analyst, development, and ecommerce team time. We implemented tracking into the videos, and then observed the behavior of visitors to product detail pages where videos were present, and the behavior of those visitors who viewed part or all of the video.
In what ways did you use customer behavioral analyses to direct your/your client’s business decisions?
We sought to draw a correlation between the viewing of a video, and the purchasing of that product. We were able to show that visitors who were presented with a video were very likely to watch some of it, and those that did were much more likely to convert.
What results have you seen since beginning the project?
Watching the videos makes a visitor 96% more likely to convert. Needless to say, the client has put more effort into video, and more sales are coming through as a result. Now efforts are focused on more finite questions – things like: what type of thumbnail works best for a video? Or: what is the optimal length of time a product video should be?
Bottom Line: What was the ROI impact of this project?
96% more visitors to product-detail pages with videos are buying those products.
How do you think organizations in general can benefit from understanding customer behavior?
Understanding how your customers or prospects interact with digital mediums – sites, apps, advertisements, social pages – not only informs future decisions in those areas, but can also teach you about how to interact with your customer base in other mediums. We’ve helped clients generate learnings that affect their offline campaigns, event sponsorships, in-store displays, point-of-sale promotions – all kind of areas you wouldn’t expect digital analytics to influence, but has.
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About The Author: Adam Ware is the founder and CEO of SwellPath, a digital marketing and analytics agency. Since 2009 he and the team at SwellPath, have helped dozens of organizations improve their analytics programs and generate valuable insights about their customers.