Why SaaS Companies Need Explainer Videos

Why SaaS Companies Need Explainer Videos

In the fast-moving world of SaaS (Software as a Service), attention is currency and confusion is costly. You’ve built a powerful product, but if your target audience can’t immediately understand what it does, why it matters, and how it helps them, they’ll bounce. That’s where explainer videos and animations come in.

Table of Contents

SaaS Is Complex: Videos Make It Simple

SaaS products often solve technical problems or offer robust platforms that aren’t easy to explain in a few words. A wall of text on your homepage won’t do it justice. A well-crafted explainer video distills your product into a clear, concise, and compelling story often in under 90 seconds.

Think of it as your elevator pitch on steroids.

People Buy What They Understand

If potential customers don’t understand your product, they won’t try it. 

Explainer videos:

  • Build trust by showing how your product works
  • Reduce friction in your sales funnel
  • Help decision-makers grasp your value quickly
  • Increase engagement on landing pages

Studies show that people are 4x more likely to watch a video than read text on the same topic. That’s not just a vanity metric, it translates to real leads, signups, and conversions.

Boost Conversions Significantly

A well-placed explainer video can increase conversions by 20–80%, depending on placement and quality. SaaS companies often see huge ROI from homepage videos, onboarding walkthroughs, and product feature demos.

Think of a video as your 24/7 sales rep that:

  • Never sleeps
  • Always gives the perfect pitch
  • Keeps visitors engaged

Even better, when paired with data-driven targeting, these videos can speak directly to segmented audiences at different stages of the buyer journey.

Improved SEO and User Engagement

Google loves video. Including a video on your website:

  • Increases the time visitors spend on your page (a good signal to search engines)
  • Lowers bounce rate
  • Increases the likelihood of ranking on the first page of results

Video thumbnails in search results also stand out more than text links, encouraging higher click-through rates.

You Can Use It Everywhere

An explainer video is one of the most versatile assets you’ll ever create. Once produced, you can repurpose it across:

  • Your homepage or product page
  • Paid ad campaigns (Facebook, YouTube, LinkedIn)
  • Sales emails and investor decks
  • App stores (like Shopify or Salesforce marketplaces)
  • Social media posts
  • Onboarding and customer support

It’s not just a marketing tool; it’s a multi-use growth asset.

Animation Adds Personality and Branding

Unlike live-action videos, animated explainer videos are often faster and more cost-effective to produce—plus they give you full creative control. You can:

  • Stay on-brand with custom color palettes, typography, and tone
  • Use motion to keep attention
  • Create characters or scenarios that resonate with your target audience

Animation also scales beautifully across screen sizes and platforms, which is critical for SaaS users who live across devices.

SaaS Buyers Expect It

Let’s face it: your competitors are doing it.

If a buyer is evaluating three different platforms, and two have high-quality explainer videos while yours has a dense paragraph of jargon; they’ll go with the ones they understand.

Videos aren’t just nice-to-have anymore; they’re a standard part of SaaS communication. If you’re not using them, you’re falling behind.

Final Thoughts: Invest in Clarity

In SaaS, the first impression is everything. An explainer video gives your audience the “aha” moment they need.

So if you haven’t created one yet, ask yourself:

  • Are people confused about what our product does?
  • Are we explaining features instead of showing outcomes?
  • Are visitors bouncing from our landing pages too quickly?

If the answer is “yes” to any of those, it might be time to hit “play” on a powerful explainer video.