The ROI Calculator for Explainer Videos
In today's digital landscape, explainer videos have emerged as a potent tool for businesses to convey complex ideas in a simple, engaging, and easily digestible format. They have the potential to significantly boost conversion rates, enhance customer engagement, and ultimately, drive business growth. But how can you measure the return on investment (ROI) of your explainer video? That's where our Explainer Video ROI Calculator comes in.
At MezzoLab, we understand the importance of explainer videos in the marketing mix. They can help simplify complex concepts, making it easier for your target audience to understand your product or service. They can also help increase brand awareness, improve online visibility, and boost conversion rates.
We've seen firsthand how explainer videos can transform a business's online presence. From our work creating animated explainer videos to crafting compelling video marketing strategies, we've helped businesses harness the power of video to achieve their goals.
Now, we're excited to introduce our Explainer Video ROI Calculator. This tool is designed to help you measure the return on investment of your explainer video, providing you with valuable insights to inform your video marketing strategy.
How to Use the Explainer Video ROI Calculator
Using the Explainer Video ROI Calculator is simple and straightforward. All you need to do is input the relevant values into the calculator, and it will automatically calculate the additional gross revenue and the ROI of your explainer video.
Here's a step-by-step guide on how to use the calculator:
- Gross Profit Margin (%): Enter your company's gross profit margin as a percentage. This is the percentage of each dollar of revenue that the company keeps as gross profit.
- Average Sale/Contract ($): Enter the average amount of money your company makes from each sale or contract.
- Close Rate (%): Enter your company's close rate as a percentage. This is the percentage of leads that turn into customers.
- Monthly Visitors: Enter the number of people who visit your website each month.
- Original Conversion Rate (%): Enter your company's conversion rate before the implementation of the explainer video.
- New Conversion Rate (%): Enter your expected conversion rate after the implementation of the explainer video.
- Amortization Period (months): Enter the period over which you expect to amortize the cost of the video.
- Cost of the Video ($): Enter the total cost of producing the explainer video.
Once you've entered all the values, click on the "Calculate" button. The calculator will then display the additional gross revenue and the ROI of your explainer video.
A Practical Example: Super Cool SaaS Company
Let's take a hypothetical example to illustrate how the calculator works. Let's say we have a company called "Super Cool SaaS Company". They've recently created an explainer video and want to calculate the ROI.
Here are their details:
- Gross Profit Margin: 70%
- Average Sale/Contract: $500
- Conversion Rate: 2%
- Monthly Visitors: 10,000
- Original Conversion Rate: 1.5%
- New Conversion Rate: 2.5%
- Amortization Period:
12 months
- Cost of the Video: $5,000
After inputting these values into the calculator, they find that their additional gross revenue is $35,000 and their video ROI is 600%. This means that for every dollar they spent on the video, they got back $6 in return. This is a fantastic return on investment and shows the power of using explainer videos in their marketing strategy.
Understanding the Results
The Explainer Video ROI Calculator provides two key results: the additional gross revenue and the ROI of your explainer video.
Additional Gross Revenue: This is the additional revenue that your company can expect to generate as a result of the increased conversion rate from the explainer video. It's calculated by multiplying the increase in leads (due to the increased conversion rate) by the dollar value per lead and the amortization period.
Video ROI: This is the return on investment for your explainer video. It's calculated by subtracting the cost of the video from the total gained value, and then dividing that by the cost of the video. The result is expressed as a percentage. A higher ROI means that the video is more effective in generating revenue relative to its cost.
The Power of Explainer Videos
The results from the Explainer Video ROI Calculator clearly demonstrate the power of explainer videos. They can significantly boost your conversion rates, leading to increased revenue and a high return on investment. They're a cost-effective way to explain your product or service, engage your audience, and drive business growth.
But the benefits of explainer videos extend beyond just ROI. They can also help improve your brand image, increase customer trust, and enhance customer engagement. They can simplify complex concepts, making it easier for your audience to understand your product or service. And they can help improve your SEO, leading to increased online visibility and more traffic to your website.
Conclusion
In conclusion, explainer videos are a powerful tool for businesses. They can significantly boost conversion rates, increase revenue, and provide a high return on investment. And with our Explainer Video ROI Calculator, you can easily measure the ROI of your explainer video and see the impact it can have on your business.
So if you're considering using video on your website, now is the time to take action. Start leveraging the power of explainer videos today and watch your business grow.
