How Dynamic Video Attracts, Converts, and Retains with 48% ROI

June 27, 2018

Thanks to the constant evolvement of technology, the number of tools that help you personalize content has grown massively. In fact, personalization has come to video, giving birth to what we call dynamic video marketing. With Dynamic Video Marketing, videos are enriched using data to create the most relevant video per target segment to the point where you can make a unique video per individual (personalized video), resulting in an average ROI of 48%.

Years ago, there was an ongoing debate among marketeers about the added value of personalization. Nowadays there is overall consensus regarding its positive impact. Nevertheless, many brands aren’t using personalization in their video marketing activities, due to the perception that it is time intensive and costly. Nowadays this is not the case anymore since time intensity can be pushed back by using existing video content and cost reduction has been realized due to technological developments.

The power of Dynamic Video is its capability to leverage available data to improve customer experience. How? You can do this by Approaching your audience,delivering them the most relevant video, either per target segment or per unique individual (personalized video). The Outcome will be that dynamic video marketing can correspond to each stage of the sales funnel, and thus adapts its message to customers’ need in that particular stage:   

Attract

Dozens of brands scream for a consumers’ attention. As they don’t know your business/product yet, it’s important that your message is engaging. Explain what you stand for as a brand and why you do it. Showing a product video to prospects makes them 85% more likely to buy it.

Dynamic video comes in play as it has the ability to make the message more engaging and thus more relevant. The more recognizable a brand’s message is for its receiver, the higher the probability that the viewer can identify with the message resulting in a positive attitude towards the brand. Additionally, engaging content ranks higher in search engines resulting in an increase in organic traffic.   

Example: Samsung Valentine

Samsung wanted to create awareness around the Samsung Galaxy A series. The goal was to reach and engage users as much as possible, maximizing results from the available budget. The video was made dynamic based on pictures, relationship status, age, interests and place of residence. The dynamic video went viral resulting in 94.700.000 views on Facebook and 6.700.000 likes.  

Convert

Hubspot mentions that including video on a landing page increases conversion by 80%, Comscore states that 64% of users are more likely to buy a product online after watching a video, and this is just with generic video. When zooming in on the benefits of dynamic video, CTAs personalized to individual visitors have a 42% higher view-to-submission rate when compared to generic CTAs. SalesLoft even claims that 75% of late-stage prospects that received a personalized video became closed deals.

Example: ABN AMRO

Dynamic video was used in the sourcing and recruitment process to boost conversions. StoryTEQ’s dashboard was used to create and distribute the video’s via LinkedIn. The dynamic video is played on a customized landing page with clear CTA’s to increase conversions. For example, you can contact the sourcer/recruiter directly on the landing page via a “call me back” request or via a LinkedIn reply button, resulting in a landing page conversion rate of 76.6%.

Retain

Dynamic video advertising results in a 35% higher retention rate when compared to generic video advertising. That’s a huge improvement given the 80-20 rule (Pareto principle) stating that 80% of a company’s revenue is generated by 20% of its total customers. In fact, Bain & Company shows that by increasing customer retention rates by 5%, the profit also  increases by 25% to 95%.

Example: EDF Luminus

EDF Luminus wanted to provide their customers with more insights into their energy consumption in order to motivate and help them to save. In the video the customer’s energy consumption is compared to their consumption in the previous period and the consumption in their own city. At the end of the dynamic video the consumers get a strong Call To Action to log in on My Luminus, where you can find out if you consume less or more than your peers and discover personalized advice to reduce your energy consumption up to 30%. All this in order to retain customers.

The dynamic video was sent via email and the click-to-open ratio was 8.5 times higher than the benchmark. In addition, the percentage of viewers that keep watching the video was 22% higher than with non-personalized videos, resulting in a conversion rate of 14.3%.

Additionally, Dynamic video can also be used for retargeting, strengthening all stages of the funnel. Customers that have already interacted with your brand deserve to be recognized and with Dynamic video you can do this by serving out a message that incorporates all previous contact moments. In fact, research by Marketo shows that 79% of consumers say that they are only likely to engage with an offer if it has been personalized to reflect previous interactions the consumer has had with the brand.

Example: KLM

KLM generates lots of website traffic that selects a flight. However, many people leave the site prior to finalizing their payment, hence the challenge was to lower the so-called abandoned shopping cart rate.

The video contains the date and destination of the selected flight. Based on this information, dynamic elements (voice over, text, and imagery) were added to retarget shoppers and encourage them to complete their payment.

 

Dynamic video marketing helps you as a brand or marketeer to improve customer experience, and thus establish long-term relationships. More importantly, 70% of consumers claim to prefer content and ads that are tailored to previous shopping behavior and personal interests. Other than improving your customers’ experience, dynamic video leads to better results for your organization. The more relevant the message, higher the engagement thus ultimately resulting in a higher ROI.

Interested in dynamic video? Read here how you can implement dynamic video on Facebook.

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