The creation and production of Explainer Videos is quite an effort. Something that is typically considered if offering such content leads to cost savings and/or improved customer satisfaction, especially when considered to create Explainer Videos at scale.
The cost of a Video
What does a video cost is an often heard question. And the typical unsatisfying answer is; ‘It depends’. It depends on what kind of video, and how it will be produced.
Traditional Video Creation
Manual effort is expensive. Camera crews, helicopter shots, and (Hollywood) producers top the line (US$ 3000.- and up per minute), manually animated cartoonlike videos are offered as cheaper solutions (roughly start at US$450.- per minute). All one-off investments, and one-off deliverables. So what happens when you need a new version, in case a procedure changes lightly, the logo changes or the used screenshots need an update?
Automated Video Creation
Next, to manual production, it is often possible to automate the creation of the video, especially when you produce a series of videos based on support topics. It’s not only much faster and cheaper to produce (roughly starts at US$ 90.- a minute), but it also enables auto-versioning, to prevent additional costs in case of needed content updates.
How to measure a video’s Return-On-Investment?
To determine direct cost savings by offering Explainer Videos is not too complicated. Next, the highest ROI is guaranteed when one starts with offering Explainer Videos of topics in highest demand.
1. Determine Support Costs per call/ticket
First one determines the current cost per service call/ticket (1st line support service center), or the cost per service visit/ticket (service engineers). MetricNet.com performed studies in 2016 to examine these costs on average. See below.
As soon as these costs are clear, it is possible to already do the math; How many calls/tickets/visits need to be reduced by offering the video, to pay for it. All is dependent on the cost of creating and offering this video.
2. Determine High Demand Topics
By studying both online and call center usage analytics one identifies the topics and product(ranges) in highest demand for service calls/tickets. Also one determines potential content gaps in the knowledge base that lead customers to contact support via phone or email.
3. Make Selection
With this information, you select those topics that reach the threshold of (Cost of video creation)/(Cost per Support Call/Ticket).
- Traditional video: X = ($ 3000)/($ 15) = 200 service calls to reduce, in order to break-even per video
- Animated cartoon: X = ($ 450)/($ 15) = 30 service calls to reduce, in order to break-even per video
- TXTOmedia video: X = ($ 90)/($ 15) = 6 service calls to reduce, in order to break-even per video
Your team can focus on creating the content that your customers need, thereby lowering the number of calls to your contact center, increasing case deflection rates and, as a result, decreasing support costs as a whole. By the immediate response to calls via the 24/7 available online videos and in-context explanation of your solutions to your customers’ challenges and problems, it’s worth measuring increasing customer satisfaction as well.