Explainer videos are a fantastic way of effectively engaging with the customer. Companies are drawn to the idea of creating explainer videos in order to sell products, as well as to improve the customer journey as a whole. Do a little research into how explainer videos are made, however, and you will find that the amount of time, money and resources that go into producing them can be a bit of a shock!
The Cost of a Video
“How much does a video cost?” This is a question we hear often. The truthful, but unsatisfying, answer is that it depends. A number of different factors need to be taken into consideration, including what kind of video is going to be produced and how.
Traditional Video Creation
Manual effort is expensive. Camera crews, helicopter shots, and (Hollywood) producers top the line at anywhere around US$3000 (and upwards) per minute. Manually animated videos are a cheaper solution, costing upwards of US$450 per minute. Remember, both of these options are one-off investments that provide one-off deliverables. And what happens when a procedure changes? Or your logo needs to be updated? What if the screenshots need to be tweaked here and there? Editing a video post-production is difficult, if not impossible, and creating a new version from scratch means starting the entire, costly process all over again.
Automated Video Creation
Automated video creation is the alternative to costly manual production. Thanks to new technology offered by TXTOmedia, it is now possible to produce videos in an automated way, not only saving time and money, but enabling auto-versioning to prevent additional costs should content need to be edited. This method is especially effective when there is a need to produce a series of videos based on support topics. The price of creating an automated video starts at around US$90 per minute, leading to huge savings over traditional, manual versions.
How to Measure a Video’s Return On Investment
1. Determine Support Costs per call/ticket
First, we need to determine the cost of either a call/ticket (1st line support service centre), or the cost of a service visit/ticket (service engineers). MetricNet.com performed a study in 2016, which examined support costs in order to calculate what average figures might look like (see below). With these costs in mind, it is easy to do the math. If the savings made by the reduction in the number of calls/tickets or service visits is high enough to pay for the video, the production costs can be justified.
2. Determine High Demand Topics
By studying both online and call centre usage analytics, it is possible to identify the topics and (product) ranges that are in highest demand for service calls/tickets. It is also helpful to identify common gaps in knowledge, which are leading customers to get in contact with support.
3. Make a Selection
Based on what we find when comparing the cost of creating our video versus the cost per support call/ticket or visit, we can select the most relevant (and financially viable) topics which we want to feature in explainer videos.
- Traditional video X costs $3000/$ 15 therefore 200 service calls need to be eliminated in order to breakeven per video
- Animated cartoon X costs $450/$ 15 therefore 30 service calls need to be eliminated in order to breakeven per video
- TXTOmedia video X costs $90/$ 15 therefore 6 service calls need to be eliminated in order to breakeven per video
By delivering the content that customers really need, we are able to lower the number of calls to contact centers, increase case deflection rates and decrease support costs as a whole. On top of this, customers will benefit from immediate, online help provided by videos that give in-context explainations to common problems and challenges 24/7.