People pointing at interactive video (c) People pointing at interactive video
Len Smofsky Nov 20 ,2019

As seemingly every industry gets more and more crowded, the issue of customer retention and experience management has become increasingly important.

Customers now have an almost endless number of options for practically any purchasing decision they have to make. No longer bound by cost or availability issues, many consumers are now looking to other elements of their brand relationships to keep them coming back. Things like corporate values, extra perks, and exceptional customer service are the new battlegrounds on which brands compete to be the best.

Personalization and interactivity of customer communications and experiences are now essential in maintaining a competitive edge, and interactive video has emerged as the star of the show. Brands can communicate an endless amount of information and advertising to customers through videos that can be tweaked to be completely personalized and responsive to each individual.

So what is interactive video and how can it help customer communication and experience management?

There are many different use cases for interactive video, and every single one helps drive engagement and enhances the customer relationship. Find out everything you need to know about the technology below!


First, we should clarify what exactly interactive video is in the context of customer communication and experience management.

Interactive video refers to any piece of video content that allows for some data input by the viewer. This allows them to control and personalize their experience, changing the content of the video to suit their needs. People typically only care about information that directly relates to their circumstances, so this gives them the tools to only be served that content without getting bored by irrelevant information.

Some examples of interactive video elements could be:

  • Data input: users can enter certain information that will tailor the video content they are served
  • 360 video: users are able to drag the field of view of the video in any direction they want.
  • Branching content: users can select between different options within the video to go down different content paths.
  • Questionnaires: users answer questions in order to be served a personalized result at the end of the video.

This is obviously beneficial for the customer, but it also represents an excellent opportunity for brands as well. By giving consumers the ability to customize their content, interactive video can increase engagement and improve overall brand sentiment with minimal internal lift.


Interactive video can give brands a significant edge when it comes to their customer communication and customer experience management strategies through boosting customer retention.

So how exactly does interactive video achieve this? There are actually several different ways it can help.


Interactive videos encourage users to enter personal information in order to be served hyper-relevant content. This new data can be captured and analyzed by the brand for enhanced communication and experience management in the future.

For example, a customer might enter their age range, the number of people in their household, their household income range, and their monthly spend on their insurance. That information could then be used to send them targeted promotions specifically designed to be attractive to them given their financial circumstances.

This kind of hyper targeted and customized messaging tends to generate much higher conversion and open rates than generic emails that can sometimes be irrelevant to the end user.


Not only can interactive videos enhance conversions through follow up targeted advertising, they can also directly lead to much higher conversions.

Studies have shown that interactive videos have a conversion rate typically 10 times greater than linear video ads, such as banner ads, YouTube Annotations, and Google Display ads. This means if you make your interactive video engaging enough, you could win a new customer or secure even more revenue from an existing customer straight through the video without any additional work needed.

An example might be if you have a new insurance product, and your aim is to get people to request a quote for the new service. You could send an interactive video that asks users to input a few personal details such as their marital status, whether they have insurance currently, and the approximate value of their assets, and then serve them a personalized result that pitches the new insurance product as a must have. At the end you could have a button that they can click to request a quote and you’re on your way to earning a new revenue stream.


Another benefit of interactive video that can often be overlooked is the novelty and surprise it can bring to your customers.

Consumers are bombarded with incredible amounts of advertising and marketing every day, and many have begun to tune out all but the most engaging communications. Advertising and marketing are now directly competing for “eyeball time” with any range of other entertainment sources, so getting creative is essential in standing out from the crowd.

An interactive video can be a surprising and delightful change, as users are encouraged to engage with the video actively as opposed to passively observing it. Not only does this provide all the benefits mentioned above, but the user will likely develop a positive brand association because of this unexpected surprise, which can help build your brand and help improve customer retention.

Engagement and separating yourself from the competition is now more important than ever, as consumers have become more savvy to even advanced digital marketing techniques. Interactive video is the latest tool in the digital marketer’s belt that can not only act as a conduit for advertising and cross-promotion, but also enhance the customer experience and boost retention rates in any industry.

About the author: Len Smofsky

Len Smofsky

Len has over 25 years of experience in visual communications and strategy. Over the last decade his focus has been primarily in the digital area.

Specializing in corporate communications, Len founded one of Canada’s most successful production companies. His company created leading edge video production, TV commercials, digital strategy and media.

In 2006, Len and Larry formed a partnership to create a new BlueRush with the intent of creating personalized customer experiences using a unique blend of digital media and deep technology capabilities. BlueRush works with clients in the financial services, healthcare and packaged goods industries leveraging current digital technologies and services, creating great user experiences at all points in the customer journey.


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