3 Types of Videos that Can Significantly Increase Your Customer Retention Rate

A man watches a video that is part of a customer retention strategy.
Len Smofsky   Wed March 27, 2019

The masses may assume that it’s hard to gain a customer and easy to keep them. However, the opposite is true - it can be surprisingly easy to gain a customer but very hard to keep them.  

The reasons for this are numerous. First, consumers are expecting more interaction with their favourite brands, which means a brand’s content needs to build an ongoing relationship with their customers.

Second, it is a challenge to retain customers due to increasing levels of competition. Technology has made it possible for companies to manufacture products and create services that are on par with their competitors and aggressively go after their customer base.

As a result, customers have options. They can pick which brand they feel is the “cream of the crop”. What often makes a brand favourable to a customer is their marketing communications and content. With that said, the right kind of video content can help your business dramatically increase its customer retention rate.

Video Content as a Format in Your Customer Retention Strategy

By now, you’re likely familiar with the fact that audiences search for videos over blogs or and any other form of content. It’s not just a matter of preference. Videos, as well as most visual content, leaves a stronger impression on human brains since they are easier to comprehend and more engaging. Naturally, videos have stronger retention advantages over other content formats.

The Power of Video in a Customer Retention Strategy

With these numbers in mind, it’s clear that video belongs in your customer retention strategy.

Now keep in mind that customer retention can be measured both on a micro and macro level.

On a macro scale, customer retention refers to how long an individual remains loyal to your brand (ie. customers who repeatedly purchase your product or renew their subscription to your service). A high level of customer retention comes from having a well-oiled machine consisting of impeccable customer service, a durable product, a positive reputation, and helpful content (which can include video).

On the micro scale, customer retention refers to how long viewers engage with the content itself (ie. how much time they spend watching a video and what actions they take afterward). High customer retention comes from content that’s able to keep audiences hooked and encourages them to respond to a call-to-action. Video can have a positive impact on both levels but it must be used strategically. Now we must ask, what kinds of video work best in that regard?

Emotionally-Driven Videos

There’s a reason why more and more brands are trying their hand at cinematic or comedic video content. These formats are emotionally driven and proven to capture attention.

Emotions keep audiences invested in the characters of their favourite TV series or movie. They’re also the reason why documentaries about personal successes, failures, and comebacks inspire us or leave us reaching for the tissue box.

And remember, too, that emotions don’t have to be serious. Humour generates some of the most powerful and uplifting emotions. The lesson here is to inject some sort of emotional slant in your video where possible. Doing so will boost your engagement and retention rates.

Examples of Emotionally-Driven Videos for Increased Customer Retention

  • Branded films or TV series that blend Hollywood-style plots with product placement in a non-intrusive manner.
  • Documentaries or features about the triumphs and tribulations of real people.
  • Comedic sketches, vignettes or explainers that capture the lighthearted side of an issue, or paint a brand as being humorous.
  • Vlogs that feature an emotive and expressive host who can elicit a strong emotional reaction in an audience.

Email Videos

Email marketing was supposed to be “dead” but it’s alive and thriving. Still seen as a “text-heavy” medium, email is actually an excellent platform for sending visual content.

In fact, videos in emails have incredible power. A video included in an email can lead to a 200-300% increase in click-through rates. Also, simply using the word “video” in an email subject line increases an email’s open rate up to 19%. If you already email newsletters or promotions to a decent number of subscribers, inserting a video in your emails may lead to an increase in opens.

Email Video Tips to Help Increase Customer Retention

  • Make sure your video is formatted and tested for various browsers, devices, and email platforms.
  • Add videos to your email sparingly and purposefully - don’t embed them just because you can.
  • Use emotionally-driven angles such as storytelling and humour to further capture your audience’s attention.

Personalized Videos

Finally, consider the use of a personalized video. One video template can be used to create a personalized message for each viewer, extending the ROI of the medium, and increasing your likelihood of customer retention.

The average retention rate for personalized videos is 35% higher than for non-personalized ones. Therefore, a personalized customer experience using personalized video content is a great way to retain existing customers.

Although you can lump a person into a category or a target audience, doing so doesn’t address the fact that individuals with demographic similarities are still unique in their own ways.

A personalized customer experience allows you to engage with more members of your audience in a direct, one-to-one manner. This style of communication is powerful and highly effective for a personalized customer retention approach because you can tailor your message to the needs of a single person.

Personalized Customer Experience Video Formats that Retain Customers

  • “Thank You” videos that celebrate the loyalty of customers.
  • Rewards breakdowns that explain how a customer’s accumulation of points (or other scores) will benefit them.
  • Billing/invoice videos which not only explain a customer’s bill but gives them tips on how to save money in the future and reap more benefits from a product.

personalized video billing ebook

Video Content: The Perfect Ingredient for a Customer Retention Strategy

It’s easy to place customer acquisition techniques above all else, but a customer retention strategy is equally, if not more, important. With an abundance of product choices and competing brands out there, it is easier than ever for customers to abandon a brand relationship.

Fortunately, video content can help you retain more of your customers and turn them into loyal brand advocates. By doing so, you may not need to invest as much time, money, and effort in acquiring customers in the first place.

About the author: 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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