For online retailers, video plays a key role in guiding shoppers through the purchasing process. Video advertisements — from traditional television spots to social media clips to digital video — help to build brand loyalty and drive awareness of new products. According to the 2023 SaaS Marketing Report from Insivia, 88% of consumers stated that “seeing a brand’s video influenced them to purchase a good or service.”
But a brand’s relationship with its customers doesn’t end at the moment of purchase. In fact, the relationship is only beginning.
A recent revolution in retail strategy has led brands to focus on customer lifetime value (CLV) — maximizing revenues from their existing customers rather than concentrating on acquiring new shoppers. To increase CLV, brands must invest in their post-purchase customer relationships. Companies can deliver value to customers through a combination of emotions and education: building loyalty while showing how to get more out of the brand’s products.
Video is one of a brand’s most important tools in building these relationships. Here’s how to build an effective post-purchase engagement strategy.
The connection between video and CLV
Increased profitability and sustainable growth are a matter of increasing revenues from existing customers. But that’s easier said than done. To grow CLV, brands have to recognize that their customer relationships depend on an exchange of value. During the initial transaction, the shopper exchanges their money for a specific product. To persuade the customer to make additional purchases, the brand will need to keep delivering value after the first transaction.The statistics that inform the CLV revolution are powerful.
Consider these takeaways from a 2023 report from McKinsey:
The world’s largest companies have a thorny problem in common. Airlines, insurers, telcos, utilities, and other major incumbents are all struggling to achieve sustainable, profitable growth in a world in which their offerings are increasingly commoditized…
Two key numbers from McKinsey’s work underscore the case for a shift in focus. On the downside, compensating for the value of one lost customer can require the acquisition of three new customers. On the upside, 80 percent of the value creation achieved by the world’s most successful growth companies comes from their core business—principally, unlocking new revenues from existing customers.
Video offers one of the most effective and versatile tools to deliver consistent value to existing customers. From short-form clips that capture the viewer’s attention and imagination to thorough explainers that help them better understand a product, video fosters deep connections with the customer. According to Insivia, 94% of marketers who use video do so because it helps increase understanding of a product or service.
How video builds trust with customers
As companies develop their customer relationships, they can use video to both educate viewers and deepen their emotional connections.
Emotions: Inspiration and loyalty
The best video advertisements inspire the viewer to take action. For consumer retailers, this could mean putting the product in context and making it easy for the viewer to imagine using or wearing the item. Brands selling more technical products could focus on innovation — showing the customer what they can accomplish with the product that was previously thought impossible.
Video is also an effective tool for building brand loyalty. Companies, like electric motorcycle manufacturer Tarform, use videos to show viewers that they share the same values — through the customers they serve, their mission, and even how their products are created.
Another powerful example of both was Apple’s recent campaign highlighting how students use Mac devices to handle their college workloads. The brief clip demonstrates the many different ways students can tackle their assignments using a Macbook, while also showing off the personality and sense of humor that has made Apple one of the world’s most beloved brands.
Education: How-tos, suggestions, and customer
The best way for brands to deliver value to their customers is by teaching them something: empowering them to get more out of the products they own, or helping them to improve their lives with an additional purchase.
This is an essential strategy for brands selling complex products. A car manufacturer can create a series of instructional videos that show customers how to make the most out of their new vehicle: from safety to comfort to entertainment. Or, a beauty brand like evolvetogether can show customers how to properly use — or refill — their products.
Sharing those videos shows that the brand is invested in the customer’s long-term happiness — increasing the likelihood that they’ll stay loyal to the brand when they come back to make their next purchase. Brands with mature support functions will embed these videos in multiple locations: from dedicated knowledge centers and help articles to QR codes attached to the actual device itself or next to a display in a brick-and-mortar retail location. In the case of Diggs, the popular pet supplies brand, the company includes a QR code with every product that leads directly to video-based assembly instructions.
Some companies will even take this strategy a step further by integrating it directly into their customer support. When customers are trying to solve a problem, they want an answer as fast as possible. Vimeo Marketing, our AI-powered video hub, makes it easy for brands to keep their informational content organized and accessible. That way, when a chatbot or support specialist goes looking for the answer to a customer question, they’ll be able to quickly find and send a video with the precise information the customer needs.
The best videos for customer engagement will combine elements of education and emotion. One effective strategy is to put customers themselves at the center of the content. An outdoor clothing company can connect with satisfied customers and have them create videos on how to care for a specific garment — while also highlighting the activities they pursue while wearing the item.
Build your post-purchase engagement strategy with Vimeo
Today’s businesses understand that long-term growth and sustainable success depend on customer relationships. By keeping customers engaged after purchase, companies can ensure that those customers come back again and again — and recommend the brand to others. Vimeo provides businesses with the solutions they need to establish and expand loyal customer relationships.
To learn more about how Vimeo Enterprise can bolster your customer relationships and drive CLV, request a demo today.
