How Video Marketing Can Supercharge Your Customer Acquisition

video marketing customer acquisition

Video Marketing

How Video Marketing Can Supercharge Your Customer Acquisition

One of the most important figures for your bottom line is the ROI on customer acquisition. The lower your customer acquisition cost (CAC), the better it spells for your overall profits. The recent trend has indicated that consumers do not trust the businesses as much and as a result, the customer acquisition cost has gone up by 50%. However, this doesn’t mean that the companies should give up trying to get new customers. On the contrary, statistics reveal that 63% of the marketers believe that the most important part of marketing is getting new customers, even if it means that the cost of customer acquisition is seven times more.

With as many as 40% of marketers reporting that getting a response from prospective customers is getting harder, the old school phone calls, print advertising, and cold calling are no longer as effective, 29% of the marketers have reported that phone calls were the worst performers.  So, maybe it is time to find more effective ways to manage CACs and its ROI. Statistics show that using a video on landing pages can enhance conversion by 86% so maybe it is time you start using videos to supercharge your customer acquisition. This article will show you how to create a video marketing strategy that will improve your customer acquisition rate and thus improve your bottom line.

1. Customer Acquisition Demystified

Customers are the pillars over which businesses are built and expanded. If you do not have customers, you cannot have a business as they are the ones who provide the money to meet all the expenses of the company and its employees. It is your customer base that determines how attractive your business is to any investor.

A business needs to continuously acquire new customers to improve its profits and enhance its growth. Good financial health and profit margins also keep your investors happy and interested.  This exercise of attracting more customers is called customer acquisition and it is directly related to your marketing strategy. It involves attracting and persuading customers to buy your services or products. The money spent on acquiring a customer is the customer acquisition cost and is an important factor in determining the health and well-being of your enterprise. 

The process of acquiring a customer begins with your first contact. There are several stages a consumer goes through before becoming a customer and then a loyal customer. A customers journey starts with identifying or expressing a need. This need then has to be fulfilled in some way or the other. After that, you need to nurture the relationship so the customer becomes a loyal customer. In marketing, this journey is called a funnel. There are three distinct phases in any funnel. These are:

  • Awareness or Lead Generation: when the customer finds out that you have a solution to a problem, they wish solved.
  • Consideration or Lead Acquisition: when the consumer adds you to the list of prospective solution providers
  • A Decision or Lead Conversion: when the consumer believes you have the best solution and becomes a paying customer.

At each of these three stages, you need to assist the consumer to make the right decision by providing them with information, assistance and instilling trust in your brand.

With video consumption reaching an all-time high and growing, it makes sense to use videos for all these three stages in the consumer’s journey. There are many different kinds of video content that can be used at each specific stage.  These videos help to encourage the consumer to continue their journey with you rather than your competitor. Let us take a look at the most effective types of videos for each stage.

2. Lead Generation:

Lead generation basically is the exercise to encourage consumers to seek more information and to maximize the traffic to a business and its website. This traffic, in turn, when handled well, then converts into sales and profits.

Paying attention to lead generation is important because this helps you create a larger pool of interested buyers who are looking to buy your product. Without the right strategy in place, you may miss out on opportunities to connect to the right audience for your business. Hence, it is important that you formulate a careful content marketing strategy to attract the most relevant customers for your business. The types of video marketing content that work best at this stage of the funnel include:

  • Company Commercials: These are short videos created to introduce and promote your company to the consumer. The main goal of company commercials is to increase brand awareness but it can be used to achieve other marketing goals too. They can help in creating leads, improving conversions and sales by encouraging the viewer to seek more information about the company and its products.
  • Social Media Videos: Social media videos are an excellent way to create hype around your brand. Posting videos on social media can supercharge your lead acquisition exercise. However, you need to know the type of videos that you should post on social media to make the best impact and most of your ROI. Some of these are Live videos, Behind The Scene videos, product videos, company stories, and culture videos, etc. These types of videos help to forge a connection with the viewer and create a positive feeling for the brand, thus, generating leads for your sales team to follow. Here is a compilation of some of the most effective social media videos for you to use as inspiration for your own business.
  • Product Commercials: These are promotional videos that are centered around the product. They create awareness of the product and excitement around it which induces the consumer to buy the product. In simpler words, they are product advertisement videos designed to promote the product. It involves a lot of effort to create a good product commercial that will generate the required response from the audience.

Once the awareness has been created and enough hype generated around your brand and its products, it is time to consolidate all that effort and transition your consumer to the next stage of lead acquisition.

3. Lead Acquisition:

Now, the lead acquisition is the next part of the customer’s journey. Lead generation and acquisition are often combined together even though they refer to completely different parts of a consumer’s journey. Once a lead is generated, by whatever means and you have an interested consumer who wishes to know more, then the process of lead acquisition starts.  This involves collecting and collating the leads generated and passing them on to the concerned persons to take further action on it.

This is one of the most important aspects of customer acquisition and is often underutilized or not handled properly. This is the first step for consumer experience with your business and whether a lead converts or not, depends on how satisfactory the lead’s experience was with your business.

You can enhance your customer experience at this stage through videos that present your business model, products and other relevant information to the consumer in an easy to understand and entertaining manner. The most effective videos for this stage are: 

  • Explainer Videos: These videos introduce your consumer to the product and describe what you offer in detail. The explainer videos present the problem, discuss how your company can prove the solution and highlight the features of the product and its benefits to the consumer.
  • Product Demo Videos: These videos explain how a product or service works in detail. They highlight all the advantages of using the product in an easy to understand format. They often use step by step instructions to show how to use the product and may include some innovative ideas about where to use it. One of the best product demo videos is from Slack. A good script and excellent presentation make it a standout product demo videos of all time.

  • Company Story Videos: These are videos that show a lighter side of your business, humanize it to make it connect with the consumer. These videos tell a story about your business, its hopes, aspirations, and values. Usually, company employees and executives speak about the company, their experiences with it and their work. They are designed to create an emotive response that will strengthen the consumers’ relationship with your company.
  • Videos in Email Marketing: Emails are still a very effective way to acquire a customer. When combined with the effectiveness of videos they form a powerful tool for customer acquisition. When videos are included in emails, their open rate increases. The open rate is a clear indication of being able to catch a reader’s attention. One way to ensure a better open rate is to include the word “Video” in the subject line of the email. Adding personalized videos in the emails increases the probability of the emails being opened 5 times.

All the videos we have discussed above should be designed to enhance the customer experience and make it as pleasant as possible so the consumer continues to be positive about your business and carries on through the funnel to the final stage of lead conversion.

4. Lead Conversion:

The third stage of the consumer’s journey is convincing the interested consumer that your product or service offers the best solution to their problem. At this stage too, videos offer a great value. This is the stage where the consumer is committed to buy and needs a gentle nudge in the right direction. This is the time when you need to emphasize on trust-building so the consumer trusts your brand and buys your product. The most effective videos at this stage are peer testimonials and reviews.

  • Testimonial Videos: These are the best types of videos for trust and confidence-building in your potential customers and a must for the final stage of customer acquisition which is lead conversion. These videos often feature an existing customer discussing the problem he had and how your business offered the perfect solution to the problem. They present their positive experience with your sales and marketing teams, thus creating a good feeling and a sense of trust in your business. An example of a good video testimonial is from Lifelock where a member of the service describes her life before and after her association with the company.

Similarly, customer review videos are also just as effective in creating the positive vibe needed to finally convert the lead into a paying customer. The bottom line is that, the more conversions you have, the better your ROI on customer acquisition cost going to be. 


The important thing to keep in mind when creating a marketing strategy is to keep the leads engaged at all stages and videos are the most powerful way to do so.  As we can see, there are different videos that can be used at various stages of the funnel from the top of the funnel to the very bottom when you finally close a sale. At each stage use metrics to identify your ideal customer, concentrate on them and create your videos to appeal to them. Ensure that you make your prospects journey as interesting, informative and easy as possible from one stage to the other. Follow the advice and you will see your customer acquisition rates reach very favorable figures.

Author The Author: Koushik Marka is the founder and CEO of an explainer video production company titled Studiotale. With strong entrepreneurship and professional skills, his qualities do not end there. With expertise in Vector Illustration, 2D Animation, Motion Graphics, and Digital Marketing, he loves what he does. Apart from being a work enthusiast, his off-work preferences are playing video games and traveling. Connect with him on Twitter, Facebook, Instagram, and Linkedin.

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