Explainer videos are short one or two-minute animated videos that include a series of images accompanied by professional voiceover, sound effects and background music. The most popular type of explainer video is the “whiteboard video”, which shows a hand drawing images on the screen that are accompanied by narration.
These are very popular among tech and product based firms. But have you considered an explainer video as a great tool to differentiate your financial advisory firm?
Here’s four reasons to consider creating one this year:
#1: Video can make complex information seem simple
A video allows us to explain even complex information in a simple, fun way. These videos often include a story, which makes them even more conversational and non-intimidating. This is especially important selling financial advice, since this may be one of the most complex sales out there. Remember, the average person, no matter how educated, often lacks basic understanding of how money and investing work. If we ever forget that, reminders abound:
- Nearly half of Americans surveyed think they pay zero fees in their 401(k)
- 71% of people in another survey said they thought they could eliminate all portfolio risk through a diversified portfolio
So what we need to do is make financial planning and investing seem simple. Video can do that.
Reason 2: Video can eliminate the “fear factor”
Surveys show there’s a huge amount of fear around hiring a financial planner or investment manager. From fears of being ripped off, to fears of looking stupid or revealing past money mistakes, it’s a tough sell to get someone experiencing that anxiety to take action. To get past that block, your firm has to appear very approachable. The animation plus friendly voiceover of the explainer video is the perfect way to do just that.
When your website has this type of video on its home page, and your competition doesn’t, it just makes your firm seem all the more friendly and relatable. This is especially important to tap into the younger generations and women investors who put a high value on communication.
Reason 3: Video is engaging
Explainer videos, and more specifically whiteboard videos, have been shown to engage people across all demographics.
One study found that whiteboard video viewers were three times more likely to share the video on social media and were twice as likely to both recommend and buy the service. They also were better able to remember the facts and the message being delivered.
Since every share or recommendation is essentially free marketing for your firm, this is an important benefit.
Reason 4: Video is a first-rate multi-tasker
An explainer video is great multi-tasking tool:
- On your website, it engages visitors and can reduce bounce rates. It also very effectively differentiates your firm.
- Post it on social media to drive more attention to your firm and your website.
- Include it in email to engage those on your drip email lists.
Investing once in the video will yield a tool that you can use across all these platforms.
Doing It Right
All of these reasons provide compelling evidence on why you should consider creating a whiteboard video. However, as usual, there are a few caveats.
There are many talented scriptwriters and animators out there, without a doubt. However, not everyone understands the unique mindset of today’s investor. For the most effective financial advisor video, your best bet is to work with a team that specifically understands the fears and concerns of your prospective clients. A video that addresses those concerns will help differentiate your firm most effectively.
And, whoever you hire, be sure stay involved. Provide feedback through every step of the process so you can be sure you end up with a result you’ll love!