Why Every SaaS Company Needs an Explainer Video

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SaaS Company products are powerful. But let’s be honest they’re also often complicated. You may have a groundbreaking app or platform that solves real problems, but if potential users don’t understand what it does within the first 60 seconds, you’ve already lost them.

That’s where explainer videos come in.

From simplifying complex software to sparking emotional connections and increasing signups, explainer videos have become an essential tool for every SaaS Company toolkit. If you’re not using one yet or not using it effectively you’re missing out on one of the most high-impact, cost-effective ways to communicate your value.

In this post, we’ll explore exactly why every SaaS company needs an explainer video, and how the right video can drive conversions, engagement, and long-term brand success.

What is an Explainer Video?

Let’s start with a quick definition.

An explainer video is a short, engaging video typically 60 to 90 seconds long that clearly explains:

  • What your SaaS product does
  • Who it’s for
  • Why it matters
  • How it works

These videos are usually animated or motion graphic–based, combining visuals, narration, and music to tell a concise story that speaks directly to your ideal customer.

The SaaS Company Biggest Challenge: Complexity

SaaS products often involve technical features, APIs, dashboards, workflows, and integrations that aren’t always easy to grasp through text or static images. Whether it’s a CRM platform, AI-powered analytics tool, or project management system, your users don’t have the time (or patience) to read whitepapers or scroll through multiple product pages.

Enter Explainer Videos.

They take complex concepts and translate them into bite-sized, visual narratives that anyone can understand — in just one or two minutes.

Explainer videos act as your 24/7 sales team, delivering your elevator pitch over and over again in a way that’s clear, compelling, and consistent.

Why Every SaaS Company Needs an Explainer Video

Here are the top reasons why explainer videos are critical for SaaS brands:

1. They Boost Conversion Rates

One of the biggest reasons SaaS companies invest in explainer videos is simple: they work.

Landing pages that include video can increase conversions by up to 80%. And it’s not just about looks — it’s about communication. A well-crafted explainer video quickly answers a visitor’s most important questions:

  • “What is this product?”
  • “How does it help me?”
  • “Why should I trust it?”

When you answer those questions in the first 60 seconds, you reduce bounce rates and increase demo bookings, trial signups, and purchases.

2. They Build Trust and Credibility

In a market flooded with tools, users are skeptical and rightly so. A good explainer video introduces your company with clarity and confidence. It shows that you understand your users’ problems and have built a product to solve them.

When viewers can see how your platform works and how it fits into their lives or workflows, trust starts to build. That emotional clarity often drives users to take the next step.

3. They Simplify Complex Features

Most SaaS platforms don’t just have one feature they have dozens. Trying to explain them all with bullet points or documentation can overwhelm users.

Explainer videos take the most important features and show them in action. Through clean visuals and storytelling, users experience the value of your software, not just read about it.

This is especially useful for:

  • New software launches
  • Rebranding efforts
  • Complex B2B tools with multiple use cases

4. They Improve Retention and Onboarding

The benefits don’t stop at sales. Explainer videos are also a huge asset for customer success.

Once someone signs up, a quick explainer video can:

  • Shorten the learning curve
  • Reduce support tickets
  • Help users activate and engage faster

When users understand how to use your product right away, they’re more likely to stick around.

5. They Increase Time on Site and SEO Rankings

Google loves video. Adding a video to your homepage or product page increases dwell time, which tells search engines your site is valuable.

Plus, YouTube is the second largest search engine in the world. Hosting your explainer there (with proper keywords) helps new prospects discover your brand organically.

6. They’re Versatile and Multi-Channel

One of the best parts about explainer videos? Once you have one, you can use it everywhere:

  • Website homepage
  • Product landing pages
  • Social media ads
  • Email campaigns
  • Sales pitches
  • Investor decks
  • App onboarding flows

It’s a single piece of content that pays for itself across every department.

7. They Set You Apart From Competitors

Chances are, your competitors have similar features. What sets you apart is how you tell your story.

An explainer video lets you:

  • Showcase your brand personality
  • Highlight your unique approach
  • Position yourself as the smarter, more user-friendly solution

It’s a visual differentiator that helps you own your space.

What Makes a Great Explainer Video?

Not all explainer videos are created equal. The best ones are:

1. Short and Focused

Keep it under 90 seconds. That’s the sweet spot for attention and retention.

2. Scripted With Clarity

The script is everything. It should speak directly to your audience’s pain points, walk them through your solution, and end with a clear call to action.

3. Visually Cohesive with Your Brand

The animation style, color palette, tone, and voiceover should all match your brand identity.

4. Value-Driven

Don’t waste time listing features. Focus on benefits how your software makes life easier, faster, or more profitable.

5. Narrated by a Human Voice

A real voiceover (not robotic) adds warmth, professionalism, and clarity to your message.

Types of Explainer Videos That Work for SaaS Company

Here are some common styles that SaaS companies use:

1. 2D Animated Videos

Clean, modern, and highly flexible. Great for startups and mid-size SaaS brands.

2. Motion Graphics

Ideal for visualizing dashboards, data flows, and B2B tools.

3. Whiteboard Animation

Simple and effective for educational or training content.

4. Live-Action with Screen Overlays

Combine real people with animated UI to show real-world usage.

5. Hybrid Animation

Mix styles to create a dynamic, unique feel.

Real-World Examples of SaaS Explainer Videos

Slack

Slack’s original explainer video helped millions understand team messaging. It used humor, clean animation, and clear benefits to break through the noise.

HubSpot

HubSpot’s animated videos help explain complex CRM tools in a way that’s friendly and digestible.

Monday.com

Their animated explainer videos show exactly how teams can use the platform for project management, using everyday scenarios and animated UIs.

Getting Started: What You Need for a SaaS Explainer Video

Here’s a quick checklist if you’re planning to create your first (or next) explainer video:

✅ Clear script (problem → solution → benefits → CTA)
✅ Defined target audience and tone
✅ Professional animation team or tool
✅ Strong voiceover and background music
✅ Consistent branding and visuals
✅ A/B testing for different versions if using in ads

Final Thoughts: It’s Time to Make Your Product Click

In the SaaS world, clarity is currency. If your potential users can’t quickly grasp what you do, they’ll move on to the next option even if yours is the better product.

Explainer videos remove that friction.

They make your message impossible to miss, your brand more memorable, and your conversions measurably better.

Whether you’re in B2B or B2C, offering freemium models or enterprise solutions, an explainer video isn’t just a nice-to-have it’s a must-have.

So if you haven’t already, now is the time to invest in an animated explainer video that brings your SaaS product to life and your marketing strategy to the next level.

Need help getting started?

Talk to a video strategist!