Have you ever heard the story of Dropbox before? If you haven’t, then brace on because you are about to hear a story that is likely going to change your life, transform your business and change your mindset towards how you strategize and do your marketing.
Today, Dropbox is rated among some of the world’s greatest startups and largest companies offering cloud storage solutions to customers around the world. In fact, the company is even giving seasoned brands like Microsoft with its Onedrive and Google with its Google drive a run for its money when it comes to market control.
Now, before you go on to assume that Dropbox is an old company that had a lot of startup capital at its disposal, I will start by letting you in on the fact that the company is only 10 years old as it was founded by Drew Houston and Arash Ferdowsi back in 2007. 9 years later, in 2016, the company had over half a billion customers.
I know, I could talk about the history of Dropbox but its just cliché. If you are familiar with the typical Silicon Valley stories of two dudes being annoyed by a problem and then renting a garage to find a fix to the problem and just like that, they become billionaires, then you’ll probably familiarize with the story of Drew and Arash.
One thing I’m concerned and want to talk about however, is how a company that was basically unknown in 2006, is now one of the world’s largest largest providers of cloud storage solutions and undoubtedly, one of the world’s hottest startups. I could write only two words to describe the success of Dropbox and forget about everything else. What are the two words you may ask? Explainer videos
Yes, explainer videos!
Startups like Dropbox, Crazy egg, Uber and a lot others attribute their success to explainer videos that were custom created to describe their product or service to their customer in an unsophisticated and simple way.
To explain this, I will try to walk you through the history behind Dropbox and their famous explainer video that generated enough buzz to increase their client database by over 1000% in 6 months, it was just amazing. As if that’s not enough, to date, according to Dropbox the video has above 30 million views and is viewed by at least 30 thousand people each and every day.
But it wasn’t only the explainer video that did the magic for Dropbox. If you go through their website, it won’t very difficult for you to see the simple design that comes with the website. Their homepage ever since year one, has only featured their MVP video and a call to action button on the bottom prompting visitors to register. No wonder why they have such impressive conversion rates.
However, before Dropbox had the video made, according to the CEO, Drew Houston, they started by investing a considerable amount of money into Google AdWords. It wasn’t long before they found out that that they were spending between $200-400 per each customer acquired. This amount didn’t make sense at all considering that the product they were selling was priced at $99. This in turn means that they were making a loss of over $200 per each sale. These numbers are incredibly bad for any business.
After noticing these poor stats, they had to switch to a referral campaign were users would get extra space for sharing their service to friends. The campaign worked wonders as at one point Dropbox had 2.8 million startups in a single month.
When they noticed that the viral campaign was a success, that’s when they decided to explore further options and landed on the explainer video. Before I go on, I know I had mentioned other companies such as Crazy egg at the beginning of this article. Crazy egg’s experience was more similar to that of Dropbox the only difference being the fact that Crazy egg went the SEO route instead of investing in AdWords and it was a wise decision on the part of the Founders.
You might be already asking how the two companies benefitted from the videos and why they were so successful. Here are some of the ways in which the companies benefitted from the videos and why.
- Forrester research institute released an interesting statistic back in 2009 that said a single minute of a well-produced explainer video is worth a million words. Think about that for a moment, 1.8 million. Is there anything that can compare to it? This is one of the secrets why the Dropbox and Crazy Egg explainer videos were so successful. Even though they were simple videos, they were equivalent to over 2 million words describing a single product.
- Another reason why the videos worked wonders was because they went a long way in i9ncreasing the conversions of the two companies. They were so convincing in selling the product to the customers such that the customers couldn’t even resist the possibility of enjoying the benefits they would enjoy from using the products that were being offered by the two companies.
Takeaways from the Videos
Here are some of the lessons you can take from the success of Dropbox and Crazy egg from the successful explainer video campaigns.
- Animation will always be better than live action. Perfect explainer videos are those that are animated. Standing in front of your camera and explaining how your product works just won’t cut it. You need to work with a company that specializes in making explainer videos that convert and Motioncue is one such company.
- Invest in making a great video. It is estimated that Dropbox invested around $50 000 into getting their video made. Yes, it can seem like it was a pinch to their pocket but considering the fact that the video bought in a return of $10 million, it’s clear that Dropbox got an impressive Return on Investment.
- Keep it simple. A minute of an explainer video is already worth a million words. Try to keep it short, attractive and sweet and you will see your sales skyrocket.
Lastly, if you are convinced that an explainer video will work wonders for your business, then you need to get in touch with Motioncue to see what we can offer you.