Explainer Videos for SaaS: Why Your Software Needs One Now

Let’s be honest—software can be confusing. You’ve built a powerful SaaS product that solves real problems, but unless people get it in under a minute, they’re probably bouncing off your landing page. That’s exactly where explainer videos come in. These short, sharp, and engaging videos are more than just marketing fluff—they’re one of the most powerful tools to boost conversions, clarify value, and build trust with potential users.

If you’re running a SaaS business, chances are you’re juggling onboarding flows, feature releases, customer support tickets, and paid ads. But if there’s one marketing asset that quietly works for you 24/7, it’s an explainer video. In just 60–90 seconds, it tells your story, shows your product in action, and emotionally connects with your audience.

Here’s why explainer videos have become non-negotiable for SaaS startups and scaleups alike:

  • Faster understanding: Visuals + narration break down complex features quickly.
  • Increased conversions: Studies show landing pages with explainer videos can boost conversions by 20–80%.
  • Stronger brand recall: Animations and storytelling help viewers remember your product better.
  • SEO and engagement: Videos improve on-page time and click-through rates.

And it’s not just startups. Industry leaders like Slack, Dropbox, and HubSpot all launched with legendary explainer videos that became a key part of their growth.

Let’s dive into the types, benefits, pricing, and common questions around SaaS explainer videos—and help you decide the best way to add one to your marketing toolkit.

Feature Breakdown: Types of Explainer Videos for SaaS and Their Benefits

There’s no one-size-fits-all when it comes to explainer videos. Depending on your goals, audience, and budget, the style and format can vary. Here’s a comparison of the most popular explainer video types used in SaaS:

Video Type Best For Pros Cons Average Cost
Animated (2D/3D) New product launches, abstract services Visually engaging, customizable, great for storytelling Time-intensive, less personal $2,000–$8,000
Live-Action Human-focused tools, team culture, onboarding Builds trust, adds personality, great for founder storytelling Can look outdated fast, limited editability $3,000–$15,000
Screen Recordings Demos, tutorials, UI-focused platforms Low-cost, practical, direct demo value Less engaging, limited branding $500–$2,000
Whiteboard Style Educational, simple how-it-works walkthroughs Clear structure, viewer-friendly, budget-friendly Outdated in some industries $1,000–$4,000
Motion Graphics Data-heavy products, technical explanations Highly professional, data visualization, excellent polish Expensive and needs expert execution $3,000–$10,000+
Hybrid Combining screen capture + animation/live-action Shows real product and branding, flexible storytelling Requires more coordination $4,000–$12,000+

Key Takeaways:

  • Animated videos are ideal for SaaS startups trying to explain big ideas simply.
  • Live-action works well for trust-building and culture-focused messaging.
  • Screen recordings are perfect for onboarding and help center content.
  • Motion graphics elevate your brand and are great for investor decks or B2B audiences.

Need a pitch that sticks? Use a hybrid style: show your software in action with animation overlays and a voiceover. It’s modern, functional, and conversion-optimized.

Top Benefits of Using Explainer Videos for SaaS Products

Explainer videos aren’t just flashy—they’re functional, and they solve real problems SaaS companies face during the marketing and sales journey. Here’s how they help across different stages:

Clarifies Your Value Proposition Instantly

People don’t read websites—they skim. An explainer video captures attention and delivers your pitch within the first few seconds. Think of it as your elevator pitch on auto play.

Boosts Landing Page Conversion Rates

Adding a well-placed video to your homepage or product page can significantly increase sign-ups, especially if your product is complex or unfamiliar.

Real-World Example: Dropbox’s original explainer video helped them grow from 0 to 100,000 users in under a year—without spending heavily on ads.

Supports Sales and Outreach

Sales teams can embed explainer videos in cold outreach or follow-up emails. It’s a non-pushy way to warm up prospects and show what your product does in under a minute.

Improves Onboarding and Reduces Churn

You can use explainer videos to walk users through key features or common workflows. This improves first-time user experience and lowers drop-off rates.

Builds Brand Personality

Whether it’s quirky, professional, minimalist, or bold—your explainer video sets the tone. The animation style, voiceover, and scripting all reflect your brand identity.

SEO and Social Sharing Boost

YouTube is the world’s second-largest search engine. A well-optimized explainer video can drive traffic through search and get shared across platforms like LinkedIn and X (Twitter).

Frequently Asked Questions About Explainer Videos for SaaS

How long should a SaaS explainer video be?

The sweet spot is between 60–90 seconds. You want to explain the core idea quickly, then direct users to learn more on your website or through a demo.

What should a SaaS explainer video include?

A strong SaaS explainer video usually follows this format:

  • The problem your audience faces
  • Your solution (the software)
  • How it works (brief demo or visual walkthrough)
  • Why it’s better/different
  • A call-to-action (CTA)

Do I need a script before contacting a video agency?

Not necessarily. Many agencies offer scripting as part of the package, but having a rough idea of your message or unique selling points helps speed up the process.

Can I make an explainer video myself?

Yes—tools like Loom, Camtasia, Powtoon, or Veed.io let you create DIY videos. However, for brand-level polish and conversions, hiring pros is usually worth the investment.

What’s the ROI of explainer videos for SaaS?

Explainer videos often lead to higher sign-up rates, better ad performance, and more engaged users. Many SaaS brands report a 2–3x return within months, especially when the video is used across email, social, and website.

How often should I update my explainer video?

Every 12–24 months—or sooner if you’ve made major changes to your product UI, features, or positioning.

Conclusion: Why Every SaaS Needs an Explainer Video Now

Explainer videos are no longer a “nice to have” for SaaS companies—they’re essential. With shrinking attention spans and rising competition, you need to make a memorable first impression that simplifies your product and wins trust instantly.

Whether you’re an early-stage startup or a scaling SaaS business, a great explainer video can:

  • Distill your complex software into an emotional, easy-to-digest message
  • Drive better engagement on your website and social media
  • Support both marketing and sales outreach with a reusable asset

Think of it as the best salesperson you’ll ever hire—it doesn’t sleep, complain, or need commissions. It just works.

So if you haven’t invested in one yet, now’s the time. Define your goals, choose the right video type, and bring your SaaS story to life in a way your users will remember—and act on.

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