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Product Demo Videos for SaaS: Driving User Onboarding & Retention

Saas Animated Videos

SaaS companies often grapple with tricky onboarding and under-used features. An engaging SaaS explainer video or software demo video can help. In fact, research shows 96% of marketers agree that video boosts users’ understanding of a product. HubSpot notes that adding video to a landing page can lift conversions by as much as 86%. With such power, a crisp animated demo becomes the bridge between complex software and happy users. By simplifying feature sets and guiding new customers step-by-step, a product video production accelerates onboarding and cuts support tickets. For example, one survey found 30% of top landing pages use video – often with dramatic results. At MoovieMakers (see our services page), we create animated demo videos tailored to SaaS platforms, helping UK businesses explain what they do in clear, friendly terms.

Why Video Matters for SaaS Onboarding and Retention

SaaS products can be powerful but complex. A written manual or text-heavy guide often overwhelms users. Video speaks directly to viewers – audio and animation combine to make messages stick. Studies show viewers retain about 95% of a message when it’s delivered in a video (versus only 10% from text). That means a user onboarding video can turn confusion into clarity almost instantly. Instead of forcing users to read walls of instructions, a short explainer video demonstrates key features visually.

An animated software demo video brings code and features to life, helping users grasp complex SaaS functionality.

For example, consider a platform with many hidden features. Without guidance, users might never discover them. A concise demo video highlights those functions in context, prompting users to explore. G2 reports that 98% of people will watch a video explaining a product or service, and 51% of consumers rely on product videos to make purchase decisions. In practice, that means showing just one key feature per video can pay dividends. New users learn faster, and teams see fewer queries.

Key SaaS challenges – and how video helps:

  • Poor Onboarding: Customers often abandon unwelcoming apps. A friendly onboarding video can walk them through the first steps. By mastering the platform’s basics early, new users feel confident. Onboarding videos help new users “master your platform faster”, which directly reduces churn.
  • Underused Features: Hidden or complex features go unnoticed in text guides. A product demo video brings them into the open. Animation and narration can spotlight one problem at a time. As MoovieMakers’ own research notes, explainer videos clarify even abstract ideas so “the light bulb goes off” for viewers.
  • High Churn: When users are confused, they leave. Video builds trust and understanding. People remember visual stories far better than text. By answering questions on screen, a demo video reassures users and keeps them engaged. For example, one client reported their onboarding video halved support tickets (see below), meaning users were settling issues on their own after watching.

Measurable Impact on SaaS Metrics

The benefits of using video are not just anecdotes – they show up in the data. Studies and case reports highlight big wins for metrics that matter:

  • Faster Support, Fewer Tickets: Animated tutorials answer common questions before they become help desk tickets. One SaaS team noted, “The onboarding video reduced support tickets by 50%!”. By visually troubleshooting the product, videos prevent confusion and lighten the load on support teams.
  • Higher Conversion Rates: Video is a proven sales tool. HubSpot finds that embedding a relevant video on a landing page can increase conversions by up to 86%. In real terms, clients often see big lifts: one founder reported their explainer video “gave our SaaS product the clarity it needed” and immediately boosted conversions by 40%. More generally, a video-based call to action can guide undecided prospects to sign up. G2 data shows that videos improve conversion rates by up to 80%.
  • Better Retention (Lower Churn): Engaged customers stick around. A compelling demo video keeps people engaged longer – short, animated content retains 50% of viewers for the full length if it’s under 90 seconds. In practice, onboarding videos help new users become power users. As one industry page puts it, onboarding videos let “new users master your platform faster,” which directly lowers churn. For example, Strypes (an industrial software firm) used an animated demo to show how its tool cuts downtime. The video “effectively demonstrates the value proposition,” and the firm “successfully achieved” a lower churn rate with it.
  • More Educated Buyers: Today’s customers often research products before buying. According to G2, 98% of viewers will watch an explainer video for a product or service, and over half rely on product videos to make decisions. This educated audience converts more readily. By preemptively answering questions in video form, SaaS businesses turn skepticism into trust. A study from Wyzowl even found 72% of customers trust a brand more after watching video content, showing how clear storytelling builds confidence.

Real-World Success Stories

These benefits are not just theory – plenty of companies report real success after using animated demo videos. For instance, Dasseti, a UK fintech SaaS, worked with MoovieMakers to create slick demo videos. Fiona Sherwood, CMO at Dasseti, says MoovieMakers “can take a software demo recording and translate it into a slick marketing video really quickly, and with little direction or input from us. This is invaluable for a small and nimble marketing team like ours.” In other words, Dasseti’s team got high-quality product videos with minimal fuss, freeing them to focus on other tasks while still improving user onboarding.

Dasseti’s dashboard overview, report builder demo, feature highlight, and compliance walkthrough each help reinforce specific use cases.

Another example is PACT Global, an HR tech firm. Their CEO Mark Seddon praised MoovieMakers for being “responsive, and very quick delivery, but keeping the quality high” across four different projects. The result: engaging demo and training videos that helped PACT’s software stand out, without any drop in creative quality.

Outside MoovieMakers’ client list, other SaaS cases underline the impact of demos. Strypes, mentioned above, cut churn with a video-focused explanation. ABLOY (a rental management platform) used an animated demo to “reduce churn by showing how the solution can improve customer experience.” The video clearly walked viewers through benefits, creating a memorable story and driving conversion. Even household-name SaaS companies use video – Vidico notes that Airtable and Semrush rely on detailed explainer videos to drive trials and clarity.

One of my personal favourite Mooviemakers creations was for 99rated, who offer a platform built to simplify team management and put player development at the center.

HubSpot itself sets an example: about 30% of the company’s top-performing landing pages include video. In short, whether it’s a finance app, an ecommerce tool, or productivity software, effective product video marketing is proven to pay off. Our examples page shows how various brands have implemented these ideas.

Tips for Creating Effective SaaS Demo Videos

If you’re convinced that video is the way forward, how do you make one that actually works? Here are some practical tips:

  • Keep it concise: Attention spans are short. Aim for about 1–2 minutes. Industry data shows videos 90 seconds or shorter retain roughly half the viewers.
  • Focus on the user’s problem: Each video should solve a specific pain point or highlight a key feature. For example, a user onboarding video might show “how to set up your first project” in under a minute. Avoid just listing features; instead, frame each feature as a solution to something the user cares about.
  • Use a friendly, human tone: Speak as if you were talking to a colleague. Avoid jargon. A warm voiceover or on-screen guide character can make the demo feel personable. Surveys find 63% of consumers value authenticity in marketing videos – so be genuine rather than overly “salesy.”
  • Show the real interface: Whenever possible, incorporate actual screenshots or recordings of the software UI. Alternatively, use simple animations of the interface. This builds familiarity. MoovieMakers’ app demo videos often blend screen captures with custom 2D animation to highlight exactly how the product works.
  • Plan the visual story: Use storyboards or style frames to ensure a clear flow. The video should have a logical beginning (the problem), middle (the solution steps), and end (the result or call-to-action). A well-planned structure makes editing easier and the message more memorable.
  • Add captions and clear graphics: Many users watch without sound, especially on mobile. Include concise on-screen text or captions summarising key points. Use clean visuals and your brand colours to make the video recognisable and aligned with your style.

By following these principles, a SaaS video can deliver both in style and strategy. Keep the mood upbeat and helpful – after all, the goal is to help users. If you do that well, customers will stay longer and stick around.

Getting Started with MoovieMakers

Creating an animated software demo or onboarding video may sound complex, but it doesn’t have to be. MoovieMakers is a UK-based video production studio (between Manchester and Liverpool) specialising in exactly this kind of content. We offer custom product video production services, with packages like an “App & Platform Demo Video” starting at just £995/min, specifically aimed at SaaS products. Our process covers everything from scripting to voiceover to animation, so you end up with a polished video ready to use on your website, in emails or social media.

Ready to see more? Check out our examples page for sample projects, or review our transparent pricing to find the right fit. We’re always happy to chat through your goals – after all, our clients tell us we offer personal service and clear communication. The bottom line: great animated demo videos can turn new signups into power users, slash support costs, and keep customers coming back. It’s a small investment with huge payoffs for any SaaS business’s onboarding and retention strategy.

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