Retailers that incorporate product videos on their websites report higher average order values (AOV) and conversion rates according to a study of Liveclicker’s customers using its VideoCommerce product which provides media library management, video distribution and analytics for e-commerce firms.
In fact, the report which examined 44 video programs and more than 12.5 million quarterly video plays from clients like Best Buy, Petco, and Bed Bath and Beyond revealed that almost 60% of retailers surveyed saw their average order value increase by at least 50% for customers who watched a video on a product page.
Other highlights of the report include:
- The AOV for retailers with video embedded on 50-75% of their product pages was around $300, compared to $177 for those with video on only 0-25 percent of product pages.
- Retailers that uploaded video to most of their product pages reported that conversion rates were nearly 80% higher than those of retailers with product videos on less than 25% of their landing pages.
- Retailers with videos on 25-50% of product pages reported 31% more conversions.
- Retailers that include videos on their product landing pages saw a sales conversion rate of around 9%.
- Customers who watched 10 or more videos spent 119% more than customers who watched just one video.
As for why video is such a powerful tool, the report explained, “it builds trust through the power of storytelling.”
In addition to storytelling, video helps shoppers feel more confident about their purchasing decisions. In a testimonial for VideoCommerce, Robb Walters, Director of E-commerce for Costco said, “Shoppers better understand our products, and can make informed and confident purchasing decisions resulting in an increase in sales.”
Bottom line: If an image is worth a thousand words, a video is worth a million. What video can communicate to a viewer extends wider and deeper than anything text or images can convey on their own. Video incorporates the elements of motion, sound and story. The result? A richer experience that allows for more control over how a product is perceived, greater consumer education and trust, and higher AOV and conversion rates for retailers.
Download the full report here.
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