If you work in SaaS, you already know how powerful video can be in simplifying complex ideas and driving conversions. But when it comes to explainer videos vs. demo videos, which actually performs better?
The truth is, both have a place in your SaaS marketing strategy, but understanding when and how to use them makes all the difference.
At Brickoven Media, we specialise in SaaS video production, helping software brands communicate their value clearly and convert more users. Here’s how to choose the right video for your goals.
What’s the Difference Between Explainer and Demo Videos?
Explainer Videos
Explainer videos are short, engaging overviews that introduce your product, concept, or service. They’re designed to grab attention quickly and simplify your message so anyone, technical or not, can understand it.
They typically:
- Focus on the problem and your solution
- Use animation, voiceover, or motion graphics
- Sit at the top of the funnel, sparking curiosity and awareness
For example, Dropbox’s original explainer video helped the company grow from 0 to 100,000 users in a single day (source). That’s the power of a clear, concise story.
Demo Videos
A demo video goes deeper – it shows your product in action. These are often screen recordings or walkthroughs that highlight features, functionality, and real-world benefits.
They typically:
- Focus on how the product works
- Use real footage or UI walkthroughs
- Sit in the middle to bottom of the funnel, nurturing leads and encouraging sign-ups
Demo videos are perfect for prospects who already know your brand and want to see how it can fit into their workflow.
When to Use Each in the SaaS Sales Funnel
The key is knowing where each video type fits in your customer journey.
| Funnel Stage | Best Video Type | Purpose |
|---|---|---|
| Awareness | Explainer Video | Introduce your product and problem-solution fit |
| Consideration | Demo Video | Showcase functionality and build trust |
| Decision | Demo Video + Testimonials | Convert interest into action |
Many successful SaaS companies use both – starting with an explainer to attract interest, then following up with a demo to drive sign-ups or free trials.
Pros and Cons of Each Format
Explainer Videos
Pros:
Quick and engaging
Great for brand awareness and simplifying complex ideas
Ideal for paid ads and landing pages
Cons:
Doesn’t show the full functionality
May feel too high-level for prospects ready to buy
Demo Videos
Pros:
Builds confidence in your product’s value
Encourages conversions and sign-ups
Excellent for nurturing leads and onboarding
Cons:
Can be too detailed for first-time viewers
Requires high-quality production to maintain interest
Real-World Examples and Engagement Data
According to a recent HubSpot study, 94% of marketers say video helps users understand their product better, and 87% report a direct increase in sales as a result.
SaaS brands like Slack, Asana, and Notion use explainer videos to simplify their core message, while their demo videos focus on showing real collaboration features in action.
Combining both formats – introducing with an explainer, then closing with a demo – is one of the most effective ways to move prospects from awareness to conversion.
Tips for Combining Explainer and Demo Videos
- Start broad, then narrow: Use explainers to introduce your product, then demos to deepen understanding.
- Maintain consistent branding: Align the look, tone, and messaging across both video types.
- Add a clear CTA: End both with a strong call to action, such as “Start your free trial” or “Book a demo.”
- Use data-driven insights: Track watch times, engagement rates, and conversion metrics to refine your strategy.
If you want to explore more about producing high-performing SaaS videos, our SaaS Video Production services are tailored to help software companies explain, engage, and convert.
Final Thoughts
There’s no one-size-fits-all answer to the explainer vs. demo debate – it depends on your goals, audience, and funnel stage. But when used strategically together, they can clarify your value, reduce churn, and accelerate growth.
Want to find out which video strategy suits your SaaS brand best?
Book a chat with Brickoven Media to start planning your next campaign.