Next-Gen Video Increases Customer Conversion and Retention by 3.5x

78% of customers want companies to utilize video more, but brands aren't meeting their needs, according to a recent research of 2,510 individuals in the US and the UK.

The demand for next-generation video, such as customized, interactive, and AI-generated movies, is quite strong, according to the fourth annual State of Video Technology study, which was just issued. Younger, wealthier, and tech-first customers are most likely to favor next-generation videos.

Video isn't being used by brands in consumer communications nearly enough. More than four out of ten consumers say they never receive videos from firms they do business with, and almost eight out of ten consumers want more videos.

This demonstrates a glaring video gap that marketers must close in order to satisfy customers. Loyalty is fueled by personalized video. Personalized videos are 3.5 times more likely to convert someone into or keep a customer and 4 times more likely to make them feel appreciated by a company than they were in previous years.

When brands fail to personalize, consumers penalize them. A significant 44% of all customers say that generic messages make them angry. For Gen Z, this rises to 51%, and 80% of them also want future communications to be more tailored to them.

Customers like AI films from firms that make their lives easier. Instead of the actual document, they are twice as likely to desire an AI-generated movie. Video innovation is demanded by Gen Z, high earners, and digital-first customers. The customers who are most interested in next-generation video are younger, wealthier, and more tech-savvy. With an astounding 93% desire for interactive and customized videos from marketers, Gen Z is at the forefront of this trend. Digital-first customers (85%–86%) and high incomes (86–88%) follow closely behind.