I have sat through countless kickoff meetings where terms are crossed. A founder will ask for a "product demo" for their homepage to hook cold traffic. This is a mistake.
Distinguishing between a SaaS product demo and an explainer video is about budget efficiency and conversion optimization. This distinction is crucial for your SaaS video marketing strategy.
The Explainer Video: The "Why" (Movie Trailer)
The Explainer lives at the Top of the Funnel (TOFU). Its primary job is to bridge the gap between "I have a problem" and "This company might solve it." Learn how to create the perfect explainer video.
- Goal: Sell the Vision and Outcome.
- Audience: Cold Traffic.
- Style: High Polish, Abstracted UI, Motion Graphics.
The Product Demo: The "How" (Director's Cut)
The Demo lives at the Middle or Bottom of the Funnel (MOFU/BOFU). It provides "Proof of Concept."
- Goal: Prove the Workflow. Remove friction and doubt.
- Audience: Warm Leads and Free Trial Users.
- Style: Clean Realism. We use screen recordings but smooth the mouse, zoom in, and speed up loading times.
Comparison Matrix
Explainer: 60-90s long | Emotional Connection | Metric: Views/Time on Page
Product Demo: 2-5 min long | Technical Proof | Metric: Free Trial Signups
The choice between 2D and 3D animation also affects which asset type works better for your brand.
Best Practices for Onboarding Videos
This is a third category. Once the user buys, you need to retain them.
- Keep it Granular: Small, searchable chunks (e.g., "How to Reset Password").
- Focus on "Aha!" Moment: Guide them to their first win.
For product launches, you'll typically need both an explainer and a demo in your video arsenal. Also consider your budget when planning these assets.
Related Articles
Need the right asset?
Whether you need the cinematic flair of a 3D explainer or the surgical precision of a product walkthrough, we execute both.