Dixie
Feb 20, 2026
Many SaaS founders use the terms explainer video and product demo video interchangeably — but they solve very different problems.
Choosing the wrong one often leads to:
confused users
poor onboarding
low activation rates
wasted marketing spend
Both formats are useful — but at different stages of your product journey.
This guide breaks down the difference and helps you decide which one actually drives results for your SaaS.
What Is an Explainer Video?
An explainer video focuses on the problem and the idea behind your product.
It usually:
introduces the concept
explains the value proposition
tells a story around the pain point
avoids deep feature details
Think of it as answering:
Why should this product exist?
Explainer videos are commonly used for:
early-stage startups
pitch decks
homepage hero sections
awareness campaigns
They create interest — not deep understanding.
What Is a Product Demo Video?
A product demo video shows how the product actually works.
Instead of storytelling, it focuses on clarity:
real interface walkthrough
feature explanations
user flow
outcomes inside the product
It answers:
How does this product help me right now?
Product demo videos are used for:
landing pages
onboarding
sales conversations
trial activation
feature launches
While explainers build curiosity, demos build confidence.
Key Differences
Explainer Video | Product Demo Video |
Focus on concept | Focus on real usage |
Story-driven | Clarity-driven |
Awareness stage | Decision & onboarding stage |
Emotional engagement | Functional understanding |
Good for marketing | Good for conversion |
When Should SaaS Companies Use Each?
Use an Explainer Video when:
You are pre-launch
Your idea is new or unfamiliar
You need investor interest
You’re introducing the category
Use a Product Demo Video when:
Users don’t understand features
Trials aren’t converting
Onboarding feels confusing
Sales calls repeat the same walkthrough
You’re scaling marketing
Most funded SaaS companies quickly reach the stage where clarity matters more than storytelling.
Which One Converts Better?
Both formats help — but they affect different metrics.
Explainer videos improve:
awareness
ad engagement
initial interest
Product demo videos improve:
activation
onboarding success
trial-to-paid conversion
retention
Once users already know the problem they have, they don’t need inspiration — they need understanding.
That’s why many SaaS teams shift from explainers to structured demo videos as soon as they start growing.
Common Mistakes Founders Make
1. Using an explainer when users need feature clarity
Visitors land on the site ready to evaluate — but only get a story.
2. Recording a raw screen recording
Loom walkthroughs often overload viewers and lack structure.
3. Showing every feature
More information rarely increases understanding.
4. Skipping narrative flow
Even demo videos need guidance — not just clicking around.
How to Decide Quickly
Ask one question:
Are users confused about the idea or the product?
If confused about the idea → explainer
If confused about usage → demo
Most growing SaaS products struggle with the second.
Final Thoughts
Explainer videos introduce your product.
Product demo videos help people adopt it.
At early stages, storytelling creates interest.
At growth stages, clarity creates revenue.
