Product demonstrations (demos) are a key component in the sales process that let leads see your product in action. They require lead qualification, formal invites, an organized agenda, and a focus on your product’s value and uses to be effective. By doing so, demos build trust in your brand and your business’ expertise. In this article, we show you how to give a product demo (with example scripts) and suggest tools to help you get the most value out of your demos.
What is a product demo and why does it matter?
A product demo is a presentation of a tangible product or software application and is typically presented live, either in-person or via video conferencing, or through a prerecorded video. For businesses like software as a service (SaaS) companies and office equipment retailers, product demos are a crucial stage in their sales pipeline. Demos could make the difference between winning and losing a deal, so there should be extensive sales training for reps in this area.
Now that you know the definition and importance of a product demo, you can begin filling your pipeline with leads and guiding them toward this stage. Follow these nine steps on how to give product demos that sell.
1. Qualify the Lead
Before inviting a lead to a product demo, make sure this potential customer is a good fit for what you’re selling. As part of the lead qualification process, ask extensive questions during your introduction calls or through email exchanges to understand their situation and purchase timing. This helps ensure you aren’t wasting time presenting demonstrations to buyers who don’t have a need (or budget) for your products.
Pre-demo questions also help you gear your demonstration to things that matter to your leads. To best understand their needs and priorities, you can refer to these example questions below as a guide to uncover important information before a product demo:
- What is your budget for this type of solution?
- Are you the primary decision-maker for this solution, or should other people be involved in the buying process?
- What specific problems are you looking to solve?
- Are there specific features or product attributes you want to get out of this solution?
- When would you like to implement this solution?
If any answers to these questions don’t fit your pricing, product or brand attributes, or ideal timeline, consider not moving forward with the demo.
2. Send Detailed Demo Meeting Invitations
Once the lead has agreed to allow you to present your product and you’re confident they are a solid fit, the second step in learning how to do a demo is to send out the invitations. It’s essential to have anyone involved in the buying decision present at the meeting. You should have found this information when asking about “other decision-makers” or “other people involved” during step one.
In addition to the actual invite (that’s likely a Zoom or other video conferencing call), you should include an email message acknowledging your appreciation for them taking the time and showing interest in a demo. Additionally, include directions required to get on the call and a brief description of what will take place.
Below is an example template to construct this email:
Email Template
Subject: Our Demo Call Next Thursday
Hi [lead name],
Thank you for agreeing to a product demonstration. While you may or may not be the sole decision-maker for a purchasing decision, please feel free to invite any other members of your business to the presentation.
Below are the instructions for logging into the meeting:
[Include meeting instructions, links, and any other relevant details.]
Per the information you’ve provided, the product demonstration will focus on [aspects of the product you want to show and addresses the lead’s pain points]. Please let me know if you have any questions prior to our meeting.
I look forward to speaking with you soon!
Thanks,
If you are meeting with them in person at their office, rather than include instructions to your meeting, ask if there’s any information they need to know about parking, entering, security, and so on. If you are hosting the in-person meeting, your instructions should include basic directions to your office building and additional details they will need to know once they arrived.
Pro tip: Scheduling a product demo can be a breeze using scheduling automation tools like Calendly. This software lets you configure a system based on your needs and around your schedule. Users can also send a link to their leads in an email or using an online button, taking them to a scheduling portal to find a time that works for everyone. Upon creating a meeting, the attendees’ calendars are automatically synced with the Calendly event.
Team scheduling portal (Source: Calendly)
3. Start With Expectations & an Agenda
The next step in exploring how to make a demo presentation is to give brief introductions once all attendees have arrived. Some teams like to bring in a product or software expert from the organization to help explain some technical aspects—the sales rep should introduce that person. This is also when you’ll review the agenda and assure everyone you will stick to the allocated time established before the meeting.
Pro tip: Some video conferencing software like Zoom has a whiteboard or note-taking feature you can use to show your agenda before starting the meeting. You can even take notes throughout the meeting to send to the attendees upon completion.
Whiteboard feature for collaboration (Source: Zoom)
4. Build Your Company’s Credibility
The first section of your product demo presentation should be an overview of your business to build brand credibility. Quickly review your founding story, the products and services you provide, and the types of customers and clients you work with. This is also an excellent time to discuss any awards and accreditations your company, product, or key personnel (such as your CEO) have received.
You can also use testimonials or customer success stories. These help expand your credibility and trust by letting your customers and the value they’ve obtained speak for you instead of you building your brand without evidence or context.
Below is a demo script template you can use:
Script Template
In line with the agenda, I’ll briefly go over a little bit about our company. We were founded in [date founded] for the purpose of [mission or other purpose statements]. In addition to [product you’re doing a demo for], we also assist with [other products or services you offer].
Over the course of [years active] years, we’ve helped a multitude of [clients or customers], including [list clientele]. Our high-quality work has [won us {awards}, helped our company grow, and kept our customers happy].
Enough about us—let’s get into why you are here today.
It’s important to keep this section brief so you can focus on the product and customer needs of your attendees. Ultimately, the presentation isn’t for you to brag about past achievements, but to show how your product can help customers achieve their goals.
Pro tip: For product demonstrations, you may need copywriting, graphic design, or video production services. Fiverr is a cost-effective platform that connects your business with talented freelancers to help in these areas. The platform makes it easy to find freelancers, assign projects, and pay them all in one place.
Popular freelance services (Source: Fiverr)
5. Explain Your Product’s Value
Once you’ve established trust and credibility with your leads, go right into the product they want to see and share its unique selling proposition. If the product has an interesting backstory, such as a unique way it was designed or an initial purpose different from today, share that story with them so they can understand your product better. Next, go into how the product works by describing its architecture, design, and how it’s delivered and hosted.
After the baseline product description, walk through the specific features of the product. During a software demo presentation, you could show the modules, such as the home dashboard that lays out the button options for navigating the platform. You might even dive deeper and show how a data entry is made in the system, then talk about the advantages and benefits of your product’s design as opposed to others.
For example, if you were selling software, go into how it’s cloud-based so the data isn’t stored on-premise and can be automatically backed up. If you are showing something tangible, such as a multipurpose printer, go through the subfeatures of the unit to show it printing, scanning, and faxing. When you show the features of a product, focus more on the end result to help your prospect remember how your product can help address their pain points.
6. Provide Use-case Scenarios
This step is arguably the most valuable one in the eyes of your lead attendees. It is your chance to take those features you briefly showed and put them into action through real-life scenarios. Directly address a pain point or daily activity the lead or their employees face. You can refer back to the answers they gave to your demo-related questions in step one.
Let’s say you’re selling a customer relationship management (CRM) system specifically for marketing agencies. Your platform has a built-in project management and content management system (CMS). Marketing agencies often struggle with collaboration because of the many different specialists involved, such as content developers and project managers. Some of them aren’t necessarily employees of the agency, but contractors for other companies.
Therefore, focus your use-case scenario on this pain point by showing the project management module in use. Show them exactly how it works by creating projects, adding personnel, creating and assigning tasks, uploading content and materials, then updating the project status. The point is to take the “explain product” step further by adding relevant context.
7. Discuss Product Implementation
After presenting the product features and use cases, outline the implementation process. It could be a simple one-day installation, one-week order to deliver, or more complex, like a three-month process of subscribing and then going through training. This is also an excellent time to explain any infrastructure requirements of your product.
For example, your software might only work for certain operating systems, integrate with specific tools, or be restricted to cloud or on-premise environments. If it’s an industrial printer, it may need specific space dimensions and power channels to be fully installed. On the other hand, a cleaning spray might require a certain temperature for safe storage. These details should be discussed during your presentation, along with purchase costs.
Total cost, pricing model (flat fee, per unit, per user, and so on), financing options, and any warranties, free trials, or return policies should be explained. You may also have customizable options or a tiered pricing system if the lead wants to purchase from you but needs to stay within a certain budget.
Pro tip: Download and customize our free estimate templates to quickly and consistently lay out your proposed pricing model for your product or service. Our article also comes with tips for writing estimates.
8. Answer Questions
While answering questions during a question-and-answer (Q&A) session seems simple, it’s best to anticipate what might be asked prior to the product demo. Be prepared to re-show the product in use as common demo questions involve going over a feature a lead wants to see. If a question is asked but you do not know the answer, include your response in the post-meeting plan to address it in a follow-up email.
Additionally, you can offer to set up another meeting that will address the questions or concerns they had during the initial demo you were unable to answer. You can also record a video to include in your follow-up email that answers their questions.
Pro tip: You might also get outspoken concerns during this session such as the cost or fear of change or commitment. These are considered sales objections you can easily manage by reading our how-to guide for overcoming objections in sales. You’ll learn how to take various common concerns and turn them into opportunities.
9. Establish a Post-meeting Plan
The final component of a product demo is developing a plan to move forward. Odds are, the lead won’t be ready to make a purchase decision after the demo and will need some time. You’ll need to listen carefully to the position they are in during that moment. They might need to include more people in the buying process, take the idea to the board, or learn more about the product before making any decision.
To keep control of the process, offer to send anything relevant to their current position. For instance, if they expressed interest in pricing, send a proposal or quote information. Send product information following the call if they need upper management to review anything first or want to learn more about the product. Also, reference that you’ll get answers to their unanswered questions and provide them with the next steps based on their situation.
Below is one of the product demonstration examples you can use to conclude your product demo:
Script Template
I hope we addressed your questions, and concerns, and “wowed” you with what our product can do. As for the next steps, based on where you are now, I’ll send a follow-up email with [proposal, quotes, more product information, an invite to another call, and so on] for you [and/or upper management, other decision-makers, other users] to reference.
I’ll also get [answers or confirmation] to those questions you had about [unanswered questions]. Feel free to reach out if you need anything else in the meantime.
Even if the lead is undecided on a purchase decision, sending more information following the demo keeps you fresh in their minds. After a demonstration, it may still be months to a year before the decision is made, especially for high-dollar sales deals with multiple decision-makers. Don’t be discouraged, as timing can be a factor despite plenty of interest. Continuously follow up to check in with the lead and see if anything will speed up the process.
Best Practices for a Successful Product Demo
An effective sales demonstration is customized to the prospect’s business needs and process. It should show your client how they would use your product or service and how the latter can address their problems or pain points. Below is a list of best practices to meet your product demo objectives.
Discovery is an essential step you need to take before presenting your product. This involves gathering data from your current customers, market research, and potential prospects. Find out what they want in a product like yours and if other stakeholders will be present during your demo. Use the information you have gathered to establish rapport with your customers and their need for your product or service.
At some point in your demo, your prospect might be distracted and miss some important points of your presentation. To regain their attention, you can pause for a moment, address your prospect by name, and briefly highlight your point.
During your presentation, your prospects will be following the movements of your computer mouse. Avoid jerky and unnecessary movements and only move your cursor when needed, like when you want to show how to execute a command.
Most modern buyers research your product before scheduling a demo and are likely looking into another brand. That said, it is best to keep your presentation short and simple by tailoring it to their needs and pain points. While demos usually run for 30 to 60 minutes, the ideal time for one is 15 minutes or less.
When you give a software demo, you are bound to encounter fails, bugs, and app crashes. Prepare yourself to deal with these contingencies by opening in advance the apps or pages that take a while to load. When any of these things happen, it is best to tell the prospect the truth about what’s going on. You can also use such an instance as an opportunity to walk them through the process of contacting your support team.
When you record your live demo, you can replay it to review your performance and refine your technique in closing deals. You can also use prerecorded demos as a tool to market your product and to screen qualified prospects. It will encourage prospects who are genuinely interested in your product to get in touch with you.
Key Product Demo Statistics
Whether you’re conducting a live presentation or recording a demonstration video, these statistics show just how valuable product demos are and objective ways to optimize them:
In 75% of situations in small businesses, it takes more than three days between a demo request & the actual demo.
Takeaway: As mentioned in the previous section, customers nowadays do their own research on multiple products before attending a demo session. It is best to shorten your response time to a demo request so you can get in touch with your prospect quickly and find out how to address their business needs.
(Source: Navattic)
A standard sales demo lasts 30 to 60 minutes.
Takeaway: Demos don’t need to be as comprehensive as product training. Keep your presentations shorter by focusing on the product features relevant to your prospect’s needs.
(Source: Navattic)
20% of prospects engage with products via interactive demos.
Takeaway: Interactive product demos are a great way to let prospects engage with your product without the lengthy setup process. The rise of this engagement process shows users are looking for ways to try a product before they commit to a paid subscription.
(Source: Navattic)
96% of users have watched an explainer video to gain information about a product or service.
Takeaway: An overwhelming majority of customers and internet users watch an explainer video to learn more about a product or service. In addition, 89% of them said that doing so helped convince them to make a purchase.
(Source: Wyzowl)
36% of marketers used product demo videos in 2022.
Takeaway: Business marketers create various videos, and prerecorded product demos were among the most widely used last year. As mentioned in the previous section, demo videos are useful not only for marketing, but also for screening prospects.
(Source: Wyzowl)
Bottom Line
Business owners and sales management personnel must develop compelling product demo procedures to convert interested leads into potential buyers. This stage of the pipeline helps prospects gain confidence in your brand and see how your product will help them achieve their goals. By using our guide on how to give a product demo, product demonstration examples, and recommended software tools, you will close more deals and help your business scale.
