Best Practices for an Effective Product Demo
A product demonstration, or demo, is a pivotal moment in the sales process. It's where potential buyers get to see firsthand if the solution you're proposing can address the specific problems, challenges, or opportunities they're facing. With the advent of digital communication technologies, demos are increasingly conducted over video conferencing platforms like Zoom, making them more accessible and convenient for both vendors and customers.
1. What is the Purpose of a Product Demo
The significance of a demo cannot be overstated. It provides a visual aid that helps potential buyers understand how your solution functions in real-world scenarios. But before diving into a demo, it's crucial to grasp why a potential customer has expressed interest in one. Their motivations can vary widely, including:
- Researching to determine if a certain type of technology can solve their challenge.
- Comparing your product against competitors to find the best fit for their needs.
- Verifying that the software meets all their functional requirements.
Understanding these motivations allows you to tailor the demo to highlight how your solution uniquely addresses their specific needs.
If your potential customer has let you know in advance that they are in very early research stage, you may consider offering them a product demo video or demo walkthrough. A great example of this is: Storylane
2. Tailoring Your Demo Approach
To effectively customize your demo, consider asking potential customers the following questions before the meeting:
- "Why do you believe our solution might be worth exploring?"
- "How much consideration have you given to this type of solution before our conversation?"
- "What are your colleagues' views on investing in this technology?"
- "Who else are you considering, and what aspects of their solutions appeal to you?"
- "How would you justify the cost of our solution to your directors or peers?"
- "Why not continue with your current process?"
Misunderstanding a buyer's motivations can lead to a demo that misses the mark, focusing on aspects of your product that aren't relevant to the customer's needs.
3. Timing Your Demo Correctly
The duration of your demo should reflect the "golden triangle" rule, balancing:
- The complexity of your solution.
- The number of attendees.
- The relative investment size for the company considering your software.
For instance, a one-on-one demo for a low-cost solution to a large company may need only 30 minutes, while a comprehensive demo for a high-cost solution involving multiple stakeholders from a smaller company could require two hours.
4. Setting the Demo Agenda
Establishing a clear agenda before the meeting ensures everyone's expectations are aligned. This agenda should include:
- Meeting duration.
- A summary of the challenges the potential customer needs to address.
- Key topics to be covered.
- Desired outcomes for the meeting.
5. Focusing on What Matters
Remember, the primary focus of your demo should be on solving the customer's problems, not showcasing every feature of your software. Keep the presentation dynamic and concentrate on the aspects of your solution that directly address the issues at hand.
6. Customizing Your Demo
A truly resonant demo goes beyond just addressing the customer's stated needs; it also considers their industry, department, and role-specific challenges. This level of customization ensures that the demo speaks directly to how your solution fits into their specific context.
7. Engaging in a Two-Way Dialogue
A successful demo is interactive. Pause frequently to ask questions and encourage the customer to do the same. This engagement not only clarifies their priorities and concerns but also helps tailor the conversation to their specific needs.
8. Watching the Clock
Allocate the final portion of your demo to address any lingering questions, ensuring that both parties have the opportunity to clarify any points of uncertainty. It's better to leave wanting more than to overwhelm with too much information.
9. Ensuring a Clear Outcome
Conclude your demo with a clear next step, whether it's scheduling another meeting or parting ways. This ensures that the time invested by both parties leads to a productive outcome.
10. Assessing the Relevance of Your Demo: The "So What, Who Cares?" Test
After meticulously preparing and delivering your product demo, it's crucial to evaluate its effectiveness and relevance to your audience. One straightforward yet powerful method for doing this is the "So What, Who Cares?" test. This approach forces you to look at your demo from the perspective of your potential customers, challenging every feature and benefit you present to ensure it directly addresses their needs and concerns.
Implementing the "So What, Who Cares?" Test
To apply this test, revisit each segment of your demo and ask yourself:
- So What? - For every feature or capability you demonstrate, ask yourself, "So what does this mean for the customer?" This question helps you connect the feature to a tangible benefit or outcome for the customer. If you struggle to answer, it's a sign that the feature may not be relevant or its value proposition is not clearly articulated.
- Who Cares? - This question challenges you to consider who in the audience will genuinely care about each feature or benefit you're presenting. It's essential to tailor your demo to the specific interests and roles of the attendees. A feature that's critical for a technical user might be irrelevant for a decision-maker focused on ROI. Identifying the "who cares" helps ensure that your demo resonates with the entire audience, addressing both strategic benefits and technical specifications as needed.
Practical Steps for Applying the Test
- Segment Your Demo: Break down your demo into distinct sections or feature sets. Apply the "So What, Who Cares?" test to each segment to ensure its relevance.
- Gather Feedback: After your demo, seek direct feedback from your audience on what resonated with them and what didn't. This can be done through follow-up emails, surveys, or open discussions. Pay special attention to any parts of the demo where the audience seemed disengaged or had questions that indicate a disconnect between your presentation and their interests.
- Refine Your Approach: Use the insights gained from the "So What, Who Cares?" test and feedback to refine your demo. Remove or reframe parts that fail the test, emphasizing those aspects that clearly address customer needs and concerns.
- Practice and Peer Review: Before presenting to potential customers, run your demo through a practice session with colleagues or a mentor. Challenge them to ask "So What, Who Cares?" at each step. This can uncover areas for improvement that you might have overlooked.
Conclusion
An effective product demo is more than just a feature showcase; it's a critical opportunity to demonstrate how your solution can solve the specific challenges faced by potential customers. By understanding their motivations, customizing your presentation, focusing on solutions, and engaging in meaningful dialogue, you can make your demo a pivotal step towards securing a new customer.
