Demos that sell
There is a world of difference between demos that inform or create excitement on the one hand, and demos that lead to signed contracts and closed deals on the other hand. I’ve spent much of my adult life in software sales, so the following observations are drawn from that environment. But the principles described here can be applied successfully to any product demo.
Far too often, sales reps conduct a demo with the belief that their job is either a) to give a thorough product education; or b) to create excitement about their product. These are both potentially deal-killing mistakes. Knowledge of your product doesn’t get contracts signed and excitement evaporates quickly. Perhaps most damaging of all, if you demo to educate or to excite, you leave knowing no more about your prospect’s pains and problems than you knew when you arrived. (Perhaps you’ve already conducted some discovery, but deeper discovery should be baked into each step of the sales process!) Instead of seeking to educate or excite, design your product demos around the following two principles. Then watch your sales cycle length shorten and your close rates soar.
Focus on value proposition, not on giving a 'feature tour.' Many sales people overwhelm their prospect with clicks and how-to information, but never effectively make the connection with the prospect's business. Over time, as you discover the 'wow factors' and discern which features generate the most return on investment (ROI) for your customers, your demo will become shorter and simpler, but will be more effective because your prospect leaves the meeting understanding how your product will positively affect their business.
Always use the following 3-step rhythm as the structure of your demo, and repeat it throughout. 1) Make a 'framing statement' explaining what they're about to see. Too often we forget that when people see software or other products they've never seen before, they're frequently somewhat lost. The framing statement orients them for what you're about to show. 2) Show the technology - no more than 5-7 min worth. 3) Have a discussion about what impact the feature(s) you just showed will have on their business. Get as specific as possible in this discussion. This accomplishes two things: you are continuing very subtly to do a lot of discovery, so that you come away with a much deeper understanding of the prospect's business needs, and your product’s ability to meet them. And secondly, the prospect starts to articulate to you the value of your platform for their business, which is a very powerful thing.
Tell them what you’re going to show them; show them; then have a detailed discussion about the practical business impact of what you’ve just shown them. If you do this consistently and correctly, you and your prospect will both leave the demo with a clear understanding of why they should buy your product.