How to Create & Deliver a Sales Product Demo 2022

Conduct a Discovery Call

A discovery call is a conversation during which you ask a lead questions to learn about their budget, needs, and other key information so you can gauge their level of qualification. This call will help you craft a demo that fits your prospect and shows them how exactly they can use your product on a day-to-day basis and how it will fulfill their needs.

To host this call, schedule it and research your lead, then write a script to guide the call. On the call itself, build rapport and introduce yourself, then let the lead know what you'd like to talk about. Ask the questions that you believe will best help you measure fit, and qualify or disqualify the lead based on their answers. If you've decided they're qualified, record your notes from the call and schedule a demo with them.

Keep in mind that the two most important things to accomplish on the call are to qualify the lead and uncover at least three pain points that can be satisfied or solved by features of your product. These will be the main features you focus on in your demo. To learn how to hold this call and get to know your leads, read our article on how to conduct a discovery call, where we break down the steps that you can replicate and provide a free script to follow.

Schedule the Demo

At the end of the discovery call, if the buyer meets your lead qualification criteria, schedule a product demo while you have them on the phone. When doing this, be sure to clearly lay out an agenda. Tell them how long the demo will last, what you’ll show them, and why they should be interested in attending.

Here’s an example of how to sell the demo: {Name}, It sounds like {product name} would be a great fit to help you {value proposition}. I’d love to set up 30 minutes with you to give you a web-demo of the {product}. I’d especially love to show you {feature X}, which will help you solve {main pain point}, and {feature Y}, which will help you resolve {issue}. You’ll also walk away with an understanding of how the entire system works at a high level. How does that sound?

If they say no, explore why, and handle any objections. When you get a confirmation, find a time that works for both of you. And after the call, send them a calendar invite so they can easily remember your appointment date and time. Finally, send them a follow-up email restating the value they’ll receive from seeing the demo so that they get excited. This doubles as a reminder to join the demo.

Make Introductions

Use about five minutes at the beginning of the demo to establish some trust and rapport with your prospect. Talk with them about personal or business matters, and help them get to know you by introducing yourself and your company. A quick 2- to 3-sentence blurb about whom your company helps and how you do it will be enough to satisfy the prospect.

Here are some ways to build rapport and trust with your prospect:

• Ask Your Prospect Questions: Kick off small talk with some questions. For example, “How long have you been in the industry?,” “What inspired you to make the switch from {industry X} to {industry Y}?,” or “How was the trip to {location} with your family?”
• Bring Up Industry News: If the prospect is a decision maker, they'll likely stay up to date on recent events in their industry. To come across as an expert, start some conversations about these happenings.
• Be Genuine: Tell honest stories about yourself that have to do with the experiences your prospect shares. This helps them form a connection with you.

A prospect who trusts you is primed to be amazed as you reveal each new feature in the demo, rather than on the lookout for sneaky sales tactics. After small talk, transition into the demo by saying something like, “Alright, I could chat about this for hours, but we’ve only got 30 minutes on the calendar, so let’s get started.”

Highlight the Prospect's Problem

When it's time to dive in, take about two minutes to demonstrate your understanding of the prospect’s situation from your discovery call. Summarize their goal, the primary challenge in the way, the implications of not reaching the goal, and the underlying pain points and causes.

Here’s an example of how to summarize the problem like a pro:

• Goal: “So, we talked about how your main goal is to double the number of buildings your company manages by next year.”
• Challenge: “But, you feel that your property managers aren’t capable of taking on all that work and also that new property managers are too expensive to hire and train.”
• Implications: “And you told me that if you don’t expand quickly you’ll lose your edge.”
• Issues/Pain Points: “Now, from what I gathered, the main reason for this inability to reach your goal is three-fold: your business lacks the SOP framework to quickly train new managers, your managers work too slowly on site, and your team wastes time doing paperwork.”

After you cover this problem and the factors around it, check in with your prospect to ensure you're on the right track. If they tell you you're correct, move on to explaining your solution.

Explain Your Solution

Next, highlight your solution and value proposition in a few sentences. Also give a high-level overview of how your product works in a few more sentences. Keep this explanation to a maximum of about three minutes — you'll dive into the full demo in the next step.

Keeping with the example above, here's how you could explain the solution and product:

• Solution: “Our mobile app will increase the efficiency of your current managers out in the field, and our document automation will save them time in the office. Plus, our SOP library and workflow software will make ramping up new managers extremely simple.”
• Value Proposition: “With our software, you’ll be able to double the buildings you manage without doubling your staff. In fact, you might not need to hire any new managers at all.”
• Product Summary: "Here's the home dashboard of our software. The product is built to X, which it accomplishes by Y."

By now, your prospect should be excited about what they’re about to see. So, segue out of this solutions stage and into the product demo itself. Here, you'll explain how the product directly relates to the prospect and their pain points.

Demonstrate Your Product's Features

As you share your screen, use 2–3 features to illustrate the components of the previous step: your solution, value proposition, and how the product works. Focus on one feature at a time plus how it helps to solve your prospect's problem and how specifically they could use it. A good way to state this is "If I click {button}, I can use {feature}. The cool thing about this feature is that it {benefit}. I could see your team using this feature to speed up your {process type}, which would help solve your {pain point}."

This portion should take about 15–20 minutes, but if it goes over because your prospect is enthralled and wants to see more, let it happen if you have the time. If they’re expressing interest in a certain feature, hone in on it. Sometimes a product can be sold because of one shining feature. On the other hand, if they seem bored, move on to the next feature.

In addition to the prospect's interest or attitude, ask feature-related questions such as the following:

• How Could You See Your Team Using This Feature? This one’s great because it encourages the prospect to think about how they’ll benefit from the product.
• How Does This Feature Compare to Your Current Product’s Functionality? If they’re using another product, help them think about how yours is better.
• How Else Do You Think This Will Help You With {Process}? Empower them to imagine how your feature will improve a current process you learned about during discovery.
• Any Questions? This ensures the viewer is following what you’re saying. It gives them an opportunity to speak up and request any clarification.

Like in a sales presentation, the live demo calls for a reactionary element on the side of the presenter; you must be able to adjust at a moment’s notice based on their verbal and nonverbal cues plus their responses to your questions. As you near the end of the demo, you should have at least a sense of the prospect’s feelings about your product, which can help you suggest next steps later on.

Talk About Success Stories

Next, explain how relevant businesses used your product to succeed in some area, or, better yet, to solve an issue that your prospect also wants to fix. This could sound like "{Similar company} signed on with us in {month or year} because they were experiencing {same pain point}, and they now {desirable benefit}."

The primary purpose of a product demo is to help your prospect imagine using it. This kind of social proof can establish trust and convince your prospect that they can use and benefit from the product, so spend up to five minutes on this part, depending on how much detail you choose to share about your customer's past problem. If you're running a bit behind, keep this to 1–2 minutes so you can get to next steps.

Establish Next Steps

Before letting your prospect leave the demo, take a minute to set next steps and get another meeting on the calendar. Your specific next steps depend on two factors — how much the prospect likes the product and their internal purchasing process. If you were unable to gauge their level of interest during the demo or understand their buying process in discovery, ask them before proposing next steps.

Common next steps after a demo include the following:

• Sales Pitch: If your prospect likes the product and seems ready to buy, give an official sales pitch; if all goes well, say you’ll send a proposal for them to review, and plan to discuss it.
• Another Demo: Some prospects will be one of many decision makers, especially if you’re selling enterprise software. Schedule some time to have another demo with the key decision makers.
• Speak Further With the Prospect: Some prospects will want to meet with their team and write up some questions they’d like to ask you before a proposal is sent out.
• Disqualification: Sometimes, the prospect just won’t be a good fit. If so, disqualify them and wish them well. Assess your lead qualification process to see why they made it to a demo.

If the prospect shares their objections or hesitations, you can overcome them, especially if you know how to handle sales objections properly. Or they’ll tell you the exact steps you need to take to make the sale. This could be another meeting, another demo, or a drop in the price. Whatever it is, clarity on what the prospect needs gives you direction on how to move it along to a close.

More specifically, here's how to host a successful demo in the moment:

• Use a Brief Intro: Spend no more than five minutes on your intro so you keep your prospect interested in your product and get to the demo as quickly as possible.
• Pause for Questions: Throughout the demo, make sure your prospect understands what you're showing them, and ask if they have any questions in general, even unrelated to the product.
• Ask Questions Throughout: Engage the prospect by asking questions such as "How do you see your team using this feature?" or "How does your team currently handle {process}?"
• Confirm Your Assumptions: Make sure you're representing the prospect correctly in your personalized demo. When you reiterate their needs, confirm that you're correct.
• Use Visuals Throughout: You'll likely have a presentation ready or your SaaS product pulled up for the prospect, but if they ask a question, show them the answer using your product rather than just telling them.
• Hand Over Control to the Prospect: Whether you're giving a virtual or in-person meeting, briefly give your prospect control of the screen to give them a sense of ownership and allow them to test the product.

Use these best practices in every demo, but also take note of what works well and what doesn't as you give your first few demos. Creating your own best practices that you know will work in your unique situation can give you the confidence to improve your demoing skills and get more prospects to agree to next steps.