A product demo is an important part of the sales process. It gives potential customers a chance to see your product in action and understand its key features and benefits. An effective demo can generate leads, accelerate deals, and increase conversion rates. So what exactly should a product demo include?
The introduction of your demo should set the stage for what’s to come. Start by introducing yourself, your company, and your role. Give a quick overview of your product and explain who it serves. The goal here is to provide context before diving into the features and benefits.
Keep the Introduction Brief
While you want to give viewers enough background to understand the demo, avoid getting bogged down with unnecessary details in the introduction. You can always elaborate on certain aspects later in the presentation. Aim to keep the introduction to 1-2 minutes maximum.
Focus on Relevance
The content of your introduction will vary based on your product and target audience. Make sure to focus on elements that are most relevant to the viewer. For example, if you’re demoing accounting software, highlight how it helps accounting teams. Avoid generic claims that could apply to any product.
Create a Consistent Structure
Having a consistent introductory structure across all of your demos creates familiarity for viewers. Hit on the same key points in the same order each time, while personalizing the script for the specific context.
Product Overview
After the short introduction, give a high-level overview of the product itself. Explain its purpose, key capabilities, and top benefits. Think of addressing the following types of questions:
- What does the product do?
- How does it work?
- What are the main features and functionality?
- What problems does it solve?
- Who is the target user?
- How is the product better than alternatives?
Keep it High-Level
Don’t get pulled into granular details here. The product overview is meant to provide a broad understanding of the solution. You’ll drill down into specific features and capabilities later.
Focus on Relevance
Again, tailor the product overview based on who you’re presenting to. For example, if you’re demoing to engineering prospects, you may focus more on technical architecture. For executives, emphasize the business benefits.
Tell a Story
Weave the product overview together into a compelling narrative. Take viewers on a journey from the problem to the solution your product provides.
Key Features/Capabilities
Now it’s time to dig into the details. The main part of your demo should walk through the product’s key features and capabilities. Show viewers how the product works and what it can do for them.
Pick the Right Features
Determine which 3-5 features to focus on in your demo. Choose capabilities that will resonate most with your target audience based on their needs and pain points.
Demos Over Slides
Rather than presenting static slides, give interactive, click-through demos that bring the product to life. However, you can use some slides to introduce and transition between sections.
Keep it Moving
Avoid dwelling too long on any single feature. Hit the highlights and keep the pace brisk. You want viewers engaged, not bored.
Tell a Story
Tie the features together into a cohesive user story. Take viewers on a journey showing how a user would leverage the product to accomplish their goals.
| Feature | What It Does | Benefit |
|---|---|---|
| Reporting | Generates real-time reports and dashboards | Improves visibility into data and trends |
| Alerts | Sends app notifications or emails for critical events | Enables quick response to issues |
| API Access | Allows integration with other systems via APIs | Extends capabilities and unlocks workflows |
Key Differentiators
What sets your product apart from alternatives? Outline 1-2 key differentiators to demonstrate how your solution stands out:
- Superior analytics and reporting capabilities
- Integration with multiple data sources
- Advanced automation and workflows
- Superior performance and scalability
Compare Fairly
When comparing your product to others, be fair and factual. Avoid attacking or disparaging competitors directly. Focus on objective, technical differences.
Quantify if Possible
Back up claims with hard numbers whenever possible. For example, you may highlight that your analytics solution provides 2x more data than Competitor X.
Use Cases and Applications
Bring your product to life by sharing specific use cases and applications. Demonstrate how real customers leverage your solution:
Customer Service Example
Acme Co. uses our platform to pull in customer data from multiple sources, analyze trends, and improve customer satisfaction rates by 10%.
| Data Source | Information Gathered |
|---|---|
| Support tickets | Common issues, resolution rates, customer satisfaction feedback |
| Product usage data | Feature adoption, navigation patterns, churn risk |
| Social media | Brand mentions, customer complaints, emerging issues |
Marketing Example
XYZ Inc. leverages our AI to optimize ad targeting, improving campaign performance by 20%:
- Analyzes customer demographics, behaviors, interests
- Identifies high-value segments to target
- Dynamically personalizes messaging and offers
- Continuously optimizes based on performance data
Tailor Examples
Use examples relevant to who you are presenting to. Vertical-specific use cases resonate best with prospects.
Pricing and Packaging
If relevant, provide a brief overview of your pricing tiers and packages. Focus on the offering most relevant to the prospect. Make sure to touch on:
- Pricing model (per user, data volume, etc.)
- Tier names and differences
- Most popular option(s)
Keep it Simple
Don’t overwhelm prospects with too many granular pricing details at this stage. You can dive deeper into pricing during a follow-up discussion.
Be Transparent
Clearly communicate what is included in each pricing tier. Avoid showcasing “teaser” pricing that doesn’t reflect reality once all add-ons are included.
| Plan | Users | Storage | Support | Price |
|---|---|---|---|---|
| Basic | Up to 5 | 50GB | $29/month | |
| Professional | Up to 20 | 200GB | Email + Chat | $99/month |
| Enterprise | Unlimited | Unlimited | 24/7 Phone + Chat | $299/month |
Customer Success Stories
Social proof and peer recommendations are powerful in the sales process. Share 1-2 brief customer success stories highlighting:
- Who is the customer?
- What challenge did they face?
- How did your product solve it?
- What results did the customer see?
Get Permission
Make sure you have the customer’s explicit permission before naming them in a demo. Don’t share anything confidential.
Bring it to Life
Go beyond facts and data. Use quotes from actual users that evoke emotions and showcase real-world impact.
“Their analytics platform allows us to respond to market changes faster than ever. Sales are up 15% since implementation.” – Bob Smith, Acme Co CEO
Next Steps and Call to Action
Wrap up your demo by outlining next steps and leaving viewers with a clear call to action. Possible CTAs include:
- Requesting a free trial
- Scheduling a follow-up consultation
- Providing product feedback
- Setting up a proof of concept
- Starting a pilot program
Keep it Simple
Don’t overwhelm viewers with too many CTA options. Present 1-2 clear, logical next steps.
Make it Easy
Reduce friction in the follow-up process. For example, include links to self-service sign-up pages rather than manual email follow-ups.
Create Urgency
Use scarcity tactics if appropriate to incentivize quick action. For example, you may highlight that special pricing is only available for a limited time.
“Thank you for your time today. If Acme Co’s analytics capabilities seem like a fit, sign up here for a no-hassle 7-day free trial to experience the platform firsthand. This risk-free trial includes up to 5 user licenses and 50GB of data. Let’s continue the conversation and explore how we can help you meet your business goals.”