Whether you're buying a new TV for your home or new CRM software for your business, you need to know precisely what you're getting for your money.
Online research is an excellent place to start. But there's a difference between looking at a technical spec page and seeing the product in action. This is where a product demo can fill in the gaps.
What is a product demo?
Basically, the demo often means the difference between closing a deal and losing a prospect. A good demo lets your prospects understand how your solution really solves their problems and enables them to be more successful in their work.
Product demos are central to any software sales process. Poorly executed demos significantly slow down the close rate. On the other hand, when done correctly, they can be very effective.
Tips & Tricks for performing demos
1. Prepare in advance.
Before the product demonstration, you should know who you'll be meeting. You should design your demo so that it's tailored to the specific audience you're targeting. To this end, you should know the needs of your potential customers:
- Business
- Challenges
- Goals
Determine who from the prospect's company will be attending the product demonstration and what role they'll play in the decision-making process. How can your demonstration address the questions they may have?
In addition, highlight 2-3 value propositions for the prospect. Demonstrate how your product or solution addresses their priorities and helps them achieve their goals. These are just a few of the points you should consider when preparing for the demo and setting an agenda.
2. Have a clear beginning, a middle, and an end.
Tell them what you're going to tell them. Use this opportunity to guide the conversation. Tell them what you want to say and what they need to hear. This will put your audience at ease because they have a clear idea of what you're getting at. Tell them. This is the time to make your case for why your solution meets their needs. Don't just list different features. Talk about how you can help - how can your product or service help them overcome their challenges? Tell them what you told them. Repeat your key messages before you end your presentation to clarify them.
3. Allow time for initial questions.
Use the first few minutes of your demonstration to ask if the prospect has any questions about the process. Then ask some questions yourself.
- "I understand that your objectives are X, Y, and Z. Is my understanding correct?
- "You are facing challenge X with your current software vendor. Do you plan to address this challenge with the new software you select?"
- "What are the selection criteria for the next software/solution you choose?"
Questions like these can help you find out if you missed anything in your research. During the demonstration, you will address the prospect's questions and may even be able to identify another value proposition.
4. 20% talk, 80% listen
I can't tell you how many conversations I've been on where the salesperson swears he wants to "keep the conversation short" but barely lets the prospect get a word in edgewise. These are two tactics you can try on your next call to really hear what your customers are saying:
When your caller is finished, slowly count to two before answering. It's been my experience that if I pause and don't answer right away, the customer takes that as a sign that I'm listening carefully and keeps talking. Test it on your friends first and you'll see what I mean. When you demo, pause early and often.
5. Communicate the next steps.
Allow some time at the end of your product demonstration for any questions the prospect may have. If you weren't able to cover something during the demonstration, send an email with a summary to schedule another meeting. Also, include details about the meeting topics to make sure you're both on the same page.
Conclusion
Most importantly, as long as you keep your prospects' needs in mind, you're sure to build better relationships and (hopefully) close more deals with your product demos.
