The Ultimate Guide to Sales Product Demos: Mastering the Art of Closing Deals.
Hey - it’s Alex!
Today, I will share with you:
1️⃣ 3 actionable SaaS growth tips
👉 The 3 elements of a powerful SaaS Product Demo
👉 The 9 phases structure of a powerful SaaS Product Demo
👉 12 key aspects of a powerful SaaS Product Demo
2️⃣ ‘Best tip, failure, & learning’ by Raphael Allstadt (Co-Founder and CEO of tl,dv)
3️⃣ 1 software tool recommendation (tl,dv)
… that will help you quickly grow your SaaS product 🚀.
👉 Before you read on:
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✅ Nail your Go-to-market strategy fundamentals with my FREE 1-page Notion Template (helped 500+ SaaS professionals)
✅ Unlock your growth potential with 90+ actionable SaaS growth tactics (helped 150+ SaaS professionals)
Close more deals for your B2B SaaS product with powerful Sales Demos.
A well-executed sales demo can be the difference between closing a deal and losing a potential customer.
A product demo is a crucial part of the sales process for any software product (if you follow a sales-led growth model).
If you’re following a product-led growth model, more and more companies use interactive product demo videos as a way to demonstrate their product. Check out this article to learn more about it.
1. The 3 elements of a powerful SaaS Product Demo
Great sales demo combines 3 elements:
Structure
Value-focused messaging
Engaging 2-way communication.
Only if you can combine each of the elements, your product demo will be really powerful and you will close more deals.
You will learn more about each of the elements in the following sections.
2. A Step-by-Step Guide to the 9 Phases of a Successful SaaS Product Demo
Don't make the mistake of jumping into your demos without a clear structure. A structure doesn't mean that you, as a salesperson, need to follow a script. It's more of a guideline that helps you keep control of the demo. Within these guidelines, you still have enough space for your own style and creativity.
Following these nine phases will also help you maintain a good balance of showing, asking, and listening so that your prospect doesn't get bored or lose interest.
Phase 1: Research and Preparation (before the Demo, 10-15 minutes)
I recommend taking around 10-15 minutes to prepare for your upcoming sales demo. This includes researching the prospect as well as preparing your set-up for the demo.
Researching the Prospect:
Review your sales discovery call notes (if you had one before).
Check the information provided on the sign-up form.
For free trial users, check their product usage.
Conduct quick research about the company (e.g. website, LinkedIn page, etc.).
The more information you gather upfront, the less time you'll need to spend on the call asking questions that could have been answered elsewhere. I recommend collecting the following information (if available):
What does the company do?
Who are the people on the call (their roles and responsibilities)?
What current solution are they using (if available)?
Do they belong to your target audience/ideal customer profile?
Setting Up for the Demo:
Turn off any notifications (e.g. Slack, email, calls).
Prepare your browser with the right tabs (e.g. prospect's website, your tool, testimonial page).
Make sure you are in a quiet space (e.g. meeting room, phone booth).
Check your tech set-up (e.g. headphones connected, two screens).
Have your Sales Deck ready and prepared (—> The perfect Sales Deck template)
Note: Conducting research is great, but do not assume you know everything about the prospect. Do not skip the discovery section, especially information about their specific problem, implications, and desired outcome, as it is hard to know upfront.
Phase 2: Warm-Up and Intro (3-5 minutes max.)
Begin by introducing yourself and your company in a brief and concise manner, ideally within 3-4 sentences.
Then, ask your prospect to introduce themselves.
The purpose of this initial conversation is to break the ice and get to know each other better.
Phase 3: Framing for the demo and sales process (1-2 minutes)
Don't assume that your prospect knows what will happen during the demo. Set the stage by outlining what you will cover, and also explain what will happen next.
Allow your prospect to communicate their expectations for the meeting, and do your best to meet them.
Phase 4: Recap of Sales Discovery or new discovery (10-15 minutes)
In case you’re following a 2-step sales process (discovery call and demo are two separate meetings), you should always do a quick recap of the discovery.
If you only have one meeting, you absolutely need to do a longer discovery in your demo. Without understanding the current situation, pain points, and desired outcomes, you can’t do a powerful product demo.
Here’s a list of questions you can ask your prospect:
Tell me a bit more about your company. What’s the current priority for you/your company?
Can you tell me a bit more about your role? What does your day look like?
How do you currently deal with [XYZ topic]?
How satisfied are you with the current solution?
What challenges are you facing right now when it comes to [XYZ topic]?
How do you currently deal with [XYZ challenge]? And what effect does it have on you/your company/your costs etc.?
What have you done so far to solve the [XYZ challenge]?
Why is it so important for you to solve this specific problem? And also why now?
What are you doing if you can not solve the [XYZ challenge]? Do you have any other solution in mind?
What do you expect from a great solution? What’s essential and what’s less important?
What would be an ideal result for you 6 months after implementing our tool?
How many people would use the product?
What other software products do you use right now (related to this topic)?
Important to mention:
these questions are just inspirations. Use them and craft your own versions that fit best to your target audience
don’t ask one question after the other. It’s not an investigation.
You can also ask these questions as part of the other sections. It’s important that it feels natural for the prospect and they don’t get the feeling they get interrogated.
The objective of the discovery is to get a clear picture of:
the current situation (status quo) of the prospect
the problem and pains they have right now
the desired dream outcome
their motivation to change the status quo and
what’s holding them back
Phase 5: Get Buy-In for the pain points and desired outcome (1 minute)
Before you move on, make sure you’ve understood them correctly. A great way is to recap what you understood and ask them if you’ve understood them.
“Okay great. So what I understood is that you currently handle [XYZ topic] with [current solution], but you’re rather unsatisfied because it creates [pain points]. And it’s your priority right now to solve the problem, because otherwise [negative implications of status quo]. Instead your dream scenario is [desired outcome]. But I understood, that [what’s holding you back] is something I need to be aware of. Anything that I missed?”
Phase 6: Demo the 3-4 key features, that help them to solve their Pain Points (15-20 minutes)
Now it’s time to present your product. But don't just showcase all the amazing features you've built. Your job is to carefully select the 3-4 key features that directly solve your prospect's pain points.
To keep the level of engagement high and get the conversation going, I recommend asking questions in between. If you present for 20-30 minutes straight without any interaction, you risk losing the prospect's interest.
It’s not about showing all your features straight away. It’s best to alter:
Showing feature 1 + speaking benefit 1
Asking a question
Showing feature 2 + speaking benefit 2
Asking a question
Showing feature 3 + speaking benefit 3
Asking a question
You’re presenting the features, but you’re not gonna say:
“If you click here, then XYZ happens…”
Instead, you’re showing the feature, but verbally you’re talking about how this feature enables them to achieve XYZ and how this is 10x better than their current solution. Using real-world examples helps to make it easier to understand. This could sound like the following:
“Imagine you need to [job to be done], but instead of doing [current way of doing it], you can simply use [this feature], which would make your job 10x [faster, cheaper, more professional, less complicated etc.]”
Add a question to keep them engaged. For instance:
“How would this change your current situation?”
“Is this how you imagined it?”
”What would you wish to add here to make it even better for you?”
What features you’re going to show depends on 3 things:
what features solve their specific problem the best
your killer features that create the ‘wow’ effect.
who you present the product to (user vs. decision maker)
In case your product is used by different types of users (e.g. users, admins, managers) also include how each of them benefits from using the tool.
Phase 7: Get a reconfirmation (1 minute)
As described above it’s important to get reconfirmations that the features you’ve presented really help them to solve their problems and get them closer to the desired outcome.
Asking for reconfirmation basically helps you with 2 things:
make sure that what you’ve presented is helpful for them
and that they understood how it works and how it will make their life easier and better
Phase 8: Pricing (3-5 minutes)
Once they confirm that what you’ve presented is helpful for them, it’s time to talk about pricing.
A great way to do so is: ”Okay now I’ve showed you how our product can help you to overcome [pain point] and bring you closer to [desired outcome], which is obviously a tremendous value for you. Talking about value, that’s probably a good time to talk about our pricing”.
So talk (proactively) about your pricing and give them your honest recommendation on which package (pricing tier) is the best for them.
You’re doing this to also get a feeling about where they are in their buying decision and build a mutual timeline. Use the pricing discussion to smoothly move on and talk about the next steps.
Important:
Don’t talk about costs. It’s an investment for them. It’s a trade (money for the value of your product).
Don’t start to justify why your product costs what it costs. You don’t need to argue your pricing (if the prospects don’t say anything about it).
Present your pricing and then stop, and be quiet for a few seconds. Ignore your impulse to argue or justify. Just be quiet for a few seconds, wait for their response, and see what happens.
Phase 9: Quick summary and next Steps (3-5 minutes)
Quickly summarize how your product (your key features) helps them to overcome their specific problem (just 1-2 sentences). It’s about reemphasizing so they remember this.
Depending on your target audience and type of product, you could even try to get the sale during the demo. Learn more about closing questions in point 11 (see below) of the 12 key aspects of SaaS product demos.
For products with a higher ACV, you should outline the next steps and try to get commitments on them.
A great way to achieve this are mutual action plans.
This could mean for instance:
Another call with the decision-makers
14-day free trial period and a follow-up call at the end of the trial period
another meeting with legal on xx date.
Always follow up after the demo via email. Don’t forget this.
Now you know the structure of a powerful Sales demo.
3. 12 key aspects of a powerful SaaS Product Demo
Powerful Sales Demos, in comparison to low-performing demos, show the following aspects:
1. Keep It sweet and engaging
Your sales demo should be to the point. Focus on the most important features and benefits of your product. Keep the prospect engaged and also listen. It’s a two-way communication, not a monologue.
The presentation part should not be longer than max. 30 minutes (if your product is really complex and the prospects really want it, otherwise 15-20 minutes)
2. Interact with your prospect, it’s not a monologue
A product demo is not you talking non-stop in a one-way interaction. It’s not you showing the product and the prospect just ‘watches’ the show. It’s a two-way conversation.
Your demo is only really convincing if you can adapt it to their specific situation.
It’s not a one-size fits all.
You shouldn’t talk more than 50% of the time. Listening and guiding with questions is crucial.
A great way to do so is leading by questions.
3. Lead by Questions
The best way to connect with the customer is to show a genuine interest in their needs. Instead of just presenting information, lead with questions that encourage a two-way conversation. Really actively listening to the prospect is key here.
Try to understand them. Try to help instead of sell.
4. Highlight Pain Points in your Demo
To effectively sell the benefits of the product, you need to connect with the customer's pain points. Understand their challenges and pain points and show them how the product can solve these.
Make sure to address their real pain points and create a clear gap between where they are currently and where they could be with the product (dream desired situation).
The PAIN Points Model (I call it the 4 steps DAIC Model) is a four-step process that helps you fully leverage the power of the customer's pain points. Here are the steps:
Discover the Pain: Ask questions and do a proper sales discovery to discover the pain points of your prospects.
Awareness of the Pain: It's not enough that you know the pain. Make your prospects aware of the problem.
Implication of the Pain: What are the negative implications of the problem? What happens if they don't fix the problem?
Confirm the Pain: Get your prospects to confirm the pain.
It’s like going to the doctor. A doctor can’t give you the right treatment before they know your pain and symptoms.
5. Connect to their jobs to be done
If you know your ideal customer profiles, you should be aware of their jobs to be done. What is the main reason customers ‘hire’ your product? What is it that they want to achieve?
Knowing them helps you better communicate how your features work. You can use real-world examples and tell a story.
6. Use Real-World Examples
Show your product in action by using real-world examples. This will help your potential customers better understand how your product can solve their problems.
A great way to do so is by using live examples of how others (your testimonials) are using the product (only if this is possible).
Doing so also leverages social proof and builds trust with your prospect.
7. Address Objections
Anticipate and address proactively any objections your potential customers may have. This will show that you understand their concerns and are prepared to address them.
8. Focus on Benefits, not Feature Tours
The goal of a product demo is not to show your features but to sell the benefits of using them. It's important to highlight how the product can solve the customer's pain points and make their life easier. Make sure to tailor the demo to the customer's needs and interests.
9. Status quo vs. the desired dream situation
Once you know the status quo of the prospect (Point A) and the pain points that come with it, you should know what their desired dream situation (Point B) looks like.
Map out the gap between these 2 scenarios.
You can position your product as the enabler to go from this (shitty) Point A to Point B.
Highlight also what it means for them to stick to their current situation and the negative implications of it.
So you basically visualize your prospects they have two options - a good one (move with your product) and a bad one (stick to the status quo).
10. Summarize and Restate the Problem
It's important to make sure that the customer understands the problem and how the product can solve it. Summarize the problem multiple times and restate how the product can solve it.
11. Close the Deal
At the end of the demo, it's important to ask for the sale (or to know what’s missing) and know about the next steps.
Check out deal questions, shared by close.com. Here’s a short list of them:
“I definitely think we’re a good fit. What will it take for you to become a customer?”
"Unless you have any more questions or concerns, I think we're ready to get started.”
“If You Don’t Have Any More Questions, I Think We Can Get This Deal Done”
12. Follow Up
After your sales demo, make sure to follow up with your potential customer. This will show that you really care.
Include all stakeholders (who joined the meeting) in your email.
Send them quickly after the demo (within 24h).
💡 Best tip, failure, and learning by Raphael Allstadt (Co-Founder and CEO of tl,dv)
Bet on a slightly underutilized channel early on and then laser-focus on it.
For example, we at tl;dv could have gone for Zoom, but there were already some competitors there. Additionally, it wasn’t as established yet as a channel. That’s why we decided to focus on Google Meet and Chrome Store.
Chrome Store is established as a marketplace with a steady stream of traffic, and Google Meet was underserved as a meeting tool. Hence, we were able to stand out quite fast and able to grow organically early on and with little effort. Spice this up with PLG and virality, and your first growth motion is there.
🧠 Do you want to be next and share your best tip with 750+ SaaS professionals? Reach out to me via Linkedin.
💪 1 software tool recommendation (tl,dv)
tl,dv, a tool to record, transcribe and highlight meetings on Zoom and Google Meet. Customer-loving teams use the product to understand and advocate their user’s needs throughout their company.
It’s actually a great tool to record your sales product demos and track your sales conversations, collect valuable customer insights, and train your new sales reps faster.
P.S. Check out my list of best software tools for SaaS startups for more inspiration.
Happy growth 🚀.
TL;DR
The 3 elements of a powerful SaaS Product Demo
The 9 phases structure of a powerful SaaS Product Demo
12 key aspects of a powerful SaaS Product Demo
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