Product Demo

A product demo or product demonstration is a presentation of a product's benefits, showcasing how it works and what value it offers potential customers. It is often used to persuade prospects to purchase the sales cycle.

A product demo is a way to show off a product, explain how it works, and highlight why it's great. Whether live or pre-recorded, a demo helps potential customers see the product in action, understand its benefits, and decide if it's right for them. It's like a show-and-tell that helps build trust, answer questions, and ultimately encourage people to purchase.

• Types of Delivery: Demos can be done in person, online, or pre-recorded. In-person demos are common in physical stores, while virtual and pre-recorded demos work well for all types of businesses.
• Audience: Usually aimed at potential buyers, current customers, or investors. The demo's focus might change depending on who is watching. For example, when demonstrating to potential buyers, a salesperson might key in on the pain points they're experiencing that the tool will explicitly solve for them, but when pitching to a potential investor, they will focus more on the unique value proposition compared to the broader market.
• Format: Often includes a walkthrough of key features, a demonstration of its use, and an explanation of its benefits. Demonstrators will want to showcase how the product solves a problem or meets a need, explicitly highlighting unique selling points and differentiators. Toward the end, leave time to address potential customer questions and concerns.
• Benefits: Product demos build customer confidence and trust, provide hands-on experience, and enhance the sales process by clarifying product capabilities. This is particularly important when demonstrating higher-priced items, as there is usually more due diligence during those sales cycles.
• Examples: Include software demos, hardware showcases, live presentations, and video tutorials. Apple, one of the most famous product companies, has a good variety of each, with its YouTube channel offering product announcements, demos, and tutorials, and its Genius Bar stores offering in-person options.

Purpose of a Product Demo

Think of a product demo as a show-and-tell session for grown-ups. Its main goal is to show off a product's value and functionality to potential customers. By seeing the product in action, prospects can understand how it works, what problems it solves, and how it can benefit them. This firsthand look can effectively address questions and concerns, helping to build confidence in the product.

Types of Product Demos

Live Demos: These are like live streams or in-person events where someone shows the product in real-time. They allow for real-time interaction and feedback, making it easier to address specific questions and tailor the presentation to the audience's needs.

• In-Person Demos: Often used at trade shows, conferences, in-stores, or customer meetings.
• Virtual Demos: Conducted online, through video calls or live streams, suitable for remote audiences and, therefore, the lowest cost to a business.

Pre-Recorded Demos: These are video demonstrations that can be watched anytime. They provide flexibility for asynchronous updates for both the presenter and the viewer.

• Video Tutorials: Step-by-step guides that show how to use the product.
• Product Highlights: Short videos focusing on specific features and benefits.

Audience for Product Demos

Product demos are generally aimed at people who might buy the product, but they can also target stakeholders, investors, or even internal teams. Each group might have different questions or interests, so tailoring the demo to fit their needs is important.

• Potential Customers: Want to know how it works and why they should buy it.
• Stakeholders and Investors: Want to know how it will make money or stand out in the market.
• Internal Teams: Need to understand the product well to sell or support it effectively.

Format of a Product Demo

A well-structured product demo usually includes:

• Introduction: Brief overview of the product and its purpose. An elevator pitch for the value it will provide.
• Feature Walkthrough: Detailed demonstration of key features and how they work. Strike a balance between showing the entire value while not getting lost in the weeds. The flow should be logical.
• Use Case Scenarios: Examples of how the product can be used in real-world situations. It helps to know the audience and what they intend to use the product for to tailor use cases for them.
• Benefits Explanation: Highlight the unique selling points and advantages of the product. How does this product add value to their day?
• Q&A Session: Opportunity for the audience to ask questions and get immediate answers (more common in live demos). For increased interaction, encourage the audience to ask questions during the demo as well.

Regardless of the type of demo, remember to speak slowly and clearly, giving ample time for the customer to consume your visual, transitions, etc.

Goals of a Product Demo

• Demonstrate Value & Benefit: Show how the product solves a problem. Your value proposition should help develop a talk track for this.
• Highlight Features: Focus on the product's unique and most important features.
• Build Trust: Provide transparency about the product's capabilities and limitations. A quick sale on the front end with incorrect information could lead to issues down the road for a business's customer support or retention goals, even damaging reputation.
• Address Concerns: Respond to potential customer questions and objections.
• Drive Sales: Persuade prospects to move forward in the buying process.

Importance of Product Demos

• Building Customer Confidence: Seeing the product in action helps people feel sure it's the right choice.
• Providing Hands-On Experience: Demos give customers a chance to see the product's functionality firsthand, which is often more persuasive than descriptions or images.
• Enhancing the Sales Process: A demo can clarify how the product works, making it easier for sales teams to close deals.
• Differentiating from Competitors: A well-executed demo can highlight what sets the product apart from competitors, emphasizing unique features and benefits.

Examples of Product Demos

• Software Demos: Showcasing the user interface, features, and workflows of a software application. For example, a CRM (customer relationship management) software demo might highlight how to manage contacts, track sales, and generate reports.
• Hardware Showcases: Demonstrating the capabilities and design of physical products, such as electronics or machinery. For instance, a new smartphone demo might focus on its camera features, display quality, and user interface.
• Live Presentations: Conducting a demo in real-time at a trade show or customer meeting. For example, a medical device company might demonstrate a new diagnostic tool to healthcare professionals.
• Video Tutorials: Creating videos that walk through different aspects of the product. For example, a cooking appliance brand might produce videos showing how to use other features of their latest kitchen gadget.