How to Create a Highly Converting Product Demo

A product demo is often the deciding factor for potential customers. A clear, concise, and engaging demo shows customers exactly how your product works and solves their problems. With the right techniques, you can create a highly converting product demo that excites customers and closes the sale. Today, we’ve prepared essential tips to help you create a highly converting product demo.

Understand the importance of a product demo.

Product demos provide numerous benefits that make them an essential part of your marketing and sales process:‍

They build trust.

Seeing your product in action helps prospects verify that it works as advertised and alleviates any concerns they may have. Visual proof builds confidence and trust that your solution can solve their problems.‍

They clarify value.

Customers often struggle to envision the full value of an unfamiliar product from just reading descriptions. A demo provides a living example of how your product provides value and benefits, clearing up the ambiguity.‍

They demonstrate differentiation.

‍In crowded markets, prospects struggle to understand what makes your solution unique. A product demo allows you to highlight specific features, workflows, or results that set you apart from competitors.‍

They boost engagement.

Studies show that people retain about 20% of information from written text alone but up to 80% when combined with relevant visuals. A visual product demo maximizes audience engagement by appealing to the visual and auditory senses.

They simplify complex processes.

A step-by-step demo is invaluable for products with complicated features or that enable complex workflows to help prospects envision how your solution streamlines tasks and simplifies processes.‍

They shorten sales cycles.

By eliminating prospect uncertainty and ambiguity early in the process, demos shorten the time it takes for prospects to make purchase decisions. They can also reduce the number of follow-up questions and objections later on.‍

They surface gaps.

‍Recording and reviewing product demos are an excellent way to identify gaps in features, documentation, or sales and marketing materials that affect your ability to articulate value to customers.‍

They facilitate precise positioning.

Seeing your demo in action helps prospects understand your product’s positioning in the market - who it’s designed for, what problems it solves best, and how it fits into prospects’ needs.

In summary, product demos are interactive communication tool that maximizes your prospects’ understanding of your solution’s value and benefits. The more accurately and persuasively you can convey this value through a demo, the higher your conversion rates will likely be.

Find the right persona and pain points.

Creating a successful product demo begins with understanding your target customer. Define a buyer persona accurately representing your ideal customer and their key challenges. Identifying the right persona and pain points to focus your demo on will make it much more effective at resonating and converting prospects.

Start by outlining the basic demographic and job characteristics of your target customer. These might include age, education level, job title, industry, and company size. Personas work best when they represent a specific individual, so choose an archetypal name for your customer.

Describe your persona’s goals and challenges in their job. What are their primary objectives and hurdles they face daily? Focus on issues that directly relate to the problems your product solves.

Get as specific as possible using real-world examples.Outline any frustrations your persona has with existing solutions. What approaches are they currently taking that fall short? How do these shortcomings impact their job performance and satisfaction? Outlining the status quo pain points your product aims to resolve helps frame the value proposition.

Detail your persona’s desired outcomes from using your product. How would their job change for the better if they had your solution at their disposal? What results do they hope to achieve regarding efficiency gains, cost savings, higher quality work, etc.?

Provide concrete usage scenarios showing how your persona would work with your product on the job. Walk through a typical workflow demonstrating how friction points would be removed and goals actualized. Seeing these examples come to life helps prospects relate to the value intuitively.

Be sure to include relevant details about your persona that bring them to life. Mention how long they’ve been in their current role, what motivates them at work, or even non-work interests that make them seem real. Humanizing your persona makes the problem and solution more vivid and memorable.

By creating a well-defined persona that embodies your ideal customer profile and most prominent pain points, your product demo can be laser-focused on illustrating how your solution alleviates their specific challenges at each stage. Sharing concrete usage examples and scenarios linked to your persona’s goals brings to life the value your prospect would realize by adopting your product.

Plan the demo script.

Your product demo script is the roadmap that will guide your product demonstration. Take the time upfront to plan an effective, engaging script that clearly illustrates your product’s value.‍

Start with an attention-grabbing opening.

Pose an intriguing problem or pain point your prospect likely faces building interest. Set the stage for how your product provides a better solution.

Outline the logical sequence of features you will demonstrate.

Group related functions together and proceed from high-level to detailed. Show how features build upon each other to provide an integrated solution.Begin with an overview of the significant benefits and outcomes your product enables. Highlight 2-3 key “wow factors” that set it apart. Then zoom in on specific features that drive those benefits and outcomes.For each feature, clearly articulate its value. Explain how the feature helps users achieve their goals more efficiently, saves time, or improves outcomes. Use concrete examples based on your persona.

Address likely objections and questions proactively.

‍If a prospect is likely to wonder, “How does this work for X?” - answer that question before they can ask it. Giving those answers shows you anticipate their needs.‍

Add sentences to bridge from one point to the next.

Use transitions like “The next feature…” or “Another key aspect of the solution is…” to guide prospects smoothly along your narrative.

Incorporate relevant visual aids.

Reference demo slides, videos, mockups, or live Software. But avoid playing “Death by PowerPoint” - keep visuals simple, focused, and time-bound.‍

Practice your demo aloud several times.

Time yourself and edit out unnecessary words. Rehearse handling technical glitches gracefully. The more polished and natural your delivery, the more engaging your demo will be.‍

Close by summarizing the main benefits and value.

Reiterate how the solution meets your prospect’s goals and needs precisely. Ask if they have any questions you can clarify before following up.‍

Leave space for Q&A and discussion.

Prospects may have questions that reveal gaps in your demo or selling approach. Welcome the feedback as an opportunity for improvement.

With a well-planned script as your guide, your product demo will convey a clear and compelling story of how your solution provides the outcomes, benefits, and value prospects desperately need. The results - more engaged prospects and higher conversion rates - will speak for themselves.

Select the right tools.

There are many options for creating and delivering your product demo, each with pros and cons. Consider the following tools based on your product, goals, and audience preferences:‍

Recommend product demo tool

‍Folio is an all-in-one storytelling tool that allows you to create and share interactive product demos, tutorials, and guided presentations without coding skills.‍

Screen capture software

Simple yet effective for demonstrating features within your software interface. The user sees an on-screen recording of you navigating menus and clicking elements live.‍

Pros: Easy to create and embed in other channels.‍

Cons: It can be difficult for the audience to follow along.‍

Slideshow programs

Popular options like PowerPoint or Keynote allow you to create a visually laid-out demo with annotations, animations, and transitions.‍

Pros: Clear, linear narrative.‍

Cons: Can become overly text-heavy and dull.‍

Screen recording + narration

‍Record your computer screen while watching a demo script. Then add audio narration explaining each step.‍

Pros: Engaging visual and verbal explanations.‍

Cons: It can require more editing.‍

Video

Full-motion video showcases functionality, workflows, and realistic scenarios.‍

Pros: Highly shareable and reusable.‍

Cons: Production requires more resources and planning.

Whiteboard animations

An illustrated or sketched-out demo can simplify complex concepts.‍

Pros: Focuses audience’s attention on crucial points.

‍Cons: Requires professional animation skills.‍

Live video

Tools like Zoom and Google Meet enable you to give a live demo to prospects in real time.

‍Pros: Interactive, personal touch‍

Cons: Requires prospects to tune in at the scheduled time.‍

Mockup software

Create mockups of your SaaS to demonstrate key flows and scenarios.‍

Pros: Low production burden.‍

Cons: May lack realism.

Live Demo

Navigate your running software in front of prospects.‍

Pros: Most realistic and immersive.‍

Cons: Requires Software to be fully functional.

Choose product demo tools based on:

1. Your goals - e.g., maximize reach (video), show nuanced features (live)
2. Audience preferences - e.g., visual learners (video), text-based (slideshow)
3. Product type - e.g., Software (screen capture), a physical product (video)
4. Resource constraints - e.g., time, budget, technical skills

Test different formats to see what gets the best results. Multiple types - e.g., a recorded walkthrough plus live Q&A - may be optimal.

Over time, evolve your demo format based on:

1. Technologies that emerge
2. Shifts in prospect preferences
3. Feedback on what resonates best
4. Changes in your goals or offerings

The right product demo tools will vary - what’s most important is that your chosen format clearly and engagingly illustrates your product’s true value to prospects in a way that converts them into customers.

Create effective videos and slideshows.

If you opt for a video or slideshow demo, follow these best practices to make it as effective as possible:

Keep it short.

5-7 minutes is ideal for a product demo. Longer loses prospects’ attention.‍

Start with an outline.

List the key points and features you’ll cover in the order you’ll present them.

Keep it simple.

Use large fonts, simple backgrounds, and a few animations/transitions. Don’t distract from the content.‍

Focus on benefits, not features.

Explain why each feature matters and the impact it has on your prospect.‍

Skip the fluff.

Get straight to demonstrating real value as fast as possible. Don’t waste time with unnecessary intro slides.‍

Add visual aids.

Use photos, mockups, diagrams, and video clips where helpful. But avoid going overboard with too many effects.‍

Avoid reading slides verbatim.

Speak conversationally and reference the slides to reinforce key points.

Record in a quiet space.

Background noise and echo can render a recording unusable.‍

Use a dedicated microphone.

External mics provide much higher audio quality than built-in computer mics.‍

Rehearse your script.

Practice your demo aloud multiple times to nail the timing and smooth delivery.‍

Record multiple takes.

Shoot for 3-5 complete recordings and choose the best one in editing.‍

Edit out “umms” and pauses.

Use editing software to remove filler words and other distracting speech gaps.

Annotate slides as you talk.

Marking up slides live during recording helps prospects follow along visually.‍

Add thought bubbles or captions.

‍Summarize key points in short, visible text for prospects to reference.‍

Add formatting to annotate.

Tools like arrows, circles, and highlights improve visual communication.‍

Break up long text.

Avoid small text paragraphs; use bullet points and short headings.‍

Close by asking for action.

‍Provide a call to action at the end, inviting prospects to the next steps.‍

Measure and improve over time.

Get feedback from prospects on what resonates and what to adjust.‍

For video, shoot in landscape format at 1080p resolution.

Higher resolutions will also play back smoothly.‍

Reduce background noise with a Lavalier mic.

The closer mic provides a much clearer audio recording.‍

Practice making eye contact with the camera.

This engages prospects watching “in person.”‍

Edit sequences together seamlessly. ‍

Use editing techniques to make a cohesive, well-paced video.‍

Add descriptive, SEO-friendly filenames and alt text for accessibility.

‍This also helps with discoverability.

Share your demo publicly

Share videos on sites like YouTube and Vimeo for maximum reach and free distribution.

By following these evidence-based strategies and continuously measuring and refining your approach, you can create highly effective product demo videos and slideshows that clearly illustrate the value and convert prospects into customers.

Use interactive demos effectively.

Here are some recommendations for using live and interactive demos effectively:‍

Prepare in advance.

Have your Software or system fully tested and ready to go. Run through live demos with colleagues beforehand.‍

Focus on key features and benefits.

Don’t try to show everything - hone in on what will demonstrate the most value for prospects.‍

Allow for flexibility.

During the demo, be prepared to pivot based on prospects’ specific questions and interests.‍

Start broadly.

‍Give an overview of the main capabilities and outcomes before diving into specific features or functions.‍

Give a high-level walkthrough of key workflows.

Show how users accomplish important tasks within your system from start to finish.‍

Explain your decisions and recommendations.

As you navigate the system live, narrate your thought process for various actions.‍

Proactively address objections or questions.

Anticipate areas of uncertainty and cover them during the demo to lessen follow-up.‍

Use visual aids whenever possible.

‍Integrate screen sharing, slides, or handouts to supplement your live demonstration.‍

Manage technical difficulties gracefully.

Have backups, and don’t let hiccups derail the entire presentation.‍

Leave time for discussion.

After your planned demo, open the floor for prospects to ask how specific use cases would work.‍

Gauge prospects’ reactions and adjust accordingly.

Pay attention to body language, questions, and comments to determine interest level.‍

Gather feedback.

Ask prospects directly what else they’d like to see or what was most valuable or impactful from the demo.

Follow up promptly.

Send a thank you note, share any resources discussed, and recap the next steps.

The interactive nature of live demos allows for a more genuine, back-and-forth dialogue that can uncover nuances of how your product would truly provide value for each prospect. With preparation, flexibility, and a willingness to adjust ‘on the fly,’ you can optimize your live demos for maximum impact.

Avoid common pitfalls.

Here are some recommendations for avoiding common pitfalls when creating product demos:‍

❌ Don’t make it too long.‍

Keep it under 10 minutes for optimal attention and impact.‍

❌ Don’t try to cover too much.‍

Focus on 2-3 key benefits/features that demonstrate the most value.‍

❌ Don’t read slides verbatim.

‍Speak conversationally and reference slides as a guide.‍

❌ Don’t use jargon or industry terms.‍

Explain concepts in simple, easy-to-understand language.

‍❌ Don’t gloss over technical difficulties.

‍Admit them transparently and move on gracefully.‍

❌ Don’t leave gaps for prospects to fill in on their own.‍

Explain each step clearly and completely.‍

❌ Don’t just show features.‍

Frame them in the context of benefits, outcomes, and value for prospects.‍

❌ Don’t make assumptions.‍

Ask questions to gauge whether concepts are coming across clearly.‍

❌ Don’t ignore objections.‍

Address likely objections proactively to build credibility and trust.‍

❌ Don’t use outdated information.

‍Ensure all details, data, and statistics you share are up-to-date.‍

❌ Don’t use low-quality visual aids.‍

Poor graphics or videos can undermine your credibility.‍

❌ Don’t neglect Q&A at the end.‍

Fielding questions show prospects you welcome dialogue and feedback.‍

❌ Don’t offer one-size-fits-all demos.‍

Tailor them to the needs and interests of specific prospects.‍

❌ Don’t wait too long to follow up.‍

Connect with the next steps immediately after your demo.‍

❌ Don’t forget to measure results.‍

Track metrics like time spent, questions asked, and conversion.

By being aware of and avoiding these common pitfalls, you can create product demos that effectively focus prospects’ attention on the genuine value and benefits your solution offers. Prospects will walk away with clarity about how using your product would improve their business - positioning you for the next stage of the sales process.

Test and optimize your demo.

Here are some recommendations for testing and optimizing your product demo:

• Get feedback from colleagues. Have others in your company review your demo to identify any gaps or areas for improvement.
• Run a pilot test with prospects. Run a trial demo for a small group of target customers. Gauge their reactions, comprehension, and interest levels.
• Survey prospects afterward. Send a follow-up survey asking what parts of the demo resonated most/least and what remained unclear.
• Analyze metrics like time spent and questions asked. Longer engagement and fewer questions indicate a more effective demo.
• A/B tests different demo versions. Create two variations (e.g., shorter vs. longer) and compare results to see which performs better.
• Monitor conversion rates. Does the demo lead to more prospects requesting additional information, signing up for a trial, or becoming customers?
• Track demo downloads and views. Higher demand suggests your demo is effectively interesting and motivates prospects to take action.
• Pay attention to body language during live demos. Frequent nods, smile, and engagement indicates prospects are following and interested.
• Watch for nonverbal cues like eye contact and posture. These indicate prospects’ level of attention, comprehension, and confidence in your solution.
• Take detailed notes during and after demos. Record specifics on what parts sparked the most interest, confusion, or enthusiasm.
• Actively solicit feedback. Directly ask prospects what could be improved, what remained unclear, and how they’d like to see the demo evolve.
• Make small, iterative changes based on testing. Adjust your demo’s length, order, focus, or visual elements continuously.
• Rinse and repeat. Continue testing newer demo versions with fresh prospects to identify new areas for optimization.

By testing your demos using a combination of metrics, prospect feedback, and A/B testing techniques, you’ll gain invaluable insights into how to continually refine your approach - enhancing prospects’ ability to understand and envision the genuine value your product offers. The result will be more engaging and impactful demos that translate into increased conversions.

Measure success and improve over time.

Here are some ways to measure the success of your product demo and continuously improve it:‍

Track conversion rates

‍Compare the percentage of prospects who become customers before and after implementing your demo. Higher conversion suggests your demo is more effective.‍

Monitor inquiries and trials.

See if the number of prospects requesting more information, signing up for a trial, or scheduling demos increases after launching your demo.‍

Survey prospects after demos

Ask how clear, useful, and engaging they found the demo on a scale. Higher ratings mean a more successful demo.‍

Measure time spent and questions asked.

Shorter average demo length and fewer average questions post-demo indicate higher effectiveness.‍

Analyze qualitative feedback

‍Look for trends in open-ended comments to identify impacts, confusion, and suggested improvements.‍

A/B test demo versions

Compare metrics between two demos to determine which performs better and merits further refinement.

Note prospect reactions during live demos.

Pay attention to nonverbal cues like nodding, smiling, and engagement that suggests comprehension and interest.‍

Track demo downloads and views

‍Higher demand for your demo from prospects shows it’s motivating them to take action and learn more.‍

Identify “viral” demos.

If prospects are sharing your demo within their networks, that points to a genuinely useful and effective format.‍

Set quantitative goals

e.g., “Increase conversion rates by 15% within six months.” Goals keep you accountable and focused on key results.‍

Make gradual, data-driven changes.

Analyze testing results to identify high-impact areas for small tweaks or adjustments.‍

Rinse and repeat

Continue testing newer demo versions to identify new optimizations that can further improve success metrics over time.

By measuring both hard numbers (e.g., conversion rates) and softer feedback (e.g., reactions, comments) - and implementing deliberate, measured changes based on your findings - you can spur a virtuous cycle of continuous demo improvement that steadily increases your ability to engage prospects and push them further down the funnel.

Conclusion

Creating an effective product demo requires careful planning, storytelling, and multisensory communication. But the payoff can be huge in motivating prospects to take action and ultimately become customers. By following evidence-based best practices, leveraging the right tools for your product and audience, and continuously testing and optimizing your demo over time, you can create a demonstration that prospects find clear, compelling, and convincing.

Don’t be afraid to experiment, gather feedback, and adjust as needed. The most important thing is that your demo resonates with prospects by genuinely illustrating how using your product will benefit them and improve their business.Keep that north star in mind, and you’ll be well on your way to creating a highly converting product demo that helps accelerate your sales and growth.

Cover photo by KOBU Agency on Unsplash