SaaS Demo Guide: Fixing What's Broken + Best Practices

With the landscape's competition, the effectiveness of your SaaS demo can make or break a deal. SaaS buyers today are more knowledgeable and selective than in the past, with 91% of buyers already familiar with a vendor when they get on a sales call. They have access to a plethora of similar products and know how to compare product offerings more effectively.

Given this, nailing your SaaS demos is no longer optional – it’s a must. 

But many demos still fall flat, with common issues like overly scripted presentations, poor messaging, and pitches that come off as too sales-y. Today’s buyers don't like the idea of wasting their time sitting through a feature-heavy, one-size-fits-all approach that doesn't address their questions or pain points.

Delivering demos the right way requires a combination of structure, effective practices, and the right tools for creating engaging, solution-directed experiences.

What exactly counts as a demo in SaaS?

SaaS product demos are either live or pre-recorded presentations that showcase a piece of software's capabilities, usability, and potential value. They present potential customers with a firsthand look at a product in action, which allows them to visualize how it will mesh into their workflow and meet their specific needs.

These product demos come in various formats, each catering to different phases in the buyer's journey or specific customer profiles. Demos can also be customized to meet the demands of technical users, business stakeholders, or those otherwise making decisions, depending on the goal of the demo and the SaaS org's go-to-market strategy.

Different SaaS products, buyer journeys, and GTM motions call for different demo types.

Self-guided or interactive demos

• Self-guided, bite-sized demos or product tours that let prospects explore a SaaS product on their own. 
• Often used on website product pages or in BDR outreach
• Ideal for early stage buyers looking to get a “taste” of a product 
• Learn more about interactive demo and product tour software

First demos (often called harbor cruise demo) 

• Offers potential customers a high-level look at the product or service during a live sales call. 
• Focused on general capabilities standout features and overall value minimal customization is involved

Industry/persona demos

• Live sales demos typically given by sales reps show how specific personas or industries use the product
• Offer an opportunity to let buyers see themselves within the product 
• Used in middle stages of a deal 

Custom sales demos

• Live, personalized sessions typically given by a solutions engineer, tailored to prospects’ specific needs, and via a sales demo environment
• Provide an opportunity for in-depth, interactive engagement 
• Allow potential customers to see how the software could solve their unique challenges and work within their existing tech stack and processes
• Mostly used in later stages of a deal or for large enterprise deals

POCs (proof of concept) 

• POCs are trial implementations that provide potential buyers with access to the product itself
• Can be highly tailored and configured to a specific use case, or automated and not connected with a prospect’s system(s).
• Serve as an extended test drive, which helps customers experience the solution in a way that resembles the end-user experience.
• For buyers approaching a decision, POCs that demonstrate specific solutions are incredibly helpful in validating the product, building confidence and trust.
• For buyers, seeing is believing — learn about one-click, automated POCs that accelerate your sales cycles and let buyers experience your product's value first-hand.

TestBox, for example, segments demos to align with the stages of the buyer journey, as this ensures each type addresses the specific needs and concerns of different stakeholders.

When to use which type of demo

Delivering the wrong type of demo can negatively impact the buyer experience, lose trust, and ultimately lose deals.

When customers are in early-stages of exploration:

‍Self-guided interactive demos or overview demos work well for prospective customers early in their journey. They allow these customers to explore the product’s capabilities without significant time investment, and with little pressure involved.

When you need to present problem-specific solutions:

Live custom demos can address specific pain points and requirements that potential customers have. This makes it easier to showcase relevant features and use cases for buyers who are deeper in the evaluation stage.

When giving presentations to decision-makers:

‍Executives and stakeholders need a broader strategic understanding of the value a product presents their teams. Overview demos are an excellent choice for this, especially if they keep their emphasis on ROI, ease of implementation, and the overall impact of implementation.

When customers need to get hands-on with a complex product:

‍Sales POCs are effective when buyers want to experience the product themselves, see the value, and validate it can meet their specific needs.

What should an effective SaaS demo accomplish?

When demos are planned and delivered correctly, they're great at:

Building trust

A thoughtfully executed demo provides potential customers with the confidence they need to trust in the product. It aims to highlight the product's reliability, usability, and support for specific needs.

Accelerating the sales cycle

Demos help clarify questions, address any objections, and provide quicker decision-making by having answers ready in real-time.

Highlighting differentiators

Demos allow companies to showcase the unique features that set them and their products apart from the competition. As such, customers are better able to see real value over competitors.

Personalizing the experience

Finely-tuned demos remind customers that the company understands and cares about their specific needs, which can greatly enhance customer satisfaction from the first interaction.

"Customers expect more than a technical demo; they want a partner who understands their business and can align solutions with their goals"

- Josh Aranoff, VP of Global Solutions Engineering at Procore

The problem with SaaS demos today

Several common issues impact the success of SaaS demos today, like: 

Overly sales-driven:

‍Demos that come across as sales pitches rather than genuine solution presentations often fail to resonate with buyers.

Your potential customers do not necessarily want to be “sold” to. They instead want to feel like they’re being presented with a solution for their problem, so find a way to make your pitch more personal and involved rather than treating prospects like numbers.

Feature overload:

‍Packing too many features into a single demo can overwhelm your prospects and make it difficult for them to see which functions are most relevant to their needs.

Misaligned content:

‍Demos that are not tailored to the audience, such as presenting technical details to executive-level decision-makers, can feel irrelevant and leave customers disengaged.

Poor preparation and execution:

‍Unprepared demos with bugs, incomplete data, or a significant lack of personalization are counterproductive and can damage trust-building.

Creating & running better demos: step-by-step

Improving SaaS demos requires a deep dive into your team's existing approach. You need to combine practical steps with mental frameworks to create engaging, valuable experiences for your customers.

For greater success when it comes to closing sales, make sure your following best practices when it comes to software demo presentations, and that your approach includes the following steps:

Step 1: Conduct pre-demo research

Take the time to understand the specific challenges your prospect faces as well as their goals and details about the industry they operate in.

Tailoring your demo to meet their unique needs creates a far more relevant experience for the buyer than a one-size-fits-all approach.

Step 2: Plan your demo structure

Identify which features or functions you need to highlight based on your prospect's listed pain points.

Think about the level of technical detail required as well, so that you can explain your solution in ways that match their experience level.

Also, prepare a reasonable presentation flow so that you can keep your demo engaging from start to finish.

Step 3: Prepare customized and personalized elements

Whether you're setting up an individual dashboard view, specific datasets, or customized workflows, taking the time to personalize these elements shows the prospect that you've done your research and you care about their company's success beyond making a sale.

Step 4: Review and fine-tune

Before going live, conduct several practice runs to ensure the demo flows smoothly. Identify areas that need tweaking, confirm that all tech is functional, and rehearse transitions between product screens and discussion points.

Don't forget to insert natural pauses that allow the prospect to ask a couple of questions throughout, but designate the majority of your Q&A portion of the demo for after the presentation.

Step 5: Engaged delivery

During the demo, keep it interactive.

Encourage questions, gauge the audience’s reactions, and make adjustments on the fly to maintain their interest (but make sure these instant changes are things you know how to execute correctly in the time allotted).

Highlight features that respond directly to the prospect’s pain points, avoiding a feature dump.

Step 6: Follow up!

After the demo, follow up within a reasonable time. Provide the prospect with any materials they requested, provide a summary of key points, and make sure you invite the prospect to reach out to you if they have further questions.

Personalized follow-ups help reinforce the relationship and keep your product in the prospect's mind.

However, try not to pressure the prospect into making a purchase. Simply be there to provide support as needed.

Leveraging tools to help

To streamline your team's demo creation and presentation, several tools are available:

• Demo automation platforms: These allow teams to create no-code, interactive demos that are easy to customize.
• Screen recording software: Perfect for recording a quick overview of demos or follow-up snippets that address specific client questions.
• Customer feedback tools: Record and analyze customer reactions during demos to improve demo quality and effectiveness.

Using these tools can reduce demo preparation time, increase and simplify personalization efforts, and provide valuable insights into improving future demos.

Best practices

Here are a few essential best practices that ensure demos stand out and create a positive buyer experience.

1. Keep it relevant: Tailor the demo content to the audience's needs, and avoid unnecessary details that can distract from the product’s core benefits.

2. Show, don’t tell: Demonstrate the product’s capabilities through real-time interactions instead of lengthy explanations.

3. Stay current: Always showcase the latest version and avoid bugs or incomplete features that can detract from the experience.

4. Focus on key differentiators: Highlight the unique aspects of the product that address the prospect’s challenges directly.

5. Balance features and benefits: While it’s important to show features, focus on the specific benefits those features bring to the buyer.

How TestBox enables SaaS demos that close

With demo automation and one-click POCs, TestBox helps teams create more effective and efficient demo experiences that accelerate decision-making, showcase product capabilities, and build the trust and confidence needed to close deals.

Using TestBox can unlock time savings, improve win rates, improve the buyer experience, and helped vendors like:

• Dixa improve win rate by 150%, increased decision confidence, and sales efficiency.
• Catalyst use scalable POCs to influence 30+ deals that drove $2.5m+ in ARR.
• Apollo.io increase conversion rates thanks to functional, data-filled demos.
• CallRail enable sellers to highlight the value of their products with efficient, live demo environments.

Level-up your SaaS demos

Transforming demos into powerful sales tools requires a combination of strategy, structure, and a commitment to customer-centered presentations.

By following a clear framework, using modern tools to your advantage, and adopting the right approach, sales teams can deliver demos that build trust, accelerate sales, and highlight product value.

Learn more about how TestBox can transform your demos