How to Use Demos to Sell a Service
“People don’t remember what we think is important. They remember what they think is important.”
– John Maxwell
You’re probably ignoring this ONE tactic that, when executed correctly, can nearly double your number of closed deals.
Business owners do many things to get more clients such as networking, referrals, proposals, etc., but most underestimate the power of this one step in the sales process.
I’m talking about sales demos. If you think this doesn’t apply to your business or you don’t know how to do a sales demo, you might be surprised how effective and easy they are.
In this article, I’ll cover the sales demo best practices, the 4 most common types, and the 2 biggest mistakes I see business owners make when performing them.
Why Sales Demos Are Effective
Why Should You Use Demos?
Well, unless you’re hawking CDs in Times Square, you wouldn’t expect someone you just met to buy from you right away. Prospects are wary of new people and sales pitches. To get through this resistance, you must get to know them, build trust, and teach them how your service will benefit them.
There are several tools or tactics that you can use to engage, educate, and nurture leads. Some of the most common sales methods include testimonials, case studies, blog posts, or even a complimentary, small-scale training or audit.
Enter the sales demonstration or “demo.”
What Is A Sales Demo?
A sales demonstration is where the prospect gets a walkthrough of how your service works. A demonstration can be delivered face-to-face, on a pre-recorded video, or virtually. The how to carry out a sales demo isn’t nearly as important as having one or more ready. It doesn’t matter if you have a team of sales reps or if you’re by yourself, anyone can create a top-notch demo.
Including a service or product demo in your sales process leads to a higher close rate. Multiple surveys show that a prospect who experiences the service in advance is much more likely to make a buying decision than those who do not. According to Twilio, 70% of executives believe companies will shift investment towards customer education like more and better demos.
Why Sales Demos are Effective
As humans, we are sensory creatures. We perceive the world through our sense of smell, sight, and hearing, all sharpened over hundreds of thousands of years. Experiencing something motivates us more than just listening to or reading words.
Just think about a time you bought a new frozen pizza. It was difficult to judge the pizza by the fancy graphics, words, and images on the package so perhaps you went with a trusted friend’s recommendation.
Now compare that pizza selection to going into Costco and seeing some freshly baked frozen pizza. You probably first smelled the unmistakable aroma, approached and saw the gooey cheese, and then picked up a steaming hot sample and savored the too-small-a-size piece. That’s a good sales demo!
You were getting a genuine experience with the product, which made you much more likely to buy.
For entrepreneurs who sell services, a demo is not all that different. You’re providing a tangible experience that allows your prospect to see the value in your offering. You are also establishing your authority, building trust, and guiding your prospective customer through the next steps toward closing a deal, all without using pushy sales tactics.
Four Types of Sales Demos: How to Structure and Deliver a Sales Demo
The type of demo you conduct can be as unique as the type of consulting or service you’re offering. In other words, you can get creative with the type of demo you present. In this article, I’ll cover the 4 most common types of sales demos.
1. Software-Based Sales Demo
This type of demo is prevalent in tech. The user either signs up for a free trial or enterprise-level solutions and schedules a full demo. A specialist or sales representative then meets the prospect and walks them through all the benefits and features.
But this type of demo can also be helpful for companies focused on service and support for software.
For example, a consultant who services HR management software can demo the features of the platform. These can include onboarding support and 360 peer reviews. In the demo, the consultant can showcase the value they bring to the software and not just show the features.
You could also provide the prospect with limited access to the software so they can get a first-hand feel for it.
2. Physical Service or Product-Based Service Sales Demo
If you’re selling a physical service, or a service based on a physical product, a demo can be the critical sales motivator.
This also applies to consulting and service-based businesses. For example, if you’ve positioned yourself in your market as the go-to option for sustainable, low-emissions landscaping services, a demo showing the quietness and speed of your battery-powered lawn mower fleet could turn a hesitant prospect into an eager buyer.
Pro Tip:
Follow up with the prospect after the demo. Send them a quick thank-you note, and offer to answer questions they may have.
3. Non-Physical Service Sales Demo
If you’re someone who thinks demos can’t work for your business, this one might be for you. There are plenty of business owners who offer services with no perceived physical benefit.
How do you create a sales presentation for an intangible service?
Let’s say the service you offer is marriage counseling. You may not immediately think that any kind of demo would apply here. It’s not like you can offer a one-session trial and solve one sample issue. But you could certainly walk your prospects through the framework you use for conflict resolution, share sample worksheets you provide couples, or even offer a short complimentary, get-to-know-you session.
This way, leads can get a taste for how you run your sessions, gain trust, and feel more comfortable working with you.
4. Process- or Support-based Service Sales Demo
But what if you offer support services? How does a fractional CFO or a freelance HR manager provide a demo?
Let’s look at an example. If your agency specializes in marketing support for medical practices, you could demo a sample marketing plan or walk the prospect through a visually engaging marketing dashboard.
Though this would not be a training session per se, it’s often beneficial to incorporate some training elements into the demo so your audience receives value and has a better understanding of the services you offer. You would also be helping your lead understand the numbers and charts on the dashboard, giving them the sense of empowerment that comes with new knowledge, which strengthens the relationship you’re trying to build.
Be Creative In Crafting a Sales Demo That Converts and Closes More Deals
If none of the 4 types of sales demos listed above work for your business, you can get creative and come up with other ways. Work with your team and think about how to structure a sales demo that will resonate with your prospects. Write any idea, no matter how ‘out there’ it is. You never know what other ideas the far-out suggestions might spark.
But if you’re still stuck, feel free to fill out the Ask Feras form [Link to Ask Feras form] and I’ll try my best to help.
When Should You Do Your Demo?
Like with great comedy, a successful sales demo relies on timing. So when should you time your demos?
Timing and format for a demo will vary depending on the circumstance.
Sometimes you can include a demo as part of your main sales pitch to entice the lead. Other times, you might conduct a demo to deepen interest with all stakeholders after a previous sales pitch.
There may also be times you can deliver an informal, impromptu demo on your laptop. Maybe you’re at a coffee shop or a chamber of commerce lunch, and the opportunity arises. Always be prepared. A short, on-the-spot demo can lead to a more formal sales meeting later.
The 2 Major Mistakes Many Entrepreneurs Make in Their Sales Demonstrations
Hopefully, I’ve convinced you about the power of demos and why you need to incorporate them into your sales process. But as enthusiastic as you may be, it’s important to follow best practices. Here are 2 common pitfalls I see entrepreneurs make in their sales demos.
Mistake #1: Focusing on the Wrong Things
As a service-based business, you’re probably excited about all the nuances of what you do. I’m the same way. We live and breathe the technical aspects of our work, whether it’s in actual technology or just a specialized service.
Many founders, when they’re in the thick of a demo, forget the main pain points their prospect is most interested in and get lost in all the intimate, most technical aspects of their service.
You have one main aim: If your lead has a simple problem that you can fix, stay focused on that. Nothing else matters unless your lead asks about it.
The innovative features that you’re excited about may not resonate with your lead.
In the example of the agency that provides marketing support for medical practices, don’t focus on the complex data engineering behind your new dashboards; focus instead on marketing insights and better campaign performance.
Mistake #2: Speaking the Wrong Language
Are you old enough to remember the first MP3 players? When Apple launched the iPod in 2001, there were two main MP3 players with market dominance: Rio and Jukebox. These 2 competed by showcasing memory capacity, player size, and system integration features.
When Apple entered the market, they used language that non-technical people understood. They simply stated, “1,000 Songs in Your Pocket.” This language immediately connected to the consumer’s problem and desire, and Apple soon dominated the market.
I have noticed some founders lose deals with overly specialized or technical jargon.
Coming from a digital marketing background myself, I can tell you we’re the worst offenders. Let’s look at the example of the marketing agency again. If you’re pitching to a medical group and you start throwing terms like conversion, attribution, multivariate testing, and ROI, I guarantee you’ll lose people. Especially if you don’t provide any further explanation. This is one sure way to make a roomful of medical professionals feel detached and deficient.
Simply your language and always focus on connecting with the lead throughout your demo.
Final Thoughts
For pretty much any kind of consulting or service, a sales demo can play a critical role in the sales process and nearly double your close rate, but only if you keep an audience-first mindset.
Focus on the leads, the problem they want to solve, and how your insights can be a valuable solution.
Make it easy for your lead to see how you can serve their interests, and you have a much better chance of calling that lead a new client.
Key Takeaways
- Sales demos, often overlooked, can significantly boost your closing rates.
Four Types of Sales Demos That Sell:
- Software-based demo: Ideal for providing prospects a firsthand experience of a certain software and how your service supports it.
- Physical service or product-based service demo: Demonstrates the tangible value of physical services or products.
- Non-physical service demo: Even intangible services, like counseling, can benefit from showcasing frameworks and sample sessions.
- Process- or support-based service demo: For support services, offering a visual walkthrough of plans or dashboards can be effective.
Best Practices for Good Sales Demos
- Be prepared to integrate demos into your sales pitch or even conduct impromptu demos whenever you encounter a prospect.
- best practices, the 4 most common types, and the 2 biggest mistakes I see business owners make when performing them.
- Focusing on the wrong things: Avoid getting lost in technical details; stay focused on solving the prospect’s pain points.
- Speaking the wrong language: Use language that your audience understands; avoid overly specialized or technical jargon that may alienate potential clients.
Action Items for You to Deliver a Compelling Demo
- Pick one of the 4 types of demos or brainstorm other ways you could showcase your service.
- Create a simple prospect-focused demonstration that’s ready when the moment arises.
