I highly recommend "Great Demo!: How to Create and Execute Stunning Software Demonstrations" by Peter Cohan to my colleagues in Presales and Solution teams, especially those involved in product, solution, and POC demos. Solution demos are a critical stage in sales conversations, and maximizing their impact can be challenging.
Gathering the necessary requirements from prospects is often tough, and with limited time, we must make the most of every opportunity. One of the common dilemmas we face is deciding what to showcase and what to leave out.
The book “Great Demo!" is about shifting the focus from a feature-heavy presentation to a problem-solving, customer-focused narrative. By keeping the customer’s needs at the center of the demo, the approach helps sales teams deliver more compelling presentations, shorten the sales cycle, and close deals more effectively.
This book provides a structured approach to software demos, focusing on demonstrating products in a way that captures customer interest, engagement, and buying intent. Below is a detailed summary of the core principles and strategies from the book to help guide effective and compelling software demonstrations.
Core Concepts:
1. The “Last Thing First” Principle: This principle focuses on delivering the primary value or result that the customer seeks right at the beginning. Instead of starting with extensive background information, jump straight to what the customer wants to see. This approach captures the audience's attention quickly and immediately establishes the product's relevance to their needs.
2. Critical Business Issue (CBI): Peter Cohan stresses the importance of identifying the prospect's Critical Business Issue (CBI) before creating or delivering a demo. Understanding this core problem ensures that every feature or functionality shown in the demo directly addresses the customer’s most pressing needs.
3. Situation, Solution, and Value: A successful demo should clearly present:
o Situation: The current challenge or status quo that the customer faces.
o Solution: How the product directly addresses or improves upon this challenge.
o Value: The tangible benefits or ROI the customer can achieve with the product.
4. The “Do the Last Thing First” Workflow: This structured workflow for software demos consists of four key steps:
o Discovery: Conduct an in-depth discovery process to uncover the customer’s needs, pain points, and specific use cases.
o Introduction: Introduce the product by immediately showing how it addresses the critical problem identified during discovery.
o Demonstration: Dive into the software, keeping the focus on features that provide direct value to the customer.
o Summary: Conclude by reinforcing the key points, emphasizing the benefits, and restating how the solution meets the customer’s problem.
Key Strategies:
1. Focus on Customer Benefits: Cohan emphasizes that an effective demo should not be a technical walkthrough of the software but a focused presentation on how the product provides value to the customer. Rather than overwhelming them with features, concentrate on the specific functionalities that directly solve their problem.
2. The “Inverted Pyramid” Structure: Cohan suggests using the inverted pyramid model, common in journalism, where the most important information is presented first, followed by supporting details. This approach keeps the audience engaged from the beginning and allows them to leave at any point without missing key takeaways.
3. Minimal Viable Demo (MVD): Provide a Minimal Viable Demo, showcasing only the essential parts of the product that directly address the customer’s issue. Avoid spending time on features that do not contribute to solving their critical business problem.
4. Vision Generation Demos: These demos are designed to help the customer envision success. By illustrating how your solution fits their specific needs, you enable the prospect to see the value it can bring to their organization, fostering early buy-in and commitment.
5. Interactive Demos: Encourage interaction by asking questions, seeking feedback, and allowing the prospect to use the software. This makes the demo feel like a collaborative exploration rather than a one-sided presentation, enhancing engagement.
6. Handling Questions and Objections: Cohan recommends addressing customer questions and objections openly during the demo. Rather than avoiding tough questions, address them head-on while maintaining control of the demo flow, linking responses back to the product’s key value proposition.
Techniques for Effective Delivery:
1. Storyboard the Demo: Just like a movie, a software demo needs a storyboard. Plan out what you will show, the sequence of steps, and how you will communicate each point. This ensures a smooth, logical flow that keeps the audience engaged.
2. Demo Flow: Keep the flow of the demo simple, avoiding unnecessary complexities. The demo should be easy for the audience to follow, without requiring them to spend a lot of time thinking about how the software works. Focus on how it solves their problem, not how it functions.
3. Use Scenarios and Use Cases: Present the demo in the context of specific customer scenarios or use cases. By demonstrating how the software solves a real-world problem that the customer is facing, the prospect will have a better understanding of the value of the product.
4. Repeat Key Points: Throughout the demo, emphasize and repeat the key benefits and outcomes that the customer will gain. Reinforcement of these points ensures that they resonate with the audience and that they leave the demo with a clear understanding of how your solution can help them.
5. Summarize and Reiterate Value: At the end of the demo, it is crucial to summarize the main points and reiterate the value your product brings. Remind the prospect of the Critical Business Issue and how your solution resolves it.
Post-Demo Engagement:
1. Follow-Up: After the demo, follow up promptly with materials that reinforce the key takeaways from the presentation. These could be a summary of what was demonstrated, case studies, or answers to questions raised during the demo.
2. Tailored Proposals: Build on the demo by creating a tailored proposal that addresses the specific needs and goals identified during the demonstration. This ensures continuity in the sales process and keeps the momentum moving forward.
