How to present an effective software demo

Demonstrating software is like making fine art, much like painting a captivating landscape or composing a soul-stirring piece of music. You want to capture your audience and show them that you understand their current pains and address how they can be solved with compelling storytelling.

Whether you own a startup or you work in an established SaaS company as a sales executive or subject matter expert, software demos are the most important part of the sales transaction. This is usually the first impression that your audience receives about your software.

Remember, this is not a software training. We want to convey a message of key benefits that address pain-points rather than showing feature and functionality.


I have given hundreds of demos to large corporations over the last 5 years working as a pre-sales solution consultant. Through out my years of demonstrating software (boring tax software at that!) I’ve learned some key lessons on how to be most effective.

Why is the software demo so important?

Software demonstrations are a crucial aspect of the sales cycle since it offers tangibles insights into how a solution can bring value to an individual or the organization as a whole.

Instead of sending out abstract marketing flyers or short commercials about a product, a software demo provides the potential buyer an opportunity to see the software live and gives them an opportunity to relate to how it can feel to use the software. This is an opportunity for you to let the customers ride through your presentation in a way that they can see themselves gaining efficiencies.

Software demos can facilitate feedback and questions which you can address on the demo. Essentially, demos bridge the gap between concept and application, playing a vital role in establishing credibility and trust, which are indispensable in today’s competitive software market.

How to prepare for a software demo.

Research your audience

Prior to any calls with the customer you should do as much research as possible about your audience and customer on your own. You can use things like the company website, ZoomInfo, LinkedIn, and other social media platforms to get a better understanding of who is interested in your software.

Have a discovery call to understand your audience.

A discovery call is recommended prior to the actual demo. This is where you get to know your customer on a personal level, understand their current process, pain points and objectives. During the discovery call, you should be asking questions to your customer to get them to speak and give as much information as possible.

Typically, I like to start with allowing the customer to give a brief overview of their current process and pain points. Some customers will spill the beans and go into every single little detail which is great for your demo. Others might be more reserved which give you an opportunity to ask questions and probe.

Plan the demo agenda based on the discovery call.

The discovery call is a critical step in planning an effective software demo. It’s during this initial conversation that you get a deeper understanding of the prospect’s needs, pain points, and objectives to plan the demo.

Align the demo to address the specific challenges and objectives that the prospect conveyed. Start by revisiting the key takeaways and setting a plan on how to tell a story that will address the pain points.

Setting the order of the demo is a critical. You don’t want to get into the weeds of certain functionality… as I mentioned before this is not meant to be a training. The order of what feature/functionality you show can also depend on your audience.

If you are talking to a daily user of the software you may start with a “day in a life” of a user of the software. If you are talking to a C-Suite executive or decision maker in the company, you may want to start with showcasing the final results of the software whether it’s a key report or dashboards that can help the executives make decisions faster – they would not be as interested in the daily use of the software.

Remember, a successful demo isn’t about showcasing every feature of your software, but about focusing on the functionalities that matter most to your prospect. A tailored, well-planned agenda not only demonstrates your commitment to meet their needs but also sets the stage for a productive and engaging software demo.

Prepare Up the Demo Environment – Check hardware and software requirements

Prior to getting on the live demo, you should make sure the software and demo environment is properly set up. I like to navigate through all of the different screens I plan to show on the demo 15 minutes prior to the meeting to make sure every is loading properly.

How to be effective during the demo

Introduction

Start the call with having everyone introduce themselves so you know exactly who is on the call and how they are going to the interact with the software in their roll.

Make sure you write down everyone’s name in your notes – this will help you refer to the audience by their first name which helps the demo be more personable.

Restate the current state vs future state

This is your chance to re-iterate what you heard during the discovery call prior to the demo. This will help re-affirm the pain points that you plan to hit but also gives the audience and understanding of how they currently do a certain process and how that process will be enhanced wit the software solution that you will be demoing.

During the demo (Show-Tell-Show Technique)

A proven method for starting a software demo is the Show-Tell-Show technique, a simple yet effective way to keep your audience engaged. This approach involves first showing a feature or capability of the software, then telling the audience what they just saw and its relevance to their needs, and finally showing them again for reinforcement.

Start by showing a feature, ensuring that it is a key selling point or a solution to a challenge that your audience faces. This initial demonstration should be brief and impactful, giving your audience a taste of what your software can do.

Next, transition into the ‘tell’ stage by explaining what they just saw. This is the moment to highlight the benefits of the feature, relating it back to their specific needs, problems, or objectives. This explanation provides context and meaning to the feature, demonstrating its value to the user.

Finally, show them the feature again, but this time provide more details and dive deeper into its functionalities. The second showing serves to reinforce what they’ve learned and to solidify understanding.

This technique ensures the audience fully understands each feature before moving on to the next, allowing them to see the software’s full potential and how it can transform their current processes.

Tips to keep the audience engaged during the demo.

  • Foster Dialogue: Ask questions during the demo, inviting the audience to do the same. This promotes engagement and facilitates a deeper understanding of the product.
  • Be Honest: It’s okay not to have all the answers. Be honest when you don’t know something and assure them you will follow up with the answer after the demo.
  • Personalize Interactions: Mention audience members by name during the demo. This grabs their attention and makes the presentation feel more personal and responsive.
  • Share Success Stories: Incorporate use cases and success stories throughout the demo. This not only humanizes your presentation but also provides evidence of the software’s effectiveness.
  • Streamline Your Presentation: Keep any PowerPoint slides brief and to the point. Remember, the audience is there to see the product demo, not a lengthy slide show.
  • Keep it Simple: Avoid jargon and technical language that may be unfamiliar to your audience. Your demo should be easy to understand for everyone present.
  • Manage Time Efficiently: Be mindful of the duration of your demo. Ensure it’s long enough to cover the important features but not so long that it becomes tedious.
  • Prepare for Technical Issues: Have a backup plan in case of a technical glitch. This could be as simple as having a recorded version of the demo or screenshots as backup.
  • Follow Up: After the demo, follow up with attendees to answer any further questions they may have and to reinforce key points from the demo.