Glossary:

Sales Methodology & Process

Master the essential revenue and financial metrics that drive B2B SaaS success. From ARR and MRR to retention metrics and customer economics, these terms are critical for understanding pipeline health, forecasting growth, and making data-driven decisions.

Demo

Short Definition

A tailored walkthrough of your product that demonstrates how it solves a prospect’s specific problems and supports their key workflows and outcomes.

Definition

A demo is a tailored presentation of your product or solution. In sales, demos should not be generic tours. They should focus on the workflows, pain points, and value drivers uncovered during discovery, using relevant data, scenarios, or personas.

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A strong demo tells a story: “Here is your problem; here’s how this process works today; here’s how our solution changes that.”

Why Demos Matter

  • Translate abstract value promises into concrete product experiences.
  • Help stakeholders visualize how the solution fits their daily work.
  • Provide proof that key requirements can be met.
  • Create emotional buy-in when users see their own world reflected.
  • Support internal champions selling the solution internally.

How to Run an Effective Demo

Tie demo content directly to discovery:

1. Align on Agenda

Recap the prospect’s goals and confirm the focus areas.

2. Tell a Before/After Story

Show the current pain, then the improved workflow in your product.

3. Highlight Key Use Cases

Prioritize 2–4 core workflows instead of touching every feature.

4. Connect to Value

Narrate how each workflow impacts time, revenue, or risk.

5. Engage and Validate

Ask if what you’re showing matches their reality and expectations.

6. Close with Next Steps

Outline implementation, POC, or deeper technical validation.

Demo Structure

Segment Focus
Intro & Agenda Recap goals, align expectations
Context Recap Summarize pain and desired outcomes
Core Workflows Walk through 2–4 key use cases
Value Tie-Back Link workflows to metrics and impact
Q&A Address questions and objections
Next Steps Confirm follow-up actions

Demo Types

Type Description
Standard Overview High-level pass for early interest
Tailored Demo Customized based on discovery
Technical Deep Dive API, architecture, integration focus

Key Metrics

  • Demo-to-opportunity or demo-to-proposal conversion rate.
  • Number of stakeholders attending key demos.
  • Time between discovery and first tailored demo.
  • Win rate when a tailored demo is used vs. generic.
  • Feedback scores or call reviews on demo quality.

Common Mistakes

Mistake Fix
Reps run generic feature tours that don’t connect to the buyer’s real problems, causing disengagement. Design demos around 2–4 specific use cases tied directly to the pains uncovered in discovery.
Reps overload demos with features and jargon, overwhelming stakeholders and hiding the core value. Simplify and focus on a clear narrative, highlighting only the capabilities that matter most to the buyer.
The demo doesn’t tie back to business outcomes, so executives see it as “nice software” rather than a strategic solution. Explicitly connect workflows to metrics like time saved, revenue gained, or risk reduced during the demo.
Reps don’t confirm understanding, so misalignments go unnoticed until late. Pause regularly to ask if what you’re showing matches the buyer’s process and expectations.
Reps end the demo without clear next steps, causing momentum to stall. Close by summarizing what was shown, confirming fit, and agreeing on specific next steps and owners.

Frequently Asked Questions

How long should a demo be?

Demos commonly take 30–60 minutes. For complex solutions, consider multiple shorter sessions focused on different audiences and use cases.

Who should attend the demo?

Whenever possible, include key decision-makers, primary users, and any technical stakeholders involved in evaluation.

Should a demo always follow discovery?

Yes. Discovery tells what to show the buyer; skipping it leads to a generic and ineffective demo.

Are recorded demos useful?

Yes, especially for sharing with stakeholders who couldn’t attend live, but live demos are better for interaction and questions.

How many demos are typical in an enterprise deal?

Enterprise deals often take 2–4 demo calls. This could include an overview, role-based sessions, and a technical or admin deep dive.

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