Product demos are a powerful way to showcase your product's value proposition and persuade potential customers to buy. But how can you measure the effectiveness of your demos and use the data to optimize your sales process? In this article, you'll learn how to track and analyze key product demo metrics and KPIs, and how to use them to improve your demo strategy, content, and delivery.
Product demo data can provide valuable insights into how prospects interact with your product, what features and benefits they are most interested in, and their likelihood of conversion. By collecting and analyzing this data, you can identify the best practices and techniques that lead to successful demos. You can also tailor your demos to each prospect's needs and pain points, follow up with them more effectively, test and optimize your demo scripts, slides, and demos, and align your product, marketing, and sales teams on the same goals and expectations.
In addition to being used to tell how well your product is being received, product demo data also provides an additional level of feedback and validation above beta testing, as you are able to gather real inputs from users outside the typical beta test community.
Harnessing demo analytics strengthens sales pitches like a baseball coach reviewing video to improve player technique. Identify questions asked most for FAQ refinement. Note sections with high engagement for talking points. Flag routine objections to address proactively. Share findings to equip team. Soon their pitches will be sales grand slams thanks to data-driven coaching! Now queue up that demo footage and let’s knock sales out of the park! ??
Tracking product demo data can be done in various ways, depending on the type and format of your demos. For instance, CRM software can be used to record and manage bookings, attendance, feedback, and outcomes. Additionally, web analytics tools can track and measure landing page performance, conversions, and sources. Video conferencing platforms can capture and analyze engagement, duration, and drop-off rates. Screen recording and sharing tools can monitor and review sessions, interactions, and questions. Furthermore, survey and feedback tools can collect and evaluate satisfaction, NPS, and referrals.
Once you have collected your product demo data, it's important to analyze it and derive actionable insights. You can start by segmenting the data according to criteria such as demo type, industry, persona, stage, and source. You should also compare the data with your benchmarks and goals, such as demo conversion rate, average deal size, and sales cycle length. Additionally, you should look for patterns and correlations that indicate the success factors and pain points of your demos. Finally, it's helpful to visualize the data with charts, graphs, and dashboards to make it easier to understand and communicate.
Your product demo data analysis can provide valuable insights to optimize your sales process and performance. Adjusting your demo strategy and targeting to focus on the most qualified prospects, customizing your demo content and delivery to match the preferences and expectations of each prospect, improving your demo skills and techniques to demonstrate value, overcoming objections, and closing deals, as well as enhancing your demo follow-up and nurturing to maintain interest, build trust, and increase urgency can help you reach these goals. Additionally, experimenting with different demo formats, channels, and tools can give you an idea of what works best for your product and audience.
To measure the return on investment (ROI) of your product demos, you must calculate the cost of your product demos, which includes the time, resources, and tools involved. Additionally, you should calculate the revenue generated by your product demos, including the deals closed, upsells, and referrals. After comparing the cost and revenue, you can determine the profit and margin of your product demos. Lastly, track and report your product demo ROI over time to monitor and optimize your demo performance and value.
This is another of the AI-generated sections that isn't realistic, because this is not something that is typically done. Capturing all the costs that go into developing the product demo is easy, but what value does that really provide? The demo is still an extension of the product development process, so trying to measure ROI on a demo by itself doesn't make sense unless you're trying to create some vanity metrics for upper management to see. Also, if you were to do so, product demo ROI will be different depending on the product, the company, the goals of the demo, where the demo is shown (at an event, in-person at a customer location, online, etc.), how many participants there were, for how long did the demo run, etc.