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Sales Glossary

The sales industry is always changing and evolving. Keeping on top of those changes can be tough. The Vidyard Sales Glossary is your ultimate guide to important sales terms, definitions, concepts, slang, insider business jargon and more to keep you up to date with the latest in sales industry lingo.

What is a Sales Demo?

A sales demonstration, commonly called a sales demo, occurs when a sales rep gives a presentation to a prospect showing exactly how their product works. Different features are shown, highlighting the value it would provide. Sales demos are conducted as part of BOFU strategies to help move deals forward or help close business. They can take the form of a live sales demo or can be pre-recorded to save time and are then considered an on-demand sales demo>.

Sales Demo vs. Product Demo

A sales demo and a product demo both center around showing off a product’s unique features, how they work, and what value they provide, but there is an important difference: the audience.

As mentioned above, a sales demo is conducted when a sales rep shows a prospect how their product works.

A product demo, on the other hand, is when a sales rep shows an existing customer how the product works. This happens when the prospect has upgraded and wants to utilize new features or is experiencing an issue with the product and has questions.

The messaging used in both situations also differs. During a sales demo, you’re trying to convince someone to make a purchase. You’re teaching someone how to use a tool during a product demo.

Why are Sales Demos Important?

Sales demos are essential when it comes to successfully closing out sales. Very few people are willing to spend large amounts of money on a product without conducting research, comparing it to competitors, and ensuring it meets their needs. You wouldn’t buy a car without taking it for a test drive, so why would a potential customer purchase your product without seeing how it works?

Let’s look deeper at the three main benefits of sales demos.

1. Highlights Features

Giving a sales demo lets you visually show how your product works. You can always explain things over the phone, but seeing it live in action will make a lasting impression. Some aspects may also be difficult to explain without visuals, and going through the steps is easier than typing out convoluted messages.

Plus, once a prospect sees how a product works, they can easily decide if it fits them and their company’s needs.

2. Piques Interest

Reading about a product online and looking at screenshots, charts, and testimonials is one thing, but seeing how it works helps create interest. A paragraph of text explaining highlights can be skimmed and forgotten, but an engaging sales demo? That will be remembered and create genuine interest in whatever you’re offering.

3. Alleviates Concerns

Sales demos are a great opportunity to answer questions a prospect may have. It’s common for raising concerns or clarifying questions to ask. Remember, they want to ensure their purchase is worthwhile, so ensure you provide all the information they need while conducting your sales demo.

Tips for Successful Sales Demos

Want to improve your sales demos and convert more prospects into customers? Incorporate these tips:

  • Use recorded videos. Most sales demos are done either in-person or on virtual calls, but sometimes it’s hard to find time to meet. In these cases, you can easily send a link to a pre-recorded video of your sales demo. Always follow up to answer any questions.
  • Personalize your presentations. Never deliver the exact same sales demo twice. The information you present should always be catered specifically to whoever you present. Don’t sound like a robot repeating itself; try to personalize and humanize the experience.
  • Answer every question. Always provide an answer to every question asked. Even if you don’t know, let them know you’ll follow up promptly with the information or specific details they need. Show you’re knowledgeable, resourceful, and care about their needs.
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