My Guide to the 6+ Elements of High-Converting SaaS Product Demos
Denis Shatalin
Founder of SaaS Camp
Getting and closing SaaS demos is one of my main focuses when I work with B2B startups through SaaS Camp.
In my experience, lots of founders who don’t have a background in sales struggle to pin down a repeatable formula for success. Trial and error may get you there eventually, but it’s going to eat up valuable time.
In this guide, I'll break down 6+ elements of high-converting SaaS product demos to help you skip the trial and error stage entirely. I’ll touch on format, research, framing, and more—so if you’re worried about getting prospects on board, this guide is for you.
Let's get started.
In my experience, lots of founders who don’t have a background in sales struggle to pin down a repeatable formula for success. Trial and error may get you there eventually, but it’s going to eat up valuable time.
In this guide, I'll break down 6+ elements of high-converting SaaS product demos to help you skip the trial and error stage entirely. I’ll touch on format, research, framing, and more—so if you’re worried about getting prospects on board, this guide is for you.
Let's get started.
What Are SaaS Product Demos?
I’ll keep this short, but it’s important to make sure we’re all on the same page.
On one hand, a B2B SaaS product demo is a structured presentation that’s meant to show potential customers how a product works and how it addresses their main problem(s). On the other hand, it’s an opportunity for you to determine whether the customer is a good fit for your product and whether you’ve defined your ICP and positioning well.
To summarize in a sentence—product demos are a tool for quickly understanding, qualifying, engaging, and converting customers.
On one hand, a B2B SaaS product demo is a structured presentation that’s meant to show potential customers how a product works and how it addresses their main problem(s). On the other hand, it’s an opportunity for you to determine whether the customer is a good fit for your product and whether you’ve defined your ICP and positioning well.
To summarize in a sentence—product demos are a tool for quickly understanding, qualifying, engaging, and converting customers.
How Do SaaS Product Demos Work?
So, how do SaaS product demos actually achieve these things?
The core mechanism at play here is an accurate and (highly) specific understanding of what the person you’re speaking with wants. This lets you establish credibility and expertise from the jump and explain your product in terms of dream outcomes.
In practice, this looks like:
In theory, it’s a simple process. In practice, lots of B2B SaaS founders get tripped up on key details. That’s why having a clear, repeatable process (like the one I cover in the +240ARR Playbook) is so important.
The core mechanism at play here is an accurate and (highly) specific understanding of what the person you’re speaking with wants. This lets you establish credibility and expertise from the jump and explain your product in terms of dream outcomes.
In practice, this looks like:
- Establishing the customer’s dream outcome (before the demo begins).
- Validating that dream outcome on the call to establish trust and qualify the prospect.
- Handling objections before they’re raised.
- Demonstrating a few (I recommend three) product pillars that lead to the dream outcome.
- Closing the deal.
In theory, it’s a simple process. In practice, lots of B2B SaaS founders get tripped up on key details. That’s why having a clear, repeatable process (like the one I cover in the +240ARR Playbook) is so important.
How Well Do SaaS Product Demos Work?
We’ve covered the what and the how, now let’s talk about the why.
To put it simply, product demos are the most effective way to convert prospects into paying customers—especially for new startups targeting mid-market and enterprise customers. This method is fast, relatively cheap, and has the highest success rate of any sales tactic I’ve tried.
To give an example, I recently helped the founder of Dividend Compass go from 5 to 150 signups in 4 weeks by building an acquisition system that funneled in a steady stream of high-quality leads and converted them with formulaic product demos.
To put it simply, product demos are the most effective way to convert prospects into paying customers—especially for new startups targeting mid-market and enterprise customers. This method is fast, relatively cheap, and has the highest success rate of any sales tactic I’ve tried.
To give an example, I recently helped the founder of Dividend Compass go from 5 to 150 signups in 4 weeks by building an acquisition system that funneled in a steady stream of high-quality leads and converted them with formulaic product demos.
6 Elements of an Effective SaaS Product Demo
1. Format
The first thing you need to think about is format — how you’ll actually deliver the demo.
There are a few potential formats you can use:
So, how do you choose the best format for your product?
As a rule of thumb, if your annual contract value (ACV—the amount a user spends on your product every year) is more than $5,000, you should be doing live demos.
Whether you want to incorporate an interactive element depends on factors like ease of use, learning curve, and the number of key features you need people to understand.
There are a few potential formats you can use:
- Live Product Demos: This is my go-to format for SaaS products aimed at mid-market and enterprise customers (for reasons I’ll explain in a minute). It involves hopping on a call with prospects and running through a structured demonstration of your product.
- Pre-Recorded Product Demos: Pre-recorded product demos basically involve recording a live demo and then sending it to prospects as an email or video link. Cost and time-effective, but you need a very good understanding of your target customer and their needs before you record it. Plus, there’s no back-and-forth, so you don’t gain much data.
- Interactive Demos: This format is similar to a free trial, but instead of prospects going through the experience on their own, you’re guiding them through it. It usually involves setting up an account with some test data and running through a few use cases—either live or via in-product guides (tooltips, checklists, etc.).
So, how do you choose the best format for your product?
As a rule of thumb, if your annual contract value (ACV—the amount a user spends on your product every year) is more than $5,000, you should be doing live demos.
Whether you want to incorporate an interactive element depends on factors like ease of use, learning curve, and the number of key features you need people to understand.
2. Research
Research is the foundation of successful demo calls.
The reason is pretty simple—when you show prospects that you understand their business, industry, challenges, goals, etc. they’re much more likely to believe in your solution. You do this by getting specific with the numbers.
Here are the questions you need to answer:
There are a few ways to answer these questions. The quickest, most reliable way is to ask your ICP directly.
If you’re still in the development phase, try to book requirements gathering calls with your ICP and run through a list of questions. If you have an MVP, you can fine-tune your understanding during demo calls. So, to summarize, you want to be getting on calls as quickly as possible.
The reason is pretty simple—when you show prospects that you understand their business, industry, challenges, goals, etc. they’re much more likely to believe in your solution. You do this by getting specific with the numbers.
Here are the questions you need to answer:
- What is your prospect’s current situation? Example: “An e-commerce company with annual revenue of $20 million.”
- Where do they want to be? Example: “Increase revenue to $30 million within two years.”
- What are the biggest obstacles in their way? Example: “Finding opportunities in customer data”.
- What are they currently doing to overcome these obstacles? Example: “Spending $10,000 per month on low-ROI advertising.”
- How does your solution overcome those obstacles better? Example: “Using AI to define and analyze segments”.
There are a few ways to answer these questions. The quickest, most reliable way is to ask your ICP directly.
If you’re still in the development phase, try to book requirements gathering calls with your ICP and run through a list of questions. If you have an MVP, you can fine-tune your understanding during demo calls. So, to summarize, you want to be getting on calls as quickly as possible.
3. Questions
While we’re on the subject, I think it’s important to cover the specific questions you should be asking your ICP.
It can be hard to think on the spot (especially for inexperienced or unconfident salespeople), so having a script is important. So, I’m going to share a few of the most important questions for you to ask. You don’t need to read these out like a robot—just use them as guidelines for the conversation.
Current Situation Questions
Dream Outcome Questions
Pain Point Questions
Current Solution Questions
It can be hard to think on the spot (especially for inexperienced or unconfident salespeople), so having a script is important. So, I’m going to share a few of the most important questions for you to ask. You don’t need to read these out like a robot—just use them as guidelines for the conversation.
Current Situation Questions
- What is your current role?
- Can you describe the current state of your team or department?
- How would you describe the current performance of your business?
- How would you describe the current growth trajectory of your business?
- What are the key projects you are currently working on?
Dream Outcome Questions
- What would your business look like in an ideal world?
- Do you have any specific targets in the short term (6 months to 1 year)?
- Do you have any specific targets in the long term (2 to 5 years)?
- What areas of the business need to be improved?
- What are your team’s main goals and objectives?
Pain Point Questions
- What are the biggest obstacles you’re currently facing?
- Can you describe a recent challenge or setback you've encountered?
- What about your current situation do you find most frustrating?
- What are the main pain points in your team or department?
- What keeps you up at night regarding your business/organization?
Current Solution Questions
- What strategies are you currently using to address [specific challenge]?
- Can you tell me about any recent successes or wins you've had?
- How satisfied are you with your current [product/service/strategy]?
- What are the main strengths and weaknesses of your current approach?
- How much are you currently investing in resources to tackle [specific challenge]?
4. Framing
Many of your prospects will have a plan for the call. Some will want you to name your best price upfront, others will want to know the exact features and benefits, and others will ask you for a detailed roadmap.
You need to establish early on that the call will go according to your plan. Why? Because your pitch is carefully structured to lead prospects to the conclusion that your product will solve their problems and get them to their dream outcome.
You need to establish early on that the call will go according to your plan. Why? Because your pitch is carefully structured to lead prospects to the conclusion that your product will solve their problems and get them to their dream outcome.
The structure I generally use with clients is this:
If you skip the framing step, the prospect will probably try to skip past some of the steps that feel unimportant—many will want to dive straight into the demo, for example. Doing that means they won’t have the context or mindset needed to reliably close.
So, how do you actually do framing? By clearly outlining the structure of the call. And by sticking with that structure even if there are objections. And finally, by ending calls where the objections don’t get resolved.
Trust me—it’s not worth your time to stay on calls where you aren’t controlling the flow.
- Rapport: Introductions and initial questions (not small talk, necessarily).
- Frame: The stage we’re talking about right now.
- Qualification: Deciding whether they’re qualified to buy.
- Dream Outcome: Getting them to acknowledge where they want to be.
- Urgency: Define their cost of inaction (i.e., how much they’re currently spending or losing out on by not closing).
- Summary: Summarizing everything so far in one sentence.
- Objections: Pre-handling common objections before they come up.
- Demo: Showcasing your product.
- Close: Closing the deal.
If you skip the framing step, the prospect will probably try to skip past some of the steps that feel unimportant—many will want to dive straight into the demo, for example. Doing that means they won’t have the context or mindset needed to reliably close.
So, how do you actually do framing? By clearly outlining the structure of the call. And by sticking with that structure even if there are objections. And finally, by ending calls where the objections don’t get resolved.
Trust me—it’s not worth your time to stay on calls where you aren’t controlling the flow.
5. Testimonials and Case Studies
Social proof is a powerful thing—that’s why case studies are a core aspect of the hybrid customer acquisition systems (HCAS) I help B2B SaaS clients build.
I won’t cover this concept in depth here (you can check out this video for more info), but we basically build a semi-automated system that pulls in prospects, builds case studies, and uses those to win more prospects.
During your demo calls, you use these case studies to relate to prospects more concretely. You hear about their situation and then share a story of a similar situation where your product saved the day. It’s super effective—the founder of Perci AI hit a 27% close rate in just 16 weeks using this strategy.
How do you get customers to agree to these cases? You highlight what’s in it for them.
At a basic level, you’re offering them a few backlinks. At a slightly higher level, you’re offering free marketing assets and positive exposure—their success is the entire point of the case study, after all. And finally, if all that fails, you can offer them value-adds like temporary discounts or plan add-ons (don’t lead with these, though).
I won’t cover this concept in depth here (you can check out this video for more info), but we basically build a semi-automated system that pulls in prospects, builds case studies, and uses those to win more prospects.
During your demo calls, you use these case studies to relate to prospects more concretely. You hear about their situation and then share a story of a similar situation where your product saved the day. It’s super effective—the founder of Perci AI hit a 27% close rate in just 16 weeks using this strategy.
How do you get customers to agree to these cases? You highlight what’s in it for them.
At a basic level, you’re offering them a few backlinks. At a slightly higher level, you’re offering free marketing assets and positive exposure—their success is the entire point of the case study, after all. And finally, if all that fails, you can offer them value-adds like temporary discounts or plan add-ons (don’t lead with these, though).
6. Participation
Prospect engagement is the last element we need to discuss.
Ever sat through a lecture? They can hold your attention if the content is interesting, but they can also pretty easily put you to sleep. The same is true for one-sided demos—if you’re talking the entire time, there’s a chance the prospect is losing interest.
Asking prospects to participate is a simple “hack” for winning engagement. They’re paying attention because they know you might ask a question or ask for their input.
At the beginning, you do this during the rapport stage of the call. But this needs to continue (to some degree) over the entire course of the demo. Simple questions like, “Does that make sense so far?” work well as filler questions.
Ever sat through a lecture? They can hold your attention if the content is interesting, but they can also pretty easily put you to sleep. The same is true for one-sided demos—if you’re talking the entire time, there’s a chance the prospect is losing interest.
Asking prospects to participate is a simple “hack” for winning engagement. They’re paying attention because they know you might ask a question or ask for their input.
At the beginning, you do this during the rapport stage of the call. But this needs to continue (to some degree) over the entire course of the demo. Simple questions like, “Does that make sense so far?” work well as filler questions.
Bonus: Note-Taking
If you want to fine-tune your approach, ICP, market-message fit, or anything else, you need to take notes on your calls and analyze them.
I don’t literally mean type up notes—you can use tools like Otter or Krisp to transcribe your calls. Once the call is over, you’ll want to analyze the transcripts for things like objections (add these to a document so you know what to handle) and other insights. Then, use those findings to adjust your demo and get better results.
It’s a simple process, but it can have a big impact on the success of your calls.
I don’t literally mean type up notes—you can use tools like Otter or Krisp to transcribe your calls. Once the call is over, you’ll want to analyze the transcripts for things like objections (add these to a document so you know what to handle) and other insights. Then, use those findings to adjust your demo and get better results.
It’s a simple process, but it can have a big impact on the success of your calls.
Successful Demos Lead to Successful Deals
There you have it—the most important steps you need to take to have successful demos.
The process can be intimidating, but a process you’re confident in will help you close more deals and build better relationships with customers. Don’t take the process lightly—it’s key to success as a sales rep for your product.
Want more personalized guidance? Book a strategy call with me and let’s talk about how we can get the snowball rolling for your SaaS product.
The process can be intimidating, but a process you’re confident in will help you close more deals and build better relationships with customers. Don’t take the process lightly—it’s key to success as a sales rep for your product.
Want more personalized guidance? Book a strategy call with me and let’s talk about how we can get the snowball rolling for your SaaS product.
+240K ARR Playbook
How you can add $240K ARR to your B2B SaaS in less than 6 months using a Hybrid Customer Acquisition System (without increasing your marketing budget)
*Currently still available for download; file access may be restricted at any time
