When it comes to selling software, one question I frequently encounter is whether an automated demo on a website can effectively drive sales. Many hope that prospects can just watch a demo and then decide to purchase. The short answer? It depends. Let’s discuss the nuances of using automated demos and understand when they are or aren’t effective in closing software deals.
The Role of Price Point in Demo Effectiveness
A critical factor determining the suitability of an automated demo is the price point of your software or service. For products priced below $75 or $100 per month, an automated demo might suffice. This could be a short video you’ve created or a professionally done animated walkthrough. Remember, brevity is key—aim for a concise 2-3 minute video that covers the highlights to maintain viewer engagement.
However, as the price increases, the effectiveness of automated demos decreases significantly. It’s very rare for someone to commit to a $500 or $1,000 monthly subscription (or even a $200 monthly subscription) based on a video alone. Higher price points demand a more personalized sales approach.
Why Personalized Demos are Crucial at Higher Price Points
As the software’s cost increases, potential customers typically seek assurances that it will specifically address their needs and pain points. They have questions and scenarios that an automated demo simply can’t anticipate. This is where personalized demos become invaluable. They allow you to engage directly with prospects, address their unique challenges, and demonstrate how your software offers the perfect solution.
Insights from a Professional Software Buyer
Consider the insights from Chad Stewart, a professional software buyer who appeared on my podcast, ‘Scale Your SaaS’. Chad emphasized that the demo is the most impactful part of the software sales process. A compelling demo can significantly advance the sales conversation, whereas a poor one can be detrimental.
Conclusion: Matching the Demo Strategy to Your Sales Goals
Automated demos can be a useful tool for lower-priced software, efficiently conveying basic information and value. However, to truly engage potential buyers, especially at higher price points, personalized demos are essential. They not only answer specific questions but also build the trust and understanding that are crucial for closing high-value deals. Embracing this reality rather than hoping for automated solutions will prepare you for greater success in software sales.
