How to excel in Product DemosThe SaaS perspective

Guillermo Hernández de Blas - MBA

SaaS market overview• SaaS expending is on the rise.

Source: http://www.gartner.com/newsroom/id/3188817

• Small businesses continue to drive SaaS.

Source: https://financesonline.com/2016-saas-industry-market-report-key-global-trends-growth-forecasts/

• The surge in startups has taken a large volume of market share from major competitors.

Source: https://www.betterbuys.com/the-state-of-saas/

• From horizontal to vertical solutions.

Source: http://www.zdnet.com/article/saas-in-2016-the-key-trends/

The importance of Product Demos• Product Demo is an optional tool in the SaaS sale process,

specially useful if you have a high-quality and innovative product.

• Benefits:

▫ Stimulates interest▫ Provides proof▫ Combats concerns▫ Prevents after-sale returns▫ Speeds up the sales process

Source: http://smallbusiness.chron.com/purpose-benefits-product-demonstration-55113.htmlhttp://www.preservearticles.com/201101253696/8-reasons-unveiling-the-importance-of-good-demonstrations-for-making-sales-beyond-targets.html

The 5 advance techniques to excel1. Build a relationship:

▫ Product demo will most probably be the first time you meet face-to-face with the prospects. It is human nature for them to evaluate all your actions and recall the interaction when making the purchase decision.

Take a human minute (or five) – build rapport. Summarize past conversations – transmit the feeling you are not strangers. Speak their language – use the same expressions your prospects do and

avoid jargon they do not control. Show competency and passion – make your prospects feel great about your

product.

*Pro tip: Research your prospect's company country of origin and adapt to its personal relation habits and culture.

2. Listen▫ Prospects do not care about your product, killer features or

how it is differentiated from your competitor. Prospects only care about how to make their life easier.

Qualify your prospects – craft a product demo that is relevant to them.

Ask questions – find the ‘pain points’, engage the audience. Focus on benefits, not features. Be adaptable – manage unexpected events. Rule of thumb is to talk 30% and listen 70%.

*Pro tip: Know your audience: position, responsibilities and workflow. Transition from a ‘customer-centric’ approach to a ‘person-centric’ one.

3. Use FUD and counter-FUD▫ Wikipedia: “Fear, uncertainty and doubt (often shortened to FUD) is

a disinformation strategy used in sales, marketing, public relations, talk radio, politics, religion, and propaganda. FUD is generally a strategy to influence perception by disseminating negative and dubious or false information and a manifestation of the appeal to fear.”https://en.wikipedia.org/wiki/Fear,_uncertainty_and_doubt

It has been proven major companies in the software industry have used FUD strategies (Wikipedia article).

Powerful tool to drive sales. Prepare carefully your counter-FUD if your product is trying to

snatch market share from major companies.

*Pro tip: When deploying your FUD or counter-FUD strategies mention reports and well-regarded sources to back up your statements.

4. Start small

▫ To increase client’s receptivity, break the “first transaction” barrier and minimize the buyer’s remorse always start offering a solution focused on the main ‘pain-point’ for the lowest cost possible.

▫ After this first success the decision-makers will be much more willing to invest in a more complex and expensive adoption of your product.

5. Always close

▫ The goal of the product demo is to raise the willingness to buy your product. Once you have reached it deliver your closing statement.

▫ Be mindful of time management. Reserve enough space and do not rush.

▫ It is preferable to have a strong and clear call-to-action to guide your prospects to take the next step.

Bonus: How Product Demos evolve.

Jason M. Lemkin (Co-founded EchoSign , acquired by Adobe; currently Investor & Founder Champion at SaaStr Fund) states:

Solution: Invest in systematic, serious sales training before quality decline.Source: https://www.quora.com/How-can-I-give-better-SaaS-product-demos

“At first, founders do demos. The demos themselves are a bit rambling, too long -- but full of passion. And Q&A is A+++.

Then -- you finally get a few good reps. They simplify & just kill the demo once they get going. Because they also know how to close.

But ... then ... you hire more and more reps ... the knowledge isn't transferred. Founders step out of demos. There is no formal training. Each rep hacks in on her own. They don't know the product as well. So the demos get worse and worse.

Many VPs of Sales aren't great at demo training. Because they had someone do this for them at the last company. They are great at managing and closing and hiring. But not demo training. [] Revenue suffers because of it.”

How can a MBA help?• Business development

▫ Customer prospection▫ Commercial visits▫ Product demos

• Customer’s needs identification• Budgeting• Relationship management• Sales training• Talent acquisition and retention

Guillermo Hernández de Blas

IE Business School MBA

g.hernandez.blas@student.ie.edu