How to Create an Interactive Product Demo to Close Deals Faster

What is an interactive product demo?

An interactive demo is a self-guided walkthrough that uses tooltips, modals, hotspots, and other interactive elements to help users quickly explore your SaaS product.

Product demos can be used at various stages in the customer journey, such as on your website to engage potential customers, in email campaigns to nurture leads, during sales calls to provide a “try before you buy” experience, and for customer onboarding to help new users get up to speed quickly.

Why build interactive demos for your SaaS product?

Before we discuss the steps for creating interactive demos, let’s explain some of the benefits so you can see why this marketing asset is not a waste of resources.

Well implemented, product demos help to:

• Improve user engagement: Today’s B2B buyers are independent—they want to research and evaluate solutions on their own terms. In fact, the 2024 Buyer Experience Report by 6sense found that a whopping 85% of buyers establish purchase requirements before even contacting sales. Interactive demo experiences allow prospects to get hands-on experience by interacting with specific features in real-time. This results in faster Aha! moments—those points in the customer journey where the user suddenly understands the value of your product and how it solves their problem—deeper engagement, more qualified leads, and smoother sales cycles.
• Reduce the need for repeated demonstrations: By empowering users to explore your product independently, you’re freeing up your sales teams from repetitive presentations and allowing them to focus on what they do best: building relationships and closing deals. This both shortens the sales process and enhances the customer experience.
• Increase conversion rates: Interactive demos get customers to test out your product’s features and fast-track the likelihood of product adoption. This can increase your CTR and engagement rates by at least 2 to 5X compared to traditional sales methods. For instance, the spend management platform Pleo saw a 10X increase in conversion rates after implementing interactive demos.

5 steps to build successful interactive product demos

This section will show you a practical, step-by-step process for building highly converting product demos for your SaaS:

Step 1: Choose your use case

This involves three key considerations:

• Consider your audience: Who are you trying to reach with this demo? Are you targeting potential customers, existing users, or specific segments within those groups? Understanding your audience will help you tailor the demo’s content, tone, and level of detail to their specific needs and interests. For example, a demo for new users might focus on basic features and onboarding, while a demo for experienced users might showcase advanced functionalities and use cases.
• Define your goals: What do you want to achieve with this demo? Are you aiming to increase awareness of your product, drive conversions, improve user onboarding, or something else? Clearly defining your goals will guide your demo’s design and ensure it aligns with your overall business objectives.
• Match the demo format to the use case: For example, if your goal is to improve onboarding, you could create in-product interactive product walkthroughs that guide users through specific tasks or features.

Step 2: Collect internal assets

Once you’ve decided on your use case, it’s time to dig into your internal assets to gather crucial customer data.

Here’s how:

• Conduct internal interviews: Talk to your sales team, customer success managers, and product team members. They interact with customers daily and have invaluable insights into their needs, pain points, and how they use your product.
• Tap into existing resources: Review recordings of sales calls, customer support interactions, marketing materials, and product documentation. Look for patterns in customer behavior, common questions, and recurring challenges. This information will help you identify areas where your interactive demo can provide the most value.
• Analyze user data: Dive into your product analytics to understand how users interact with your product. Aim to identify areas where they struggle, drop off, or get confused. For example, if you notice a high drop-off rate on a particular page, your demo could provide extra guidance or support in that area.
• Focus on “Aha! moments”: Pinpoint those specific instances where users experience the true value of your product. These Aha! moments are crucial for driving engagement and conversions. You can use tools like Userpilot’s funnel analysis to easily identify the Aha! moments along your customer journey.

Step 3: Create a storyboard

Here’s how to craft an effective storyboard:

• Outline the key steps: Break down your interactive demo into a logical sequence of actions and interactions. Think about the user journey and how you want to guide them through your product. Each step should build upon the previous one, gradually revealing new features and benefits.
• Incorporate storytelling: Don’t just present features; weave them into a compelling narrative that resonates with your audience and demonstrates your product’s value. For instance, you could show a sales team struggling to keep track of their leads in a messy spreadsheet, then introduce your CRM as the solution for better organization and increased productivity.
• Keep it concise: Attention spans are short, so aim for a demo that is no longer than 5 minutes. According to Wistia’s 2024 State of Video report, there’s not much difference in engagement rates for videos between 1 and 5 minutes, but engagement rates begin to decline drastically after the 5-minute mark.

Step 4: Build your interactive product demo

This is where your vision takes shape and transforms into a tangible experience for your users.

Here’s how to build a demo that shines:

• Use templates and pre-built components: Why reinvent the wheel when you can save time and channel your resources elsewhere? Check internally for any existing resources you can use to speed up the development process.
• Add interactive elements: Incorporate quizzes, polls, and branching scenarios to keep users engaged. For example, Userpilot uses a checklist and progress bar to gamify its product tour and increase completion rates:

• Choose the right interactive demo software: There are tons of tools out there, and deciding which one to use can be challenging. The key is to choose interactive demo software that meets your needs and budget. For example, Userpilot offers the best value for money if you’re looking for an all-in-one product growth tool that lets you deploy in-app flows, track analytics, and iterate based on the results.

Step 5: Iterate on your interactive demos

You really can’t create a “perfect” product demo. There will always be room for refinements, and below are three ways to go about it:

• Track user engagement: Keep a close eye on key metrics like completion rates, drop-off points, and click-through rates. These metrics provide valuable insights into how users are engaging with your demo and where you can make improvements.
• A/B test different versions: Experiment with variations in copy, visuals, and interactive elements. This allows you to compare performance and identify what resonates best with your audience.
• Gather user feedback: Don’t just rely on data; actively seek feedback from your users through surveys, polls, or feedback forms. Userpilot comes in handy here. Our platform lets you create in-app surveys and analyze their results code-free. We also have tons of survey templates you can customize to save time!

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5 examples of interactive product demos

Want to see interactive product demos in action? We’ve gathered five examples from leading brands that are transforming customer experience with their products.

1. Dropbox

Dropbox’s demo invites users to take the reins and explore its platform at their own pace.

Users can navigate through different sections, experiment with features like file sharing and collaboration, and discover how Dropbox simplifies workflow and boosts productivity. This self-directed approach allows users to focus on the aspects most relevant to their needs, creating a more engaging and personalized learning experience.

2. Modjo

Modjo’s demo plunges users right into the action, simulating a real-life call analysis experience. Instead of just watching a presentation, users can explore the interface, try out features, and see firsthand how Modjo extracts valuable insights from sales conversations.

Unlike Dropbox’s open approach, Modjo opts for a gated demo, requiring users to provide some basic information. This allows Modjo to tailor the demo experience to the specific needs and challenges of each prospect, leading to more meaningful interactions and potentially higher conversion rates.

3. Bigin by Zoho

Bigin keeps its demo short and to the point.

Instead of relying on abstract concepts, the platform uses sample data to illustrate its power. Users get to see examples of how Bigin tracks customer interactions, organizes contact information, and provides insights into sales performance.

4. Mercury

Mercury’s demo provides a guided tour that replicates the experience of using Mercury to manage finances, make payments, and track transactions.

Users can explore different sections of the platform, interact with dummy data, and see how Mercury simplifies financial operations. The demo is so immersive that it feels like you’re using the actual platform.

5. Userpilot

Userpilot’s interactive demo cleverly uses its own product to showcase its capabilities.

It presents a gamified checklist—created within the platform itself—that guides users through the process of setting up and using Userpilot. This gamified approach helps to keep users engaged and increases completion rates.

Best practices for creating interactive product demonstrations

Follow these best practices to make your demos more impactful:

• Use customers’ Jobs to Be Done (JTBD): The “Jobs to Be Done” framework focuses on identifying the underlying goals or “jobs” that customers are trying to achieve when they use your product. For example, a company using a CRM isn’t just looking for software to store contact information, they’re also trying to improve customer relationships and drive sales growth. Understanding these underlying “jobs” allows you to create personalized demos that resonate with each customer and increase conversions.

A tool like Userpilot can simplify the process. After identifying your JTBDs, deploy Userpilot to segment customers and trigger personalized demos:

• Embed your educational tutorials in your resource center: Creating a comprehensive resource center with your interactive demos and tutorials can significantly enhance the customer experience. This self-service knowledge base empowers customers to find answers and guidance whenever they need it, without having to contact support or wait for a response. Again, Userpilot can help with this:

• Let your customers choose their own demo flow: Traditional linear demos can feel restrictive, forcing users down a pre-determined path. Instead, embrace a nonlinear approach that empowers customers to choose their own adventure and learn about your product at the level of detail they want—when they want.

Conclusion

Interactive product demos are a game-changer for SaaS businesses. They boost engagement, reduce the need for repetitive demonstrations, and significantly increase conversion rates.

Ready to start enjoying these benefits? Book a demo today to see how Userpilot can help you build your first or next interactive product demo!

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