How to Make a Product Demo Video That Converts (+ Examples)

Getting leads to sign up for a demo is only half the battle. The next step is showing them a software demonstration that speaks to your prospects' pain points, answers their questions, and makes the buying decision easier.

The best way to convert potential customers is by creating a tailor-made product demo video and using the right tool to plan, host, and analyze your sales video content.

Ready to increase your demo to conversion rate and show leads exactly what your product can do for them? We talked to Jennifer Owen, Account Executive at Livestorm, to get her insights on how to conduct a great product demonstration (and how to choose the right tool to host it).

What is a product demo video?

A product demo video is a live or on-demand video presentation that shows your SaaS solution in action. Sales teams usually host demos online via livestream or recorded video. A product demo should:

1. Highlight your software’s functionality, key features, and benefits
2. Troubleshoot any potential roadblocks your leads might be facing
3. Answer your prospects’ questions and touch on their pain points
4. Share the product’s value proposition and the unique selling point of your solution

It’s important to personalize live demos for each user and get them to imagine what your product can do for them. “A demo call is usually a one-to-one conversation,” explains Jennifer Owen. “I’ll show prospects specifically what our product does in a very personalized scenario.”

Live software demo

Live streamed product demonstrations happen in real time, either as one-on-one conversations or one-to-many deminars (i.e., webinars hosted by a sales team to focus on a specific product or feature).

To host live SaaS product demonstration videos, you’ll need a great video engagement platform (like Livestorm) that allows you to:

• Create registration pages
• Send automatic email reminders and follow-ups
• Host the demo and product professional videos
• Engage with your audience live and qualify leads
• Review meeting analytics in an attendee-by-attendee detail

Even if you have on-demand demos linked on your website, hosting live demos lets you interact directly with new leads and find out what they’re looking for.

This is beneficial as prospects don't necessarily make a purchase for the product itself. Instead, they buy the promise of what it can do for them (i.e., the benefits of your product).

On-demand software demo

On-demand product software demos are pre-recorded explainer videos that potential users can access at any time. If you have an automated campaign for moving potential leads through your funnel, use this to get them to sign up and try your software solution without manual intervention.

Livestorm is your free automated webinar software and demo platform to plan, host, and analyze sales video calls. You can use Livestorm as your on-demand webinar software as well, since the platform can be used to record asynchronous evergreen content.

It’s a good idea to have an on-demand demo on your site at all times, even if you plan to host live demos in parallel. It gives your customers the freedom of choosing how they’d like to know more about your product. You can also gate your product demo video as a method of capturing leads.

3 Best product demo video examples

When you record your product demo video, you can choose from several different formats. Create a talking head video and have a company rep explain the product. Or record a voiceover to narrate a walkthrough or animated video.

Get inspired by these examples:

1. Livestorm

Take a look at this pre-recorded Livestorm product demo for a quick peek at everything our platform can do for you. Request a live demo if you want a more personalized and interactive option.

What makes it effective?

• It’s an on-demand gated tutorial
• The presenters explain what will happen during the video in the first two minutes
• They give an explanation of everything you can do with the platform and show you how the features work in real-time
• They explain how pricing works and what comes with every plan

Livestorm gets to show how the platform works by using it to host a demo call. “We send them a number of emails to remind them, enable them to add it to the calendar,” says Jennifer. “And, show them how to make the event engaging using our features. We share how they can access the data afterward and the kind of data that we collect.”

2. MixPanel

MixPanel is a data analytics tool that captures user behavior and information through web and mobile. This MixPanel product demo is easy to find on YouTube.

What makes it effective?

• It’s easy to watch and follows a straight progression using a voiceover
• It has a chapter view linked to a timetable so viewers can watch the part they find interesting
• The video shows how the platform looks and works
• It highlights use cases and industry problems

3. ClickUp

ClickUp is a task project management system that helps teams of all sizes manage their workloads. It has a dedicated webpage for on-demand ClickUp demo videos with different types of pre-recorded product walkthroughs.

What makes it effective?

• There’s one video per use case
• The intro contains ClickUp target audience pain points and explains how the software solves that problem
• You get to see how the host uses the features
• It’s aesthetically pleasing and easy to follow

Why should you use product demo videos for sales?

In the past five years, video has become an important part of many sales strategies. From outreach to sealing the deal, you can use video to sell products online and connect with prospective customers in a way that feels just as personal as face-to-face contact.

Video for sales isn’t going anywhere. A growing number of sales reps use video to engage customers and build valuable relationships.

Video is more engaging

Humans are visual creatures. The human brain processes image 60,000 times faster than text. As a result, viewers retain 95% of a message when they watch it in a video.

Video is the perfect medium for sales because it captures viewers’ attention in a way that static images or text can’t. Sales videos play to people’s visual nature by delivering important information in a digestible, captivating way.

From engaging sales videos comes increased return on investment (ROI). Most marketers agree that video delivers a higher ROI than images and text, so creating an engaging sales video is a smart way to generate new leads and nurture these relationships before you close the deal.

Plus, it's easy to record and share a video demo. You don’t need extensive knowledge or video editing tools to make an effective demo. Minimal effort for high returns makes product demo videos a sustainable strategy.

Video builds trust

With sales videos, you have the unique opportunity to put a face to the name. When creating customized demo videos, you can position yourself as a friendly expert, opening the door for leads to reach out with questions.

Product demo videos give prospects an in-depth look at what your software can do. These videos also walk viewers through workflows, illustrate use cases, and help prospects understand the product's potential benefits.

These sales videos enable reps to build trust with prospects and existing customers. They're the next best thing to in-person meetings, and they're much easier to schedule.

Video is easy to scale

Sales calls and in-person sales meetings require your team to block off time for each individual interaction. In contrast, once you record demo videos, you can easily share them at scale.

Whether you host on-demand demo videos on your website, post them to YouTube, or share them in sales emails, great demo videos offer plenty of opportunities to showcase the benefits of your product efficiently.

How to create product demo videos

Product experts like you usually don’t have trouble coming up with a standard demo video. But it gets harder when you need to tailor the demo to each prospect and find the right pace to share the information.

We’ve got you covered. Here’s a list of every step you should take to create a demo video for your software. Start by looking at this short video for a quick overview of the steps we’ve listed below:

Step 1: Pick the best video tool

You need a video engagement platform to host your SaaS product demos. There are many video tools to choose from, but not all allow you to manage the complete process end-to-end.

Here are the features your product demo software should have:

• Custom registration pages with a scheduler
• Automated email reminders
• In-call engagement features:
  • Screencast
  • Polls
  • In-app chat
  • Questions and answers (Q&A)
  • In-call call to action (CTA) button
• Analytics dashboard

Livestorm is an all-in-one on-demand and live events software that’s designed to increase engagement, with features like Q&As and in-video CTAs.

Plus, Livestorm is browser-based, so external users won’t have any trouble joining the demo. In addition to product demo videos, you can use it for internal meetings, sales calls, and larger events like webinars or deminars.

Step 2: Create your product demo landing page

Capture prospects' information before they hop on a call with you. Design custom registration pages for your live or on-demand demos to:

• Collect leads’ contact information
• Send automated email reminders
• Use the information to tailor your presentation

If you’re using Livestorm as your brand's video platform for hosting these demos, you can customize the colors and fields to add your branding. Let your attendees sign up using their Google account information to simplify their registration process.

Step 3: Tailor the product demo to your audience

Use custom registration forms to ask questions and collect as much information about your audience as you can. To make your video stand out, tailor the presentation to their needs and suggest solutions to their challenges.

To help you prepare, try creating reusable templates or writing demo scripts suited to each ideal customer profile (ICP). Add frequently asked questions and highlight the most relevant product features for each audience. Each video script should follow a standard path based on how users interact with your platform.

For example, when a prospect wants to use Livestorm for onboarding clients and customers, we run a product demo on how to use Livestorm as customer training software.

“In Livestorm product demos, we present the logical progression that a person wanting to participate in an event would follow,” Jennifer explains. “We show our prospects how to create a landing page and have somebody register for their potential event. And also, what happens once somebody has registered.”

Step 4: Promote your product demo video

There are different promotion strategies you can try depending on the type of demo you’re hosting.

• On-demand demos: Link to the video from your pricing page, share it on social media, blog posts, and your email newsletter. If you work with influencers or referral partners, ask them to share the link too.
• Deminars: If you’re hosting a series of deminars, add the registration link to your top- and middle-of-the-funnel marketing strategy.
• One-on-one live demos: Make the registration link easily accessible to potential customers. Add it to your social media profile, include it in your brand newsletter, add it to your blog posts, or get your referral partners to share it. You could also share a CTA to sign up for personalized sales meetings during other live events like deminars.

Step 5: Hit record on your live-action product demo

Record a standard demo video to use as an on-demand deminar for your site. The video creation process is simpler than you might think.

With Livestorm, it's as easy as sharing and recording your screen and walking viewers through your product. Show your webcam during the screen recording to add a personal touch.

Then, embed the registration form on your website to get the contact information of anyone who watches the video. You can follow-up with them later to find out if they want a more personalized demo.

You can add the demo link anywhere it’s useful, like in a customer support chatbot response. And if you’re hosting deminars or on-demand presentations using Livestorm, you can share an automated email with the replay link to all the registrants. That way all registrants can view it on their own time.

Step 6: Host an engaging product demo

To produce a great product demo video, speak clearly, give concise answers, and use visual examples to demonstrate your points. Tell your audience what to expect at the beginning with a loose agenda, so they know if and when they can ask questions, how long the demonstration will take, and what they can expect to learn.

Leverage your video conference platform engagement features to capture your viewers’ attention. If you’re on Livestorm, you can use:

• Polls and Q&As
• Screen and file-sharing
• Interactive whiteboard
• CTAs
• Private and public chats

Remember that your prospect is choosing to find out more about your product, so your demo should help them get the most out of it. “Rather than getting a trial account, start testing it and have a very frustrating experience, they choose to attend a call for 30 minutes,” explained Jennifer Owen. “You should tell them the basics of how to use this platform so they can validate if the platform can do what they want.”

Step 7: Answer your prospects' questions

Take note of all the questions you’ve been asked in previous demos, or in the registration form, and add them to your video production scripts. Update them with frequently asked questions.

Also, open the floor to questions—and then answer them. You can ask potential customers to add their questions to the Q&A tab and answer each one as you go or in a dedicated block. Follow up after the call if anything goes unanswered.

Step 8: Follow up on your demo video

Plenty of people will attend your demo, but only a few will convert right away. Following up after a great product demo puts your product back in attendees' minds, and also gives them another opportunity to take the next step.

Your follow-up communications should give access to a recording of the demo. It can also include registration for another event, a prompt to set up a sales call, or a link to purchase the product.

Step 9: Analyze your product demo data

Lastly, review your meeting analytics to see what worked and what didn’t. Livestorm gives you access to a detailed analytics dashboard, where you can:

• Review attendance and engagement data
• See who answered your polls (and what they said)
• Track registration form conversions and sources
• Export your event data (people, questions, and chat conversations)

How to use product demo videos in your product launch strategy

For many sales teams, demo videos are a key component in a successful product launch strategy. Use our framework to build a strategy and incorporate high-quality video production into an effective product launch.

Create your pre-launch marketing strategy

The success of a launch depends on how well you tease your audience and get them interested in your new product. At this stage, you should start sharing targeted updates about the launch.

Design your launch roadmap

The first thing you should do is define all the different marketing touchpoints and determine when you’ll implement each one. Your roadmap should look like a timeline or a Gantt chart of all the different phases of your marketing strategy.

It should include the communication channels, the intent of each message, and the expected reach at each touch point. Use this document as a product launch checklist.

Melissa Keller, Senior Product Marketing Manager at Livestorm, believes that when organizing a virtual product launch, you have to pay close attention to the planning and preparation.

“Start by defining your goals and creating a detailed timeline to ensure everything runs smoothly,” explains Melissa. “Use a variety of video marketing channels to promote your launch event, including social media, email marketing, and paid advertising.”

Craft purposeful messaging

The more your product launch engages the target audience, the more noise and excitement it will create. A good way to do this is by writing impactful messaging that communicates tangible user benefits.

Let’s say your product is a social media content scheduler tool. Your team finds out through market research that users are going to Chat GPT to write their content.

So, you decide to build and launch an AI-powered content generator. Now users can write the content and schedule it directly from the app. (You’re giving them what they want).

Encourage product managers to share the messaging so you can focus on the benefits for the user, not the features. This means saying “Users reduced their workload by 40% using our AI content generator vs 25% with ChatGPT” instead of “This AI content generator uses Dialogflow and is built on Python for faster responses.”

Once you’ve chosen the right message, align your marketing team so everyone refers to the product and communicates its benefits in the same way.

Use partnerships to promote the event

All successful B2B marketing strategies involve external figures advocating for the brand so it’s not just you talking about how great your product is. Product launches are no exception.

Reach out to influencers, vendors, industry experts, referral partners, and loyal users to get them excited about your launch and help you promote the event. You can even get some of them to test the beta version of your product as part of the go-to-market strategy.

Make a press release and share it with blogs and online news portals. Gather customer feedback and make changes as part of your product development iterations. Invite them to talk about their experience at your event.

Or, book industry experts to host the event or talk for 10 minutes about the industry gap your product is trying to fill. You’ll generate more noise and interest in your target market if you partner with relevant thought leaders.

“Consider inviting industry influencers or thought leaders who can help spread the word about your launch," Melissa suggests. "Including beta testers as speakers is also an excellent way to add credibility to your product and highlight its value to potential customers.”

Tease the audience

Another way to get your audience excited about the launch is by offering them a gift, a trial account, or a discount—or by hosting a giveaway. The whole spirit of the pre-launch strategy is to get your audience to feel the fear of missing out (FOMO). You want them to want your product before it’s live so they talk about it with others, pre-order, and attend your event.

Marketers often think they need a million-dollar budget to promote products properly. While having a large budget helps, you can also leverage the resources you have.

Get to know your users and network. You might discover you know someone with a tech blog, newsletter, or YouTube channel with a good following. Offer them a discount rate for a mention.

If you’re using Livestorm, you can “use the email cadence feature to create a series of personalized emails to keep attendees informed and engaged leading up to the event,” says Melissa. That way, you can continue to tease your audience until the day of the event.

Host a powerful product launch event

You’ve got your prospects' attention. Now, how do you engage them during the virtual product launch? Follow these steps.

Tell inspiring stories

People love stories, these allow them to connect with your brand and speakers in a more personal way. On launch day, get your facilitators to tell stories about how your product holds an important role in their lives.

If you’re using software like Livestorm to host virtual selling events like a product launch, you can ask the speaker to share videos and pictures on the screen as they go through the content. You can also invite the attendees to participate through emoji reactions, polls, or by commenting in the chat panel.

Pay attention to the setup

If you’re launching a software license for enterprises that costs $30,000 per site per year, your event needs to be worth that price tag. That means you should rent a location and hire producers, audio technicians, videographers, moderators, and operators. You might even need an art director, an expert to edit your video, and a musician to create background music.

But you don’t have to do all of this when marketing a more accessible product. No matter the investment, the setup should be clean, clear, and high quality. Plus, the speakers should embody your brand’s image.

With Livestorm, you can come up with a professional look and feel without breaking the bank. “Use custom branding to create an immersive experience and engage your audience with the live chat and emoji reaction features to create a real sense of interaction between your speakers and the participants,” explains Melissa

“Consider using the recording feature to create a video of the event that you can share afterward with those who couldn't attend live.”

Incorporate a product demo video

Make sure your launch event shows the product in action. Show how your product actually works with a mini live product demo.

Allow your audience to see the user experience (UX) gauge if your product does what they actually need it to do. To keep building your case, make sure the features you choose to showcase speak directly to the audience and to your overall messaging.

The buying process at this stage is similar to when a friend recommends you a product. Let’s say you’re looking for a customer relationship management (CRM) with good email campaign capabilities.

Your friend that works in marketing at a different company says they use Salesforce. They’ve used multiple alternatives in the past, and this one is their favorite because they get to keep a history of every interaction.

If you’ve already researched other CRMs and Salesforce was on your shortlist, you’re probably going to request a demo or pay closer attention to it now that you’ve got a recommendation. The same thing happens with product launch events.

If your speakers are compelling enough to build trust, once you get to the demonstration, the prospect is almost sold. So in your product launch video, you need to make sure to speak directly to their needs so you can close the deal.

Keep it short

Product launches should last from 25 to 35 minutes. Anything longer may result in a lower signup rate.

Here are a few best practices to guide your agenda:

• Brand presentation/company mission (5 minutes)
• Product introduction - what it will do for the user (6 minutes)
• Beta user testimonial (7 minutes)
• Product demo (5 minutes)
• Wrap up (5 minutes)
• Call to action (2 minutes)

Following up after a successful product launch

Some attendees may convert right away. But some are more likely to make a purchase later. As a result, you need to keep nurturing leads after the event so you can close deals in the future.

Here’s how to follow up after your brand's product launch.

Use event analytics to tailor your follow-up strategy

If you’re using a virtual event platform like Livestorm, you can access all attendees’ information related to engagement levels, questions asked, chat conversations, and their contact information after the session.

You can also reach out to the most engaged attendees directly from Livestorm or through our CRM integrations like HubSpot, Pipedrive, Marketo, and Microsoft Dynamics.

If you made a limited time offer during the launch, reach out to the most engaged users to extend the offer. That way, you give them an additional chance to sign up for your product at a lower rate.

Share the recording

Record the event and share the video with your attendees as soon as it ends. This way, engaged attendees can rewatch it or share it with decision-makers or colleagues.

If you’re using Livestorm, the recording of your event starts automatically (unless you say otherwise) and users get instant access to the video as soon as the session ends.

Also, you can embed the recording on your website and gate it with a registration page. This way, you can demonstrate your product automatically and capture the contact information of anyone who accesses it in the future.

Livestorm for SaaS product demos

Pre-recorded SaaS demo videos are an incredibly low-cost and low-risk way to drive more conversions for your business. But a live, personalized demo is the best way to show each lead exactly how your SaaS product can help.

You can increase your lead-to-conversion rate by creating eye-catching, educational, and entertaining SaaS product demos. Just follow these steps:

1. Choose your video tool (consider Livestorm as an all-in-one video engagement tool)
2. Do your research before the call and write a script per buyer persona
3. Build a demo registration page and promote the link
4. Use engagement features to interact with attendees (don’t forget to share your screen)
5. Anticipate and answer your prospect’s questions
6. Follow-up after the call
7. Review your analytics

Livestorm helps you prepare, host, engage, and analyze SaaS product videos in one place. With Livestorm, you can host 1:1 demos, record them, and make them accessible on demand as gated content.

That's just the beginning. Livestorm is your go-to software for live events, customer training, internal calls, and on demand webinars. You can do it all using this single tool.

Ready to try our video conferencing and sales webinar platform? Sign up for free and try Livestorm for yourself.

Frequently asked questions about software demo videos

What is a demo video?

A demo video is a presentation of your product or software online. Demo videos can happen live or on demand in the form of a one-on-one or one-to-many conversation. By recording those interactions, you can create on-demand videos and invite potential customers to see how your software works at their own pace.

What should a software demo show?

A software demo should show:

• An explanation of what your product can do
• Your value prop
• A walkthrough of what your software does
• A description and demonstration of your most relevant features

It’s also always beneficial to personalize your product demo to the audience so be sure to gauge their goals and current blockers using a custom demo registration page or by doing a quick poll at the start of the demo.

How do you demo a software feature?

To demonstrate a software feature during a virtual product demo, share your screen and show your leads how to use them in different cases. Find the right pace so your prospects can follow your steps without getting bored.

What is the purpose of a software demo video?

The purpose of a software demo video is to explain how to use the platform, get leads to engage with your app first-hand, and get those prospects to move down the funnel. Most people make purchases based on the promise of what the product or service can do, so it’s important to really showcase the value of your software during the demo.

What are the advantages of a software demo?

Advantages of a software demo include:

• Having your potential customers take a closer look at your product
• Showing how your product works in a simple way
• Allowing your leads to ask questions directly to the brand
• Giving your potential customers a personal point of contact
• Attending a call that suits your lead time preferences

What are product launch strategies?

Product launch strategies are a mix of plans and tactics that allow marketers, salespersons, and product managers to launch a new product successfully. These include activities before, during, and after the launch.

What is the goal of a product launch strategy?

The goal of a product launch strategy is to build brand awareness, generate buzz about the new product, get people to know what it does, and drive sales.