How to Create a Product Demo Video that Increases Sales

Published on August 16, 2021 • Updated on December 7, 2022 • About 6 min. read

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One of the most challenging parts of selling a product online is making sure potential customers understand exactly what it is. Especially in technology, business-to-business, and online industries, it can be difficult to meaningfully explain the most attractive aspects of your product.

You, as the business owner or sales representative, know that as soon as customers see your product in action, they’ll be ready to buy. Enter the product demo video.

With the skyrocketing prevalence of video content, the product demo video has become an effective way to not just explain your product and show how it works, but also increase sales.

In this guide, you’ll learn how to create a product demo video to increase sales, including the strategies behind filming and promoting your video to drive conversions.

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What is a product demo?

A product demo is exactly what it sounds like: a knowledgeable individual demonstrates how to use a product. Product demos should answer consumers’ questions about the product, troubleshoot any potential roadblocks, and highlight key features of the product.

Although product demos can take place in person, today they are usually most valuable when recorded as video demonstrations to be distributed online. Product demonstration videos can be on-demand or live.

On-demand demos

On-demand demos are recorded video demonstrations that potential customers can access at any time. With Livestorm, you can set these on-demand demos up to require registration so you don’t miss out on any leads.

It’s a good idea to have an on-demand demo up on your site at all times, even if you plan to host live demos in the future. On-demand demos give you valuable leads from registration and encourage customers to spend more and more time engaging with your brand.

Live demos

Live demos are live-streamed product demonstrations hosted at a particular link that users can access after registering. To do this, you want to choose a video engagement platform that allows you to host live demos, email reminders, and follow-ups automatically, and engage with your audience to qualify leads throughout the live demo.

Regardless of whether you have on-demand demos on your site, regularly hosting live demos gives you access to new leads, more information about those leads, and a better public understanding of your product.

hand and a tablet

5 steps to creating the perfect product demo

Now let’s talk about the steps involved in creating a perfect product demo that shows off your product in the best light.

1. Pick the best video tools

Before you start your explainer video, consider the best demo recording software. There are a huge number of video tools out there, but relatively few of them solve all of the problems for product demos specifically.

A few features that bring your product videos for marketing are:

  • screen sharing
  • polls and chats
  • reminder and follow-up emails
  • Browser-based platforms

It’s much easier to get a consumer to sign up for a product demonstration than it is to actually get them to attend, stay, and eventually convert. These product demonstration tools keep demos engaging and effective.

When you use screen sharing, you can demonstrate your software product or use product demonstration tools to keep your demo interesting while also keeping the presenter on track. Polls and chats give attendees a chance to interact and ask questions (valuable data you can analyze later).

With the next-level touch of automated reminder and follow-up emails, you can maximize the number of attendees and replays. Having a browser-based demo also increases attendance and retention because people can join without waiting for a download.

Think about whether you will want to send links or media to your audience during the demo. If you have research to discuss, pick a video tool that allows you to share CTAs.

It’s also important to think about what happens after your demo is over. Choose a platform that allows you to record your demo so you can share it as an on-demand video. You can even send the recording to the attendees instantly — and anyone who registered but didn’t attend — so you don’t miss out on any leads.

2. Tailor your product demo video to match your audience

One great thing about hosting regular live demos is that you can tailor each product demo video to match a specific audience. You should always tailor demos to match your ideal customer base.

If your product is Salesforce, for example, create demos that show how businesses can use your platform. But you can narrow this down and tailor the demo to an even more particular audience. For instance, you could create a demo for how nonprofits can use Salesforce, or how to use Salesforce for email marketing.

When you determine your audience for a video demonstration, make sure to create a script that touches on the features that would be most valuable to that audience. If the sound of a script makes you nervous, don’t fret. You don’t have to memorize every word, but it’s a good idea to come up with a plan so you can maximize the time in front of potential clients.

Creating a slide deck and setting up demonstrations of specific features ahead of time (which you can narrate in real-time) will help keep your video demonstration organized and interesting. Think about potential questions that your audience might ask and consider how you can answer. Product demos can have the power of making customers feel like the product is made just for them — tailoring the demo makes all the difference.

3. Promote your demo video

Before a live demo, make sure to promote it on social media, using email marketing, in blog posts, and through cross-promotions and collaborations. Even if some registered individuals don’t attend, you can use Livestorm to immediately send a link to the replay.

After the live demo, set it up as an on-demand demo on your site. Make sure to embed the registration form on your website so you get contact information for everyone who watches the demo. You can even sneak the demo link into anywhere it’s useful, like in a customer support chatbot response.

livestorm product demo event screen

4. Host an engaging demo video

When it comes to filming the actual demo video, the most important thing is to engage the audience members that are there. This is the moment where you can finally forget about all of the potential customers you’ve marketed to and just focus on the people logged in to your demo.

Make sure to 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 itinerary, so they know if and when they can ask questions, how long the demonstration will take, and what they can expect to learn.

It’s best to incorporate question-and-answer periods into the demonstration rather than providing one chunk of time at the end. This keeps the audience engaged and looking forward to the next section of your demo.

Chat with the audience using the chat function of your platform, and make sure to ask for plenty of participation using the tools available. For example, you can start off by asking everyone who is a small business owner to send a “wave” emoji.

Remember that you can keep all of this data after your demo ends, so make sure to incorporate strategic questions and polls. For example, you can ask your attendees whether they have heard of your product before, or if they knew what the product was when they joined the demo.

5. Follow up after your product demo video

Perhaps the most important step of hosting a great product demo is following up afterward. While plenty of people will attend your demo, only a portion will convert that attendance into a purchase. Following up after the demo puts your product back in the attendee’s mind, and also gives them another opportunity to buy or sign up.

Your follow-up communications should give access to the product demo video they just watched. It should also include registration for another event, sign-up for a newsletter, links to your blog, or forms to begin purchasing the product.

Sales Product Demos - How Livestorm Uses Livestorm
Webinars Webinars

Sales Product Demos - How Livestorm Uses Livestorm

Sales reps spend up to 11 hours a week running demos! Learn how Livestorm sales experts use Livestorm to scale their sales demos and increase their close rates.

Read more

Drive more conversions with product demo videos

At the end of the day, the purpose of a product demo video is to drive more conversions. There are plenty of opportunities during a product demo video to encourage attendees to buy or get closer to buying. Product demo videos are an incredibly low-cost, low-risk way to drive more conversions for your business, so make sure to film on-demand and host live demos for your growing audience.