If capturing a prospect's attention in the B2B SaaS marketplace has become more challenging, your instincts are spot-on. The field is crowded with competitors, attention spans are fleeting (at best), and there's a lot of outside noise to contend with. Now more than ever, you need to present your software solution in a way that's both compelling and immediately accessible. Software demo videos are a popular tool for filling this gap and showcasing your product's value to potential buyers.
A recent study showed that 96% of people have watched videos to learn more about a product or service—and 82% have been convinced to purchase by watching a video. These figures reinforce that a well-crafted demo video positively impacts software purchasing decisions. Visually demonstrating your software's features and benefits helps prospects quickly grasp complex concepts and makes it more likely that you'll close a deal.
But prospects demand hands-on experience with some software solutions, which is why interactive product tours are gaining traction as an innovative alternative to traditional demo videos. Let's take a closer look at demo videos and the simple steps needed to create one—and why a product tour might be a more effective sales strategy to consider.
What Are Software Demo Videos?
Software demo videos showcase a software product's features, functionality, and value propositions. They provide a visual walkthrough of how the software works and highlight aspects that address a potential buyer's pain points or needs. These videos typically demonstrate real-world applications of the software and attempt to simplify complex solutions for the audience.
As essential tools in marketing and sales methodologies for B2B SaaS companies, these demo videos serve multiple purposes, including:
- Increasing engagement and interest in the solution.
- Educating prospects about how the software operates and solves specific problems.
- Differentiating the software from its competition.
- Accelerating the sales cycle.
The value of software demo videos really lies in their efficiency. With a prospect's time and attention at a premium, an engaging demo video provides a captivating and quick method of delivering comprehensive product information that has a significant influence on their purchasing decision.
Benefits of Software Demo Videos
Software demo videos offer many benefits, such as:
- Enhancing Prospect Engagement - Compelling visuals and narratives that highlight key features capture attention more effectively than static content while resonating deeper with your target audience—increasing the chances that they will move forward in the buyer's journey.
- Simplifying Complex Concepts - Demo videos break down complex software concepts into easily digestible visuals that help both technical and non-technical stakeholders understand your product's features and benefits better.
- Accelerating the Sales Cycle - Allowing prospects to see your software in action lets them immediately grasp how it addresses their specific challenges and enables decision-makers to move forward with confidence.
- Scaling Personalized Outreach - Demo videos are customizable to the unique needs of different industries or buyers. This scalability helps your sales team deliver personalized content without the time and resource constraints of presenting many individual live demos.
7 Simple Steps to Creating a Software Demo Video
1. Define Your Demo Video’s Goals
Start by clearly establishing your goals with your software demo video. Are you introducing a new feature, educating potential customers about your product's capabilities, persuading prospects to take a specific action, or something else?
Understanding your goals is crucial because it shapes every subsequent decision in the creation process. A video designed to educate will be very different in content and style from one that's about driving immediate sales.
Pro Tip: Write a concise statement of your video's primary goal and keep it visible throughout the project to stay focused.
2. Identify Your Target Audience
Who is your software demo video for? Your target audience could be technical decision-makers, end-users, or a buying committee of executive-level stakeholders. Each group has different interests and expertise.
Identifying your audience lets you adjust your video's language, tone, and content to resonate with them. For example, a video targeted at C-suite buyers would focus on business value and ROI, while a video for technical decision-makers would likely be more about features and functionalities.
Pro Tip: Create detailed audience personas that include the viewers' roles, pain points, needs, and how they hope to benefit from your software.
3. Pre-Production Planning
Before producing your demo video, there is the essential pre-production stage where you'll sort out all of the necessary logistics:
Choose Your Format
The three most common options are:
- Screen Recording - Capturing your computer screen as you navigate through the software is ideal for showing the software in action and highlighting features and functionalities.
- Live-action Recording - Incorporating a presenter or spokesperson adds a personal touch that helps create a connection with your audience and provides context.
- Animated Videos - When screen recordings can't adequately demonstrate certain features, you can turn to animations to explain abstract concepts or visualize data.
Gather Assets and Create a Plan
- Now that you know what kind of demo video you're making, you need to consider the budget, resources you have vs. resources you need, and the timeline for completion.
- Determine the equipment, team, and video software you'll need to create and edit it.
- Secure needed software access, branding elements, and visual aids.
- Schedule each phase of the project to keep everything on track.
Pro Tip: To ensure a smooth production, develop a detailed plan outlining each task, who's responsible for it, and the project's deadlines, then share it with your team.
4. Write Your Demo Video Script
A well-crafted script is the backbone of your demo video. Start by determining the key points you need to cover to meet your video's objective and desired audience. Then, consider the length of your demo and how long each part should take. This calculator will help you determine how long your script needs to be.
To write an engaging script:
- Use language that your prospects will understand and appreciate.
- Avoid jargon unless it's appropriate for the audience.
- Incorporate storytelling elements to make the video more engaging
- Maintain a logical flow that guides your prospect seamlessly through the demo.
Pro Tip: If you’re not a writer, leverage Generative AI tools, your video creation app (many have writing features built-in), or a template for script writing assistance.
5. Add a Compelling Call to Action (CTA)
Your software demo video should conclude with a strong call to action that encourages viewers to take the next step, such as signing up for a free trial or contacting your sales team.
The CTA should be clear and direct—and leave no doubt about what your prospect should do next. It should also align with the video's goals, and provide a sense of urgency or highlight the benefits of taking immediate action.
Pro Tip: Test different CTAs with a small segment of your audience to see which one generates the most engagement.
6. Create Your Software Demo Video
It's time for lights-camera-action! Remember that bringing your demo video to life requires careful attention to detail to ensure your final product is professional quality and that it effectively communicates your message.
Your recording method will vary depending on what format you chose in Step 3, but you will likely be operating video creation software for this part. Make sure you have everything dialed in according to your plan, and it's a good idea to do a few practice runs to make sure everything is working right.
During the recording, highlight important features by zooming in or using on-screen annotations to draw attention where needed. Use various features provided by your video software to serve the demo video's goal.
Once you're finished, dedicate time to editing your video. Polish the presentation by trimming unnecessary segments, enhancing audio quality, and adding branding elements like logos or color schemes. Editing software also lets you incorporate subtitles or captions to improve accessibility and comprehension.
Pro Tip: This is where your careful planning pays off, but be ready to adjust on the fly if—and when—things don't go according to plan.
7. Distribute the Demo Video
With your software demo video completed, the final step is to distribute it to your target audience so it gets seen by the right people.
Strategies to consider include:
- Website Integration - Embed the video on your homepage or relevant product pages to engage website visitors.
- Email Campaigns - Include the video in personalized email outreach to prospects.
- Social Media Platforms - Share the video on LinkedIn, Twitter, or industry-specific forums where your audience is active.
- Sales Presentations - Equip your sales team with the video to use during pitches and meetings.
To increase the reach and effectiveness of your demo video, be sure to:
- Employ Video SEO Optimization - Use relevant keywords in your demo video's title, description, and tags to improve searchability.
- Monitor Video Analytics - Track views, engagement rates, and conversions to assess your demo video's performance.
- Encourage Sharing - Add social sharing buttons to broaden your video's reach.
Pro Tip: Gather viewer feedback that you can use to refine future demo videos. Adjust your distribution strategy based on what channels perform best.
Why You Should Create a Product Tour Instead of a Demo Video
While software demo videos have their place in showcasing products, interactive product tours offer a more engaging and effective way to connect with prospects:
Hands-on Interaction
Rather than passively watching a video, interactive product tours allow prospects to get hands-on with your software rather than passively watching a video. They can explore features at their own pace, which leads to increased engagement and a deeper understanding of how your product addresses their needs.
Personalization
Product tours can be easily customized to specific industries, roles, or pain points. This increased personalization ensures that each prospect receives relevant information that boosts their likelihood of conversion.
Feedback & Data Collection
Interactive product tours collect valuable user behavior data. You can track which features are most explored, where users may encounter difficulties, and what interests them the most—then modify your product and sales strategies accordingly.
Elevate the Demo Video Experience with Demostack’s Product Tours
Creating compelling software demo videos is a critical step in showcasing your product's value, especially in the B2B SaaS landscape. Following seven simple steps will help you create compelling demo videos that engage prospects, simplify complex concepts, and accelerate your sales cycle.
Demostack's product tour capabilities elevate the demonstration experience by offering personalized, immersive interactions that videos can't match. With features like AI-powered customization, in-depth analytics, and seamless CRM integration, Demostack enables you to deliver dynamic demos that connect with prospects and increase conversions.
Try a Demostack demo to discover how our platform transforms your sales cycle.
