What's up, it's Zayd.

Demo-to-close rates are dropping across the industry, and most teams think it's their product's fault…It's not. 

This week we’re diving into why your demo-to-close rate is dropping and what to do about it. Spoiler: it isn't because your product got worse. Buyer psychology has fundamentally changed, and most teams just haven't adapted.

These days, the average B2B demo has the same energy as responding to a calendar invite with tentative—everyone knows what's happening, but nobody wants to admit it.

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Zayd’s Picks

My favorite finds of the week.

• Most sales challenges are a result of market perception (link)

• How to compete with $100b SaaS companies [a must-read] (link)

• Top tools B2B companies use in 2024 (link)

• Your pricing strategy should match your narrative. (link)

• Growth 101 (link)

• Consistently close sales in 30 min meetings (link)

• Navigate sales cycles in long enterprise deals (link)

The New Psychology of B2B Buyers

Today's buyers are fundamentally different:

• Overwhelmed with information and vendor pitches

• Making decisions by committee 

• Doing extensive research before demos

• Experiencing significant demo fatigue

This means the traditional "feature tour" demo approach is no longer effective. You can't just walk through capabilities and expect to win deals.

The 3 Demo Killers

1. The Feature Firehose

Showing every single feature dilutes your message and overwhelms prospects. Cognitive overload makes it harder for buyers to make decisions.

2. The Generic Script

Running the same demo for every prospect ignores crucial context. Different stakeholders have different needs, concerns, and definitions of success.

3. The Missing Stakes 

Without establishing what's at stake for the buyer early in the conversation, features remain abstract rather than becoming solutions to specific problems.

Why Good Demos Go Bad

I've noticed something fascinating about demo performance lately. Even great products with solid pricing and clear ROI often fail to convert, and it's rarely about the product itself. It's about the gap between how we sell and how people want to buy.

Think about the last time you made a major purchase. You probably did your research, talked to friends, and had a clear idea of what you wanted before talking to anyone at the store. Your prospects are doing the exact same thing. They're coming to demos more informed but also more skeptical than ever.

That's why the traditional demo playbook doesn't work anymore. When someone has already spent hours researching your product, the last thing they need is a feature-by-feature walkthrough. What they really want is validation that your solution will solve their specific problems.

The High-Converting Demo Framework

We've reached the point where prospects treat product demos like their TBR list or Netflix queue—they'll add it to their schedule, but whether they actually show up depends on their mood that day.

Here's a framework for more effective demos:

1. The Setup (First 5 Minutes)

• Confirm their current situation

• Establish what's at stake

• Define success criteria

• Set clear expectations

2. The Show (Next 20 Minutes)

• Focus on relevant features

• Connect features to their needs

• Demonstrate specific use cases

• Address key concerns

3. The Close (Final 10 Minutes)

• Recap key points

• Address remaining questions

• Set clear next steps

• Establish timeline

The Hidden Costs We're Ignoring

Nobody talks about this enough, but every demo has hidden costs beyond just the time spent. When we rush to demo without proper qualification, we're not just wasting 45 minutes—we're creating ripple effects throughout our entire sales process.

A rushed demo often leads to longer sales cycles, more follow-up calls, and endless email chains trying to address concerns that should have been handled upfront. Worse, it can damage your reputation in your target market. In B2B, word travels fast when companies feel their time has been wasted.

The Future of Demos

TLDR: effective modern demos are evolving to be:

• More focused and concise

• Highly personalized

• Interactive rather than presentational

• Built around specific use cases

• Designed to drive decisions

The key is moving from comprehensive product tours to targeted solutions that address specific customer needs.

How I Can Help?

Let me book sales calls for you while you’re perfecting your demo strategy. Seriously.

I built Valley to be your automated SDR and empower AEs. Get started today and watch your calendar fill up with qualified leads.