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Test Product By HasThemesAs Robert Falcone puts it, about 10% of your demos will go great regardless. Either youve worked with the person before, or the room just groks what you say the first time. Another 10% will go bust no matter what you do. Youre presenting the wrong solution to the wrong crowd. Its not worth dwelling on and deriving lessons from this batch because they would have gone south no matter what. But then theres that 80% in the middle where you make most of
As Robert Falcone puts it, about 10% of your demos will go great regardless. Either you’ve worked with the person before, or the room just groks what you say the first time. Another 10% will go bust no matter what you do. You’re presenting the wrong solution to the wrong crowd. It’s not worth dwelling on and deriving lessons from this batch because they would have gone south no matter what. But then there’s that 80% in the middle where you make most of your money and where you need to win.
So for that 80% of customers, it makes a huge difference whether you’re delivering a great demo or not. In many cases, the demo is decisive for the overall success of the company. Let’s do the math to explain the financial impact of mastering your product demo on sales growth.
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Here are some statistics for B2B SaaS companies according to a comprehensive SaaS survey that David Skok and KBCM Technologies did:
- The average number of demos held by a SaaS company varies by deal size, ranging from 4 to 11 per week
- SaaS companies with an ACV of <$5,000 perform on average 11.3 demos per week.
- For an ACV above $100K, the average number of demos held is as low as 3.6 demos per week
- The median annual contract value (ACV) of private SaaS companies is ~$21K, with 26% of respondents below $5K and 13% above $100K
- For most B2B SaaS companies, demo close rates range between 20% and 50%
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