How to Convert Users Across Marketing Funnel Through Interactive Product Demos

Engage, Captivate, Convert!

Interactive product demos are the secret sauce in your marketing funnel — they transform curious prospects into customers

What’s more — the custom demos at scale leave them with a hands-on product experience and make them want more of it.

For instance, the recently launched live demo video for the upcoming WordPress 6.2 release showcases the power of core blocks and themes through a stunning version of the Twenty-Three theme. It effortlessly navigates from pages to templates and template parts in the Site Editor view, highlighting cool features.

In this blog, we'll explore the importance of product demos at each marketing funnel stage and uncover their role in engaging and converting users.

From the initial awareness stage to the critical conversion stage, we'll delve into how interactive sales demos captivate prospective customers and drive them to purchase.

Why Use Interactive Demos for Conversions?

Nalin Senthamil, Founder & CEO at Storylane, highlights the importance of having interactive demos in your GTM strategy.

Let's dive into the importance of interactive video demos at each marketing funnel stage.

First, let's start by understanding what the marketing funnel is all about.

It's like a roadmap that helps guide potential customers on their journey from first hearing about your product to becoming loyal advocates. The funnel consists of four main stages:

1. Awareness
2. Consideration
3. Conversion
4. Loyalty

Why is it important to consider users' stages within the funnel? 

Different users have different needs and levels of familiarity with your product. Identifying their stage can help you customize your product demo to meet their specific requirements and guide them toward the next stage of the sales process.

Here are some numbers around B2B buying behaviour today:

• Buyers mentioned that video tutorials and product demonstrations are most helpful when making software purchase decisions.
• By 2025, 80% of B2B interactions will occur through digital channels. 

• 77% rated self-serve resources as one of the top three influential ones while making a purchase.

These numbers highlight the significance of product demos in influencing buyers and helping them make informed choices through digital channels at each stage of their buying journey. 

Now, let's uncover the role of interactive product demos in each stage in converting users.

Also check out: Guide to product marketing

How to Convert Users Across the Marketing Funnel Through Interactive Demos 

1. Awareness: Captivating Attention from the Outset to Convert

The number of people engaging in online buying experiences is skyrocketing.

Potential buyers who can't find relevant product information during their research phase might not even consider evaluating it. This is where product demos can come into play during the awareness stage to convert users:

• The increasing number of digital buyers: There is a large pool of potential customers actively engaging with products and services online. Demos can effectively capture their attention and showcase the value of a product, converting them from mere aware individuals to interested prospects.
• Online research dominance: When it comes to B2B buyers, they spend a significant portion of their buying process, approximately 27% of their time, conducting independent online research. By offering interactive demos, businesses can capture the attention of these research-driven buyers and guide them further down the funnel.
• Limited involvement of vendor’s sales team: 38% of buyers will not purchase your product if they have to contact Sales reps for a demo. Interactive demos can effectively fill this gap left and allow buyers to engage with the product, understand its capabilities, and make more informed decisions without direct sales interaction.

Interactive product demos at the awareness stage effectively introduce your offerings to potential customers, leaving a memorable first impression. They grab the attention of your prospects and serve as a stepping stone toward further exploration and consideration of your product.

Here's how you can convert users in the awareness stage:

• Create engaging and visually appealing teaser content or short, interactive demos that showcase your product's key features and benefits to provide a glimpse of what users can expect.
• Partner with relevant influencers in your industry to showcase your product demos. Their audience can help increase brand visibility and reach new potential customers.
• Incorporate interactive demo links or previews in your email marketing campaigns to introduce your product to your subscriber base.
• Develop engaging explainer videos highlighting your product's unique value proposition and how it solves customer pain points.

2. Consideration: Showcasing Unique Value to Convert Users

94% of buyers said demos catered to their specific use case were crucial during the evaluation.

It's a powerful statistic highlighting interactive demos' impact and effectiveness in the consideration stage. During this stage, users actively evaluate your product compared to your competitors. This is a critical moment where you can showcase the unique value your product brings to the table.

So, what makes these demos so valuable at this stage?

They allow users to dive deep into your product features, functionality, and benefits. With hands-on experience, you allow potential customers to visualize how your product can solve their specific pain points.

This level of interactivity goes a long way in building trust and credibility. This visual and interactive experience helps them connect the dots and make informed decisions.

Here's how you can use product demos to convert users at the consideration stage:

• Develop demos that cater to different customer segments or use cases, highlighting how your product solves specific pain points or addresses the needs of different target audiences.
• Include testimonials and case studies within the interactive demo to showcase the experiences of satisfied customers.
• In the product demos, compare your product with competitors' offerings, specifying key differentiators and advantages of your product.
• Integrate live chat functionality within the interactive demo to provide real-time assistance and address users' questions or concerns.

So, interactive product demos in the consideration stage can enhance user understanding and increase the likelihood of conversion. In addition, these demos' immersive and engaging nature enables potential customers to see the value your product brings, ultimately nudging them closer to conversion.

3. Conversion: The Final Push to Close the Deal

Interactive product demos are crucial, being the most widely used decision-making resource (58%) for buyers.

That's a powerful statistic that shows just how influential and persuasive these demos can be in the decision-making process of the sales cycle, specifically in the conversion stage. In this stage, users make the critical decision to become customers, and product demos play a vital role in sealing the deal.

Interactive product demos provide the final push needed to tip the scales in your favor.

Here are some of the best ways to leverage an interactive product demo in the conversion stage:

• Customize the product trial experience for your prospects without the added complications of investing engineering time and effort by creating a sandbox environment using Storylane.
• Show prospects additional value they can extract from your product by discussing how well you connect with important integrations and what the outcomes would look like.
• Create stories that drive more engagement from your website visitors and show them the true value of your product via interactive product walkthroughs or interactive tours.

This final touch can make all the difference in converting them from interested prospects into delighted customers.

4. Loyalty: Retaining the Conversion

Loyalty involves turning satisfied customers into repeat buyers. During the loyalty stage, your focus shifts from acquiring new customers to nurturing and retaining existing ones. This is where product demos continue to shine by deepening the connection between your customers and your product.

Product demos provide a platform for showcasing new features, updates, and enhancements, keeping your customers engaged and excited about what your product offers.

Regularly sharing interactive demos with your loyal customer base creates a sense of exclusivity and makes them feel like valued insiders.

Moreover, product demos in the loyalty stage serve as a powerful educational resource. They can be used to provide in-depth tutorials, tips, and tricks that help customers maximize their use of your product.

Empowering your customers with knowledge and helping them become proficient users fosters a sense of loyalty and trust.

Here's how you can ensure your customers' loyalty toward your offerings through an interactive product demo:

• After conversion, continue engaging users with interactive demos showcasing advanced features, tips, and tricks for a better onboarding experience.
• Make product announcements via interactive demos for existing customers. You can introduce new product updates, enhancements, or add-ons for them.
• Use interactive demos to allow your customer support team to solve customer issues easily.
• Create interactive demos for your product documentation to guide your customers better.

And here's the real magic: Product demos in the loyalty stage also create opportunities for upselling and cross-selling. Demonstrating the value of additional features or complementary products can effectively expand your customers' usage and increase their lifetime value.

Check out: Product marketing strategies

How to Create Interactive Product Demos for Higher Conversion Rates

Check out our step-by-step guide to create stellar interactive product demos that convert prospects across the marketing funnel. 

Step 1: Define Your Objectives

Starting with a clear set of objectives and a well-crafted product story is important to kickstart your journey toward a successful interactive product demo. After all, it takes you on the right path to delivering an impactful and effective interactive product demo.

Take a moment to outline what you want to achieve through your demo

Are you aiming to increase conversions, educate users about your product, or showcase critical features and benefits? Set specific objectives to have a clear direction for the entire process.

Crafting a compelling product story is crucial for your demo messaging plan

Your story should highlight the outcomes and value benefits that your product offers. It should resonate with your target audiences, addressing their unique challenges and demonstrating how your product can help them overcome obstacles and achieve strategic goals.

Consider making multiple demos

Remember, different audiences may require distinct demo videos to maximize engagement and create a sense of urgency. On average, it takes about three demos to close a deal, but the number can go as high as 15 demos. So, be prepared to cater to the diverse needs of your prospects and ensure you have a range of demos that align with their specific requirements.

Step 2: Identify Your Target Audiences

It's time to identify your target audiences for your interactive demo. 

For example, in the software purchase decision process for small and midsize businesses, up to 9 active buyers may be involved. 

Consider critical levels of decision-makers

Start by considering three key levels: executive, business, and technical. Each audience brings unique perspectives, needs, and expectations, so it's important to address them all. Then, tailor your demo to provide the information and insights that each level requires.

While not all of them are end-users, catering to these decision-makers in your demo videos is crucial. First, show them the true potential and value of your product. Then, they are the ones who can make the deal happen and become your valuable leads.

Consider the intricacies of the industries you cater to

Your product may cater to different industries or segments, which may have their own specific messaging needs. Take the opportunity to address these nuances in your interactive product demonstration, ensuring that your demo resonates with each target segment.

Step 3: Start Designing and Developing Your Demo

Start with designing an immersive user experience that brings your product to life and keeps users engaged from start to finish. Then, create demos that captivate and guide users along their customer journey across the various marketing funnel stages.

Create a Customer Journey Map

First, create a customer journey map to visualize users' stages as they interact with your product. From the moment they discover your tool to the activities they need to become loyal customers, mapping out their journey will provide valuable insights for your demos.

Mapping out the customer journey will give you a clear roadmap for your demos, ensuring you cover each step effectively.

Make a Storyboard Template

Now that you have outlined your customer journey map, it's time to transform those valuable insights into a clear and easily shareable format. Creating a storyboard template will allow you to visually present your findings in a way that anyone can understand.

A storyboard template serves as a replicable framework that you can use not only for your current demos but also for future ones. It provides a consistent structure and helps you organize your content effectively.

Using a storyboard can ensure that your demos are coherent, engaging, and aligned with the customer journey you've mapped out.

Be Creative

Embrace your creativity! Design a captivating demo that captures attention and creates a memorable experience.

Take your prospects by surprise — personalize all that you can and play around with video elements wherever creativity permits!

Each design element should leave them in awe of what wonders your product can do and how reassuring the demo is.

Craft engaging content that showcases the key features and benefits of your product. Make it interactive, intuitive, and visually appealing to keep users hooked throughout their journey.

Step 4: Make the Customers Take Measurable Actions

As you design your storyboard, guiding all target audiences toward measurable actions that further their engagement with your product is important.

Whether it's requesting more details, downloading product data sheets, registering for a webinar, or scheduling a follow-up discussion, make it effortless for customers to take these actions.

Strategically place visible CTAs

Empower customers to decide when they're ready to engage with you but ensure your calls to action are always easily accessible. Strategically place clear and visible calls to action throughout your demo, making it convenient for customers to take the next step.

Providing immediate access to these actions can enhance the likelihood of customer engagement and conversions.

Step 5: Test, Launch, and Promote Your Demo

As you near the final stages of your interactive product demo creation process, thoroughly testing it across various devices and browsers is crucial. You must ensure that your product demo:

• functions flawlessly
• provides a seamless user experience
• accurately represents your product

Then, gather feedback from diverse testers to address potential issues and make necessary refinements.

Once your tests yield positive results, it's time to unveil your software product demo to the world! Promote your demo through multiple channels, such as your:

• website
• social media platforms
• email newsletters

Emphasize its value and entice users to explore and engage with your demo. Be present where your target audience actively searches for products and information.

For example, buyers searching for CRM or project management software will likely come across search engine results, third-party review websites, and pay-per-click platforms. They may also seek information from social media marketing and discussion forums to gather insights. So, consider these channels when promoting your demo to reach potential customers effectively.

To enhance the customer experience, embed your interactive product demo videos in a dedicated resource center. This resource center serves as a hub for self-service support, enabling customers to access demos.

Moreover, supplement your demo with valuable information and resources that assist users throughout their journey, regardless of stage.

Step 6: Monitor and Improve at Each Stage

After launching your demo, you must keep a finger on the pulse of your demo's performance and make it even more compelling and impactful over time.

Once your demo is live, closely track user engagement and conversion rates, and gather feedback. Then, analyze the data to pinpoint areas that can be enhanced and optimize the demo based on user behavior and preferences.

Continuously iterate and refine your demo to maximize its impact and effectiveness.

For example, there can be a significant time gap between when a potential client requests a demo and when it's actually executed by a sales executive, sometimes taking more than a work week (around 5.6 days).

While customization for key buyers is crucial, having a canned demo available can reduce this delay and ensure consistent standards of demo delivery.

So, actively monitoring and improving your demo can ensure it aligns with evolving customer needs and expectations. Stay responsive to user feedback, adapt to changing market dynamics, and consistently enhance the demo experience.

Interactive Product Demos that Drive Conversions: Real-Life Success Stories

Here are some of the best interactive product demos for specific marketing funnel stages. Note that the particular stage of the marketing funnel can vary depending on your target audience and the nature of your product.

For example, a logged-in product demo of some offerings might be offered earlier in the awareness or consideration stages to provide a more immersive and interactive experience from the start.

Requiring a login for the demo suggests a higher level of interest and commitment from the users, indicating their readiness to explore the product further and potentially make a purchasing decision.

Ultimately, the decision to require a login for a product demo is based on the target audience, their preferences, and the overall marketing strategy.

Clari

Shruti Kapoor, the Head of International Business at Clari, presents her POV for buyers to assess the right product fit: 

Clari's demo showcases revenue leak detection, revenue precision, and projection creation using historical data and learning from a business. It highlights Clari's industry-leading real-time projection accuracy, with customers achieving 98% accuracy by week two of the quarter.

The demo also highlights efficient book-of-business management for reps and leaders without the need for extensive CRM exploration. Finally, it showcases Clari's forecasting capabilities.

Here’s what you can learn from Clari’s demo:

• Clari’s demo doesn’t require users to sign in, making it more likely for them to engage with the demo in the early stages of the marketing funnel. Such an early-stage product demo can effectively capture the attention of potential customers unfamiliar with the product.
• Users can schedule a live demo or continue exploring the current demo in more depth at the halfway point of the demo. This flexible approach ensures that users can make an informed decision based on their preferences and level of interest.

Druva

Druva's demos showcase its SaaS apps, endpoints, Microsoft 365, Google Workspace, Enterprise Workloads (VMware, NAS, Amazon EC2), and Cybersecurity offerings (Security Posture & Observability, Ransomware Recovery, Data Governance).

These cool demos effectively highlight key features of Druva's solutions. The demo provides an overview of the cloud resilience platform, featuring a data protection summary, sensitive data governance, ransomware recovery, critical alerts, and backup data trends.

Here are the lessons you may learn from Druva’s demo:

• A pop-up notification allows scheduling a meeting for deeper insights into the platform. Strategically placing this notification at the right moment during the demo capitalizes on the user's interest and curiosity, increasing their likelihood of action.
• Druva’s entire demo is concise and thus avoids fluff, effectively communicating value and functionality without overwhelming the user.

Chargepoint

Chargepoint's demo guides you to assess your charging needs and find the perfect solution. The 24-step interactive software demo showcases the extensive features of their EV charging solution, focusing on building and managing a top-notch charging program.

It begins by demonstrating how you can gain valuable insights and tips from drivers through the ChargePoint mobile app. The demo covers essential aspects like real-time station usage and status monitoring, proactive charger maintenance, and real-time power consumption tracking across your organization. It concludes with pricing policies and tax regulations.

Here’s what you can learn from Chargepoint's demo:

• The demo concludes with a CTA offering a personalized demo from a ChargePoint expert, allowing users to take action to get tailored guidance addressing specific needs.
• Chargepoint's demo is very detailed and covers all major aspects of its features. This could testify to the company’s dedication and attention to detail in offering potential customers a comprehensive and immersive experience. Consequently, this robust demo can effectively create a lasting and impactful impression.

The Bottomline

Interactive product demos are a powerful tool throughout the marketing and sales funnel. From creating awareness to driving conversion and fostering loyalty, these demos engage users, showcase product value, and guide them toward making informed decisions.

Tailoring the interactive product demo experience to each stage helps software companies effectively capture attention, build trust, and increase the likelihood of conversion. So, ready to captivate your audience using product demo software?

Create a perfect demo on Storylane's interactive demo platform and see its impact on your marketing funnel!