Imagine making a significant purchase, like buying a car or house, without getting a test drive or walk-through. Would you be confident in your decision? Probably not.
Product demonstration videos serve a similar purpose during the SaaS sales process. In fact, 94% of customers say seeing product videos during the sales process builds confidence in their purchase. Read on for inspiration from some of the best product demo videos and tips on making your own.
What is a product demonstration video?
A product demonstration video is a short video that helps potential customers decide whether or not to purchase your product.
These videos are often used in e-commerce to supplement product photography. They give customers a 360-degree view of the product in question, show it in action, and discuss different features and benefits.
Product demonstration videos are also used by SaaS sales and product marketing teams to support customers throughout the buying journey.
They may be used in place of traditional product demonstrations completed in person (or over video call) or as a method for generating leads, for which sales reps can run full custom demonstrations.
The use case varies based on the type of product demo video you choose to use.
A good vs. great product demonstration video
A good product demo video nails the basics. It’s relevant to the target audience, showing an understanding of their pain points and where they are in the sales pipeline. It addresses FAQs by highlighting how the product works and core use cases. Strong visual appeal, including engaging graphics and smooth transitions, captivates viewers.
Simplicity should be your guiding light. Your customers rely on your video content to make their decisions easy. Focus on how your new product can help them by breaking down complex functionality into easy-to-understand steps, avoiding jargon and technical terms.
A great product demonstration video is more than a simple tutorial. Think of a good demo as a solid documentary about your product. A great demo is its Oscar-winning biopic, which is more likely to engage and move a broader audience. It will capture and hold the viewer’s attention by telling a compelling story.
A stand-out demo video also hammers home your product’s unique value proposition. Instead of simply outlining your product’s features and selling points, it showcases what makes it rise above the competition.
A great product demonstration video drives action. It can be a decisive step in your sales cadence, generating leads and accelerating the sales pipeline. Done well, demos will become integral to your product marketing strategy by driving brand awareness and sales.
You don’t need expensive software to make a quality SaaS product demo. A free screen recorder like Loom lets you record your screen and yourself while you walk customers through the product. When you’ve finished recording, Loom generates a link you can share or embed in other platforms.
4 types of product demonstration videos
Introductory demo video
An introductory demo video is a short video providing a quick overview of the product in question.
They’re usually just two or three minutes in length and are designed solely to give potential customers a brief rundown on what the product is so they can decide whether or not they want to learn more.
Walkthrough demo video
A walkthrough demo video is slightly more in-depth and is designed to replace the standard live sales demonstration.
It's typically around 15 to 30 minutes in length and provides a full demonstration of your product, including the most commonly used features and how they benefit your target customers.
Companies with more complex products may produce multiple walkthrough demonstration videos, illustrating different feature use cases.
Custom demo video
A custom demo video is similar to a walkthrough in that it sticks to a longer format and dives deep into how a given product works.
The difference here is that the video is custom-made (usually by a sales rep) for a specific customer.
The benefit here is that your video is highly relevant to the person watching it.
You can cut out details that don’t relate to their use case and dive deeper into more specific functionalities that might not be appropriate for a more general walkthrough demo.
Live product demonstration
Your final option is to conduct a “live” product demonstration via video call.
This is unusual in the context of a physical product, but is still the standard process for most software sales teams.
Live product demos allow you to take questions from the prospect, handle objections, and clarify concerns, but they do have a few drawbacks:
They are more time-consuming
They are prone to no-shows
They can’t be watched more than once
Why are product demonstration videos so effective?
Not quite convinced that a product demo video is your secret to success in online sales?
Here are four reasons why product demonstration videos are an incredibly effective tool for increasing customer engagement and driving up conversion rates.
1. Buyer-led customer experience
The most important benefit of product demonstration videos is they put the control back in the buyer’s hands.
Rather than having to wait for a call with a salesperson to hear their sales pitch, decision makers can see how a product works on their own time, diving into the product’s features and benefits that they actually care about.
Giving customers more power over the sales process helps to build trust, as customers are more likely to feel that they chose to buy rather than were sold to.
2. Minimizes the need for freemium products
A great product demo video helps customers determine whether or not your product is right for them.
Ultimately, that’s what the freemium model is all about as well.
Freemium is not typically a viable option for early-stage startups who have a new product and haven’t yet validated their ability to convert free users once they're in the sales funnel and actually extract revenue.
But a solid product demo video can provide almost the same impact as a freemium product (though without the interactive element), serving the same goal of demonstrating the product’s value.
3. Instills psychological ownership
A strong video sales demonstration helps customers envision themselves using your product to solve their pain points or empower them to reach a goal.
It paints a picture of their dream solution, helping them visualize how the product will impact their life, a phenomenon known as psychological ownership.
Of course, it almost goes without saying that if your prospects are imagining themselves using your product, your sales team is going to be able to close deals more easily.
4. Improved conversion rates and shorter buying cycles
All of the above benefits produce a more educated customer, contributing to higher conversion rates and shorter buying cycles.
Rather than arriving at an in-person sales presentation with little understanding of how the product could help them solve key problems, potential customers enter the sales pipeline pre-educated and often ready to buy.
5 tips for creating compelling product demo videos
Once you decide what type of demo to make for your product, follow these tips to ensure it delivers maximum impact.
Know your audience
The better you know your audience, the more likely your demo video will convert. Ask yourself the following questions:
Who is your ideal customer?
What are their goals?
What problem do they need to solve to reach those goals?
What limitations do they face?
Once you have those answers, tailor your demo to your customer. Show them you understand what they’re dealing with and how your product can help.
Prep a video storyboard
Now that you’ve got your tech sorted, it's time to plan out the video itself. For this, you’re going to create a short storyboard.
A storyboard is like a sketch or blueprint of the video you’re about to create. Here’s an example of how simple storyboards can be:
Each frame in the above storyboard represents a different discussion point.
Let’s say you’re creating a product demo for a new software tool, and you want to show off five unique features.
Your storyboard would include at least five different frames, with a quick sketch of what you’re going to show. If demonstrating a given feature requires multiple clicks or different screens, then you’ll need to sketch multiple frames.
The point of this exercise is to give yourself a map or outline to follow when you record the video. This can help keep you within the time limits you’ve set for yourself and avoid missing any key details.
Depending on your familiarity with the video subject, you might want to draft a short script or bullet-point notes to streamline the audio portion of the video.
Prioritize visual appeal
Your demo has to grab attention quickly to stand out among the myriad distractions viewers could click on. A visually engaging video captivates the audience. Using eye-catching graphics and smooth transitions elevates your demo from ordinary to extraordinary.
You can use Loom to make dazzling product demos without breaking the bank or learning complicated software.
Colorful backgrounds instantly catch the eye. Including the webcam bubble adds a human touch, helping your brand’s video stand out from faceless demos. The drawing tool lets you highlight essential product features, and the confetti burst adds flair. Business and Enterprise customers can record in HD for crystal-clear images.
Tell a story
You don’t need complex characters or an expansive plot to tell a compelling story. Your customer is your protagonist, and your product is the mentor guiding them to victory. From there, you need a simple narrative structure with a beginning, a middle, and an end. It’s a framework that will be familiar to your audience, keeping them with you from clicking play to your CTA.
Use Loom’s visual effects to add creative flair to your storytelling demo. Select a colorful canvas, fun video effect, or playful frame to add personality.
Include a strong call to action
If your product demonstration video isn’t converting, it might be missing a solid CTA. A strong CTA guides your audience toward a desired action, increasing conversions and maximizing your video’s impact. It can be a simple “Subscribe” button, a calendar link, or a request to follow you on social media.
Loom lets you add a custom CTA link and button to prompt viewers to take the next step. Choose whether to display the button throughout your video or have it pop up at the end. Loom AI makes it even easier by automatically generating a CTA for you.
4 product demo video examples to inspire you
Experiment with different styles to make your video compelling. Are live-action or animated product demo videos right for you? Consider your target audience and your product to select the most effective style. Here are some top examples.
Example 1: The concise and informative demo
Informative demo videos aim to communicate key features and benefits quickly and effectively, like this one from Surfer.
In under a minute, Surfer uses this product launch video to provide an instructive overview of its Content Editor 2.0. The images, like the rising content score meter, visually reinforce claims about the product’s ability to optimize content. These details convey a tremendous amount of information quickly.
Create your own concise and informative demo videos with Loom. Open Loom’s desktop app, select whether to record your full screen or a specific window, and start recording. Once you’ve finished, the video will automatically appear in your library.
Customers with paid plans can use Loom’s editing tools. Keep your demo moving by quickly trimming flubs, pauses, or resets with the waveform editor. Loom’s AI add-on removes filler words and silences, so the narration flows seamlessly. If your video drags, adjust the playback speed to move it along.
Example 2: The storytelling demo
Demos that nail storytelling package the demo within a narrative that gives viewers a reason to care about the product. They can be simple, but Candu goes all-out.
Candu’s video is more of a fully produced ad than a traditional product demo. But as an example of compelling storytelling, it’s on point. The intro lays out the target customer’s motivations, frustrations, and limitations. Then, Candu introduces itself as the mentor to aid the hero’s journey. After that, the video cuts to a brief demo that underscores the main point: Candu is simple for non-coders to use.
You can make your storytelling demo without hiring a production company. Add a human touch with Loom’s webcam recorder. When you start recording, toggle your camera on and record yourself with your screen. The video bubble enhances your storytelling by creating a more personal connection than a faceless voiceover.
Add other voices or perspectives by stitching together teammates’ segments or customer testimonials. When your demo’s hero completes their journey, celebrate with confetti.
Example 3: The interactive demo
Interactive product demos offer a hands-on experience that engages prospects beyond traditional demos. This is where Loom shines.
In this demo, you can see exactly where other viewers have commented and reacted. The presenter has responded to viewer comments, providing two-way interaction. She also makes the demo feel like a conversation by recording herself instead of relying on voiceover.
You can elevate your demos with Loom’s interactive features:
Screen annotations: Draw and annotate on your screen while recording to enhance the viewers’ engagement and understanding.
Comments and tags: Enhance the two-way experience by responding to audience comments with a follow-up comment or emoji reaction. Timestamps allow you to see exactly when someone reacted. Viewers can also tag teammates in their comments, drawing others into the conversation.
Call to action (CTA) buttons: Use Loom AI to integrate CTAs directly within the video. Viewers can take immediate action without leaving the platform.
Example 4: The problem-solution demo
Videos can powerfully showcase how a product addresses specific pain points. Check out this example from JustCall x HelpScout on their new integration.
This video is laser-focused on its message. The demo succinctly identifies one customer problem: customer-facing teams that aren’t on the same page. The rest of the video demonstrates how JustCall addresses that problem, with the product features serving as supporting points. The demo is clear, concise, and compelling, making it easy for viewers to understand the integration’s value and encouraging conversion.
Make your problem-solution demos even more successful by personalizing them with Loom. Tailored demos increase engagement, understanding, and conversions. Loom customer Intercom boosted response rates by 19% by adding personalized sales prospecting videos. You can create and share a Loom video in minutes, so it’s easy to make custom demos part of your strategy.
Common product demo video mistakes to avoid
Crafting a successful product demo video requires careful attention to detail. If you avoid common mistakes, you’ll make product videos that people will want to watch.
Poor video quality: Your demo video maker should provide clear audio and crisp video so your demo looks professional and authoritative. Loom’s built-in audio and video recording lets you produce high-quality demos for free. If you have the budget, consider investing in a quality microphone and flattering lighting for extra polish.
Overly complex scripting: Keep the script concise and easy to follow. Focus on the most important benefit your product delivers for your target audience and support it with relevant features. Avoid jargon that may confuse viewers.
Lack of editing: Keep the video flowing by editing out mistakes, transitions, and any unnecessary footage. Loom’s simple editing software lets you produce a professional video in minutes. Loom AI makes it even easier by automatically eliminating silences and filler words.
Forgetting the call to action: Omit or use a weak CTA at your peril. A clear CTA can increase conversions by 161%.
Ignoring potential sales objections: Use your demo to address sales objections and reduce friction in your prospect’s decision-making. Identify the most common objections and address them proactively in your demo. You’ll build trust and credibility with potential customers.
Boost conversion with product demo videos using Loom
Product demonstration videos are an accessible way to replace traditional in-person sales demos.
They help you reach a larger audience in a shorter period of time and improve your ability to measure and report on engagement.
Recording a demo of your software platform or other digital product?
Loom is your perfect screen recording partner. Effortless recording, custom branding, engagement and insights, and customizable CTAs make Loom the video solution for sales demos.
