Peter Cohan recently shared some great insights on best practices for automated demos in a new article. To learn more about his findings, we had a chat with Peter to discuss what makes an automated demo truly effective. He talked about why setting the right context is crucial, how to clearly define the problems your prospects face, and how to ensure demos go beyond just showcasing features to actually convey real value. Here’s our conversation where Peter breaks down his approach and offers practical advice for improving automated demos.

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Can you elaborate on why setting context is crucial in automated demos, and what specific elements should vendors communicate upfront?

Peter Cohan: Setting context is critical because it helps the viewer quickly determine whether the demo is relevant to them. Imagine walking into a town where every restaurant is just labeled "restaurant" with no indication of the type of cuisine—it’s confusing and unhelpful. Similarly, in automated demos, vendors need to communicate upfront who the demo is for. Is it for someone in finance, pharma, or another industry? Is it tailored to executives, data analysts, or another role? By providing this context, you ensure the right people engage with the right content.

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You mentioned the importance of clearly defining the problems prospects face. How can automated demos effectively articulate these challenges?

Peter Cohan: To effectively articulate challenges, the demo needs to highlight the specific problems that the prospect is likely dealing with. This could be done through voiceovers, embedded text, or situation slides that detail the job title, high-level challenges, specific problems, and the value of the solution. For example, a situation slide might say, "As a head of sales, you might be struggling with inaccurate forecasts, and here’s how our tool can improve that accuracy." By clearly defining the problem, you can guide the prospect toward seeing how your product can solve it.

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Could you explain the dual approach of presenting solutions in automated demos—both the "What" and the "How"? How does this differ from traditional demo approaches?

Peter Cohan: Traditional demos often take the prospect through an entire workflow without explaining what's in it for them upfront. It’s like reading a recipe without seeing the final dish—there’s no motivation to keep going. In contrast, the dual approach in automated demos focuses on first showing the end result—the "what"—to engage and entice the prospect. Once they’re interested, you can then show the "how," or the steps needed to achieve that result. This method is more engaging because it prioritizes the value first, then the process.

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Many demos fail to communicate value effectively. How can vendors ensure their automated demos not only showcase features but also convey tangible benefits to prospects?

Peter Cohan: It’s important to distinguish between features, advantage statements, and benefit statements. Features describe what the product does, advantage statements suggest what it could achieve for the prospect, and benefit statements directly address the prospect’s specific needs. Even if you haven’t had a discovery conversation, you can use advantage statements by sharing how other similar businesses have benefited from your solution. This approach helps to bridge the gap between showcasing features and demonstrating tangible benefits.

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You discussed the optimal length of automated demos. What strategies can vendors use to maintain engagement throughout the demo while keeping it concise?

Peter Cohan: The key is to make the demo just long enough to achieve its objective. For instance, an executive might only need a 30 to 60-second demo to assess key business metrics, while middle managers or individual contributors may require more depth. To maintain engagement, focus on showing only the most relevant and valuable aspects for the viewer’s role. Keep in mind that anything longer than six minutes might start losing the audience, so it's essential to be concise and to the point.

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How can vendors balance providing sufficient detail in automated demos without overwhelming prospects with technical jargon or excessive information?

Peter Cohan: There are three key strategies: First, avoid using language that isn’t universally understood. Second, tailor the depth of detail to the viewer’s role—executives need less detail, while middle managers and staff might need more specific information. Third, resist the temptation to include every feature and function. Only include what is relevant to the viewer’s job title and context. This balance ensures that you provide enough information to be informative without overwhelming the prospect with too much detail.

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In Part 2 of your article, you emphasized the importance of analytics in evaluating demo effectiveness. What metrics should vendors track, and how can they use this data to refine their automated demos?

Peter Cohan: Vendors should track a variety of metrics, including what content was consumed, where viewers lingered, where they struggled, and if they exited early. It’s also valuable to know if they pursued a call to action, watched the demo more than once, or shared it with others. More advanced metrics could include analyzing changes over time, A/B testing, and identifying any data points that correlate strongly with closed business. These insights can help vendors refine their demos by focusing on what works and making data-driven improvements.

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As a message to automated demo toolmakers, what capabilities or features do you believe are essential to enhancing the effectiveness of automated demos based on your insights?

Peter Cohan: Toolmakers should focus on providing features that allow for extensive data tracking and analysis, enabling vendors to capture and analyze detailed interaction data. They should also consider integrating capabilities that allow for more interactive and conversational demos, where the demo adapts based on viewer input. Additionally, ensuring that the tool can integrate with other systems, like CRM platforms, to merge data from various stages of the sales process will be crucial. Lastly, enabling vendors to easily update and test different versions of demos will help keep them relevant and effective as products evolve.