1 of 2 pages
Too Complex – A True Demo Disaster Story
Here’s the true story of how a demo directly resulted in the loss of $245,000 from an order. It’s also a stunning example of why not to show all those neat, cool features…
What happened?
0 Comments on this document
Document Transcript:
The Second Derivative
1538 Winding Way
Belmont, CA 94002
Phone: +1 650 631 3694
PCohan@SecondDerivative.com
www.SecondDerivative.com
www.DemoGurus.com
Peter E. Cohan, Principal
Too Complex - A True Demo Disaster Story
Here's the true story of how a demo directly resulted in the loss of $245,000 from an
order. It's also a stunning example of why not to show all those neat, cool features…
What happened?
The Set-up
A salesperson had done an excellent job qualifying a customer. In the qualification
discussion, it became clear that what the customer needed fit beautifully with what the
vendor could provide - the specific capabilities the customer wanted were exactly what
the vendor's software did best.
The salesperson described these capabilities in the discussion and both parties agreed to
schedule a follow-on meeting to see a demonstration of the product. This was to be a
Technical Proof demo - the specific capabilities needed by the customer were very clear.
In parallel with planning for the demo meeting, the salesperson worked the customer
through the balance of the sales process, including agreeing on quantity, price, licensing,
and an implementation plan. The demo meeting was scheduled as the final step before
completing the license agreement.
The customer was ready to purchase 50 seats of the vendor's software, on an annual-
right-to-use basis of $5,000 per seat - a $250,000 per year order.
The salesperson scheduled the demo meeting with a seasoned, veteran sales engineer
(SE) as the demonstrator - the salesperson wanted to make sure that the person doing the
demo really knew the product well. They discussed the specific capabilities the customer
needed and the status of the sales process - they both felt well-prepared.
The customer audience included the "champion" and most of the fifty target end-users.
The meeting was scheduled for one hour.
The Disaster
The meeting began on time. After introductions, the SE started right into the demo. In
ten minutes, the SE showed all of the specific capabilities the customer had identified.
The SE then looked at his watch and noted that he fifty minutes left in the meeting.
Page 1 of 2 Copyright 2006 The Second Derivative. All Rights Reserved 5/9/2006He said, "Since we have some additional time, why don't I show you some of the other
capabilities our software offers?" Well-meaning, well-intended…
[I can hear you crying out, Dear Reader, "Don't do it! Don't do it!!" By the way, have
you ever heard someone on your team say something like this in a similar situation?]
Well, the SE did do it. He spent the next fifty minutes showing that you can do this, you
can do that, you can do this other really cool thing… and another really cool thing as
well…
At the end of the meeting, the customer champion met with the end-users briefly and then
re-joined the salesperson for a wrap-up discussion.
The champion said, "What we've decided to do is to purchase a license to a single seat of
your software and install it on a power-user's machine. Everyone else will bring their
problems to the power-user to have them worked…"
"Why?" asked the salesperson.
"The users said the software looked too complex - they couldn't visualize using the tool
themselves," responded the customer champion. "They got confused by all of the various
functions and capabilities that were shown during the demo…"
Showing too much in this demo reduced the value of the sale from $250,000 annually to
$5,000 annually - a negative conversion of $245,000 per year!
The Moral
Every mouse click, every keystroke, every additional capability, every new screen shown
in a demo adds to the perceived complexity in the minds of the audience.
Focus on the specific capabilities needed by the customer to address their business issues
- and hold everything else back. The demo should build a vision in the customers' minds
that they can easily visualize using the software themselves.
Focus and execute - and the reward will be the full order!
Feel free to forward this article to others. For solutions to this situation or for other
articles, go to www.SecondDerivative.com. To access best practices, tips, tools and
®
techniques, join the DemoGurus Community. For more information on DemoGurus,
navigate to www.SecondDerivative.com or register at www.DemoGurus.com.
Page 2 of 2 Copyright 2006 The Second Derivative. All Rights Reserved 5/9/2006
1538 Winding Way
Belmont, CA 94002
Phone: +1 650 631 3694
PCohan@SecondDerivative.com
www.SecondDerivative.com
www.DemoGurus.com
Peter E. Cohan, Principal
Too Complex - A True Demo Disaster Story
Here's the true story of how a demo directly resulted in the loss of $245,000 from an
order. It's also a stunning example of why not to show all those neat, cool features…
What happened?
The Set-up
A salesperson had done an excellent job qualifying a customer. In the qualification
discussion, it became clear that what the customer needed fit beautifully with what the
vendor could provide - the specific capabilities the customer wanted were exactly what
the vendor's software did best.
The salesperson described these capabilities in the discussion and both parties agreed to
schedule a follow-on meeting to see a demonstration of the product. This was to be a
Technical Proof demo - the specific capabilities needed by the customer were very clear.
In parallel with planning for the demo meeting, the salesperson worked the customer
through the balance of the sales process, including agreeing on quantity, price, licensing,
and an implementation plan. The demo meeting was scheduled as the final step before
completing the license agreement.
The customer was ready to purchase 50 seats of the vendor's software, on an annual-
right-to-use basis of $5,000 per seat - a $250,000 per year order.
The salesperson scheduled the demo meeting with a seasoned, veteran sales engineer
(SE) as the demonstrator - the salesperson wanted to make sure that the person doing the
demo really knew the product well. They discussed the specific capabilities the customer
needed and the status of the sales process - they both felt well-prepared.
The customer audience included the "champion" and most of the fifty target end-users.
The meeting was scheduled for one hour.
The Disaster
The meeting began on time. After introductions, the SE started right into the demo. In
ten minutes, the SE showed all of the specific capabilities the customer had identified.
The SE then looked at his watch and noted that he fifty minutes left in the meeting.
Page 1 of 2 Copyright 2006 The Second Derivative. All Rights Reserved 5/9/2006He said, "Since we have some additional time, why don't I show you some of the other
capabilities our software offers?" Well-meaning, well-intended…
[I can hear you crying out, Dear Reader, "Don't do it! Don't do it!!" By the way, have
you ever heard someone on your team say something like this in a similar situation?]
Well, the SE did do it. He spent the next fifty minutes showing that you can do this, you
can do that, you can do this other really cool thing… and another really cool thing as
well…
At the end of the meeting, the customer champion met with the end-users briefly and then
re-joined the salesperson for a wrap-up discussion.
The champion said, "What we've decided to do is to purchase a license to a single seat of
your software and install it on a power-user's machine. Everyone else will bring their
problems to the power-user to have them worked…"
"Why?" asked the salesperson.
"The users said the software looked too complex - they couldn't visualize using the tool
themselves," responded the customer champion. "They got confused by all of the various
functions and capabilities that were shown during the demo…"
Showing too much in this demo reduced the value of the sale from $250,000 annually to
$5,000 annually - a negative conversion of $245,000 per year!
The Moral
Every mouse click, every keystroke, every additional capability, every new screen shown
in a demo adds to the perceived complexity in the minds of the audience.
Focus on the specific capabilities needed by the customer to address their business issues
- and hold everything else back. The demo should build a vision in the customers' minds
that they can easily visualize using the software themselves.
Focus and execute - and the reward will be the full order!
Feel free to forward this article to others. For solutions to this situation or for other
articles, go to www.SecondDerivative.com. To access best practices, tips, tools and
®
techniques, join the DemoGurus Community. For more information on DemoGurus,
navigate to www.SecondDerivative.com or register at www.DemoGurus.com.
Page 2 of 2 Copyright 2006 The Second Derivative. All Rights Reserved 5/9/2006
