A Tale of Two Funnels: The Impact of Virtual Demos

You have heard me talk about the impact of virtual demos that align with buyers' preferences to deliver a better experience while accelerating sales. To put it bluntly, and research validates this, buyers want to try your product out. Not just accept that it will work from your sales folks or your marketing. The issue that most vendors face here, especially in cyber, is that for a prospect to try out a solution means a variety of approvals, and a constant friction from the prospects leadership to not introduce risk into their digital ecosystem for the purposes of a software trial.

Those factors affect your funnel, period. What you want is fidelity of leads and interactions, not volume. Spray and pray is not a method that works here. Or at least it won't provide your team with tangible benefits. Doubt me, check the data. Anyway, lets look at some honest perspectives on the funnel and why you should rethink your approach to filling that valuable resource.

The Traditional Funnel: Thought Leadership and Outreach

Traditionally, marketing funnels have relied heavily on thought leadership and outreach strategies to attract and engage potential customers. These methods involve creating high-quality content, such as white papers, blog posts, and webinars, to position the brand as an industry leader. Outreach efforts, including email campaigns and social media engagement, aim to generate leads and nurture them through the sales process. Ok great, you have smart people and a lot of "potential buyers" read your stuff and agree with it. So what?

While these approaches can be practical, they often lack the interactive and personalized experience that modern technology buyers crave. Potential customers may consume the content but still have questions or uncertainties that generic materials cannot address. This is where virtual demos come into play. And no a demo is not a YouTube video and it is not a blinky light PowerPoint. A demo is your software doing what it does in a live environment, that's a demo.

The Virtual Demo Advantage

Virtual demos offer a dynamic and engaging way to showcase a product or service. By providing an interactive experience, potential customers can see firsthand how the product works and how it can meet their specific needs. This hands-on approach captures attention and builds trust and confidence in the product. In other words, it let's your prospect know that your sh*t works and that they can get value from using it.

Statistics and Data Supporting Virtual Demos

1. Higher Engagement Rates: Studies have shown that virtual demos have significantly higher engagement rates than traditional content. According to a report by Demand Gen, 82% of B2B buyers found that interactive content, like virtual demos, was more engaging than static content (Demand Gen, 2023).
2. Increased Conversion Rates: Virtual demos have been linked to higher conversion rates. A research study revealed that companies using virtual demos saw a 30% increase in conversion rates compared to those relying solely on traditional content (Aberdeen Group, 2022).
3. Shorter Sales Cycles: Virtual demos help shorten the sales cycle by providing a clear understanding of the product. Data indicates that businesses utilizing virtual demos experienced a 20% reduction in the average sales cycle length (Forrester, 2021).
4. Improved Lead Quality: Virtual demos tend to attract higher-quality leads. According to a study by HubSpot, leads who participated in virtual demos were 50% more likely to be qualified as sales-ready compared to those who engaged only with traditional content (HubSpot, 2023).

Now you might be saying ok all of that sounds good, but what else can you tell me to persuade me that this makes sense? Show me some validation dude. Ok well let's look at the other bits of data that we need to know here.

First, let us discuss the funnel and sales numbers. We created a monthly view of funnel dynamics and the resources needed to drive funnel performance.

Our customers at Demo-Force have observed a 20% increase in the upper funnel volume when we integrated Demo-Force demos into their sales process. This was due to the ease with which links to the virtual demos could be scaled across channels and prospect journeys, effectively meeting customer demand. However, it is not just about volume; it is about value. This increase in volume, combined with better conversion rates, led to a 33% increase in mid-funnel volumes and a 68% increase in bottom-of-funnel performance. Ultimately, this led to a doubling of sales for the month. Read that again, DOUBLING of sales!

Nevertheless, the benefits of Demo-Force continue beyond improved performance. We all strive to do more with less in a challenging economic climate. Some of our customers have noted that they achieved a significant 33% reduction in marketing, a 32% reduction in sales, and a remarkable 66% reduction in sales engineering resources. This is not just about numbers but about the efficiency and cost-effectiveness that Demo-Force brings to your business. It is an intelligent investment that will pay off.

The virtual demos act as high-end content, substituting the need for marketing to work like hell and building content that describes value. This is not just about giving people what they want; it is about understanding and delivering on their needs. With Demo-Force, you provide a solution that aligns perfectly with customer preferences, a powerful way to build trust and loyalty.

Have a look at what an optimized funnel looks like when virtual demo's are made part of the process.

The 32% reduction in sales occurs as sales spend fewer hours (40% fewer hours) at the top-of-the-funnel hunting in the dark as the virtual demo is now doing work and spending 8% more time at the bottom-of-the-funnel…a far better and more productive use of hours.

Perhaps the most significant benefit is the 66% reduction in SE hours – especially as SEs are finite, valuable resources. However, this reduction is not a threat to their role. It is driven mainly by moving SE hours from the top-of-the-funnel, where, frankly, they are just providing a tour guide to prospects, to the bottom-of-funnel, where they can address the prospects pressing questions and help get the sale over the line. This shift in focus allows them to use their expertise more effectively, enhancing the overall sales process.

This is powerful stuff. However, again, it makes sense. Building and deploying vastly better content and experience that aligns with the customer's overwhelming preferences takes fewer resources. Still, these are crazy-good numbers if you are a resource-constrained CMO trying to make provably more impact, a sales leader seeking to accelerate the pace and performance of sales, the head of product, or the sales engineers working like hell to ensure that your high-end, more expensive resources are used the best way possible…or, at the end of the day you are the CFO or head of FP&A trying to find efficient ways to drive revenue while expanding margins.

Powerful stuff. Why not let us help you too?

www.demo-force.com