The Three-Act Structure of a Demo
The demo of a SaaS platform is an important step in the sales lifecycle. It allows you to demonstrate how your platform can make your prospects’ lives easier and build rapport. It is also an important step towards successfully making the sale and when looking at relevant conversion metrics; customization of the demo makes a great positive impact.
The problem is that if your organization is effective at booking demos, it is common to fall into the trap of walking through the same script over and over. So how do you set you team up for success so that they can perform customized demos even when their calendar is full of them?
The answer is to ditch the step-by-step scripts and employ more of a general structure to follow. As mentioned in my previous post ‘Using Narratives as a Sales Tool’, following documented story line structures can help leave a lasting impression.
More specifically, the Three-Act Structure of a story works well in the context of a demo. It not only helps build a framework for a customized demo, but it also helps each salesperson show off their unique personality while on a call.
Here is a breakdown of how each act in the traditional Three-Act Structure applies to a SaaS demo:
Act 1 — Setup & Exposition
The beginning of every story provides background information on all of the main characters. We get to learn about their likes/dislikes, what motivates them and most importantly, what keeps them up at night.
The first section of the demo should mirror this as you should aim to learn everything you can about the person you are speaking to. Following a line of questions to help you link back to the value of your product will be key to your success. If needed, you can use a predetermined list of questions but the best results will come from questions you think of in response to the prospect’s answers. Coming into the call with a genuine sense of curiosity does wonders.
It is important to note that Act 1 is not only for learning about your prospect but for them also to learn about you. At the end of Act 1, it is imperative to express your value proposition that fits with what they are looking for. You want your prospect to be excited going into Act 2.
Act 2 — Rising Action
The Rising Action refers to the part of the story where the protagonist begins to solve the conflict brought up by the turning point from Act 1. In the case of a SaaS demo, the turning point is brought on by the value prop.
The second part of the call is the demo itself. This is portion of the call that is the most scripted, as you are often following the motions of showing off your platform. Generally, sales reps should customize their language to capture what was learned in Act 1 and you can skip features that may not be applicable.
Although this part of the call is mostly show and tell, it is still essential to keep it interactive. Make a note to ask questions and check in every minute or so; think of this as having to check your mirrors during a driver’s license test.
Act 3 — Climax
The Climax of a story is the most intense and dramatic step, which results in the protagonist learning something new based on the resolution of the conflict.
After you have shown the prospect everything they were hoping to see in the platform and have answered all questions, it’s time to transition into the close.
The goal of this portion of the call is to guide the prospect into signing up for an account. This means that you’ll have to come into the call prepared operationally. More specifically, you have to understand exactly what steps you need to take in order to set them up but also how flexible you can be in regards to pricing.
Assuming pricing has not been brought up yet, you will want to explain it in its simplest terms. It is very common to have to work through objections and questions but if you keep linking your answers back to the value your platform can bring, it should be relatively easy to work through.
Keep the conversation moving and try to apply pressure. It is normal to need a bit of pressure when buying anything, no matter how cheap or expensive it is. This is true even when you know that your purchase will bring you a ton of value. It always helps to have a guide provide a gentle push into something that they know will help you in the long run.
Final Notes
Keep in mind, the three-act structure of a call is great for transactional SaaS sales. For enterprise sales, you will want to employ a call structure that is more fitting for a complex sale, such as the 5 Step Challenger Method. It is also common that strategies described above would be spread out across multiple call in the enterprise sale.
Lastly, although the call is centered around the demo, Act 1 and 3 are by far the most important portions of the call as indicators of success. The prodding and value proposition of Act 1 provide the basis for Act 2 to stick, and Act 2 alone will never lead to generated revenue without a well-executed Act 3. If you are an expert at running the Act 1 and 3 of your calls respectively, the importance of the demo portion will pale in comparison.
