I recently stumbled across this blog from Salesforce.com about how to give a great online product demo.   The only thing I would add to their synopsis is the importance of keeping the prospect engaged in the demo.  We’ve all been on a demo where the prospect is pretty quiet and not very engaged in the conversation.

Here’s a short list of questions you can introduce into the demo process to make sure the prospective customer is engaged in your demo:

1. What is your initial impression thus far?
2. Can you tell me how you’re currently handling (something related to what you’re showing)?
3. Let’s pause for a moment.  I want to ask you for your opinion on what you’ve seen so far.
4. Does that make sense?
5. Last time we talked, you mentioned (an issue or situation).  Do you think this (specific feature) would help with that?

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