The best demo–a Great Demo!--is a conversations driven by mutual curiosity. Your goal is to learn more about a prospect’s current situation and needs while they want to learn more about your product and services and how you can help them.
“Before I demo to you, why don’t you demo to me what you are currently using?”
If a customer has an existing software system, this can be a wonderful way to understand the strengths, weaknesses and gaps in their current system–particularly from the customer’s point of view. They’ll tell you what they like, what they hate, what’s missing and a range of other delightful Discovery information.
Additionally, this also inverts the traditional process of the vendor presenting to the customer, to one of the customer presenting to the vendor–an experience often remembered by the customer as remarkable and interestingly different!