So far I've found that explaining what it can do in quite an understated way seems to be a good approach. It is about allowing people to decide for themselves what value they think it brings without feeling that they are disagreeing with you. I approach it in quite an inquisitive way, explaining I'm open to seeing what use it can be, rather than going gung-ho full-on about how incredible it is.
Last night I went out with a few workmates to an opera (of all things), and throughout the night I naturally made use of various different features, which they witnessed. I used the maps to navigate to the opera on foot without looking at my watch. I had pre-agreed to check in with my wife after the show to see if she needed me to come home, so I simply sent her a digital touch question mark, and she replied with a tick, implying it is ok for me to stay out. We both knew what it meant and it was far easier than texting. I then used city mapper to work out a way home and get us to the tube. Throughout the evening various step goals were completed which my watch informed me about.
The guys I was with were quietly impressed. We had interesting conversations about the nature of a watch and the weighting between fashion and functionality and how the delivered value can vary from person to person, and I think they found it a really interesting experience to see how a smartwatch could function in daily life.
To me that is the best demo you can give - in impartial demonstration of real-world functionality without overly promoting it or trying to create any specific impression one way or another.
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