What Does MEDDIC Stand For?
While there are many effective sales methodologies such as SPIN Selling, NEAT Selling, Challenger Sales and SNAP Selling, just to name a few, MEDDIC Selling understands something about sales that we must all remind ourselves of: there is a LOT that goes into a successful sale. MEDDIC is an acronym that stands for Metrics, Economic Buyer, Decision Criteria, Decision Process, Identify Pain, and Champion. Each of these elements assists sales reps in better customer qualification which can help determine how much effort it will take to bring a customer aboard, and whether that effort is worth it.
The development of this sales qualification framework is attributed to Jack Napoli and Dick Dunkell who first used MEDDIC to triple sales at PTC in just 4 years. By meticulously analyzing the different factors that affect whether a sale is successful, the 2 founders have created a system which helps sales reps understand what outcomes are out of their control, and which ones they can work to manipulate in their favor.
For many companies, especially small B2B companies just starting out, their sales success rate may be more important than the sheer number of successful sales they can produce. While money is tight, companies must make tough decisions about where to spend their capital. The MEDDIC Sales process provides a framework businesses and sales representatives can use to help decide which customers to pursue.
The MEDDIC sales qualification methodology helps sales teams consider the complex process that companies go through when deciding whether to purchase a product or solution. Each key component of this method helps businesses practice proper lead qualification which can result in a higher closing rate. Each element is crucial in this step by step process.
Metrics are important to establish so that you can personalize your pitch to the needs of your potential customers. Specific metrics help you decide how to attack the sale. If a prospect wants to decrease their time to market by a certain amount of time, you can explain how your solution will accomplish that specific goal.
By understanding what the prospect wants from your business, you can decide whether your company can provide the service they desire. If their quantifiable goals line up with what your product can offer, you can use the specific metrics you have discovered to justify their investment in your product from an economic point of view.
While your contact will certainly have influence over the decision whether to purchase your product, it is crucial that you find out who the influential persons over the prospective company’s budget are.
As we’ve talked about before, money talks. While it may be difficult to understand whether a prospect is truly interested in your solution, as soon as cost is involved, things get real. The economic decision-makers ultimately pull the strings that decide whether you will close a sale.
Once you understand who the economic buyer is, and what he or she desires, you can tailor your pitch to them. By speaking directly to this decision maker, you will have the best chance at convincing someone with the authority to make a decision to support the purchase of your product. By understanding whether a prospect is sincerely interested, you will waste less time and resources on pitches that will never pan out.
Your product is likely not the only solution to your prospects' problems. In order to convince them to choose you over your competitor, you must understand the decision criteria that they will use to evaluate whether the deal is viable. This element helps you decide what to focus on in your pitch, and provides another set of criteria to judge whether this prospect is going to work out.
Establishing clear criteria that your prospective client is using to make a decision is the best practice to make sure you can convince a company to agree to a sale by accomplishing everything they ask for.
Just as important as understanding the criteria that will need to be met in order to secure a sale is understanding the actual process that will allow your prospect to make that decision. Internal processes vary by company, but can significantly affect your ability to close a sale.
By learning about the decision process of your prospect, you can get ahead of any potential dead ends, and instead work to convince everyone involved that your solution is necessary.
Identifying the problems that a company is having is crucial in the fight to get them to adopt your product. Without a problem, there is no need for a solution. In a similar manner to how the SPIN Selling method helps representatives lead prospects to identify the pain points in their company, MEDDIC emphasizes gathering knowledge about specific problems your prospect is having. All of this information helps your team pitch more successfully to your contact. Identifying pain points is one of the most important elements when qualifying buyers.
An internal champion is one of the most important aspects to any successful sale. No matter how polished your sales pitch is to your contact, all that work is a waste if that contact can’t pitch your product to the economic buyer and decision makers who have the final say.
A well-respected champion is a must, and establishing a champion who will fight for you and your product is crucial. Leaving all your hard work to someone else is difficult, so it is important that you help arm your champion with the materials necessary to convince others to support your sale.
Boost Your Qualifying Opportunities with the MEDDIC Methodology:
It's worth noting that some sales professionals have adapted the original MEDDIC framework to MEDDPICC. In addition to the original Metrics, Economic buyer, Decision criteria, Decision process, Identify pain, and Champion, the MEDDPICC variation of MEDDIC adds Paper Process, and Competition.
Paper Process refers to the necessary understanding of the behind the scenes factors that could affect the closing of your sale. Items like prior contracts or other legal work can significantly delay closing deals, so they are important to analyze when qualifying potential buyers. Competition accounts for the idea that your company is most likely competing with others for the prospect’s business. This includes the consideration of factors like market price and market density. The additional qualifiers further differentiate buyers and help sales reps decide on a course of action.
Overall, the MEDDIC or MEDDPICC method offers a great framework to qualify potential buyers and ultimately close more sales. By focusing your energy and resources on the prospects most likely to actually purchase your solution, your business will be in a better position to be more efficient and more profitable.
Sales Odyssey: https://www.salesodyssey.com/blog/meddic-sales-process/