Why use the MEDDIC method?
MEDDIC sales qualification methodology is a B2B framework created to help improve the opportunities in a sales process.
MEDDIC’s objective is to help you sell more by having a better control of the sales process. To do this, it does not ask you to question the organization of your sales team.
The method invites you to question what you know about your customers and prospects and to position them at the heart of the process.
Actually, MEDDIC is an advanced version of the SPIN selling technique.
The term is an acronym for six main elements that help you optimise the time you invest getting a customer in your sales pipeline.
Below are the questions to ask for each element:
- M for Metrics: What is the economic impact of your solution for your prospect?
- E for Economic Buyer: Who is the person who will make the final decision to buy?
- D for Decision Criteria: Which criteria will be important to influence the purchase (technical, economic)?
- D for Decision Process: How are the internal decisions of your prospect made to reach a deal? What are the steps of the approval process?
- I for Identify Pain: What are the problems encountered by your prospect and therefore his needs?
- C for Champion: Who will be the person who will be able to really hook on your product, the one who will be able to talk about it and promote it in his company?
This MEDDIC methodology tells you how your prospects fit in with your value proposition. The more qualified the prospect, the more likely you are to close the deal.
Origin of the MEDDIC system
We owe the MEDDIC sales process to two men: Jack Napoli and Dick Dunkel. They both worked at PTC corporation, a software company.
With MEDDIC, the PTC enterprise sales team recorded 40 quarters of continuous growth during the 90s!
What is special about the products sold by PTC? High-cost and above all disruptive tools, necessarily transforming organizations.
The MEDDIC system then proved to be a perfect tool for this type of complex sale, in particular thanks to the identification of a Champion. He/she would be the guarantor of the integration of the project internally at PTC’s customers.
Since then, MEDDIC has been considered particularly interesting for :
- sales lasting more than four months
- large budgets
- projects that involve different interlocutors
- products that are carriers of great change
- B2B sales
Benefits of the MEDDIC method
The MEDDIC technique has a great advantage for the teams: it allows them to give a structure with common language elements to the sales and marketing teams.
In long sales, which involve many interlocutors and many months of exchanges, one can very quickly lose track of the sale so your organization stands to benefit from this alignment.
By using the MEDDIC method and by answering each of the questions, you will have all the keys in hand to keep perfect control of your sales cycle.
Marketing teams will be able to create the right materials and content to convince all stakeholders.
Sales managers will be able to keep in touch with prescribers and buyers more easily for more effective sales.
In the end, this control guarantees you a higher close rate and therefore a better revenue !
How to apply the MEDDIC approach?
As we mentioned, MEDDIC consists of six main elements that will help your organisation to optimise your time in the sales process.
There are also two additional elements that we have not discussed yet, but which could be crucial for certain markets.
MEDDIC’s first line of thought is economic indicators that describe all the functionalities of your product.
To do this, you need to identify the economic benefits and gains of your solution for your prospect, and quantify and/or measure them.
This will be reflected in your speech with your prospect:
- “You’ll save X number of working hours thanks to our solution.”
- “Increase the number of your monthly visitors by X.”
- X more products sold after using our solution! »
Be interested in figures that are relevant to your customers. In a word, understand the ROI (return on investment) expected by your prospects.
From now on, you must identify who in your prospect’s company will give the validation to buy your solution.
Indeed, if you exchange with a person who does not have the right strategic position, you risk wasting time.
Don’t hesitate to use social networks such as Linkedin to write directly to the presumed decision-maker or buyer.
If the title of his or her position does not give you enough information about the person's decision-making power, do not hesitate to propose a telephone meeting and ask the person to invite people who will be involved in the project.
To qualify your leads, you also need to know what the decisive criteria(s) is for them.
Often, customers will meet several sales people before making a purchase, so what is the criteria(s) that will make the difference?
Make sure you investigate :
- Technical criteria: Do you know if your tool fits well into your prospect’s infrastructure? Is your tool easy to use with regard to your prospect’s current organization?
- Financial criteria: What is the annual budget your prospect has set aside for an additional investment? Can you provide a higher ROI than a solution already used by the company?
- Product criteria: Is your product better than another? How? Why?
- Advice criteria: How can you guide your prospect so that he feels better supported by your sales team rather than another?
Let’s now look at the decision-making process prior to purchase.
It’s about looking at who makes the decisions, what timeframes and processes are in place to decide:
- Are purchasing decisions made after a common reflection between different departments of the company? If so, which departments?
- How long will the decision take in each department?
- Who is involved during this decision-making process?
- Does the company have to fill in legal/technical documents? If so, can you help it in this process?
Make sure you list the organization’s problems and explain why and how you can help solve them.
Also, ask yourself about the consequences of inaction in the face of their problem. In this sense, you can feed your discussions with testimonials from companies that have remained inactive and are now paying the consequences.
Remember to be concrete with figures: consequences on turnover, brand image or even production delays caused.
Finally, make sure that the prospect knows your solutions and that he is convinced by your ability to help him/her.
The “Champion” is your ally. The person is a key character for your sale.
The champion has the ability to “evangelize” your product or service in the company. He or she can help you sell your product by selling to the right people within the organization.
Often, the prescriber is the individual most affected by the problem you are going to solve. This explains the person's strong involvement.
Note: he/she is not necessarily a decision-maker buyer, but that person is in any case respected in the field of expertise.
The prescriber believes in you to help him/her change his business or introduce a new tool. He or she is generally very transparent about the organization in the company and will potentially put you in contact with the right people.
Observe the champions subjects of interest but also the questions the person asks. You can provide him/her with documents to feed the curiosity or call a meeting to clarify a point.
What about the MEDDICC (double C) and MEDDPICC?
The two extended elements added to the MEDDIC methodology are: Paper process and Competition. These are already naturally implied in MEDDIC, but, could be interesting to add in certain businesses.
The Paper process (P) helps to avoid issues with procurement and legal departments, which can occur during or at the end of the sales cycle, depending on the paperwork process.
This process is very sensitive and can delay the sales, which could be crucial for the finalisation of the contract.
The importance of studying the paper process is to get the contract signed on time. You have to be aware of what contracts must be in place and when. Any unnecessary delays could make your prospect doubt on you, or, even suspend the sale.
This element could be of importance in more complex contracting markets, where legal issues are delicate.
You need a solid and structured legal process to secure the sales contract just-in-time.
MEDICC with a double “C” adds Competition to the framework.
By identifying your competitors in an early stage of your sales process, you could strengthen your position and convince your prospect that your product or service is the one.
Take for granted that your prospect is comparing your offer with your competitors.
Be aware of your competitors, what they are offering and at what price.
Having this knowledge will allow you to be smart in your sales strategy, your analysis and in your approach to your prospect.
This element can be useful to add to your framework in highly competitive markets.
So, are you able to fill out this analysis grid for each of your leads?
Do you want a reminder during your sales meetings? Check out our MEDDPICC checklist: