Sales teams constantly search for the most effective way to close deals and increase revenue. But with so many leads to pursue, it can take time to prioritise which ones are worth pursuing. Thankfully, the MEDDIC sales methodology has emerged as a popular solution to this problem. By focusing on critical criteria, B2B sales teams can improve their chances of success by targeting the most qualified buyers.
In this guide, we’ll dive into the details of MEDDIC and explore how you can use it to close more deals and streamline your sales process.
Let’s jump right in:
What is the MEDDIC Sales Methodology?
MEDDIC is a popular sales methodology that helps sales professionals of all levels and industries qualify and prioritise their leads. That way, salespeople only focus on the opportunities with the greatest chance of success.
The letters in the MEDDIC acronym stand for the six steps of the customer qualification and acquisition process:
But where did it come from? Dick Dunkel and Jack Napoli of the PTC corporation developed the MEDDIC sales qualification methodology more than 20 years ago, and it still works today!
When you apply each of these steps and criteria to a potential customer, you have a consistent way to determine whether a likely lead is the right customer for your company.
At the same time, you will have gained valuable knowledge about the company, allowing your team to sell to them more effectively.
Why Use a Sales Qualification Framework (MEDDIC)?
A sales qualification framework like MEDDIC is crucial for any salesperson who wants to get ahead, especially in unpredictable economic times.
The MEDDIC sales methodology provides a structured approach to qualifying leads and assessing opportunities, allowing you to prioritise efforts and focus on the deals most likely to close.
Moreover, anyone can pick it up and apply it to their sales process. That’s because the MEDDIC sales qualification serves as a checklist of information to obtain, which is why even the most amateur salespeople can master the sales qualification approach.
Overall, the MEDDIC sales qualification framework helps salespeople to identify and qualify their prospects. By equipping yourself with more qualified customers, your business will see higher close rates and, ultimately, more success.
What’s the Difference Between MEDDIC & BANT Sales Qualifying Methodologies?
The MEDDIC and BANT sales qualifying methodologies are two popular frameworks sales teams use to identify and prioritise sales opportunities.
Overall, the main difference between MEDDIC and BANT is their level of complexity and scope.
MEDDIC is a more comprehensive framework that covers all aspects of the sales process and requires a deep understanding of the customer’s business needs and decision-making process.
BANT, on the other hand, is a more straightforward approach that can be quickly applied to assess whether a prospect is a good fit for the sales team’s offerings.
How to Use the MEDDIC Sales Methodology
To use the MEDDIC sales methodology effectively, discover the six key framework elements detailed below (Metrics, Economic Buyer, Decision Criteria, Decision Process, Identify Pain, and Champion.)
Then, apply these elements to your sales opportunities to assess their potential and prioritise your efforts.
Here’s how to do it:
Asking what your potential customers want is the only way to determine whether your company can fill their needs.
You are only wasting your time pushing a solution that doesn’t even address the company’s exact requirements.
The key here is the word exact. It is critical to have your potential customer define a measurable objective that they want to achieve.
For example, if prospects say they want to increase productivity, probe further until you get into specifics, such as the desire to reduce time spent on follow-up calls by 20 per cent. This gives you the quantifiable information you can use to sell your solution.
Here are some examples of statements that “show, don’t tell” information points to prospects:
- “Typically, our customers save five hours per week on prospecting once they utilise our product…”
- “We recently had a similiar customer of your size that saw a return on investment within just two months of utilising our service…”
Ultimately, your goal is to present concise outcomes rather than vague, uninspiring promises.
2. Economic Buyer
Who is going to ultimately make the decision when it comes to purchasing your solution? Your sales team member is often not talking to the ultimate decision-maker or the economic buyer.
When using the MEDDIC sales qualification approach, it’s encouraged to, whenever possible, push to speak directly to the decision-maker who has the authority to approve purchases. If it’s in no way possible, attempt to find out in-depth information about the economic buyer from your company contact.
Here are some examples of questions that find out in-depth information about the economic buyer:
- “How does your business typically initiate buying decisions?”
- “Is there any other key stakeholders involved in the buying process?”
- “What’s your specific position in the decision-making process?”
3. Decision Criteria
Remember that you are not the only company pitching your solution to the prospect. The economic buyer has alternative options.
By determining the factors, a prospect uses when making a buying decision; you will decide whether your company can meet these buying criteria.
This decision will also enable your team to create a sales presentation that addresses these criteria.
Factors for choosing one product over another may include the pricing features, name recognition, onboarding assistance, industry reputation, the available support level, and the ease of integration with existing infrastructure.
- “What criteria will you be using to make a decision?”
- “What’s the most important factor to you when deciding who you’ll go with?”
4. Decision Process
Ultimately, insights into a prospect’s decision-making process help to prevent losing out on a possible deal. Every company has a different timeline for making purchases. Therefore, when your team knows the prospect’s approval process, it can ensure that contracts and agreements are in place when they are needed.
At this stage, your lead is at least evaluating your product for purchase. Therefore, there are some things you can do to speed up their decision-making process, such as:
Providing a sales demonstration or a free trial of your product or service. As well as following up with them to confirm the typical timeline for making decisions.
To find out the prospects’ decision process try asking questions like:
- “How are these decisions typically made at your company?”
5. Identify Pain
Companies, like people, rarely make changes for the sake of change alone. Most businesses are looking to buy their way out of an existing problem.
If you can identify these problems or pain points, you will determine if your solution can help them overcome these issues.
To make the most effective sales presentation, discover the details surrounding these issues to allow your sales team to showcase how your product or service can help deal with these specific struggles.
To identify pain, try asking:
- “What prompted you to start looking for this solution?”
- What challenges are you currently facing in your business?
- What are your top priorities or goals for the upcoming quarter or year?
- Are there any processes that are currently causing delays or inefficiencies?
- How are you currently addressing [specific problem area]?
- What impact is [specific issue] having on your business?
Find an insider at your potential customer’s company who will champion you.
This ‘champion’ of your solution doesn’t need to be the economic buyer or even have a supervisory role at the company. But it should be a person whose opinion matters.
One of the best ways to cultivate a champion for your solution is to determine who would benefit the most from your solution in the target company.
Once you locate a champion, the person will actively work towards the company’s adoption of your product.
Understanding MEDDIC Variations: MEDDICC, MEDDPIC and MEDDPICC
MEDDICC, MEDDPIC and MEDDPICC are all variations of MEDDIC. Typically MEDDPICC is suitable for bigger deals with a long buying process or an extensive and complicated cycle. You can read into depth about the variations here: Sales Qualifying Methodologies – Comparing BANT MEDDIC and MEDDPICC
So, what does it all stand for? Here’s the explanation of the variations of MEDDIC:
- Metrics: Do you understand the impact that this will have on their business and the identified pain? Can you articulate what it is?
- Economic Buyer: Have we had a conversation with the economic buyer?
- Decision-Making Process: Do we understand the decision-making process?
- Decision Criteria: Do we know what are the criteria with which they will make that decision? Do we fit that criterion? Even better, have we maybe helped that prospect frame the criteria?
- Process: The fun stuff or The Paperwork Process. You have to be an approved vendor. Are there any NDAs you have to sign? Just get your paperwork in order.
- Identified Panic: What are your prospect’s issues? What motivates them?
- Competitors: what’s the competitive landscape? Who else are you up against?
- Champion: Your champion is someone who can answer questions for you, such as: what’s going on internally? What do people enjoy about your solution? and so forth.
How to Choose The Right Approach MEDDIC Vs MEDPICC?
If you’re dealing with a complex sale that involves multiple stakeholders and a long sales cycle, then MEDDPICC may be more appropriate.
On the other hand, if you’re selling to a smaller organisation with a more straightforward sales cycle, MEDDIC may suffice.
Luckily, there are some questions you can ask yourself to reflect on your current process. For instance:
- How complicated is the paperwork process? Does it often get lost in approval chains?
- What is the complexity of the sale? If the sale is complex and involves multiple stakeholders, MEDDPICC may be the better choice as it provides a more comprehensive framework to navigate the buying process.
- What is the size of the organisation? If the organisation is small and has a simpler sales process, MEDDIC may be sufficient.
- How long is the sales cycle? If the sales cycle is long, MEDDPICC may be better suited as it provides a more detailed process to manage each cycle stage.
- What are the decision-making criteria? If the decision-making criteria are complex and involve multiple factors, MEDDPICC may be more appropriate as it provides a more comprehensive framework to assess these criteria.
- What are the consequences of not taking action? If the consequences of not taking action are severe, MEDDPICC may be more effective as it includes a step to implicate the consequences of not taking action.
- What are the bureaucratic steps necessary to close the deal? If you need to obtain approvals or navigate internal processes, MEDDPICC may be more effective as it includes a step to understand the paper process.
Ultimately, by asking yourself these questions, you can determine which approach best suits your sales situation and choose the one that will help you navigate the buying process more effectively.
MEDDIC Sales Methodology FAQ
Final Word: Our Take on the MEDDIC Sales Methodology
Here at Soco/ Sales Training, we find the MEDDIC sales qualification approach for acquiring customers to be very effective in complex sales with a long sales cycle and multiple stakeholders. Much of the MEDDIC concepts align perfectly with our own approach to complex sales.
- Sales Qualifying Methodologies – Comparing BANT MEDDIC and MEDDPICC
- Qualify your Prospects and Sales Leads
- Learn To Sell Like A Pro: 19 Best FREE Online Sales Training Videos
When leads are qualified properly, less time is wasted on people not likely to buy from you; allowing you to hone in on the ones who are.
SOCO’s lead qualification training incorporates MEDDIC and MEDDPICC sales qualifying methodologies, depending on the deal size and buying process of our clients.
Contact us to discover how to train your team to develop the skills needed to assess and rate their leads, allowing them to determine the best way to effectively handle each lead.