Each year, B2B sales teams waste countless hours pursuing unwinnable leads while, at the same time, failing to reach out to qualified buyers. Such an approach is not the most effective use of employee time and company resources. Using the MEDDIC sales methodology for customer acquisition can dramatically improve your sales figures.
What is the MEDDIC Sales Methodology?
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! The letters in MEDDIC stand for the six steps of the customer qualification and acquisition process:
- Economic Buyer
- Decision criteria
- Decision process
- Identity pain
When you apply each of these steps 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, which will allow your team to sell to them more effectively.
Why use the MEDDIC sales methodology?
The MEDDIC sales qualification framework helps salespeople to identify and qualify their prospects. Therefore by equipping yourself with more qualified customers, your business will start to see higher close rates and, ultimately, much more success.
Furthermore, by using the MEDDIC sales qualification, your entire sales team will benefit from planning and prioritising valuable resources for customers who are more likely to close.
Lastly, the MEDDIC sales qualification serves as a checklist of information to obtain; therefore, the sales qualification approach can be mastered by even the most amateur salespeople.
How to apply the MEDDIC approach
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 which they want to achieve. So, 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 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.
However, 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 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 decision process try asking:
- “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?”
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.
Variations of MEDDIC: 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, 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 is 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 an approved vendor. Are there any NDA’s you have to sign? Just get your paperwork in order.
- Identified Panic: What are your prospects 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.
Summary of 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.