I know your time is precious, and so I wouldn’t like to waste it.
But before we get to the popular “MEDDIC sales methodology” lets mull over a hypothetical situation (Don’t worry, I am not going off track).
You enter a store, and a lovely pair of shoes captures your attention. But unfortunately, your size isn’t available.
So, you decide to go for a size smaller thinking that you’ll manage.However, after a few days, the blisters and discomfort remind you of the mistake you’ve made by investing in a pair of shoes that don’t fit.
No matter how hard you try, sometimes you can’t force things that don’t fit.
The case is similar in sales; you can’t forcefully sell a product that is not a good fit for the prospect. If you still do, it will clog your sales pipeline as they don’t convert.
79% of Marketing Leads Never Convert into Sales
This is because most of them are bad leads. No matter how hard you try, you’ll just end up wasting your time and effort.
65% of customers are lost because of indifference, not because of mistakes.
So, it is essential to qualify the leads to get fruitful results.
Well, how will you do that?
MEDDIC sales methodology can help you with it.
It is one of the most popular sales methodologies adapted by several sales professionals for lead qualification.
What is MEDDIC sales methodology?
MEDDIC is an acronym that stands for Metric, Economic Buyer, Decision Criteria, Decision Process, Identify Pain, and Champion.
This effective sales methodology was introduced by Dick Dunkel and Jack Napoli of the PTC corporation.
MEDDIC sales methodology lays strong emphasis on the potential prospect, with the aim being to ensure a profitable return on the sales efforts.
This qualification framework saves you from chasing the bad leads. It helps you in understanding and qualifying prospects.
You’ll know whether you are selling to the right people in the right way, increasing the possibilities of closing the deals.
Breakdown of the MEDDIC acronym
You need to go through a six-part discovery process while using the MEDDIC sales methodology. Let’s dig deeper into each piece of the MEDDIC acronym.
- Economic Buyer
- Decision Criteria
- Decision Process
- Identify Pain
Some businesses are looking out for a solution that would help them in boosting efficiency, while there are a few others who are just interested in increasing profit margins.
So, you need to have clarity about the quantifiable results that the prospects are expecting from your solution.
It can be anything from cost saving to risk avoidance or boosting revenue.
Finding out such metrics can help in defining the quantifiable benefits of your solution.
Your potential buyer’s goal is to increase their revenue by 10% in the next month. So, you can explain to them how your solution will help in achieving their target.
Identifying the right metrics helps in painting a clear picture of what you can offer.
All you need to do here is measure the prospect’s current and future state (after product implementation), then quantify the benefits.
2. Economic Buyer
In a company, there are many people playing different roles. Your challenge here is to find the one who has the authority to approve the purchase.
An economic buyer is the one who has control over the funds and the power to take the final call for the deal.
So just connecting with someone from your target company wouldn’t help in closing the deal. The MEDDIC sales approach encourages you to invest your time and effort in discovering that one person who can accept or reject your offer.
If you manage to convince that one person then your chances of winning the deal are higher.
Wondering how would you find that decision-maker? Well here are a few questions that can help you in doing so:
- Who is responsible for making the purchase decision in your organization?
- Are you the sole owner of this project?
- Who in your organization approves the fund for a purchase?
- What’s your role in the decision-making process?
- Who takes the final decision when it comes to choosing a vendor, supplier or solution?
3. Decision Criteria
You deliver a compelling pitch highlighting the strengths of your product. The prospect gets impressed and signs the contract.
I wish it was that easy.
Unfortunately, there are many factors that a prospect ponders over while making a buying decision.
MEDDIC sales methodology recognizes this and emphasizes on gaining an in-depth understanding of a company’s technical, legal, and commercial buying decision criteria.
They might want software that integrates with their current tech stack or might have set a fixed budget for buying a solution and aren’t willing to negotiate on it.
Discovering the factors a prospect considers while buying a new product will help you in determining whether you can meet them or not.
If not, then there is no point wasting yours and the prospect’s precious time. Instead, you can utilize your precious hours on a more lucrative deal that might convert.
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4. Decision process
Doesn’t it seem like a twin brother of Decision Criteria?
Well, the above point focuses on the criteria a prospect considers while making a buying decision.
While this phase of the MEDDIC sales methodology tells you how the buying decision was made.
It is basically a route taken by the organization to reach a purchasing decision. So, you need to find the process that a company follows to purchase a product.
This will help you in keeping a track of how far they are on the way to reaching a deal closure.
Here are a few questions that you can ask the prospect for understanding their decision process.
- Which are the steps usually taken to reach a buying decision?
- On which timeline is it based?
- Can you describe how the approval process looks like and who are involved in it?
5. Identify the pain
Most of the companies don’t try something new until its necessary. Only when they face some major problem, they will look for a solution.
70% of purchase decisions are made to solve problems
Such businesses look forward to dealing with companies who understand their pain and can help them in overcoming the issues.
So, if you want to convert your potential prospects into paying customers, you need to identify these pain points and offer a powerful solution.
For that, it is necessary to collect every information surrounding their pain.
You need to be as specific as possible while discovering the prospect’s pain.
Saying that the company is losing a lot of money is a very vague statement. Find out how much the company is losing and what’s the cause.
Like the company is losing around $30,000 due to slow production. Knowing their weak areas will put you in a strong position.
You’ll be able to explain why they should think about your product and highlight the potential risks of not addressing the problem.
Wouldn’t you show interest in a solution if it makes your work easier and helps in performing better?
Well, I surely would. The simpler our work gets the better results we can deliver to the company.
This phase of the MEDDIC sales methodology focuses on finding that Champion – an influential person who will benefit if the pain is mitigated.
Such Champions often act as a helping hand in getting the product implemented.
If you manage to gain their trust, they will support you as they want to get the issue resolved as soon as possible.
So, you need to find that ideal candidate who is affected the most by the pain and who can influence a buying decision.
Having an insider of the company at your side increases the chances of closing a deal.
MEDDIC methodology is surely one of the most effective sales methodologies that can help you in achieving your sales targets.
It gives you the information you need to target the right prospects. With the help of MEDDIC, you can fill your pipeline with quality leads.
Once you have the right leads you can use the best CRM software to manage and convert them quickly.
Salesmate is one such cutting-edge technology trusted by the sales team of different sizes for fulfilling their sales goals. This feature-rich system helps in faster closure with its advanced capabilities.
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