Are you having difficulties closing sales? You aren’t alone. 36 percent of salespeople say closing is the hardest part of their job, so maybe it’s time to shake up your tactics.
If you are considering a shake-up with your staff or marketing, consider trying the MEDDIC Sales Process, also known as the MEDDIC Sales Qualification Process.
This process does fine-tune your search for prospective customers so you can locate those more likely to buy the product you are selling. Keep reading if you want to learn more.
What Is the History of the MEDDIC Sales Process?
Jack Napoli and Dick Dunkel created the MEDDIC Sales Process during the 1990s. This process focuses almost entirely on customer qualification with a firm belief in quality over quantity.
This is one of the reasons that the MEDDIC process has also been referred to as a “qualification” process. This process has proven successful over the years, as Napoli and Dunkel reported their sales increased from $300 million to $1 billion in four years. But how does this methodology work, and will it work for you?
Advocates of the MEDDIC Sales Process will tell you the same thing: pitching to better-qualified customers results in a quicker sale as you approach those who often want to buy your product.
You may already have a sales cadence established and feel that you have created a comprehensive ideal customer persona that is being tackled by your team. Still, if you had the option to hone in on this customer and help them more quickly enter the sales funnel, why wouldn’t you?
Let’s learn more about the MEDDIC Sales Process.
What Is MEDDIC?
MEDDIC stands for Metrics, Economic Buyer, Decision Criteria, Decision Process, Identify Pain, and Champion. Each of these steps will be explored more thoroughly below.
You should ask yourself why the customer would want to buy your product. When considering this, rather than vague promises, think about what the customer gains from your solution. This information should be quantifiable. These metrics will help you better pitch to your prospects using their economic gains based on the implementation of your product.
These shouldn’t be just random facts, however. Find what metrics your prospects value the most — this will come up later when we discuss identifying pain within your potential customers.
Look for Key Performance Indicators (KPI) and Return on Investment (ROI). If you have the numbers that appeal to a particular buyer, you are one step closer to making the sale.
As mentioned previously, you may have created a buyer persona before. Still, the MEDDIC Sales Process asks that you narrow this down by finding the exact person who makes the final financial decisions and catering your pitch directly to them.
Your sales reps will likely have contacts within the industry that you are selling to, but often it is not high enough to convince the company to invest in your product.
It should be a part of their responsibility to go beyond this contact and find who is responsible for making and authorizing all purchasing decisions, as this person will have the final say in whether or not they invest with you. This person is known as the “Economic Buyer.”
When you have found out who the economic buyer is, it’s time to look for how they make their purchasing decisions, and in the MEDDIC process, this step is called finding the “Decision Criteria.”
If you know how they are making their buying decision, you can better prepare your pitch to hit each buying point. Don’t be afraid to ask your prospect for these criteria. They may have guidelines they are willing to share with you.
If you are curious, consider that companies are often looking for:
- Patient Outcomes
- Ease of Use
- Potential ROI
If the company does not list these criteria, ask them to write them down. You are likely one of many companies vying for their attention and capital.
When utilized correctly, this step will help you prove that you and your product can meet 100% of their criteria, making it easier for them to say yes to the sale.
Once you’ve shaken hands, specific logistical steps must be internally followed before you can officially close the deal. The “Decision Process” outlines the steps to purchase and implement your product into their system.
If you know these steps, you will be less likely to lose out on the sale because of stagnation.
Some companies are not open about their internal processes, so it’s best to train your sales rep on how to coax the information from them.
Not every company has the same decision process, and therefore you should still inquire each time you make a sale about their internal decision process so you can stay on top of the progress from the start to when you finish closing your deal.
Some companies will have more steps than others, and you should prepare for these customers.
You created your product to offer a solution to a challenge being faced by your customer. And for your customer to pursue your solution, they need to view it as a need. You must understand the pain point and how your product will help alleviate that pain.
Consider that your customer is looking to:
- Lower costs
- Speed up production or care
- Increase revenue
You must be specific to curate a successful relationship between the customer and yourself. Knowing your customer's exact problem will help you better align your wants and goals with theirs. You can make a far more persuasive pitch this way.
You and your sales team can only do so much. You will likely not be on-site nearly as much as you want or need, but you might as well be there if you find an internal connection. The final step in the MEDDIC Sales Process is to find a “Champion.” This person will advocate for and sell your product even when you are not around.
You want this person to have power, respect, and influence. They may not be a key decision maker or upper management, but you do want them to be trusted by the higher-ups as this will keep your product at the forefront of their minds and help you secure a meeting later when you approach them.
What Are the Advantages of MEDDIC?
One of the most recognized benefits of the MEDDIC Sales Process is that it relies solely on gathering information and using that knowledge to gain more traction, which is easy to implement even when individuals don’t consider themselves “salesy.”
The MEDDIC Sales Process should help you better determine if your prospect is a good fit based on their specific wants, needs, and pains. By focusing on more qualified prospects, your sales team will likely benefit from a higher closing rate.
Your sales team will be better able to prioritize prospective customers based on the metrics listed above. And you are better able to create a comprehensive buyer's journey.
What Are the Disadvantages of MEDDIC?
Though there aren’t many, there are some disadvantages to the MEDDIC Sales Process that you may need to consider before fully integrating this technique.
Your team will be required to learn more about the customers in a quicker amount of time.
Because MEDDIC is based almost entirely on knowledge, you will want your team to take detailed notes after every interaction and have those notes easily accessible. You must train your team to ask the right questions to get the correct answers.
Not every customer will be forthcoming with their internal information, such as the economic buyer, the decision criteria, and the decision process. Your team will also be responsible for seeking this information out and doing it tactfully.
If your company does not have a solid or transparent buyer persona, this system will not work for you, as the main component of this system is to have a customer-centric focus.
The Bottom Line
When attempting to implement a new sales technique or process, you will need to invest time and energy into it the same way you want your potential customers to invest in you and your product.
If you are looking for a more quantifiable and knowledgeable way to approach prospects, use the MEDDIC Sales Process to find prospects ready to buy. By using this process, many companies can expect a 30 percent or more growth rate in saturated markets.