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MEDDIC is a renowned B2B that’s been instrumental in guiding sales professionals since the 1990s. It helps sales reps ask the important questions at the right time to gather invaluable insights and create true connections.
It also provides a framework for sales reps to handle customer objections. 60% of customers will say no four times before saying yes, so mastering the art of objection handling isn’t just a nice to have; it’s a necessity to succeed.
MEDDIC is designed to assist in converting prospects–regardless of their position in the –into loyal and paying customers. In this blog post, we’ll explore the six essential steps of the MEDDIC framework, why it’s an important methodology for your sales team to understand, and how to implement it.
What is the MEDDIC sales process?
The sales process is a B2B sales qualification methodology developed in the 1990s. It provides a framework to qualify better, develop, and close leads. Introduced by the PTC software company, MEDDIC is credited with fueling the company’s impressive growth from $300 million to $1 billion!
Since then, thousands of startups and B2B businesses have used the MEDDIC framework to build a healthy pipeline and accurate forecasts.
What does MEDDIC stand for?
MEDDIC is an acronym for the six steps in this sales qualification process:
M — Metrics: Start by understanding the prospect’s key performance indicators and metrics. These are the quantifiable measures that define their success.
E — Economic Buyer: Identify the person within the prospect’s organization who holds the financial authority and makes the final purchasing decisions.
D — Decision Criteria: Pinpoint the specific criteria and requirements the prospect considers when evaluating potential solutions.
D — Decision Process: Understand the prospect’s internal decision-making process, including the stages, stakeholders involved, and the timeline for reaching a decision.
I — Identify Pain: Recognize the challenges, issues, and pain points the prospect faces. Addressing these concerns can significantly influence their decision-making process.
C — Champion: Cultivate relationships with internal advocates or champions within the prospect’s organization. These individuals can champion your solution, making it easier to navigate complex sales processes.
We’ll expand on these further down the line. First, let’s look at how MEDDIC came into existence.
MEDDIC history
The can be traced back to Parametric Technology Corporation (PTC), a software company founded in the mid-1980s. Executives at developed the MEDDIC methodology to provide a more structured approach to sales qualification.
MEDDIC gained recognition as an effective sales qualification framework and started getting adopted by various sales organizations across different industries. Its systematic approach to understanding the buyer's perspective, identifying key decision-makers, and addressing specific pain points really resonated with sales professionals.
As the internet and digital technologies transform the sales landscape, MEDDIC continues to evolve. The methodology's adaptability and effectiveness in complex sales environments further solidified its reputation as a valuable tool for sales professionals.
Today, the MEDDIC sales methodology remains popular and widely used, helping sales teams across the globe to qualify leads effectively, prioritize opportunities, and improve win rates. It also evolved into other sales methodologies, MEDDPIC and MEDDIPICC (more on these later)!
The MEDDIC sales methodology
Metrics
Metrics are the quantifiable, measurable results that businesses and sales professionals use to gauge their performance and success. Metrics aren’t just random numbers–they serve as vital indicators that provide insights into various aspects of the sales process.
Sales teams use metrics to track and assess the effectiveness of their strategies and to make informed decisions for future actions. These measurable results encompass a range of data points, such as revenue figures, sales growth, customer acquisition rates, and more.
Metrics can be divided into two types: below the line and above the line.
Below the line: Metrics related to items like cost savings or efficiency.
Above the line: Metrics that include revenue, profits, time to market, and customer satisfaction.
Quick tip: your metrics will interest the prospect only if they’re aligned with the prospect’s goals. So start by asking a few !
MEDDIC Questions to Ask
- What are your current business goals?
- What efficiency or business-related metrics matter to you?
- How would success be measured by your business?
- In what timeframe are you looking to see measurable results or improvements?
- Are there any industry benchmarks or standards you aim to meet or surpass?
Economic Buyer
An economic buyer is a decision-maker: a person in the organization who has the authority to spend and drive the project.
Usually, it’s the person who handles the economic profit or loss of the project where your solution will be implemented. The economic buyer considers the big picture and has a clear view of the business benefits–which is why the decision to buy your solution will be made by them.
It’s important to research and be prepared to meet an economic buyer, since they could be your key to success. Do some checks about their decision-making process to be better prepared for the meeting. Think about the value proposition that your product brings to this specific person.
A successful meeting with the economic buyer would mean a greater chance of closing the deal–and the likelihood of closing can drop if a meeting with the economic buyer isn’t on the books.
MEDDIC Questions to Ask
- What do you need to make this project successful?
- Are you sponsoring this project?
- Will someone else be involved in the final decision-making, formally or informally?
- Can you share past instances where you’ve supported similar projects or initiatives within the organization?
- How does this project align with the organization’s long-term strategic goals?
Decision Criteria
In this MEDDIC step, we’re qualifying prospects based on the business’s decision criteria. A business has formal or informal decision-making criteria, which can be further divided into technical, legal, or business decision criteria.
Technical Decision Criteria: This looks at the criteria related to the technical extendibility and the current infrastructure of the organization, such as the organization’s current tech stack and ease of integration. If your solution is a great fit for your prospect’s needs but can’t sync with the organization’s current infrastructure, then there’s a slim chance the organization will consider your solution.
Business Decision Criteria: These criteria include all things related to revenue, cash flow, and budgets of the organization. An organization’s yearly budgets may also drive its business decision criteria.
By understanding and aligning your offerings to your client’s needs, you’ll project a helpful attitude–and be more likely to influence their decisions.
MEDDIC Questions to Ask
- What are your criteria for a buying decision?
- How are you calculating ROI to justify the project investment?
- What specific technical requirements do you have in mind for seamless integration with your existing systems?
- In terms of budget constraints, are there any particular aspects or features where cost-effectiveness is especially crucial for your decision-making process?
- Considering your business objectives, are there any regulatory or legal requirements that our solution must adhere to?
Decision Process
The decision criteria step is used to understand the components that could influence a buying decision. Just like the decision criteria, the decision process is categorized into three parts — a technical decision-making process, a business decision-making process, and a paper-based process.
Technical Decision Making
Technical decisions are based on the requirements and criteria of the company’s various tech leads, such as architects, business technologists, and operations managers. It’s important to understand the whole technical decision-making process, the people involved, and the way the client documents and confirms a decision.
Business Decision Making
Business decisions are usually linked to finances, making it important to understand the approval process that a business follows. For example, a formal board may need to approve the decision, or there may be a standard timeline that has to be followed.
Paper Process
Paper processes typically involve intense negotiations…and can definitely drag on. In fact, almost of sales leaders think the deal agreement & signing stage takes way too long.
Fortunately, paper processes now happen digitally, which helps expedite the process. Consider using standardized templates for quotes and proposals, make sure your sales team knows exactly how to create, review, and approve sales documents, and train reps on the intricacies of your pricing structure and legal requirements.
By getting ahead of this step, you can reduce the time it takes to close a deal.
MEDDIC Questions to Ask
- What are the steps and their sequential order to arrive at a decision?
- How long does the decision-making process typically take? Are there any significant milestones or deadlines we should be aware of?
- Who are the key stakeholders involved in the decision process, and what are their roles? Are there influencers who might impact the decision?
- Are there any historical challenges or common roadblocks encountered in similar decision processes? How were they resolved, and what can we learn from those experiences to ensure a smoother process this time?
- Is the approval process different based on budget?
- What are the critical terms and conditions, and are there any frame agreements in place?
- Is there a legal review process?
Decision Criteria
The decision criteria step is used to understand the components that could influence a buying decision. Like the decision criteria, the decision process is categorized into three parts — a technical decision-making process, a business decision-making process, and a paper-based process.
MEDDIC Questions to Ask
1. What are your criteria for a buying decision?
2. How are you calculating ROI to justify the project investment?
3. What technical requirements do you consider for seamless integration with your existing systems?
4. Regarding budget constraints, are there any particular aspects or features where cost-effectiveness is especially crucial for your decision-making process?
5. Considering your business objectives, are there any regulatory or legal requirements that our solution must adhere to?
Technical Decision Making
Technical decisions are based on the requirements and criteria of the company’s various tech leads, such as architects, business technologists, and operations managers. It’s important to understand the whole technical decision-making process, the people involved, and the way the client documents and confirms a decision.
Business Decision Making
Business decisions are usually linked to finances, making it important to understand the approval process that a business follows. For example, a formal board may need to approve the decision, or there may be a standard timeline that has to be followed.
Paper Process
Paper processes typically involve intense negotiations…and can drag on. Almost of sales leaders think the deal agreement & signing stage takes way too long.
Fortunately, paper processes now happen digitally, which helps expedite the process. Consider using standardized templates for quotes and proposals, make sure your sales team knows exactly how to create, review, and approve sales documents, and train reps on the intricacies of your pricing structure and legal requirements.
By getting ahead of this step, you can reduce the time it takes to close a deal.
MEDDIC Questions to Ask
- What are the steps and their sequential order to arrive at a decision?
- How long does the decision-making process typically take? Are there any significant milestones or deadlines we should be aware of?
- Who are the key stakeholders involved in the decision process, and what are their roles? Are there influencers who might impact the decision?
- Are there any historical challenges or common roadblocks encountered in similar decision processes? How were they resolved, and what can we learn from those experiences to ensure a smoother process this time?
- Is the approval process different based on budget?
- What are the critical terms and conditions, and are there any frame agreements in place?
- Is there a legal review process?
Identify Pain
An effective sales pitch solves the problem that the prospect is facing or might face in the immediate future. The “pain” is often around technical or business aspects negatively impacting your prospect’s business.
Address these by framing your product or service as the solution to these issues and emphasizing the benefits they’ll receive. Keep in mind that weak, unclear, or futuristic benefits without a timeline won’t be effective here.
For example, saying that your product will improve productivity might not be very impactful. However, suppose you state that your product can improve productivity by 30% and help save costs by 50k/year. In this case, you’re showing that your solution will directly affect the business’s time, cost, and revenue, making it more likely they will consider purchasing your product now.
MEDDIC Questions to Ask
- What are the current challenges that you are facing?
- How will these impact you or the business in both the short term and the long term?
- What are the consequences of not acting on the pain?
- Can you quantify the financial impact of these challenges on your business?
- How have you attempted to address these challenges in the past, and what were the outcomes?
- Who else in your organization is affected by these challenges, and what is their perspective on the situation?
Champion
A is a person who has a personal interest in resolving pain points. They’re usually influential, well-accepted by their peers, and have a great track record in successfully executing projects.
Since your product will directly impact how champions do business, you want them to see its immediate value. Identify champions and nurture them by addressing their specific issues. For example, connect them to subject matter experts, provide helpful information and references, and share relevant experiences of your other customers.
If you have a champion on your side, you’re well on the way to success.
MEDDIC Questions to Ask
- Does this person have the right influence?
- What will they gain, or what is their personal interest?
- Will they be able to explain the benefits of your product without your help?
- What is their level of commitment and enthusiasm?
- Have they successfully championed similar solutions in the past?
- What potential obstacles or resistance might they face internally?
MEDDIC vs. MEDDPIC vs. MEDDIPICC
The big difference between MEDDIC, MEDDPIC, and MEDDPICC is the addition of two components: Competition and Paper Process.
MEDDPIC
MEDDPIC places a strong emphasis on understanding the prospect's internal business needs. With an efficient paper process, sales professionals can navigate through intricate administrative hurdles, ensuring a seamless transition from negotiation to finalization.
Paper Process
We reviewed the “paper process” above. However, adding it as a separate step may not be necessary for every industry. For example, adding the paper process to the MEDDIC methodology may suit a government procurement contract. Government contracts often involve intricate bureaucratic procedures, extensive documentation, and adherence to specific regulations.
A defense contractor bidding for a significant military equipment contract faces a labyrinth of paperwork, including compliance documents, security clearances, and legal agreements. By employing MEDDPIC, the sales team can successfully navigate complex paper trails and gain a competitive advantage.
MEDDIPICC
directs additional attention toward understanding the competitors in the market. This knowledge equips sales teams to differentiate their offerings, anticipate competitor moves, and position their product or service as the superior choice in the eyes of the prospect.
Competition
Let’s consider a cloud-based provider aiming to expand its customer base. Multiple well-established competitors offer similar solutions–making differentiation challenging.
By applying the MEDDIPICC strategy, the sales team conducts a thorough study of the competition, identifying their strengths and weaknesses. Armed with this knowledge, they can tailor their pitch, emphasize unique features, and address shortcomings of competitors.
Should My Sales Team Use MEDDIC?
MEDDIC’s success lies in its ability to keep the prospect firmly at the center of the process, ensuring that every interaction is meaningful and purposeful.
But why should you specifically for this approach? Let’s see.
Qualifies Leads
One of the fundamental challenges in sales is identifying leads with genuine potential. MEDDIC provides a structured framework that benchmarks your value proposition against the prospect’s needs.
By following its systematic approach, you can efficiently evaluate leads, ensuring you invest your time and efforts where they matter the most. This not only optimizes your resources but also significantly increases your chances of closing deals successfully. Sounds like a win-win!
Improves Communication
Effective communication is the bedrock of successful sales endeavors. MEDDIC offers a common language for your entire revenue team, streamlining internal communication and removing ambiguity.
With a shared understanding of the MEDDIC framework, your team can discuss prospects, strategies, and challenges with clarity and precision. This uniformity in communication fosters a cohesive team environment, where everyone is on the same page, working towards common objectives.
More Control
In the unpredictable world of sales, having control over the process is invaluable. MEDDIC empowers you with the tools to analyze cost-time effectiveness. It allows you to qualify leads based on solid data and insights, providing a clear roadmap for your sales activities. This enhanced control ensures that your efforts are focused and strategic.
Better Data
In today’s information age, data-driven decision-making is non-negotiable. Fortunately, MEDDIC is not just a checklist: it’s a robust data collection tool. By systematically identifying and uncovering prospect pains backed by data, you gain actionable insights into customer needs and motivations. This data can help you align your offerings effectively, building a sense of urgency that drives conversions.
Confident Sales Reps
When armed with a comprehensive understanding of the prospect's needs and a well-defined strategy, sales representatives approach interactions with assurance and conviction. This confidence resonates with prospects, building trust and credibility, essential ingredients for successful sales relationships.
The success of the MEDDIC sales methodology has been proven through its use to maximize sales efforts for multiple businesses across the globe. Statistics show that the framework is successful for both startups and established businesses.
Startups have seen a growth of over 250%, while the growth is 30% even in saturated markets.
MEDDIC Limitations
While MEDDIC is a powerful and effective method