The MEDDIC sales process was developed in 1996 by Dick Dunkel at software company Parametric Technology Corporation (PTC). The MEDDIC sales process is a framework used by B2B sales teams to foster predictable and efficient growth.
Understanding the MEDDIC sales process
As a qualification framework, MEDDIC sets itself apart from other sales processes. It emphasizes extensive buyer qualification to ensure the business does not devote considerable resources to leads who will not convert. This process increases close rates and drives more predictable growth with better sales forecasting.
The qualification process itself is based on the twelve selling principles author Neil Rackham outlined in his 1988 book SPIN Selling. SPIN is an acronym for Situation, Problem, Implication, and Need-Payoff and is particularly suited to large or complex deals where the salesperson needs to become more of a trusted advisor to the client.
MEDDIC is a more evolved version of SPIN where sales teams are equipped with the tools and decision criteria to work closely with prospects and best meet their needs.
The six components of the MEDDIC sales process
The six components of MEDDIC are based on collaboration between Dunkel and individual PTC sales teams with a core focus on three questions:
- Why does PTC win?
- Why does PTC lose?
- Why do some PTC deals slip?
Let’s take a look at the six common components Dunkel defined below.
Metrics (M)
These are the economic indicators that encompass product functionality. The sales team must first determine the benefits a prospect will experience from using a product or service and then find a way to quantify them.
Metrics can then be incorporated into the pitch. For example: “Our service will save your business up to 25 working hours per week and increase productivity by 35%.”
Economic buyers (E)
Economic buyers are those within the prospect company with the ability to purchase the solution. Many businesses waste time here because they engage with employees that do not hold the requisite decision-making power.
LinkedIn is a good place to search a company’s employees based on job title. Otherwise, a meeting can be proposed with the sales team inviting the prospect to invite individuals who will be heavily involved in the project.
Decision criteria (D)
Since most prospects will meet with multiple companies before committing to a purchase, the sales team must also determine their sales criteria. This may take the form of:
- Technical criteria – how will the prospect implement a product or service? Indeed, does it have the technical ability to do what they need?
- Relationship criteria – is the prospect interested in working with the company? Are the needs, interests, and objectives of each party aligned?
- Economic criteria – does the product in question deliver an attractive ROI? What is the implementation cost? What about opportunity cost?
Decision process (D)
The decision process deals with how the prospect uses decision criteria to make a decision.
It tends to comprise two parts. The first part is a validation process where the prospect clarifies that the product or service can achieve what it says it can. The second part concerns receiving authorization from relevant stakeholders to move forward with a particular product or service.
Sales teams should make the decision-making process as smooth as possible by:
- Involving new stakeholders or others involved in decision-making.
- Reiterating or confirming the decision-making timeline, and
- Offering a free trial or product demonstration.
This is a crucial part of the deal forecasting process. Prospects that do not possess a clear decision process or who seem otherwise reticent represent a major red flag. Since the complex B2B deals to which MEDDIC is suited can last for months, reps need to keep the process moving forward wherever possible. Dedicated CRM software is one way to assist in this process.
Identify pain (I)
Identifying prospect pain points is a proven way to frame a product or service as the one that can best meet their needs. Most of these revolve around:
- The elimination of tedious tasks.
- The removal of complicated or convoluted solutions.
- Time or resource efficiency improvement.
These pain points can also be outlined in the context of a competitor. For example, the business may claim that its product is easier to use and more affordable than a rival offering.
Champion (C)
In the context of the MEDDIC process, a champion is an internal stakeholder within the prospect’s business who:
- Is selling the product or service to other stakeholders within the organization. The solution is afforded a certain degree of credibility when its benefits can be clearly linked to organizational objectives.
- Possess the power and influence to finalize the sale or at least ensure that it remains top-of-mind among decision-makers.
- Have a vested interest in the company’s success. This means the solution will remove a problem that makes their job easier or results in a promotion.
Key takeaways:
- The MEDDIC sales process is a framework used by B2B sales teams to foster predictable and efficient growth.
- The qualification process inherent to the MEDDIC process is a more evolved version of the twelve selling principles outlined in Neil Rackham’s 1988 book SPIN Selling.
- The MEDDIC sales process is an acronym for six components: metrics, economic buyers, decision criteria, decision process, identify pain, and champion.
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