We all want larger deals, that goes without saying. But what I've noticed is that the reps who consistently bring in the big paychecks always follow a specific method (or a combination of a few) when working large opportunities. The method I have found most commonly used is called MEDDIC which was developed awhile back by a few guys from PTC. Today, it's the standard method used by many organizations out there (predominantly in the field of software) and is a core piece to a popular sales training program from Force Management. I use the MEDDIC sales methodology in every deal I'm working and have reaped huge rewards by leveraging it. In fact, a study by Pipedrive showed that sellers who use a methodology close deals that are 33% larger than those who don't.
So what does MEDDIC stand for?
M - Metrics
E - Economic Buyer
D - Decision Process
D - Decision Criteria
I - Identify Pain
C - Champion
In a big deal (i.e. $1M+), without having each of these components identified you won't reach a sale.
Breaking Down MEDDIC:
Metrics = Do you have measurable outcomes to refer to in the deal? Customers buy products and services for three primary reasons - to make them money, save them money, and increase market share. You must identify ROI as well as demonstrate the payback period.
Economic Buyer = This is the person who can cut the check. The ultimate decision-maker, the one who owns the budget (in my house, this would be my wife) and can truly say "yes," with ink. Without this person's buy-in, nothing matters. You can have everyone under the decision maker want your product but if he or she doesn't have buy-in, all the work you put in will likely go to waste.
Tip: Leverage your 'Champion' to get to this person (see Champion below).
Decision Process - You won't know who the Economic Buyer is unless you know the decision process in itself. Learn how the decision is made and the steps needed along the way in order to reach the final agreement. It starts by finding out who the buyers are (technical buyer, economic buyer, and business/user buyer) and what happens next after each give their ok. Who ultimately signs? How long does procurement typically take? Is there a board review? Does the legal team need to review? etc.
Tip: If your product or service requires legal review, start this process first after you get the verbal yes. Legal usually takes the longest to complete (remember, lawyers are paid by the hour!).
Decision Criteria - What are the key features and benefits that must be included in your product or service for a deal to happen? This is what your product will be evaluated based upon.
Tip: Try and set the success criteria before your competitor, this will give you a huge advantage.
Identify Pain - There must be a problem that needs to be solved in order for a deal to be justified. Put metrics behind the challenges your customer is facing. What is the positive impact if they solve this problem? What does it mean to the company? What does it mean to the buyer? What happens if they don't do anything at all?
Tip: Provide your customer a case study of another similar company who had the same problem and solved it with your product or service. Make sure their are metrics and business outcomes highlighted to demonstrate the final results.
Champion - This is the person inside the customer's organization who will "sell" for you when you are not there. They are your biggest advocate and have strong influence on the deal and often can make decisions. It's like having a best friend who you know will always have your back.
Tip: This is the most important element of MEDDIC. Without a champion, you are toast.
There are two more components that I believe are critical to identify when working any deal and worth noting.
1. Compelling Event - Why should the customer buy now? Why should they buy anything at all? Why should they buy from YOU? You need to find the answer to all three of these questions and find the ultimate reason why the customer needs to buy your solution today and not anyone else's.
2. Competition - There is a competitor in EVERY deal. Whether it is another vendor or the infamous, "do nothing" competitor which we all hate the most. Learn as much about your competitor's strengths, weaknesses, and solution as if it is your own.
Read More: 5 Ways to Test Your Champion