Updated 2/21/2024
We all want larger deals, that goes without saying. One of the secret sauces for reps who consistently bring in the biggest paychecks is they are almost always the ones who follow a specific sales methodology when working their opportunities. The methodology most commonly used (especially in tech sales) is MEDDIC due to its effectiveness in helping sales teams properly qualify opportunities and predict revenue. It was created in 1996 by a few guys from PTC, including the legendary John McMahon, and has been wildly adopted ever since. Today, it's the standard and has evolved into a larger acronym referred to as, MEDDPICC.
Personally, I am fully bought in and use it every single day on every single deal. Why? A study by Pipedrive showed that sellers who use a methodology close deals that are 33% larger than those who don't. If you like paychecks that are 33% higher, you may want to consider it as your standard as well :)
So. what does MEDDPIC stand for?
M - Metrics
E - Economic Buyer
D - Decision Criteria
D - Decision Process
P - Paper Process
I - Identify Pain
C - Champion
C - Competition
Your ability to reach a sale (especially in larger, more complex deals) will be significantly more challenging if you haven't at least identified these components in your deal.
Let's break each of these down...
METRICS
Do you have measurable outcomes to refer to in the deal? Customers buy products and services for three primary reasons - to make money, save money, and/or decrease risk. You must identify ROI as well as demonstrate the payback period. These are the quantified business benefits (the "Before & After").
AE Actions to Take:
Discover the negative consequences and the desired positive business outcomes the customer wants and quantify them
"Mr./Mrs Customer, What are the quantifiable benefits you are seeking to achieve?"
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. They are the person with discretion over funds and when the EB says "yes", others make it happen.
AE Actions to Take:
Leverage your 'Champion' to get to this person (see Champion below).
Read More: Here are 5 ways to test your champion.
Qualify the deal and timeline with the EB
Verify with the EB that he/she trusts and relies on the Champion that you identified (another great Champion test)
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. These are the requirements the customer uses to make their decision and the capabilities required to achieve their desired future state.
Think of it as the buyer's "shopping list."
AE Actions to Take:
Influence the criteria early in the sales campaign and reiterate throughout
Explain and demonstrate your differentiators and how they will help the customer achieve the positive business outcomes they have vocalized
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 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 gives their ok. Who ultimately signs? How long does procurement typically take? Is there a board review? Does the legal team need to review it? 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!).
PAPER PROCESS
This is the process of signing the necessary paperwork for a bookable order. It often occurs after the business decision is made.
AE Actions to Take:
Discover the individuals, functions, and departments that must perform some action and document the process, steps, and timelines to complete
Keep the Champion (or even better, the EB) involved throughout
IDENTIFY PAIN
There must be a problem that needs to be solved 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?
This is what drives the buyer to solve the problem within a set time frame. The technical pain needs to be connected to a business pain/problem or the deal will lose momentum and risk not being funded.
AE Actions to Take:
Identify the pain, problems, and deadlines and prioritize them with your champion
Find the biggest pain, relieve it and you will make your champion a hero and drive urgency to move forward
Tip: Provide your customer with 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 a strong influence with the EB 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 MEDDPICC. Without a champion, you are toast. However, don't confuse a champion vs. a coach!
AE Actions to Take:
Identify - look for pain, evidence of influence, and past success (previous experience purchasing similar solutions such as yours).
Develop - educate and genuinely care about helping them achieve their goal(s).
Test - gain access to the EB and others within the org
Leverage - fix the most critical red flags and uncertainties
COMPETITION
You either have a direct competitor or are competing against "doing nothing." Both can be fierce and a total pain in your ass. It's important to know how your competitors are planning to win or prevent you from succeeding. You should seek to find out who your competitor's champion is and try and disarm them at all costs.
AE Actions to Take:
Understand the competition's strategy
Set traps to make them fail
Dig in with your coaches and champions to get as much info on them as possible. Knowledge is power
Read More: 5 Ways to Test Your Champion