What is MEDDICC?
MEDDICC is a B2B sales qualification process first developed in the 1990s. It is an acronym that stands for Metrics, Economic Buyer, Decision Criteria, Decision Process, Identify Pain, Champion, and Competition. MEDDICC is a proven qualification methodology that emphasizes on better customer qualification. It provides a “litmus test” for gauging the strength of a sales opportunity.
Using MEDDICC, or its variants (MEDDIC or MEDDPIC), as an internal Sales Qualification Tool helps drive consistent discovery and efficient qualification of opportunities. All the key components of a successful sales cycle are defined and integrated as part of the approach.
Metrics: Metrics are quantifiable results that are used for a two-folded approach. If we observe from a buyer’s point of view, we address questions like: How will the customer measure success? Is that measurement favorable to you? For eg: the company may want to increase its revenue by a factor of three, they might want to get products to market in half the time, or they may want to save at least 20% on production costs.
Economic Buyer: An economic buyer is an individual within the customer’s organization who has the discretionary approval to spend and has the authority to say “yes” or “no” to a deal. Today’s B2B enterprises have more than a single economic buyer. On average, there are 5 to 7 economic buyers involved in a single B2B sales deal. It is not an event or a single meeting where the fate of a deal is decided. It is a process. Every sales operation follows a strategic process to approach the economic buyer(s).
Decision Criteria: Businesses use different criteria to make the purchase decision and choose between options. If you understand how they make this choice, you can better tailor your messaging. The goal of the seller is to influence decision criteria where it is good for the customer and good for the seller.
Decision Process: While the decision criteria are all about what the decision is based upon, the Decision Process tells you how that decision is made and followed through on. The key to going through the decision process exhaustively is to start with the end in mind and walk backward. Paint a scenario where your solution is implemented and the customer is getting their business outcomes and then go backward step by step to what all has to happen for each step. This way of moving forward and backward eliminates the chance of missing out on any step.
Identify Pain: How big is the problem? A customer must have a need before they pursue a solution, and it’s vital to know what that need is or what is causing them pain. Identify the pain the customer is experiencing, and then identify how your solution can relieve that pain.
Champion: Your champion is an individual or a group of people who is invested in your success and pushes for you. Your champion does not necessarily have to be in a managerial or other supervisory position, but they do need to be well-respected.
Competition: The last ‘C’ is the competition which is to know the differentiators, strengths, and weaknesses of your competitors and influence your process. This helps your team tell a more compelling story about how your product is different from the competition by building better talk tracks and scripts.
MEDDICC also provides additional, critical information so you can inspect and trust what sales reps say about their opportunities. This context also helps frontline managers forecast sales more accurately. For example, how does a manager know the close date their rep assigned to a deal is valid? Does the deal have a Champion willing to go to bat for your product? What steps does the company need to take to make a final decision? With MEDDICC, the manager can make sure the Champion and Decision Process all match the close date.