MEDDPICC, MEDDICC and MEDDIC may all seem like nonsense terms to the untrained eye, but they’re actually all variations of the same useful concept, used to improve sales results.
These methodologies help organizations to ensure they’re focusing their attention on the right deals and opportunities in the sales cycle. Used correctly, they can assist business leaders and their sales teams in increasing return on investment, accelerating the buying process, and boosting revenue.
Today, we’re going to take a closer look at what “MEDDIC” and “MEDDPICC” stand for, and how you can use them in your sales strategy.
What is MEDDIC? An Introduction
MEDDIC, MEDDPICC, and MEDDICC are all variations of a B2B sales methodology, coined by Dick Dunkel and Jack Napoli in the 1990s. The sales process began with the introduction of “MEDDIC”, an acronym made up of the following concepts:
- Metrics
- Economic buyer
- Decision criteria
- Decision Process
- Identify pain
- Champion
According to Napoli, implementing the MEDDIC sales process helped PTC to increase their sales to $1 billion in about 4 years. Part of what distinguishes this methodology from other sales strategies is that the process emphasizes a focus on customer qualification.
Essentially, this means before sales teams invest significant time and effort in converting a prospect, they first take measures to qualify leads, and ensure they fit with the business. Advocates of the methodology say pitching to more qualified customers and decision makers leads to a higher closing rate, and reduced operational costs.
What is MEDDPIC? The Next Level
Since its introduction, MEDDIC has inspired a number of variations, which respond to the changing nature of the sales landscape. One variation is “MEDDICC” which includes an extra “C”, standing for competition. The other, more common alternative is “MEDDPICC”, which includes the “C” for competition, and an extra “P” for “Paper Process”.
When MEDDIC was originally introduced, sales technology and processes were very different. Buying technology, in particular, was a lot simpler in the 90s, when subscription agreements weren’t necessary, and data security and privacy standards were less stringent.
The evolution of contractual obligations between customers and vendors has led to a more complex “Paper Process”, which introduces the need for the new “P”. Additionally, increased competition in the marketplace has changed how companies approach the sales process, address buyer pain points, and increase sale opportunities, hence the additional “C”.
Exploring the MEDDPIC Sales Process
Depending on your sales cycles, you may find the MEDDIC, or MEDIC sales methodologies, are more relevant to your needs. However, it’s worth considering every potential stage of the sales qualification methodology before you make any decisions.
Here’s an overview of the MEDDPIC sales process framework.
M: Metrics
Metrics in the sales landscape are the key performance indicators that align with your buyer’s success. The more companies can show their prospects hard evidence of the benefits they can offer, the more likely they are to close the deal.
Sales managers can use hard numbers, such as evidence of revenue growth for previous customers, or % improvement scores on efficiency and productivity, to demonstrate the validity of their solutions. The key to success is finding the most valuable metrics to share with your customers.
E: Economic Buyers
One of the main reasons sellers lose control over a sale is they spend too much of their time focusing on the wrong person. If a sales rep pitches to an individual in a business that doesn’t have control over the decision making process, they waste time and effort on the wrong prospect.
Focusing on “economic buyers” in the MEDDPICC process means figuring out exactly who has the budget, and power to make purchasing decisions.
Following this methodology means sellers take the time to seek out the right decision maker in a business, and build trust with that individual from day one. Keep in mind, in today’s world, there could be various “economic buyers” in a business that you need to bypass before you get a sale.
D: Decision Criteria
At this stage in the MEDDPICC process, the focus is on understanding the requirements of your potential buyer, and how your solutions align with them. In simple terms, you need to determine what’s going to convince your customer to make the decision to buy.
Ask your prospect what they want most out of a specific solution. Try to get to the bottom of their specific goals and pain points, so you can create a sales pitch that accelerates the buying process. If you can show your customers that you can give them everything on their wish list, they’re more likely to invest in your product or service.
D: Decision Process
Next, it’s time to think about the various nuances of the decision-making process. Most buyers, particularly in the B2B world, don’t just decide to buy something on a whim and make a purchase straight away. There are various pieces of red tape that need to be crossed first.
Understanding the path your buyer needs to take to close the deal and sign on the dotted line means you can walk them more effectively through the process. You can follow up on where your leads are in the decision journey, provide support and guidance, and even reduce the risk of any pitstops or loopholes along the way.
P: Paper Process
The purpose of the paper process in MEDDPICC is to understand how long a prospect’s legal process takes, who is reviewing the deal, and other factors related to general admin. This is often crucial in today’s sales world to ensure that deals close on time.
Take the time to talk with your potential buyer about all of the steps involved in getting a signed contract. Do they need to collaborate with outside council? Has the signature process changed? What kind of documentation do they need before they can close the deal?
I: Identify Pain
Most of the best sales reps and experts know that it’s not the promise of reward that convinces customers to buy something, but the opportunity to avoid pain. Identifying pain can be a complex process in the sales journey, as it requires sellers to dig deep into the real issues facing the company or consumer they want to serve.
Asking questions like “What happens if you don’t fix this issue?” or “How will this problem affect you in the long term?” can provide you with deeper insights. Once you know what kind of pain point is driving your customer, you can build your pitch and sales strategy around it.
C: Champions
While every person you interact with in a sales cycle can be valuable, your champions are your most lucrative resource as a sales professional. A champion is the person on the buying team that knows how to complete a deal. They’ve got the most to gain from the purchase, and they have the power and influence to drive change.
Finding your champion and nurturing your relationship with them is how you ensure you’re boosting your chances of a quick sale. The idea is to become a trusted advisor and guide to your champion, so you can give them the confidence and direction they need to complete the sale.
C: Competition
Finally, we come to competition. No matter how intuitive your product or service is, there are always going to be other competitors out there, battling to attract the same customers. Understanding what kind of other companies your prospects are considering during the buying process can be helpful. It gives you a chance to define what makes you different from your competitors.
The key to outshining the competition isn’t just bragging about your own solutions, or putting the other company down. Instead, it’s about providing unbiased honesty. Identify exactly what makes your solution so much better than anything offered by the competition, and draw attention to it.
Mastering the MEDDPICC Process
Whether you use the full MEDDPICC process, or you decide to abandon the “P” or the extra “C”, taking a strategic approach to the sales journey is crucial. The methodology above can help you to better qualify your leads, and improve your chances of a strong return on investment.
Used correctly, the MEDDPICC process can be your secret weapon for growth and new opportunities. You can even coach your teams to use this process in their day-to-day strategies.
Need extra help with coaching and empowering your sales people? Check out the most recent Revenue-driven whitepaper from HSE for behind-the-scenes tips.
