In the mid 90’s two young men – Dick Dunkel and Jack Napoli were working as sales managers at a company called Parametric Technology (PTC) in the USA. In that time, as told by Jack Napoli later, PTC was at an inflection point. They were about $300 million with about 400 sales reps and the company was losing sales reps in the same speed that they were hiring. So the management took Dick Dunkel and Jack Napoli off the field, and moved them into new hire sales training program. They went to then review 100’s of sales scenarios and found out when they won, the reps dominated in 6 areas – thus was born “MEDDIC”, the Sales Qualification methodology you will read about here.
M stands for metrics, so metrics are essentially the business case.
This is the way the prospect can make a financial justification of the buy. Regardless of what you are selling, if you’re selling a solution to a problem you know there’s some downstream implication those problems have and it can often be quantified to a number if you ask the right questions. The whole idea within the M and metrics and business case within MEDDIC are how do we put our finger on, what that business case is and what those metrics are and then how we can impact the organization. So next time instead of saying “our solution helps engage employees” say “our solutions enhance employee engagement by 50% while reducing employee grievance by 70%”
E which stands for Economic buyer, someone who is going to fund the buy of your product/service from her budget or in many cases create a budget. Have you identified that person, are you meeting with that person, have you identified the personal and professional wins for that person, are you completely aligned with that person on the business case and all the metrics and all the end results that your solution will have. If you haven’t or if you don’t know who’s actually signing the agreement then that’s a loophole in the sales process which you need to immediately fix.
Next one the other D and there is Decision Criteria this to me is there essentially a client’s wish list, where are they really looking for future functionality from a solution and you know how well does your solution aligned to that,
The next one is what their decision process is, it’s important for a rep to find out who are they evaluating, how many people are they evaluating, how long is the evaluation going to take place, who else is involved in that evaluation, legal process, procurement process, etc. Its important for the rep to know each of these areas, so potential minefields can be identified much earlier and appropriate measures taken for the sale to go smooth.
This piece is critical, as this knowledge and navigating these waters would make sure how accurate your forecasting is going to be for this particular deal, and therefore if extrapolated to your entire forecasting accuracy of your pipeline.
However, your forecasting accuracy would not matter and the deal is not going to close if you haven’t really identified pain, that’s the I, Identify Pain. The identifiers of true business pain are many, these are stuff that are discussed in board meetings, in monthly meetings, these are the things that the senior management obsess about and the middle management are supposed to find a solution and be on top that the pain is negated. The pain can also be something of personal nature to the economic buyer/influencer that your product/solution can offer. For e.g, an accounting person may lessen her manual paper work by automating bills submitted by travelling sales reps on a software platform.
In a complex enterprise sale, its important to build a champion internally who would promote your product and solution. The typical characteristics of a champion is that he likes your product/solution and becomes its executive sponsor in internal meetings. He is also reasonably respected within the organisation and may or may not have buying decision power, but is in a position to stand by it in the face of objections from colleagues. This is how the champion is different from a coach (who might just give you inside info) or fan (who has similar thoughts like you and loves your offerings, given a chance he might quit this client company and join yours, but on this deal he is of not much use). You can identify champions (if you meet F2F) through how they interact with the big boss, the questions they ask you (usually they bring out real problems, no fluff), constructive criticism, these are people who have been instrumental in bringing newer/similar solutions in the company in the past. Its very important that during the sales cycle the seller understands everything about the champion -business and personal goals and arms him with enough ammunition to help win the deal.
Well, so this in essence is the Meddic philosophy and while similar techniques like BANT, SPIN etc exists, I personally believe that this is a more comprehensive approach to qualification of a prospect.
As for Jack Napoli and Dick Dunkel, well Mr. Napoli has now a consultant to evangelises the MEDDIC philosophy around the world, while Dick (Richard) Dunkel is the Director of Field Sales Enablement at Sprinklr – a cloud company.
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