Your MEDDIC Checklist
There’s no doubt:
MEDDIC as a sales process has helped many sales teams around the globe to achieve extraordinary results.
Statistics prove that 30%+ growth rates in saturated markets and 250%+ in start-ups are possible. In fact, many salespeople that touch MEDDIC will never again work without it.
Read on to get a brief overview on this simple and lightweight qualification process.
Here’s the basic MEDDIC checklist:
|M||Metrics||What is the economic impact of the solution?|
|E||Economic Buyer||Who has profit and loss responsibility for this?|
|D||Decision Criteria||What are their technical, vendor and financial criteria?|
|D||Decision Process||Then what happens? Define validation and approval?|
|I||Identify Pain||What are their primary business objectives?|
|C||Champion||Who will sell on your behalf?|
MEDDIC Sales Process Qualifiers
Metrics are quantifiable and measurable results that a customer perceives as valid for his project or initiative, and can be divided in 2 major groups:
Below the Line
For example, cost savings and efficiency gains. Many times paired with reductions on FTEs (Full Time Equivalent).
Above the Line
These are more business-centric like increase in revenue or profit, quicker time to market, higher quality and customer satisfaction. These metrics are used to build decisions and are used to build the Business Case or ROI.
Strong Metrics: We are 15 FTE (Full time equivalent) with 95% utilization. We are expanding our infrastructure 15% a year and we expect another acquisition this year, which will double. We will not get a budget to increase FTEs.
Questions to ask:
- How would you measure success of your project?
- Which metrics around cost, efficiency or business do you need to achieve?
- How would this success be measured by business?
Note: Collecting this metrics from your existing clients make wonderful proof points on your discovery calls with prospects.
Learn more about collecting the right metrics to build a compelling ROI
The EB is a person with the discretionary approval to spend. The person gives the ultimate “yes” or “no” to a project. Usually the person has a clear sight on the business benefits, decision criteria and the process to close a deal.
Meeting the real EB, checking for his sponsorship, criteria and next steps usually sheds a lot of light on the complex decision criteria and processes. Preparing the EB meeting is key to success, however you need to do your homework on the value proposition and earn the right to ask for this meeting.
Qualifying if you talk to the real EB is key. A good qualifying question could be: ”If you & I come to an agreement, is there anybody else formally or informally that would need to be involved or approve?”
Questions to ask the EB:
- Do you sponsor the project?
- What does success look like for you?
- What are the next steps, if we fulfil the success criteria?
If the EB confirms the project and outlines a possible close date, your deal has a good chance to close. If you do not meet the EB or get his approval, your chance of closing a deal in time drops below 50%.
Read more about identifying the EB and getting the sponsorship.
Decision Criteria (Dc)
Every project has formally or informally defined decision criteria. These are often categorized further as Technical, Commercial and Legal Decision Criteria.
Technical decision criteria (TDC)
Here we talk about criteria to understand the feasibility. Are the use cases covered by the potential solution? Does it comply with the existing infrastructure and, if so, how does integrate?
How easy is to work with and does it fulfill the standards of the Enterprise Architecture?
Typically this TDC will be validated in a Proof of Concept or some sort of Technical Decision Making Process.
Business/Commercial Decision Criteria (BDC)
The most common BDC is Alignment to Budget, but nowadays corporations are very much driven by Return on Investment – sometimes in less than 12 months to justify the investment.
Further, there are different types of budgets like capital expense (CAPEX) or operation expense (OPEX). Some clients have huge OPEX reduction campaigns or have certain cash-flow requirements that drive the decision criteria.
Thoroughly understanding and aligning yourself to the clients needs will show great flexibility and influence the decision towards your offering.
Questions to ask:
- What are the technical criteria to make a decision?
- How do you calculate the ROI for this project to justify the investment?
Decision Process (Dp)
While the decision criteria are all about what the decision is based upon, the Decision Process is about the route it.
We primarily separate this process into the route to a technical decision (Technical Decision Making), the route to money (Business Decision Making) and the route to paper (Paper Process).
Technical Decision Making (TDM)
Based on the TDC, companies setup formal or informal processes that lead to a technical decision. It is important to understand what these steps are and who is involved in it.
As the decision criteria, this process should also be documented and confirmed by the client.
Business Decision Making (BDM)
Who needs to approve? Are there any formal boards? Is there a formal process in a project approval workflow or paper forms? How long does this usually take?
Paper Process (PP)
Rigorous regulatory or business compliance needs often lead into time intensive negotiations. These can take weeks or even months, but are necessary to have a legal agreement.
This process is reason No. 1 why contracts get postponed and deals slip out of a quarter. Make sure you have executive sponsorship to give negotiations with Purchasing and Legal the right focus, the right time and the right resources. Be paranoid about the details!
Questions to ask:
- Which people are involved and what are the steps to reach the decision?
- How is this put in sequential order and on which timeline is it based?
- How does the approval process look like for $100K, $500K or $1 million?
- Paper: How is the legal construct set up? Are there frame agreements in place? What are the critical mandatory terms and conditions? Which contractual paperwork is the basis of negotiation?
Together with the Champion, the Pain is one of the 2 major qualifiers in the discovery phase that are required in order to understand if you have an opportunity.
As strong pain can be a technical or business shortage that the client would like to overcome, stop or change.
It must impact the customer in terms of time, cost, risk or revenue if not solved within a certain time frame.
We call it “the consequence of doing nothing when the compelling event takes place.”
Important: A weak pain or not unclear consequences will usually cause delays or reduced budgets due to the lack of priority for the executive management!
Example of a strong pain:
- ABC Soft needs to deliver a solution by the end of the year. They have major delays caused by serious bugs, which may prevent an on-time delivery. (Pain)
- There is a penalty clause of $100K per week if the software is not up and running on January 1st. (Implication/Consequence: Cost->strong, Reputation-medium)
Example of a weak pain:
ABC Soft needs to have a regression testing due to buggy software.
What info is missing here?
Questions to ask:
- Pain: What causes the delays?
- Implication: What does this mean to you and the company?
- Is it really compelling: What is the consequence of doing nothing? Does it impact your business?
Read more about how to identify the real pain
Pain is an important driver and implication drives urgency.
However there is always an owner with a personal interest to get this pain solved. This personal interest drives the person to collaborate with peers, consultants and vendors to attack the pain as soon as possible.
The goal should be to identify these individuals. Even if they don’t carry the official management head, they can be spotted as they are well accepted by their peers, are very influential and usually have a good track-record of successful projects that make them visible in the chain-of-command.
If you once recognized your potential Champions goals, you will be able to develop the relationship by enabling him how to address the pain, i.e. to link them to the subject matter experts of your company, invite him/her to the right seminars or link them together with your references so they can learn from their experience handling projects like his.
Once you’ve built up a real Champion, he will recognize your support and understand that you will be able to help him solving the pain moving forward. It will become a joint effort and your Champion a true defender of the cause, selling on your behalf whenever you’re not around.
(See How to Identify a MEDDIC Champion for more information)
Questions to ask:
- Why is this person a champion?
- Does this person have the influence?
- What is his/her personal interest?
- Will he/her stand up for you and sell for you when you are not there?
So, that’s MEDDIC in a nutshell. Personally, this has been one of the most effective sales methodologies I’ve ever worked with. I can’t imagine ever qualifying deals without it again.
After raising my close rate to over 90%, MEDDIC proved itself as a winning methodology.
We embedded MEDDIC into the heart of iSEEit
You can easily follow MEDDIC directly on Salesforce to manage all your opportunities – without having to rely on Word docs and spreadsheets.
Designed specifically for the B2B complex sale, iSEEit is the first Opportunity Manager to have MEDDIC right out of the box.
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Access the MEDDIC Sales Process Checklist by clicking the link below to download a free pdf of this very guide.