No one ever decides to enter into a business, including the business to business (B2B) venture, to make losses but profits. However, one cannot succeed in making profits without applying some unique sales strategies for your product. Importantly, wooing as many customers as possible and closing many deals matters a lot if you want to succeed. Lacking such crucial knowledge might make you wonder what could be a problem with your business if it keeps making losses or never grows. Probably you could be speaking to the wrong prospects, which is a big problem for any business. To help you resolve this, you should adopt an effective sales methodology such as MEDDIC.
What is a MEDDIC?
This is a sales process that can help you increase both the rate of closing deals and sales for your business. It emphasizes better customer qualification in determining if you should or not put in the effort to woo a customer into your sales funnel. Additionally, the MEDDIC process is a business-to-business (B2B) sales methodology developed in the 1990s. Today, it’s commonly used by fast-growing start-ups and large corporations like EMC, RSA, and BMC, among others.
It’s also important to note that MEDDIC is an acronym that stands for:
- Economic buyer
- Decision criteria
- Decision process
- Identify pain
This is the process of understanding what your prospects hope to get from purchasing your product. You can achieve this by defining metrics like your product’s real benefits by demonstrating how it solves a genuine problem and how it will deliver returns on investment (ROI).
2. Economic buyer
An economic buyer is a person you target in a particular prospective organization with the power to sign off on the budget in making critical financial decisions. Make sure you understand the priorities, mindset, and what you need to persuade them to invest in a product like yours.
3. Decision criteria
In most scenarios, you’ll need to convince multiple stakeholders who have different priorities in mind. You will need to identify and understand the key criteria that will convince the buying decision. These may include:
- Projected returns on investment
- Ease of use
Your target company may be considering a range of solutions, but by doing this, you can tailor your messaging more effectively in demonstrating why your product ticks.
4. Decision process
This step defines the specific way decisions are to be made, such as:
- Who’s involved in decision-making
- The work timelines
Understanding these factors significantly reduces the chances of losing sales because of inactivity. For example, if the economic buyer has signed off, you can support them to complete the necessary steps by providing them with key details related to the product.
5. Identify pain
You need to identify the pains your target company or decision-makers are facing. These may include:
- If their costs are too high, or
- If their production is slow
By pinpointing these, you can be able to present your product as the solution and the potential ROI they are likely to gain for choosing your product.
Having someone within the organization who totally buys into your product is always an added advantage. Most probably, he/she stands to benefit from the product, therefore, would champion the team to use it and give you a deal.
Benefits of MEDDIC
The MEDDIC sales process has numerous benefits apart from the key ones of helping you close more deals and increase your sales. Other benefits include
- Guiding more accurate sales when forecasting.
- Reducing costs and helping you disqualify unsuitable prospects.
- Enabling you to monitor the progress of a potential deal.
- Assisting different people to assess the business activity more clearly and individually.
- And creating a common language among your sales team.
Tips for adopting an efficient MEDDIC
The MEDDIC sales methodology sounds excellent to you so far, right? However, implementing MEDDIC may cause you a few headaches. Nonetheless, you don’t have to worry since there is always a solution to almost every problem. Here are a few tips for implementing MEDDIC effectively:
- Analyze reasons for lost deals — In most cases, many prospects will be disqualified for better qualifications. Maybe your product is expensive, or prospects lack trust in the solution. Whatever the case, dig into those reasons as they will help you and your team prevent potential deals from collapsing
- Leverage data — Remember, success metrics matter a lot to your prospects since they play a major part in closing deals. Help your sales representatives to leverage data by understanding, defining, and demonstrating these metrics. Doing this helps them prove that your product is more capable of delivering the intended results.
- Enhance your personas — MEDDIC is all about speaking to more right prospects. To do that, take into account factors such as their role within the organization, their business challenges, their interests, personalities, and what defines them, and most importantly, their personal and business goals.
Personas compliment the MEDDIC process superbly as they help you and your sales reps identify an organization or someone perfectly fit for your product. Make sure you are well-informed about some issues in business such as price markets, implementation time, perceived ROI, and pain point’s relevancy, as these are integral drivers of business success. By following the above MEDDIC steps and cautions, I bet you will walk out with a deal, increase sales and grow your business significantly.