Sales Qualification Methodology

MEDDPICC

Sales qualification is one of the most important parts of every sales. If we are able to start to ensure we are getting the right information, we can start to work on if a deal is really a deal. But more importantly if it’s not… We can start to understand why… and even more importantly. How we make it a deal.

The MEDDIC was created in 1996 by a chap called Dick Dunkel. It was created when he was trying to work out:

Why PTC (The company) won deals?

Why did they lose deals?

Why did deals slip?

Important to not that there have been variations, the longest of which is MEDDPICC. It makes sense for you to work out which sales methodology meets your requirements and use that one. Today I will show you everything. (It also just happens to work out the best for me as I generally deal with third parties, as such there are further steps)

So firstly what does it stand for:

I will go through each letter singularly and bring to live with an example of

M -Metrics

What is the economic impact of the solution.

In layman’s terms. Metrics help us to understand the size of the opportunity and will be specific to both the solution but more importantly the person/ company we are selling too.

An example of metrics in the insurance world could be any of the below. Or all of them if possible. There is a saying information is power. I like to change the power to power(ful) as power leans too strongly into the sales person world and we are really looking for the win-win rather than hard sales.

In insurance what is important could be:

Employee Headcount

Employee Demographics (age/gender etc.)

Budget / Spend (existing or new)

Timescales

Sickness levels (absence rates / types of absence)

Current engagement/utilisation rates

Prospect expectations

If we have good metrics we have a good starting point as to what the opportunity is and what they are trying to achieve.

E = Economic Buyer

The person that has access to the funds to buy the solution.

This would be the person that has the final say on spending the money. Who does it go to for final sign off.

The earlier we know who this is the better, then we can work out if its important to bring that person into the conversation, and what there goal is…

………or actually is it better for us to arm our prospect with the tools and information they need to present us as the solution to the economic buyer. Buying from within. More on that later.

D = Decision criteria

The criteria used by the customer to select the solution

What is the value of the solution. Is this purely a nice to have or something that they need as an organisation.

Price/Cost — is there a price or cost that they have in mind?

The return on investment — What do they need to see in relation to a return of investment for this to be a success.

What other factors are important to the customer to make a decision?

The more information we can get in relation to the criteria that our solution will be judged on, the easier it becomes to see if there is a deal to be had, or if there is not an opportunity at all.

D= Decision process

What is the process the prospect has to go through in order to proceed with our solution?

The things we are looking for are;

Timescales — so important so we need to know when they need to know.

People involvement — we said earlier about the economic buyer, and if their involvement is needed. Is there anyone else thats needed? the more people we have in the circle of influence the better.

Do they need to get sign off?

….and finally what happens if they do nothing?

Are there consequences to in action or is our solution something they need rather than a like to have.

P = Paper process

Approval process in the account through which the purchase order request needs to go, before reaching the vendor.

Below I have listed a few questions that can be used to unpick this section of MEDDPICC.

  • I would like to understand the contracting process at your company? for instance who will be involved and what the typical steps are?
  • Is there anything I can share ahead of time that would make the process simpler for you?
  • Are there any new people I should be introduced too that would help us get this signature done more timely?
  • Typically how long does the process take?
  • When could I get introduced to your procurement team to start the process?

As an example I work in an industry where we sell through professional advisers. As such there is a lag time normally where there recommendation needs to be accepted by the end user. As such understanding that process and the timescales is important.

There is alot of time in that space where we are bideing time. Its important that we understand the requirements of the adviser here. What do you need from us, what are there timescales and is there any chance that deal may slip at this point?

I = Identify pain

Actual pains at the company which would require your product/service to be relieved

Those with the keenest eye will note a bit of an overlap here with the decision criteria and metrics. The principles being what pain (if any) does our solution resolve. It’s important to note that sometimes there isn’t actually a pain at all and that sometimes our solution is just the best of breed product. A nice to have versus a must-have.

For example a nice to have is the the Louboutin shoes, a must have is shoes. But if you want those red soles, just any shoe isn’t going to hit the bill. Of course alot of time it’s not as clear cut.

Some questions you could ask to help unearth what the pain could be are:

  • How does this solution tie in with the broader company goals?
  • What happens if you meet/exceed your goals next year as a company?
  • What is holding you back the most right now as a company?
  • What frustrates you most with your current provider?
  • What do you fear most about the next year in relation to your current solution?
  • If you could prepare the perfect solution, what would it look like?
  • Why are they assessing the market?
  • What are 2–3 key areas of focus for their people?
  • What happens if you do nothing?

C = Champion

Powerful & influential persons at the company, who are favourable to your solution

Your champion is the person inside the company who is rooting for you to win. A truly engaged champion is one that who would benefit most from your solution and can be essentially be your voice at the table when the decision is made.

Your champion is your line in to the decision maker. Of course if you have the decision maker as the champion thats best case scenario.

The most integral part of the negotiation is helping to understand the value that the solution you are bringing to the table has for them and, more importantly how they articulate that back to the company / decision maker.

  • Will your champion make introductions to the most important people in the buying process?
  • Will you support us against any competition/ neigh sayers?
  • Do you have the faith that your recommendation will be enough to support bringing this solution in?
  • Are there any key objections you know we need to overcome?
  • What is the best way to sell this solution up the food chain?

C = Competition

Knowledge of the competing vendors in the account, their strengths and weaknesses and their champions

The final step which is not always apparent depending on your solution is competition. It’s quite simple in its nature. Who / what are you up against?

Not just the direct competitors that is easy, its the indirect sources too. If not our solution is there something potentially left field that may come into play?

Some questions to unearth the competition:

  • What other companies besides us are you thinking about? (nice and direct)
  • Are there things you wish we did differently?
  • Why would we not win this deal?
  • Would you let me know if we are front runner currently as a solution?

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

A lot of information above so reiterate the starting point is always ?

Why do anything?

Why now?

Why our solution?

Thank you again for reading. Any questions comments please do, I will respond.

Key action for the week. Is take a look at a deal you have in play currently and see if you have all the information above. Even jot it down, it could change the way you approach the deal and all deals on the future.

Have a great day

Barry

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Barry waring

I work for a challenger fin tech, whose mission is to inspire people to live their best lives. Why? I want to make a difference in the world.