The MEDDIC sales procedure is a B2B sales methodology that was which was developed in the early 1990s. This method focuses on improving customer qualifications or determining whether you need to put in the effort to get customers into the selling funnel. The advocates for the MEDDIC sales approach assert that pitching more qualified customers will result in a better closing rate, and thus increase the likelihood of achieving sales.
MEDDIC can be described as an acronym that means Metrics, Economic buyer decision criteria identify pain and Champion. These are the six steps that are used simultaneously to make customers eligible for the MEDDIC sales process.
To begin, determine what your customer's goals are for from the product. The benefits should be measured. For instance, the business might wish to increase the number of products they produce by four times the rate and they might also need to bring their products on the market within a half-hour or to reduce a minimum of 20% on manufacturing expenses.
These metrics allow you to present the economic benefits that your product offers. When you understand the is important to the customer and you're able to prove that your solution can provide a high ROI (ROI). If you can justify your solution from a financial perspective then you're an inch closer to closing the sale.
You must know who is the company's financial buyer or with the authority to decide and approve spending. In most cases, you'll be speaking to someone more in the organization than the person you are currently talking to. Knowing the business buyer's mindset and attitude can help you close the sale since the buyer's power of veto means they are the only one that needs to be convinced.
If possible you can speak directly with the buyer of your business to find out about their needs as well as personal metrics and the decision-making process. In certain situations, speaking directly is not possible, however, and you must try to obtain the information regarding the buyer's financial status through your contacts. Utilize the information you have to help make the purchase appealing to the buyer even if they aren't going to necessarily be affected directly by the sale.
Criteria for deciding
Also, you must know the criteria used by the company when making its decisions. The companies are often faced with different options from various sources and are forced to review and choose. If you know how they arrive at this decision then you can tailor your messages.
Criteria can vary, but typically companies consider factors such as simplicity of use integration, budgetary limitations, and the potential ROI when making their choices. If the business does not already have clearly defined criteria for making decisions, you could ask them to write it down on paper. This is a way to show that you can meet their requirements, proving that there's no reason why for them to not accept the sale.
Process of decision making
The decision criteria will tell you what factors influence the decision of a company however, the decision process reveals how that decision was taken and acted on. A decision-making process includes the person who is responsible for making a decision, the timeframe they follow, and any formal approval procedures in the process.
If you understand the process of making decisions is clear, you're less likely to miss the sale because of stagnation. You are aware of the specifics of what needs to be done for the company's part to complete the sale which means you can be able to fulfill those requirements. For instance, if you know that the financial buyer has ok'd the purchase but hasn't completed the follow-up procedure documentation, you could make an effort to have that paperwork completed, thus closing the deal.
Find the source of pain
The customer should be in need before deciding to look for an option, and it's important to identify what the needs are or what's making them feel suffering. The pain may manifest in a variety of ways, including high prices or production delays, as well as poor revenues. Determine the issue the customer is feeling, and then figure out the solution that can ease the discomfort. What happens if they fail to choose an option or make a wrong choice? What will be the solution to help them?
Make sure you are as specific as you can about the customer's issues. For instance, knowing that the customer is losing money because of slow production is vital however, it's just too vague or abstract to be of any use. However, when you realize that they're losing $300,000 per month due to their manufacturing process being just half as fast as it should be, you could present your idea in a specific and convincing method.
Find a person on the inside who's invested in your progress and who pushes to help you. The person who is the champion will be the one who is most affected by the company's problems or who can benefit best from your product. Since they're interested in your solution, they want you to succeed and will leverage their influence to promote your solution from within.
Your advocate does not have to require an executive or other post, but they must be respected. If you have an employee who is known as self-centered and uninterested in advocating for you may not be the best choice for you. However, having an employee who has influence and respect for your business will make a huge impact in closing that deal.
Published by williamlucasy