Qualifying the Right Sales Targets With MEDDIC
Sales for startups can be complex, time-consuming, and intimidating, especially when you’re just getting started and the founding team is wearing many different hats. Sales qualification is regularly overlooked at the earliest stages when you’re willing to talk to anyone and everyone about your new product.
But it is a critical step in the sales process that can help you identify the best opportunities to pursue, maximize your chances of closing deals, and ultimately, drive revenue growth. One approach to sales qualification that has gained widespread popularity since its creation in the 90s is the MEDDIC Sales Qualification Process.
Below, we will run through what the MEDDIC Sales Qualification Process is, how to use it, and why it is important for startups to incorporate it into their sales strategies.
What is the MEDDIC Sales Qualification Process?
MEDDIC is an acronym that stands for Metrics, Economic Buyer, Decision Criteria, Decision Process, Identify Pain, and Champion. The MEDDIC Sales Qualification Process is designed to help sales teams better understand the needs and challenges of their prospects, identify opportunities that are most likely to result in a sale, and build strong relationships with key decision-makers.
How to use the MEDDIC Sales Qualification Process
The MEDDIC Sales Qualification Process consists of six steps:
Metrics: Understand the business metrics that are important to the prospect, such as revenue, growth, market share, or customer satisfaction.
Economic Buyer: Identify the person who has the authority and budget to make the buying decision.
Decision Criteria: Understand the criteria that the prospect will use to make the buying decision, such as features, price, ease of use, or support.
Decision Process: Understand the steps and stakeholders involved in the buying decision, such as budget approval, technical evaluation, or legal review.
Identify Pain: Understand the prospect's pain points, challenges, and opportunities that the product can address.
Champion: Identify an internal champion within the prospect's organization who can advocate for your solution, influence the buying decision, and help navigate the buying process.
Why is the MEDDIC Sales Qualification Process important for startups?
MEDDIC can be especially helpful for startups that are just getting started. Here’s how.
Helping to identify the best opportunities
The general runway for a venture-funded startup is 18 months, with each enterprise deal on average taking a minimum of 6 months. This gives you three sales cycles to close some deals or go out of business. Using MEDDIC can help identify the most promising opportunities and focus resources on those opportunities that are most likely to result in a sale.
Helping to focus on decision-makers
This can be especially important for startups that are competing against larger, more established companies. There's no faster way to sideline or delay a deal than by talking to the wrong person.
Helping to close deals faster
By understanding the buying process, decision criteria, and pain points of the prospect, startups can tailor their sales pitch, CRM setup/process and address objections more effectively. This helps speed up the sales process and close deals that little bit faster. Plus, it feels more professional for the buyer.
By focusing on the metrics that are important to the prospect, identifying pain points and their Jobs to be Done, startups can better understand the needs of their target market and develop products that are more likely to succeed in the marketplace.
Questions to ask at each stage:
It’s important to ask the right questions to your sales leads. Here are some example questions to ask to get the most out of the MEDDIC methodology.
- What are your desired outcomes?
- How do you plan to measure your achievements?
- How do you define success?
- Are there any other individuals involved in the final decision-making process?
- What are the primary factors you consider when deciding on this matter?
- How would you justify your purchase decision?
- Who else do you need to involve to finalize the decision?
- What documents or forms are required for approval?
- In what ways does [problem] impact your business and financial performance?
- What are the consequences of taking no action?
- What motivates this person to be interested in your product or solution?
- Can they effectively communicate the advantages of your product in relation to their company?
MEDDIC is a powerful sales framework that can help startups identify the best sales opportunities, build stronger relationships with key decision-makers, close deals faster, and drive revenue growth. If you’re looking to take your first steps in setting up the MEDDIC process start with
1) Building User Personas
2) Then match those Personas to a Value Matrix (also known as Buying Center) (see image)