MEDDPICC – the 8 letters that can help multiply your sales.
It is a pretty popular methodology that has changed the sales scenario for several enterprises.
The MEDDPICC framework is a surefire way to stir up your sales yield. Hence, let us dig deeper into the process and find out how to derive maximum benefits from MEDDPIC.
Let’s begin!
What is MEDDPICC?
MEDDPICC is a popular sales qualification method used mainly by B2b companies. The MEDDPIC methodology helps B2B enterprises to identify potent and high-quality prospects.
It is a checklist that includes the following aspects:
- Tasks you must do
- Information you must know
- Relations with people you must nurture
There are eight distinct steps involved in the MEDDPICC sales methodology, which include – Metrics, Economic Buyer, Decision criteria, Decision process, Paper process, Implications of pain, Competitions, and Champion.
Acronym of MEDDPICC
The full explanation of what MEDDPICC stands for is: Metrics, Economic Buyer, Decision criteria, Decision process, Paper process, Identify pain, Champion, and Competition.
The original term coined by Jack Napoli, John McMahon, and Dave Dunkel for this sales method was MEDDIC - Metrics, Economic Buyer, Decision criteria, Decision process, Identify pain, and Champion.
Later, Jack Napoli introduced an enhanced version of MEDPICC with two additional steps – Paper process and Competition.
If the MEDPICC meaning is still not clear, here’s a brief explanation for its acronym.
- Metrics — The quantifiable measure of value that your solution offers
- Economic buyer — An individual or group with the power and authority to make purchase decisions.
- Decision criteria — The factors or criteria based on which your solution will be judged.
- Decision process — The steps that the buyer follows to go from evaluating your solution to making a buying decision.
- Paper process — The steps that the buyer follows after going from the purchase decision to a signed contract.
- Identify pain — The pain points that your solution addresses.
- Champion — The person with power, influence, and credibility with the buyer’s organization.
- Competition — The person or company dealing with the same solution as yours and competing for the same funds and resources.
Here are the questions you need to ask yourself at each step of the MEDDPICC process.
Metrics – How will the prospect succeed? What are their business goals?
Economic buyer – Am I interacting with the decision-maker? Is anyone else involved in the decision-making?
Decision criteria – What are the most important factors driving their decision? Should I make any changes?
Decision process – What steps are involved in making the final decision? Who is involved?
Paper process – What are the steps to get everything completed and signed? How long does it typically take?
Identify pain –What are the current challenges of your prospect? What are the risks in terms of lost revenue?
Champion — Who in the organization will feel pain the most? Does the person have an influence on decision-making?
Competition – Who else is the prospect considering? How good is their solution?
Importance of MEDDPICC in Sales Success
According to MEDPICC definition, it is a sales qualification methodology. However, it is also a fool-proof strategy that has helped several B2B sales professionals to achieve brilliant outcomes.
To back up what I am saying, here’s a MEDPICC example.
According to a Predictable Revenue article, Zendesk was able to forecast revenue within 1% through MEDDPICC implementation (along with other sales processes).
Before implementing these processes, the forecast was missed by around 25%. Hence, it is pretty indicative that MEDDPICC implementation did help the company to improve its forecasts dramatically.
Regarding the importance of MEDDPIC in sales success, here are three reasons you should consider the framework for your organization.
- MEDDPIC helps to gather actionable, quantifiable, and high-quality data to significantly improve forecasts and overall business outcomes.
- It helps to review the sales campaign gaps and improve them, reducing the sales cycle.
- It helps the sales management team to focus on coaching sales reps instead of micromanaging.
In short, the MEDDPIC methodology focuses on the integral parts of the sales process while regulating it to produce consistent and positive outcomes.
What are the Top Benefits of MEDDPICC Methodology?
The MEDDPICC methodology is like your checklist. It ensures that you look into every vital part of the sales process. Here are the top benefits of the framework.
Categorize leads
MEDDPICC helps sales reps to identify leads and categorize them based on potential. As a result, sales reps can divide their time according to priority.
Reduce sales cycle
As mentioned above, MEDDPICC can help you identify the gaps in sales campaigns and direct sales reps to the next set of actions. Thus, it ensures filling in the gaps and reducing the sales cycle.
Seller’s self-assessment
Using the MEDDPICC framework, sales reps can assess themselves. Thus, the management can provide them with the necessary training to improve their performance.
Identify roadblocks & strengths
The MEDDPICC sales methodology helps the sales teams to point out roadblocks and strengths in their sales cycle.
Improved forecasts, outcomes, and decision-making
MEDDPICC ensures the collecting of accurate and quality data. As a result, the data-driven forecasts are more accurate, and the overall outcomes improve as well. Moreover, sales teams can make more informed decisions by analyzing the data.
MEDPICC, MEDDPIC, MEDDICC, or MEDDIC: Choose the Right Framework
In the 1990s, the MEDDIC framework came into being. This framework worked wonders for Parametric Technology Corporation (PTC). It boosted the company’s revenue to more than a billion dollars.
As the business environment got more complex, steps were added to the framework B2B enterprises. As a result, different versions of MEDDIC:
- MEDDIC – the original framework
- MEDDICC, MEDDPIC, and MEDDPICC – the enhanced versions.
The original MEDDIC framework generates, qualifies, and chooses prospects for the business. It is focused on lead qualification and is based on a specific selling principle - SPIN (Situation, Problem, Implication, and Need-payoff).
The enhanced versions are built upon the original MEDDIC framework. These versions can take care of the growing needs of today’s B2B businesses.
Before getting into more MEDDPICC details, let’s see the differences between the original MEDDIC framework and the latest MEDDPICC methodology.
Difference Between MEDDIC and MEDDPICC
Though MEDDIC and MEDDPICC have the same elements, they are slightly different.
MEDDPICC is an enhanced version of MEDDIC. MEDDIC focuses on helping you to develop, qualify, and pick quality prospects. In comparison, MEDDPICC focuses on complex contracts and competition as well.
To restate, MEDDIC is the original framework, whereas MEDDPICC is its better version with additional elements to take care of the nuanced business needs.
MEDDIC vs. MEDDPIC vs. MEDDPICC: Which one to Choose?
Sales leaders often get confused about which framework to implement –
- MEDDIC (Metrics, Economic Buyer, Decision Criteria, Decision Process, Identify Pain and Champion),
- MEDDPIC (Metrics, Economic Buyer, Decision Criteria, Decision Process, Paperwork, Identify Pain and Champion), or
- MEDDPICC (Metrics, Economic Buyer, Decision Criteria, Decision Process, Paperwork, Identify Pain, Champion, and Competition).
Though the choice of framework depends on the maturity and sales type of the organization, here’s what you can consider before choosing the best framework for your company.
MEDDIC – To set a strong sales foundation
The MEDDIC framework has all the necessary elements effectively qualify, forecast, and seal deals. In addition, the elements of this framework make an opportunity fit for your sales pipeline.
Choose MEDDIC if;
- Your forecasts are not consistent and accurate
- You need to enhance the quality of your sales pipeline
- Your sales reps miss out on the sales you predicted would close
- Your leads’ purchase process is straightforward without the involvement of any complex contract
- Your main goal is to maintain the status quo, or your competitors are highly differentiated.
MEDDPIC – To simplify complex contracting processes
If your selling process involves long contracting processes, MEDDPIC is ideal for you. The Paper Work element in this framework ensures that the sales reps proactively learn about any contract involved in the enterprise sales.
Also, this element prompts the salespeople to learn any other legal or procurement needs necessary to seal the deals.
Implementing MEDDPIC saves your salespeople from the shock of a massive contracting phase at the end of your pipeline. The framework helps you to prepare the documents to be signed, who needs to sign, and the sequence of the contracting process.
Choose MEDDPIC if;
- Your sales process involves complex contracts or procurement processes
- You want to strengthen your pipeline quality
- Your salespeople find it difficult to close the sales you predicted to close
- Your forecasts are not accurate
- Your competition is stagnation or inactivity, or your competitors are highly differentiated
MEDDPICC – To gain a competitive edge
With the increasing competition, MEDDPICC is the ideal framework. If you operate in a highly competitive space, implement MEDDPICC to stand out from the crowd.
In other words, if competition is one of the main factors that lead to complex conversions, then you must go for the MEDDPICC framework.
The Competition element in the framework ensures that your sales team knows your main competitors, their strategies, updates, and key details. Once you are aware of your competitor's intentions and goals, your sales team can prepare better to meet the prospect’s needs.
The competitor data can also help you understand the market scenario. Thus, you can navigate better with information like who is your biggest threat, the newly growing competitors, etc.
Choose the MEDDPICC methodology if all the scenarios in MEDDPIC are relevant to you, along with fierce competition and the need for competitive evaluation.
Wrapping Up
In the sales world, nothing is guaranteed. You may take every right action and still lose the prospect. However, implementing the MEDDPICC methodology can increase your chances of conversion. As a result, your sales reps can be better prepared to close more deals.
The MEDDPICC sales methodology can help determine your USPs, strengths, and weaker areas. Thus, you can take immediate action to improve and use your strengths to derive maximum benefits.
While you get ready to implement MEDDPICC, consider another aspect of sales acceleration – the right tools to boost sales.
Sales acceleration platforms like RevenueHero can help you qualify leads, auto-assign them to the right sales reps in real time, prioritize, and schedule more meetings with prospects.
Curious to know more? Explore the platform right now!
Related Resources
- Instant Scheduling Software
- Lead Distribution Software
- Lead to Account Matching Guide
- Revenue Operations
- What is Sales Acceleration?
- What is Sales Enablement?
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