The Solution Engineer's Guide to MEDDIC

“Why aren’t our sales people at this training, too?”

This is one of the most frequent remarks I hear when I’m training or coaching Solution Engineers (SEs) in the core competencies they need to win more deals. Wouldn’t it be great if more sales people had a better view of the many pre-sales skills required to secure the product selection from our customers. After all, B2B enterprise selling is a team sport, right?

Well, it cuts both ways. As an SE, you also need to fully understand the sales qualification and opportunity management methodologies practiced by our sales teams. More importantly, you need to know your role in perfectly executing against the plan.

Introducing M E D D I C

In this blog, I take one of the more popular methodologies used withing the Cloud Enterprise Solutions industry – MEDDIC – and take a closer look at this from the point of view of Solution Engineering. I also look at some of the variations of MEDDIC and how some organisations have added a few more letters to address some perceived gaps in the original methodology.

MEDDIC is a sales process methodology developed by the US software company, PTC (Parametric Technology Corp) in the 1990s. They famously achieved 40 quarters of continuous growth and beat competitors against seemingly impossible odd by rigorous adherence to the MEDDIC methodology.

Unpacking MEDDIC

MEDDIC is an acronym for:

• Metrics – The KPIs and financial analysis supporting the economic case for your solution.
• Economic Buyer – Engagement with the customer stakeholder who can authorise the funding of the project.
• Decision Process – Understanding and influencing the process leading to the purchasing decision.
• Decision Criteria – Understanding and influencing the criteria used to compare competing solutions.
• Identify Pain – Uncovering and quantifying the challenges (and opportunities) that need to be addressed.
• Champion – Identifying and nurturing your customer “champion” who can do your internal selling in your absence.

All of these are the concern of Solution Engineering to a greater or lesser degree. Let’s take each in turn.

(M)etrics

All SEs know the importance of good discovery early in the sales cycle. This is where we form those key relationships with technical and business contacts within your customer. Most SEs are very comfortable engaging with the former, but less so with the latter.

Discovery forms the foundation stone of your sales campaign and sets the trajectory for your opportunity. Great discovery can give your sales campaign an immediate boost and set you apart from your competitors, even before you’ve shown your solution.

It's imperative that SEs and sales account execs/managers (AE/AM) meet in advance to decide what baseline metrics you need to collect to form a good understanding of where the customer is now. Without this you’re flying blind.

Based on these metrics, you can start building a compelling ROI (return on investment) model to support and differentiate the business benefits of your solution. Your existing customer references should provide a rich source of metrics for realistic projected improvements. If not, you need a plausible explanation for the benefits you claim.

Carefully link your areas of benefit to the capabilities of your solution. You will be asked to prove this link. This is where your full SE skills come into play.

SE actions:

1. Insist on adequate discovery time and meet your AE/AM to decide what metrics you need to uncover.
2. Acquire basic skills in financial modelling (not as scary as it sounds), so you understand the fundamental concepts of ROI, TCO, NPV, discounted cash flows, hurdle rate, etc.
3. Understand how existing customers are using your solutions and the benefits they’re achieving.

SE Leadership actions:

1. Support your SEs in ensuring they secure time for good discovery. Be prepared to battle for this. (Note: Stress that basic sales qualification is not discovery!)
2. Ensure you provide training assets for your SEs to understand the building of a business case / ROI study.
3. Allocate time and resource to the building of re-usable ROI models and frameworks that can be quickly deployed to save time in this phase of the sales process.

(E)conomic Buyer

This is the individual who will authorise the purchasing decision for your solution. Although the AE/AM will identify and build a relationship with this key stakeholder, the SE is an important player.

The economic buyer will need to understand the full business case for the purchase and may need this explained. What are your sources of information and what assumptions are your benefits based on?

The best business cases are co-developed alongside the customer, so they have a strong sense of ownership for the completed analysis. This reduces the onus of the SE to justify the benefits and significantly increases the probability of sales success. If you have pre-designed models or frameworks for ROI in the customer’s specific industry, this could provide a strong incentive to customers who want to fast-track this process.

SE actions:

1. Look for opportunities to nurture customer contacts to help you (with your AE/AM) co-develop and own their business case.
2. Be prepared to meet your economic buyer and talk through your business case in detail (closely linked to your solution capabilities, of course).

SE Leadership actions:

1. Coach SEs to be comfortable with economic buyers (usually senior positions) and to handle crucial conversations.

(D)ecision Process

Your customer’s procurement process isn’t there to be blindly followed. If you can influence it positively in your favour then you can gain a massive advantage. For example, why conduct a costly ‘proof of concept’ (POC) demo when you can take your customer to a ‘live’ reference customer with a similar solution footprint?

I accept that the ability to influence the decision process can vary from industry to industry. Public sector, for example, can be quite rigid, while other sectors can be more informal. Your ability to influence this is directly proportional to the strength of your relationship (especially with your ‘Champion’ – see below).

If you don’t try to influence the decision process, at best you will be stuck in the tramlines of the customer’s process. At worst, the process will keep changing inexplicably (as your competitor is influencing it instead!)

SE actions:

1. Work with your AE/AM to understand the customer’s decision process in detail. Why and how should you attempt to influence the process and who in your sales team is responsible for the actions.
2. Carefully plan your future workload based on the customer’s decision process and highlight any anticipated peaks and conflicts to your manager.

SE leadership actions:

1. Be prepared to address potential resource conflicts based on your team’s anticipated workload. Develop an early warning system to game-play the worst case scenario. If required, establish priorities with your sales leadership.
2. Where a customer’s decision process doesn’t ‘ring true’, coach your SEs to ask the right questions of your sales team and your customer stakeholders.

(D)ecision Criteria

How will your customer select the best solution based on competing options? The best time to influence decision criteria is early in the procurement cycle. It’s never too early. Most customers are two-thirds through their buying cycle before ever contacting you (the supplier) according to several industry studies [Gartner/CEB]. So, the concrete is already setting fast on your customer’s decision criteria.

If your marketing and business development teams are working hard, then your customer will already have encountered some of your online content and they’ll be forming an opinion of your solution. The customer’s RFI / RFP (request for information / proposal) will give you a good idea what their decision criteria is. This is why it’s so important to try to influence this document before it hits your desk. Many suppliers claim to do this, but few succeed.

Can you change the decision criteria in flight? Not completely, but you can alter the course. Generally, people only change their mind based on new and compelling information. People don’t like to change their mind (as this might show weakness), but if they can justify it to themselves by saying, “I didn’t know that before. And it’s important enough for me to reconsider” then there’s a chance to modify, or add new requirements in your favour.

SE actions:

1. During your discovery, unearth as much of the customer’s decision criteria as possible. If there’s an RFI/RFP, get a good feeling of the emphasis and tone of the requirements listed. Make a list of “green flags” (where your solution has superior, differentiated capabilities) and “red flags” (potential areas of weakness for your solution). What does this tell you about the customer’s prior influencies?
2. SEs are often perceived as highly credible with customer stakeholders. Be prepared to cash in this credibility to help maximise the weighting of “green flag” areas and minimise or mitigate the “red flags”.
3. With your AE/AM, have specific conversations about decision criteria and how your extended sales team can influence these.
4. Devise a list of questions that a customer could ask, that will uncover the superior capabilities of your solution. Reverse-engineer these questions based on your solution differentiators. Arm your customer “champion” (see below) with these questions to feed into the selection process.

SE leadership actions:

1. Reiterate and reinforce the importance of understanding the customer’s decision criteria.
2. Ensure your team has access to the right assets to support and influence these. What questions would uncover the “sweet spot” for your solutions. If you must conduct a POC (proof of concept) exercise, do you have a guide to conducting successful POCs that you can “gift” to your customer? (This is a golden asset to have available, but amazingly, few organisations do this! Expert hack: Have one of your alliance partners author this, so it comes from an “unbiassed” third party.)

(I)dentify Pain

Without pain - or more accurately, compulsion - you will have no deal. Business pain provides the impetus to move the sales opportunity forward. The greater the pain, the more likely it is that the customer will act with speed and purpose.

The responsibility of your sales team is to understand the customer’s pain in as much detail as possible, quantify the pain through the capture of metrics (see ‘M’ above) and amplify the impact of not addressing the pain rapidly.  

Ideally, you should also look for the customer’s “compelling event”. Let me dispel a few myths about the this phrase. A compelling event must have a date beyond which there will be significant, financial and visible impact to the company IF it does not address the pain. The bad news is that very few opportunities ever have a true compelling event. (Note: Your quarter-end, the end of an existing supplier contract, software obsolescence, etc. are not compelling events on their own!) 

The good news is that you can create compulsion for your customer; the impetus to drive the deal forward. This can be done through gathering of metrics, building of a business case and calculating the cost of delay. You can also work backwards from your customer’s go-live projections and figure out when the deal must be concluded to hit that date (also called a “reverse project plan”).

SE actions:

1. During discovery and the collection of metrics, ask smart questions about the consequences of not solving the customer’s pain. What’s the best and worst case scenario.
2. Get real! If your AE/AM claims to have identified a “compelling event” does it pass the “significant-financial-visible” test? Don’t pin your hopes on 'phantom' compelling events. Build a compulsive business case.
3. Ensure you understand the cost of delay to your customer and don’t forget to arm your “Champion” with this vital information.

SE leadership actions:

1. As above. Be sceptical about compelling events and ensure your team understand the difference between compelling events and compulsion to act.
2. Invest in foundational sales training for your new starters (or those who need more business acumen). Start with SPIN Selling and move on to The Challenger Sale. (There are many online resources availably as well as the eponymous books.)

(C)hampion

Along with the Economic Buyer, the Champion is one of your most important customer stakeholders. A Champion is an influential customer contact who will support and sell for you when you can’t be present. You need to arm your Champion with all of the vital information that they’ll need to do this in a succinct and concise form. Don’t burn out your Champion by overburdening them with piles of information. They are a precious resource.

Beware of fake Champions. Often sales staff mistake a “coach” for a “champion”. A coach will help you navigate their organisation and guide you through your customer’s processes and hierarchy. But they won’t necessarily do your selling for you. You need to explicitly ask if they believe your solution is best for their business and they’re willing to speak up on your behalf. Actions speak loader than words.

Don’t forget that your competitor will also have their champion too. There is no guarantee that your champion is more influential than theirs. Only an intimate knowledge of the political landscape will inform you of their relative levels of influence. Your sales AE/AM’s job is to understand this, but as the SE, you can help feed back important information to the account team.

SE actions:

1. As an SE the champion is your most important stakeholder. Make sure you arm them with all the information they need to accentuate the virtues of your solution and defend again attacks from your competitor’s champion.
2. Keep qualifying with your AE/AM that your champion is genuine (and not just the first friendly “coach” that comes along!)

SE leadership actions:

1. Ensure your team has the right assets to arm your customers' champions (solution data sheets, competitive battle cards, ROI/business case, customer case studies, etc.)

2. Allow time for your SEs to meet with their champions formally or informally. These are key relationships.

Variants of M E D D I C

For some organisations and purists, MEDDIC ends there. But over the years, there have been several variations and improvements to address perceived weaknesses in the methodology. Here are the most common ones that you’ll come across.

(P)aper Process (as in MEDDPIC)

Originally part of “Decision Process” some organisations like to separate “Paper Process”. This is the formal set of documents that must be agreed and signed between both parties in order to complete the purchase. These are sometimes neglected until the last minute and cause unnecessary delays in concluding the acquisition.

Of course, in today’s virtual world, we’re not really talking about real paper. Most organisations can now handle electronic signatures as part of their contract lifecycle management process (CLM). (E.g. DocuSign and Adobe.)

The sales team need to anticipate all documents and signatories required in advance so there are no late scrambles or delays that could push that deal over your quarter-end. Mostly these will be Terms & Conditions, order documents and service level agreements. However, in the SaaS world there is a big overlap between your solution capabilities and service /security guarantees.

SE actions:

1. Although mostly for the AE/AM and your legal counsel (etc), you should explicitly ask if any service levels, certifications, or other solution related information needs to be signed off before any deal can be finalised. You should know who in your organisation is authorised to handle these and involve them early. It may not be your job, but you’ll often be talking to customer stakeholders who will insist upon these.

SE leadership actions:

1. Discourage the “not my job” culture when it comes to the Paper Process and ensure your team knows how to handle these requests within your organisation.

(E)ngagement of Stakeholders

(Repurposing the E in MEDDIC)

Some sales coaches stress that limiting focus on customer stakeholders to the Economic Buyer (E) and Champion (C) is too simplistic and limiting. They are important personas for sure, but you ignore others at your peril. There are usually between six and ten customer stakeholders in the buying group of complex B2B solutions [Source: CEB / Gartner].

Your sales team should create a stakeholder / influence map including the key decision makers and gatekeepers. Each of these should be mapped to someone in your organisation as the relationship owner. Since SEs are the centre of technical credibility, it is likely that you’ll be mapped to the operational and technical staff at the customer.

The key to stakeholder mapping is to identify your supporters, detractors or the neutrals who are yet to be convinced. There should be a plan of action for each of these.

There may also be customer staff “in the shadows” who carry influence beyond their hierarchical position. In James Holden’s “Power Base Selling”, he calls this type of powerful individual “The Fox”. To win the deal you should find the fox in your account and make them your champion! 

SE actions:

1. Be sure that you’re mapped to the right people in your customer’s buying team. Don’t get siloed with technical people at the expense of building valuable business relationships. Otherwise you won’t be able to get those important metrics (M) and identify pain (I) in their business.

SE leadership actions:

1. Ensure your team has the right sales and business acumen to understand the different stakeholder personas. (Encourage reading of “Power Base Selling” and/or “The Challenger Customer” from the same authors as “The Challenger Sale”.)

(C)ompetitors

(Replacing the C in MEDDIC or adding an extra C as in MEDDICC)

“If you know the enemy and know yourself, you need not fear the result of a hundred battles.” [“The Art of War”, Sun Tzu]

Many sales professionals are surprised by the lack of attention to your competitors in MEDDIC. This can easily be solved by adding another C to MEDDICC. [Note: Where organisations adopt the idea of E being “Engage with Stakeholders”, then the C now becomes Competitors instead of Champion.]

As an SE you’ll be expected to know how your solution stacks up against your competitors and anticipate any “landmines” they set against you (i.e. planting questions with your customer specifically designed to expose your weaknesses). You’ll also need to know those questions you can arm your champion with that expose your competitors’ weaknesses too!

Don’t forget two other formidable competitors: “in-house build” and “alternative use of capital” (AUC), a.k.a “do nothing!”. If your customer has a significant in-house development capability, there will be customer stakeholders committed to the survival of this group. You need to tactfully explain why this is a bad idea (a subject for a blog of its own!)

“Do nothing” is a highly successful competitor if your metrics (M) don’t support the business case for action, or you haven’t identified sufficient pain (I). Don’t forget that finance executives are constantly choosing between competing projects themselves. Build a new factory, open in a new geography, hire more sales people, buy a new IT solution? The list is endless. Only those projects with a compelling business case / ROI will get through.

SE actions:

1. Take time to research your competitors and have an intimate understanding of your strengths and weaknesses against each. This is not just about features and functions, but also their tactics from speaking to others who have won and lost against them.
2. I’m not a big fan of TCO (total cost of ownership) as a comparison of solutions, since it makes an assumption of parity of functionality between all options. However, when competing with in-house solutions, TCO is one of your key weapons. Have these metrics ready to deploy.
3. Keep qualifying your M and I (Metrics and Identification of pain) with your AE/AM. Always ask the three basic sales questions: Why buy anything? Why buy now? Why buy your solution (over others)?

SE leadership actions:

1. Ensure you have the up-to-date intelligence on your competitors for your team.
2. Consider assigning a specialist / wizard for each key competitor to divide the work amongst your team. Include this in their annual and quarterly objectives (battle cards, latest news, online groups, webinars, etc.)
3. Have a playbook prepared for in-house build threats (if this is an issue in your industry). This should include TCO models that can be quickly applied if required.
4. Encourage the mantra, “Why buy? Why now? Why us?”

(S)olution

(Adding an S, as in MEDDICS)

I, and many others, believe that MEDDIC doesn’t talk enough about how well your solution matches your customer’s needs and their environment. This is simply addressed by making MEDDIC plural; MEDDICS.

Your solution must explicitly address your customer’s identified pain and have a compelling ROI. It must be a good fit for your customer’s technical environment. And, finally, it must be proven with existing customers. (If your product is new to market, you may need to address the latter point through a POC – proof of concept – exercise. These tend to be expensive and resource-hungry, so use them sparingly!)

Of course, this is the primary role of the Solution Engineer, so I’m not going to go 'preach to the converted'. You should know this stuff already. Below are a few specifics take-aways.

SE actions:

1. You must explicitly link the capabilities of your solution to the operational benefits derived by the customer. This is your primary role. These operational benefits will add up to management KPIs and strategic goals. Ensure each link of this chain is strong and acknowledged by your customer.
2. Ensure your customer is completely comfortable that your solution fits their operating environment. Don’t ignore key integrations, master data management and other areas of governance important to them.
3. Know your existing customer base (by industry and geography) and their level of advocacy for your solution. Avoid those costly POCs by getting your satisfied customers to do the “proving” stage for you.
4. If you must conduct a POC, know the exit criteria for success and have your customer agree to specific actions on successful completion.

SE leadership actions:

1. It’s your responsibility to ensure your team has the assets, training and personal coaching to demonstrate and prove your solution in its best light.
2. Commission foundational training in demonstrating the business value of your solution (e.g. Demo2Win! or similar, proven methodology).
3. See Decision Criteria (above). Have a POC Guide to give to customers considering this as part of their process. Be ready to take control of the POC process so it doesn’t grow into a monster project!

Final Advice and Closing Thoughts

If you've reached this far, CONGRATULATIONS! Download your free Quick Reference Guide and keep it with you.

MEDDIC and its variants provides sales teams with a sound framework for qualifying and managing opportunities through their lifecycle to a successful close. If you diligently address each section, you should have everything you need to win.

Like any sales methodology, you should use it to figure out what you don’t know, and what’s missing from your plan rather than to simply document what you already know. Don’t be too optimistic about your position in a deal. You should approach your deal with “healthy paranoia!”

There are several online resources offering templates for MEDDIC analysis of your opportunities. Use these ahead of opportunity reviews to optimise meeting times and get to the ‘hot spots’ quickly.

Good luck with those deals and please let me know if I've missed anything important.

Have you used MEDDIC or one of its variants? What advice would you give to other Solution Engineers?

[Images from Pexels, Pixabay and my personal library.]

If you need any advice or guidance regarding sales or Solution Engineering training in MEDDIC, please drop me a personal message on LinkedIn or Twitter.

I enjoy blogging about Customer Experience, B2B Enterprise Selling and, of course, Solution Engineering.

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You can view my other blog posts here. And why not follow me on Twitter: @CxDaryn