Lead qualification: BANT vs. MEDDIC and the letter r

BANT vs. MEDDIC, Lead Qualification in B2B

Lead qualification is the evaluation process used to determine whether a lead meets the selling organization’s desired selection criteria.

In this blog post, we’ll take a closer look at the comparison between BANT and MEDDIC.

The time it takes to qualify a lead is valuable, and the decision on which leads to follow up on largely determines the success of the B2B marketer and salesperson.

For example, there’s a saying in B2B sales that when a deal closes, there are two winners: the salesperson who disqualifies the lead first and the salesperson who wins the deal.

It goes almost without saying that every salesperson needs an optimistic mindset to close a deal.

On the other hand, it’s dangerous to think that, as a salesperson, you can convert every lead into a deal.

Sometimes lead qualification is easy to do without a systematic approach, but it’s short-sighted to think that “gut feeling” will actually get you anywhere.

Over the years, various lead qualification methods have been developed to help organizations increase their sales effectiveness in the early stages of the sales process.

One of the major misconceptions or assumptions about lead qualification is that it is merely a one-time step in the sales process.

A good qualification process always has a starting point, but it doesn't end until the deal is signed—and that is precisely where the classic BANT and MEDDIC methods differ from one another.

BANT

This framework was developed in the 1960s and is probably one of the best-known acronyms when it comes to lead qualification.

Budget: Is there a budget to purchase the solution?

Authority: Does the person you are speaking with have the authority to make a decision?

Need: Is there a need to purchase your solution?

Timeframe: Is there a willingness to do this within a reasonable timeframe?

The basic principle is that, as an organization, you must mark at least 3 of the 4 criteria as "green" before considering a lead to be qualified.

As far as I'm concerned, it's a great rule of thumb and a sound basic principle.

Nevertheless, the number of critics is growing as sales become more complex.

And the main reason has to do with the fact that qualification is a continuous process, not a snapshot in time.

The Budgetmay already be aware of this, but it probably also means that a lot of groundwork has already been done.

And the question is: as a potential partner, can you still influence the requirements?

After all, a budgetis often developed in consultation with an experienced advisor, and that person could have been a competitor.

Our recommendation is to implement BANT in a dynamic way—for example, by starting with NBAT—because the organization has indicated that it can free up budget if the “Need”can be met in an excellent manner.

MEDDIC

In the 1990s, MEDDIC, a sales qualification method particularly suited to complex B2B sales, was introduced to the market.

MEDDIC rose to prominence in the 1990s due to the rapid revenue growth of the software company PTC (Parametric Technology Corporation)—from $300 million to $1 billion—during which the sales team was able to meet its targets for 11 consecutive quarters by following a methodical approach.

Metrics: What is the organization's desired outcome once the problem is resolved?

EconomicBuyer: The person with the budget and the authority to make decisions

DecisionCriteria: What are the requirements for arriving at the desired solution?

DecisionProcess: What Does the Buying Process Look Like?

IdentityPain: What kind of pain can you relate to a solution?

Champion: The person who has sufficient authority to act as an internal sales representative and an extension of the supplier

The qualification framework helps you have more effective conversations with prospects to ensure proper qualification.

This is in contrast to BANT, which is fairly simplistic in design and, if used without adaptation, can lead to limited insights.

With MEDDIC, you actually have much more than just a lead qualification methodology at your disposal.

These are questions you need to keep in mind throughout the entire sales process to ensure that the value of your lead or opportunity increases.

For example, the metricsmight change because you're sharing some unique insights that hadn't been considered before.

A B2B sales process can sometimes take as long as 9–12 months.

We therefore recommend using the selection criteria at every stage of the cycle, while continuously verifying whether the issues discussed earlier are still relevant.

TIP: Spread MEDDIC out over the sales stages, and don't expect to be able to check off all the boxes in a single conversation.

For example, when working with SQL, focus on the business issues (M) and potential pain points (I) during your conversation with the Champion (C), and shift your focus to the decision process and criteria once you’re in the Opportunity stage.

Adding the letter R

Lead qualification is perhaps the most important phase of the sales process, because it determines where you’ll want to focus your time in the coming months.

And by definition, this means you can't spend time on other leads.

After all, qualifying and accepting as an SQL also requires 100% commitment from the salesperson.

We believe that both BANT and MEDDIC could add the letter "R" as a criterion.

After all, that “click” will largely determine whether a deal is awarded when two parties are neck and neck.

Furthermore, you should ask yourself whether you want to pursue an opportunity if you realize that the rapport is lacking or there’s no cultural fit.

This is not explicitly mentioned in BANT or MEDDIC, but it is an important prerequisite for building a profitable relationship for the future—and this is certainly true for the consultative selling approach typical of service providers, since gaining trust plays a key role.