Metric is one of the pieces of MEDDIC that sounds simple but is extremely difficult to build. MEDDIC Mondays will help you through this journey, and the first step is understanding what Metric means. A Metric is a dollar value bound by time.
Here are some examples:
This solution will generate an additional $50,000 per month.
This solution will reduce our costs by $120,000 per quarter.
This solution will eliminate compliance issues resulting in a reduction of $75,000 in penalties per year.
Here are some examples of what would NOT qualify as a Metric and why
This solution will make you an additional $500,000. The time is missing from this Metric. How long will it take to make that extra $500,000? Ten years, five years, two months. This makes a big difference in the value of this solution.
This solution will save you $350,000. Similar to the above, time is missing. Without time you cannot have an accurate quantification of the solution.
This solution will cut your cost by 35% each year. This is a great start, but what is the dollar value of 35%? If their total cost is $10,000, that would mean you are saving them $3,500, and if you are selling the solution for $350,000, that would be a costly solution, but if you are selling a solution for $1,000, that is a different story.
This solution will increase your sales by 70% per quarter. Mark Twain once said, "Facts are stubborn things, but statistics are pliable." The same holds true. 70% of $1,000 is much less than 70% of $1,000,000. Dollar values are more representative of what you need when selling a solution.
Dollar Value Bound By Time
Without a Metric, you can never accurately account for the value of what you are selling. When talking about value, there are two types, Market Value and Economic Value.
Market Value is the value the market has set for a particular product or service. This can be lower or higher than the Economic Value.
Economic Value is the value of a product or solution based on the buyers' willingness to pay for that solution. This value can also be higher or lower than the market value.
When selling your solution, you will need to know the economic value your product is delivering. You will run into two issues if that value is less than the market value. First, your deal will probably continue to slip as your buyer will have trouble seeing the value. Secondly, selling the solution will require you to significantly discount it so that the value equals or is less than the perceived economic value.
If you don't have a dollar value bound by time, you don't have a Metric. If you don't have a Metric, your deal will likely slip and be highly discounted. In future MEDDIC Mondays, we will help you learn how to uncover and develop better Metrics.
We will cover additional topics in the future surrounding the Metric, these include further details on example metrics across different industries, as well as tips and best practices on how to better uncover metrics.
🎬 ACTION Look at your top 3 opportunities that you are working on right now and see if you have a Metric for them. If you don't, look through your discovery notes and see if you have enough to calculate a Metric; if not, keep discovering! |
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