5.2.5 Individual key account sales objectives

After the completion of the KA analysis process the attention is now turned to setting sales objectives for each KA. Table 17 demonstrates the current revenue in 2010 as well as the target revenues for the first two years. Current revenue means sales that will be realised in 2010 with the selected key accounts prior to the implementation of the KAM concept. The sales objective plan should be done for at least two years including target revenues. The target revenues are aligned with the prior determination of the targeted share of wallet, which is related to the key accounts annual purchase volume.

Sales objectives per key <a href=">account" class="wp-image-9114 size-full" height="304" src="https://sgbs.ch/wp-content/uploads/Table-17-Sales-objectives-per-key-account.png" width="576"> Table 17: Sales objectives per key account

1 Source: The total revenue in k USD with each KA shall, if possible, be allocated to the individual departments.
2 Source: The customer wallet (annual purchase volume in k USD) has to be assessed with the key account. Figure 9 (Potential Analysis) in chapter 3.4.1 shall provide additional assistance for the assessment in case the key account holds back this information at the start of the partnership.
3 Source: Set the revenue in k USD in relation to the customer wallet (purchase volume in k USD p.a.)
4 Source: It is assumed that the customer wallet starts to grow since the Instrumentation Modernisation, illustrated in chapter 6.2.1, figure 19, shall accelerate the loop replacement cycle in years.
5 Source: The share of customer wallet for the first two years is in line with the sales targets defined in chapter 3.5, Table 7. As a matter of fact the target setting needs to be adjusted individually for each key account.
6 Source: Having knowledge of the customer wallet and having set the target for the share of wallet in %, the target revenues for 2011 and 2012 can be calculated.

Ideally, the sales objective plan should be extended to the year 2014. However, such a mid- to long-term objective setting requires a profound knowledge of the sales opportunities with the key account.