Key Objectives of a Key Account Sales Plan

The key objectives of a key account program are to retain your best customers, increase penetration within customers with whom your organization has only a small percentage of the potential business and to win over high-potential prospects.

Consider the following three points:

• A customer who generates a relatively large percentage of your organization’s business is, obviously, of great value. The business relationship must be nurtured, and every effort must be made to retain this customer.
  
  In addition, if this customer generates a large amount of revenue for your organization, then it’s almost a sure thing that your competitors are working hard to earn that business too! Thus the extra attention.
  
  
• A customer with whom your organization does a small or moderate amount of business, but who has the potential to become a much larger customer must be treated with extra diligence as well, as this customer is a good source of potential sales growth. Since it is typically easier to leverage a current, albeit smaller-scale, relationship than to start from scratch, the extra sales effort is justifiable.
  
  
• A prospective customer with high-potential – possibly one of your biggest competitor’s top ten customers – is worthy of a more focused and larger-scale sales effort. Therefore “payoff” for success in this area might be greater in terms of both sales dollars and competitive position, thus justifying the extra effort.

For more in-depth perspective and a list of action items to formulate your key account plan, please refer to this related article in our e-newsletter.

Contact Frequency

People often ask, "How many calls can we make on a prospect before going over the line?" Here are a few guidelines...

First, be consider research data indicating that approximately 80% of those involved in business development approach prospects two or three times and then give up.

Now, consider the importance of these National Sales Executive Association stats regarding the importance of following up:

• 2% of sales are made on the 1st contact
• 3% of sales are made on the 2nd contact
• 5% of sales are made on the 3rd contact
• 10% of sales are made on the 4th contact
• 80% of sales are made after the 5th contact

What these combined statistics tell us is, quite simply, 90% of new business is won by 20% of the sales people!

Next, consider the fact that sheer “frequency” does not guarantee success. Each contact must be “value-added” in order to properly impact your target prospects. This requires research, planning and good communication (probing & listening) skills.

Considering this information simultaneously, the best answer to the call frequency question is that we “cross the line” when our calls have no value for the prospect or customer.