What is account management?
Definition: Account Management is defined as the process of maintaining a client relationship while reducing or eliminating multiple potential sources of friction to the benefit of both parties. While some account management may focus on cost control or risk mitigation, the primary objective of account management is to foster a warm relationship between your business and its clientele.
Account Management is a broad term often used to describe its relationship with its most senior account and revenue management professionals. Though the role has evolved significantly over time, the principles behind it remain the same.
Account management means managing the financial affairs of an organization. A good account manager ensures the proper use of resources within an organization and can efficiently deal with different issues.
Account Management is a catch-all term used to describe the overall responsibility of the customer service (or support) team, the entire support process from inception to resolution.
Account manager vs. account executive
The primary difference between the two is their role within the overall business. While both hold a significant role within their respective fields, their roles are significantly different depending on the industry they work in.
Account Executives are highly skilled sales professionals who are generally focused on business-to-business clients. They may also work with businesses in various other industries, including healthcare, technology, and finance.
Account executives are the leads on a business development team. They are responsible for identifying prospects, developing and growing existing client relationships, and ensuring the long-term profitability of new and existing clients.
Account executives are the point people who close the deal. They win new business, and they take that new business to the account manager for ongoing management.
An account manager is responsible for managing customer relationships. This person is typically responsible for managing existing and potential customer accounts, updating a customer’s information, transferring funds from one account to another, creating new customer accounts, and developing products and services for existing customers. They work on feeding the customer database with information that helps them make good decisions in their daily lives. Account Managers work with the sales, marketing, and other departments to assess market trends, develop our offerings in line with those trends, and generate new business opportunities.
The account manager plays a vital role in managing existing clients, while the account executive is responsible for cultivating new relationships.
The Importance Of Account Management
Nothing is more important for a business than keeping and building customer relationships—nothing will have more of an effect on the company’s longevity. Taking care of existing clients and ensuring they are happy ensures repeat purchases and generates new sales from client referrals.
A strong account management team helps sustain and grow your customer base and revenue. Account management develops relationships with your current and potential prospective clients, provides ongoing communications, and establishes understanding among teams professionally.
Account management is one of the most important positions in a digital marketing agency. It involves day-to-day maintenance and development of client relationships. Account management is crucial to the success of any digital marketing campaign.
The term “account management” is used in the context of customer engagement. At a macro level, it refers to managing an organization’s relationships with its customers, clients, vendors, employees, and other stakeholders. An account manager is responsible for an individual customer’s payment, services, and identity inquiries at a micro-level.
Best Practices In Account Management
Account managers and executives can maximize account management capabilities by using strategies, tools, and methods. By sticking to these practices, success can be achieved in sales goals and account satisfaction.
1. Prioritize communication
All business relationships are based on communication. This is how we create loyal customers. It’s important to be open and transparent with clients if we want to earn their trust. When customers consider a large financial commitment or investment, they usually have specific questions and need reassurance. Account managers and executives should address these concerns by providing honest two-sided dialogue.
Account executives should take the time to listen to their client’s goals and develop plans tailored towards helping them achieve them. They should ask for feedback from their clients regularly, and they should make sure to address any issues that their clients have right away. Clients should also strive to have open and honest conversations with their account managers.
2. Know the company
One of the key skills an effective account manager requires is to showcase their knowledge and understanding of a company. This means recognizing and familiarizing themselves with the history, beliefs, and sentiment of the business they work for. An effective account manager proactively approaches a client to build relationships and trust with them. They act as an intermediary who can understand both sides of a situation or business challenge.
To gain maximum client value, account managers and business executives should study their accounts thoroughly to develop the right strategies for their clients.
3. Stay informed
It is essential for Account Managers to continuously track industry trends and determine where they fit with current business models. The Account Management Team must also have extensive knowledge of their competitors’ business strategies.
Account managers must maintain relationships with business partners and securing new business. They keep up to date on industry trends and meet regularly with clients to stay informed about their needs and concerns.
4. Be goal-oriented
The account management team must work with a company’s corporate strategy and have its own goals. The team should discuss the goals in regular meetings and work together to create individual action plans for each team member. By following this, the company’s interests will be served better. An effective account management team helps achieve a company’s strategic goals. The best account management team is one that’s focused on providing great solutions and meeting your needs.
5. Protect the client’s interests
As with all business relationships, trust is essential to a successful account management relationship. An account manager’s primary job is to ensure the client’s interests are protected within the company. The best clients know what they want and need before coming to us, while others prefer us to help them decide what they want most or is best for their business. The account manager is the client’s advocate and the only person that represents them. They must keep the client’s interest in mind and advocate for them, standing up to internal pressure when needed.
The goal is always to maintain a good relationship with customers while at the same time not caving in to their demands or making compromises that might harm the company. The account manager acts as a conduit between both parties while also maintaining integrity and firmness.
Account management FAQs
What does an account manager do?
Account Managers primarily serve as liaisons between our company and our clients or customers. They are the voice of our business, pushing for healthy, long-term relationships with other companies.
An account manager is typically responsible for managing a team of individuals responsible for handling accounts for a specific client. This might include clients with large turnover rates (such as entrepreneurs), large amounts of cash, or complex financial procedures. While the primary purpose of an account manager is to ensure client funds are properly safeguarded and protected, they’re also responsible for the company’s daily functioning, including executing work orders, scheduling employees, monitoring accounts, and any other tasks necessary for running a successful business. Many companies will also position an account manager within their marketing department to liaise between consumers and their companies.
What skills are needed in account management?
Effective account management requires
- the ability to communicate in a clear, concise manner.
- It also demands an understanding of brands and their target markets and excellent relationship-building skills.
- Finally, it requires the be skillful at coaching and mentoring team members.
What is account management also known as?
Account management, also known as customer acquisition, manages relationships with potential customers and existing customers.
Is account manager a stressful job?
Working as an account manager demands laser-like precision. Accuracy, consistency, and patience are all essential qualities in this profession. In fact, according to PayScale’s recent survey, 73 percent of sales account managers feel overworked and under pressure.