As an account manager, you want to keep your clients happy and loyal, but you also need to make sure your client portfolio is profitable and sustainable. How can you balance these goals and optimize your account planning and management strategies? In this article, we will share some tips and best practices to help you ensure your client portfolio is profitable.
The first step to ensure your client portfolio is profitable is to assess the current situation and performance of your accounts. You can use various criteria and metrics to evaluate your clients, such as revenue, profitability, growth potential, satisfaction, loyalty, retention, and alignment with your goals and values. You can also segment your clients into different categories based on their value and needs, such as strategic, core, opportunistic, and marginal. This will help you identify your most profitable and valuable clients, as well as those who may require more attention, improvement, or termination.
To maximize the profitability of your client portfolio, consider the following strategies: segmentation and prioritization, customer profitability analysis, clear pricing strategies, upselling and cross-selling, regular client contract reviews, cost management, value-based selling, retention and growth of key accounts, regular performance reviews, investment in high-value clients, efficient resource allocation, monitoring overhead costs, customer retention strategies, client satisfaction and loyalty, continuous monitoring of client trends, flexible service models, client education on value, monitoring and reducing acquisition costs, incentivizing account managers, managing client risks, and conducting regular financial reviews.
The second step to ensure your client portfolio is profitable is to set SMART (specific, measurable, achievable, relevant, and time-bound) goals and key performance indicators (KPIs) for each account. These goals and KPIs should reflect your client's objectives, expectations, and challenges, as well as your own business targets and priorities. You should also align your goals and KPIs with your client's budget, resources, and timeline. By setting SMART goals and KPIs, you can track and measure your account performance, progress, and outcomes, and adjust your strategies and actions accordingly.
The third step to ensure your client portfolio is profitable is to plan and execute your account strategies based on your client segmentation, goals, and KPIs. Your account strategies should include the following elements: value proposition, service delivery, communication, relationship building, cross-selling and upselling, retention and renewal, and feedback and improvement. You should also consider the following factors when planning and executing your account strategies: your client's industry, market, competitors, and trends; your client's decision-makers, influencers, and stakeholders; your client's pain points, needs, and preferences; and your client's feedback, satisfaction, and loyalty.
The fourth step to ensure your client portfolio is profitable is to monitor and review your account performance regularly and systematically. You should use the data and insights from your goals and KPIs, as well as other sources, such as surveys, reports, analytics, and testimonials, to evaluate your account performance. You should also compare your account performance with your benchmarks, standards, and expectations, and identify any gaps, issues, or opportunities. You should also communicate your account performance with your clients, team members, and managers, and celebrate your achievements and successes.
The fifth step to ensure your client portfolio is profitable is to optimize and improve your account management based on your account performance review. You should use the feedback and suggestions from your clients, team members, and managers, as well as your own observations and analysis, to identify the areas and aspects of your account management that need improvement. You should also implement the best practices and lessons learned from your account management experience, and seek continuous learning and development opportunities. You should also update and revise your account strategies, goals, and KPIs as needed, and ensure they are aligned with your client's changing needs and expectations.
Additionally, incorporating the creation of dashboards using tools such as Tableau, SAS, or other data visualization platforms adds a crucial layer to the strategy. Weekly observation of profitability and loyalty metrics through these dashboards enhances data-driven decision-making. This analytical approach ensures a real-time understanding of client dynamics, enabling timely adjustments to account management strategies for sustained profitability and client satisfaction.
The sixth and final step to ensure your client portfolio is profitable is to manage your time and resources effectively and efficiently. You should prioritize your tasks and activities based on their urgency, importance, and impact, and allocate your time and resources accordingly. You should also balance your workload and avoid overcommitting or underdelivering to your clients. You should also use the tools and technologies that can help you automate, streamline, and simplify your account management processes and tasks. You should also delegate, outsource, or collaborate with others when necessary, and leverage the expertise and support of your team members and managers.