What is Account Management?
Account management is a post-sales role that focuses on nurturing client relationships. Account managers have two primary objectives: retain clients’ business and grow those opportunities. They accomplish these objectives by learning what their clients’ goals are and helping their clients achieve them.
Unlike a traditional sales role, which is short-term and focuses on landing the client, the account manager acts as a long-term liaison and, hopefully, a trusted consultant for the client.
In other words, sales is transactional and account management is relational. ?
By understanding their clients’ needs, the account manager can help answer their questions, solve their problems (ideally with customized product or service solutions), and develop a long-term strategic partnership with the client that extends beyond the original sale.
Among other tasks, the account manager is responsible for:
The importance of account management
Today, long-term business success depends on creating positive customer experiences and increasing customer retention because repeat customers are more profitable than new clients.
Long-term clients tend to buy more from the company over time and refer other clients to your business, reducing operating costs (such as prospecting and lead nurturing). In fact, in the financial sector alone, a 5% increase in customer retention results in a 25% increase in profits. And that trend occurs across industries. ?
For companies looking to improve client retention, building a robust account management team is crucial.
Once the sales team wins a client, account managers are the main point of contact for your clients. They are essential to resolving conflicts with the client, smoothing communications with sales and customer support, and understanding the client’s goals and pain points in order to best meet their needs.
Account managers are the client’s champion within the organization and one of the biggest influences on a client’s experience with your business.
When 89% of customers begin business with a competitor following a poor customer experience, effective account management is vital.
Supporting customer retention efforts
Because account managers have the primary relationship with your clients, they are your frontline support for customer retention strategies. Plus, as the client champion and liaison, account managers are uniquely positioned to ensure your business’s efforts and communications with (and about) your clients are consistent across every team.
Communicate regularly and manage expectations
Communication can make or break any relationship, so good communication is key for maintaining positive client experiences.
Account managers help prevent communication breakdowns and ensure the client receives the information they want and need. They fulfill this responsibility by setting clear expectations, regularly communicating with the client on strategies, goals, and successes (e.g., KPIs and ROI metrics), and resolving issues or conflicts in a timely manner. ???
Nurture a positive relationship with the entire team
If the account manager is the only contact the client has with the company, the relationship may be at risk if the account manager leaves.
To create a more streamlined handoff and strengthen the client-company ties, the account manager should actively include other members of the client support team (e.g., sales, marketing, etc.) in the relationship.
For example, the account manager can bring a sales rep to a client meeting, give credit to other team members when reporting project successes, and include profiles about team members in a newsletter or email update.
Sales teams can also use account maps to keep the entire org on the same page and retain client information if an account manager leaves the company. Account maps visualize the political landscape of a company and highlight champions, blockers, and other stakeholders whose consensus you need to close a deal or grow an account.