An account manager (AM) is a person who works for a company and is responsible for the management of
sales
Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale.
The seller, or the provider of the goods or services, completes a sale in ...
and
relationships with particular
customers. An account manager maintains the company's existing relationships with a client or group of clients, so that they will continue using the company for business. Account managers do not manage the daily running of the account. They manage the relationship with the
client
Client(s) or The Client may refer to:
* Client (business)
* Client (computing), hardware or software that accesses a remote service on another computer
* Customer or client, a recipient of goods or services in return for monetary or other valuabl ...
of the account(s) they are assigned to. Generally, a client will remain with one account manager throughout the account's duration. Account managers serve as the interface between the
customer service
Customer service is the assistance and advice provided by a company to those people who buy or use its products or services. Each industry requires different levels of customer service, but in the end, the idea of a well-performed service is that ...
and the
sales
Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale.
The seller, or the provider of the goods or services, completes a sale in ...
team in a company.
They are assigned a company's existing client accounts. The purpose of being assigned particular clients is to create long term client relationships. The account manager serves to understand the customer's demands, plan how to meet these demands, and generate sales for the company as a result.
Key accounts provide the most business because they contain a small number of clients which contribute a large portion of the company's sales. According to research, sales from a company's key accounts have increased from 23% in 1975 to 60% currently.
Responsibilities
The responsibilities of account managers can vary depending on the industry they work in, size of the company and nature of the business. Each
customer account
In sales, commerce, and economics, a customer (sometimes known as a client, buyer, or purchaser) is the recipient of a good, service, product or an idea - obtained from a seller, vendor, or supplier via a financial transaction or exchange for ...
can vary in demands and an account manager may work with
brand manager
A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create an ...
s for one account and a media department for another. Account managers usually report directly to the account director or agency director of the activity and status of accounts and transactions. An account manager may also manage a single account or a variety of accounts depending on the requirement of the company. Although the responsibility can vary between companies and between accounts, there are a shared set of common responsibilities which are as follows:
# Generate sales for a portfolio of accounts and reach the company's
sales target
# Identify new sales opportunities within existing accounts to retain a client-account manager relationship by
up-selling
Upselling is a sales technique where a seller invites the customer to purchase more expensive items, upgrades, or other add-ons to generate more revenue. While it usually involves marketing more profitable services or products, it can be simply ex ...
and
cross-selling
Cross-selling is a sales technique involving the selling of an additional product or service to an existing customer. In practice, businesses define cross-selling in many different ways. Elements that might influence the definition might include ...
# Manage and solve conflicts with clients
The Account Manager is expected to have specific information regarding daily operations of the Company and keep the Client updated.
# Interact and coordinate with the sales team and other staff members in other departments working on the same account
# Establish budgets with the client and company
# Meet time deadlines for accounts
There are situations in which an account manager, for example in advertising firms, is responsible for more than one account and therefore looks after multiple clients. When account locations do not overlap the account manager can be placed at the divisional, district, or territory level. When a sales team has a senior sales manager, the account manager coordinates sales accounts from other departments or specialties.
In this scenario, the sales team will work under the direct supervision of influencers and deciders instead of with a
buyer
Procurement is the method of discovering and agreeing to terms and purchasing goods, services, or other works from an external source, often with the use of a tendering or competitive bidding process. When a government agency buys goods or serv ...
.
* Global account managers: Manage company accounts worldwide. This typically occurs in large companies with international accounts.
* National account managers: Manage numerous accounts nationwide. This typically occurs in medium to large companies when a company has multiple locations across the country.
Global account managers and national account managers may work together in a hierarchical or matrix structure. The trend is to move responsibility for the major key accounts to the global level.
Key account manager
A key account manager is assigned to a company headquarters to oversee the account team assigned to a particular account.
Key account management includes sales but also includes planning and managing the full relationship between a business and its most important customers. An account manager who works in this role will engage in a variety of tasks including
project management
Project management is the process of leading the work of a team to achieve all project goals within the given constraints. This information is usually described in project documentation, created at the beginning of the development process. T ...
, coordination,
strategic planning,
relationship management
Customer relationship management (CRM) is a process in which a business or other organization administers its interactions with customers, typically using data analysis to study large amounts of information.
CRM systems compile data from a r ...
, negotiation, leadership and innovative development of opportunities, and keeping record of transaction of sale and purchase goods. The tasks may include working with
product design and application,
logistics
Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics manages the flow of goods between the point of origin and the point of consumption to meet the requirements of ...
, sales support, and
marketing
Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emph ...
.
Key account management models
The basic assumption for a key account management model is the correct classification of the key accounts. A basic model often used in the period of 1950-1970 was the classification model of Webster. This model has been adapted by Milman and Wilson into a two-dimensional model and was paramount in the period of 1970-1990. Bensaou has tested this model empirically by his research of
carmakers in the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
and
Japan and made revisions. De Blick synthesized the adaptations into the 4S-model, a key account classification model. By the late 1990s, key account management spread to most B2B (
business-to-business) models.
Work environment
Account managers can work for small or large companies either corporate, financial, retail, or government for instance.
Any company with a specific clients they conduct business with, can employ an account manager. Typical employers can be:
#Direct marketing consultancies and agencies
#Marketing departments
#Major commercial organizations
Account managers usually work in an office setting and can work more than 40 hours weekly. Travel is usually included in the job description. National or global account managers will very likely experience extra travel.
Qualifications
Although personality and an
aptitude for sales is key, a degree in business, marketing, or related field is typically required and depending on the nature of the account, a background in marketing or
media studies may be preferred.
Due to each company having different requirements, it is important to obtain information from each potential company of employment.
Associations
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*
See also
*
Advertising account executive
*
Account planning
Account planning brings the focus on the consumer into the process of developing advertising. Planning is a job function relating to the application of strategy and planning. The discipline and its tools and techniques help to build unique directi ...
*
Account executive
Account executive is a role in sales, advertising, marketing, and finance involving intimate understanding of a client company's objectives and products and a professional capability to provide effective advice toward creation of successful promot ...
*
Brand manager
A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create an ...
References
{{corporate titles
Business occupations