Company and client relationships are established and upheld by an account management team. Profits and brand credibility rise when account managers are up to the task. Knowing what account management is and why it’s important can help you appreciate the role of executives and account managers. This article serves as a guide for you to know the job description, skills, and salary of account management. It also gives you a deeper insight into what an account management system is all about. Let’s dive in!
What Is Account Management?
Account management is the process of developing and maintaining strategies for interacting with clients in order to increase sales, strengthen relationships, and keep existing ones. The goal is to keep as many consumers as possible who are already buying your product happy by giving them the service, support, and opportunity to upgrade and grow their usage.
Although they have shown their faith in you by purchasing your goods or services, this does not guarantee that they will be loyal customers indefinitely. Maintaining customers’ confidence requires constant improvement and worth to them. Guidance on product use, continuing training, and customer support are all part of account management.
What Is the Role of an Account Manager?
An account or client manager’s primary means of accomplishing the foregoing is through nurturing client connections. They are interested in learning the business’s inner workings and its ultimate objectives. If they’re able to do so, they’ll be in a position to advise clients on business matters, field queries, and, ultimately, make more sales.
Job Description Account Management
Account management duties include establishing trusting connections with clients, getting in touch with important business decision-makers, and creating sales reports. Also, account managers respond to consumer inquiries and seek out potential new customers. The goal of this position is to enhance the overall customer experience by communicating with various internal teams (such as Customer Service and Product Development). There may be some light traveling involved with this job.
The Company will be interested in speaking with you if you have experience with account management software (CRM), a knack for customer interaction, and an understanding of consumer behavior. Candidates should be able to hit aggressive personal and team sales targets. A competent account manager will ultimately work with the sales team to meet objectives while long-term customer retention and engagement with the goods and services are prioritized.
Checking in with clients frequently and keeping up with their activities and demands is part of an account manager’s or executive’s job description. Let’s say a customer is dissatisfied with your service and is thinking about switching to a rival company. If that’s the case, the account management team needs to know about the problem and have the plan to fix it.
Practices in Account Management
For account managers and executives, there are a variety of business hints and ideas that can be useful. Professionals in account management can improve their efficiency and effectiveness by following these guidelines.
#1. Prioritize Communication
Strong communication skills are essential for maintaining healthy relationships. Being honest and forthright with customers is essential in account management. Most clients require assurance that they are making a sound choice before committing to or investing a sizable sum of money. Executives and account managers should be able to address problems through open, frank dialogue.
Account managers need to be willing to hear what their clients have to say and to really take their feedback into consideration. They also need to create comprehensive proposals that incorporate client input. When a client feels their concerns have been acknowledged, they are more likely to have faith in the account manager’s ability to make sound decisions.
#2. Know the Company
You must be knowledgeable about the business you represent in order to succeed as an account management professional. This involves being familiar with the background, the procedures, and the ability to provide precise answers to any questions pertaining to the company. In order to gain a client’s confidence, account managers should demonstrate their knowledge and experience. Executives and account managers who want to be well-prepared for questions from prospective clients should conduct in-depth research about their companies.
#3. Know the Client
In most businesses, the account manager is the first point of contact between the company and the client. Account managers are responsible for managing day-to-day operations as well as serving as trusted advisors to their clients by offering expert counsel on a wide range of topics. An excellent account manager will take the time to learn about the client’s industry and goals. The account manager’s job is to establish lasting bonds with their clients based on trust and respect, working closely with them to achieve their objectives while putting their needs first at all times.
#4. Know the Client
Successful business leaders and account managers never stop expanding their knowledge. Each member of an account management group should have a thorough familiarity with the latest developments and accepted practices in their field. Understanding the company’s rivals and how they do business is also useful. If there is a major change in the industry or a rival releases a new product, the account management team should be ready to handle any questions or concerns the client may have.
#5. Be Goal-Oriented
Account management teams should adopt a strategic mindset and work hard to meet both corporate and individual performance requirements. Quantitative and qualitative metrics are used to assess the performance of account managers. A quantitative measure of the value added by account managers to current business performance is the number of customers managed and client revenue generated. An account manager can gain further insight into how to cultivate strong, lasting relationships with their customers by analyzing qualitative factors such as client satisfaction or relationship quality.
#6. Protect the Client’s Interests
To be a good account manager, you need to always put the needs of your customers first. The account manager’s job is to build and keep clients’ trust while also serving as the customers’ advocate within the company. The work of this person is to make sure that the company is informed of and prioritizes the client’s requirements. In the event of a dispute between a client and the business, the account management team acts as a mediator. Building and keeping loyal customers should be an organization’s top priority.
Account Management Skills
The following are account management skills:
- Solid track record as a Key Account Manager
- Manager, Senior Account Executive, Account Executive, or Junior Account Executive
- Ability to convey effectively and persuade audiences at all levels of a business, particularly at the executive and C-suite
- Proficient knowledge of Microsoft Office and a customer relationship management (CRM) platform (e.g., Salesforce, Zoho CRM, or HubSpot) (particularly MS Excel)
- Ability to provide customer-centered solutions
- Demonstrated experience managing numerous accounts simultaneously while paying close attention to each one
- Superior skills in listening, negotiating, and public speaking
- Excellent written and oral communication abilities
- Business administration, sales, or related BA/BS is required.
Account Management Salary
Account management salary in the United States is $74,000, with a range from $27,515 to $270,000. For Account Managers, the middle 57% earn between $74,000 and $138,000, while the top 86% earn more than $270,000.
Account Management System
With the use of an accounting management system or accounting management software, businesses may keep track of their revenues, expenditures, and other financial data in one central location. It also facilitates access to information useful for conducting business.
Features of Accounting Management System
The following are the features of the accounting management system:
#1. General Ledger
A company’s financial transactions are recorded in the general ledger. They provide a way to collect information on all cash and electronic payments made. Information such as date, description, and amount are included. Collection, input, and calculation of such data can be laborious and time-consuming even for a small organization. But, with the help of an account management system, keeping a general ledger can be a breeze.
#2. Accounts Receivable (AR)
The money that is owed to you from clients, customers, and other parties is recorded in an account called “accounts receivable.” Customers, partners in trade, and financial institutions are all examples of possible third parties. Accounts receivables are a major part of a company’s day-to-day operations. Using an effective account management system, these details can also be efficiently preserved.
#3. Accounts Payable (AP)
The money you owe to third parties, like vendors, customers, or financial institutions, is known as accounts payable (or “AP” for short). Accountants must deal with accounts payable management. But, an accounting management system may take care of this monotonous job for you.
#4. Banking and Cash Management
There are a lot of financial and currency transactions that must be handled by any business. Just picture yourself using pen and paper to handle all these financial dealings. If an accountant were to accomplish this the old-fashioned way, they’d have to put in that much effort. To streamline and shorten the process of storing and managing all of the transactions, an account management system should be implemented.
Top Account Management Systems
The following are the top account management systems:
- Freshworks
- Salesforce
- Zoho CRM
- Bitrix 24
- Apptivo
- Kapta
- Capsule CRM
- Zendesk Sell
- Revamp CRM
Importance of Accounting Management Systems for Small Businesses
It’s probably safe to assume that poor financial management is a major contributing factor in the demise of many startups. With a good accounting management system in place, you can keep tabs on all your financial dealings with ease. Moreover, a small company typically has fewer employees and a smaller profit margin. This usually signifies they lack the financial resources to hire a full accounting staff. One accountant can do the work of four or five people with the help of an account management system.
Why Is Account Management Important?
Every business is aware that acquiring new customers is more expensive than keeping the ones you already have satisfied. Time and money are two of the many resources accounted-for by account management. Obviously, there’s more to it than that.
Account managers are concerned with the big picture, as opposed to the bottom line like salespeople. Spending more on customer service and allowing callers to speak with whoever works there won’t inspire patronage, though. That kind of partnership labels you more as a vendor rather than a partner.
Being an advisor is the key to effective account management. They see you as an integral part of their team and have faith that you will make the best decisions for them. If you succeed, your client will be pleased with your services for many years to come. If you can keep your customers coming back, they’ll be more likely to buy more of your products and services, and maybe even tell their friends about you.
What Are the Four Pillars of Account Management?
The following are the pillars of account management:
- Co-Creation Conversation.
- Designing a Win-Win Relationship.
- Cornerstones of Building an Effective Plan.
- Managing and Utilizing APs.
What Is the Role of Account Management?
Account management is a post-sales function that aims to strengthen connections with existing customers. There are two main goals for account managers: keeping existing clients and expanding their business. They succeed in these endeavors by discovering their clients’ aspirations and working with them to materialize those plans.
What Are the 4 Major Accounts?
Here are the 4 major accounts:
- Assets.
- Liabilities.
- Equity.
- Income
What Is Account Management Also Known As?
Account managers are commonly termed “the farmers.” They oversee client interactions to build a mutually beneficial connections and foster development over time.
What Makes a Good Account Manager?
These are what make you a good account manager:
- Communication. At the top of the list is communication.
- Company and customer expertise.
- Strategic perspective.
- Leadership.
- Skilled negotiation.
- Value-based selling.
- Project management.
Final Thoughts
The way a business treats its consumers can have a significant impact on its longevity in the market. Leaders in all sectors have learned the hard way that customers who don’t feel like their voices are being heard and their business is valued are more inclined to go elsewhere. In business, retaining loyal clients is generally more important than attracting new ones in terms of driving revenue growth. A devoted customer is more likely to place repeat orders and tell their friends and colleagues about the business. Account management is a section you shouldn’t joke about within your business.
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