What Is an Account Manager?

Understanding an Account Manager

An entry- to mid-level employee who oversees the ongoing management of a specific customer's account inside a company is known as an account manager. Instead of actively attempting to increase sales, an account manager is frequently more concerned with the client pleasure component of a company relationship.

The company person that a client interacts with most directly is typically an account manager. This employee is in charge of managing the daily, regular chores related to customers' wants and issues and keeping track of their account activity.

An account manager frequently performs several distinct duties. Depending on the client's circumstances and level of satisfaction with their present account status, account managers frequently need to modify their emphasis. In particular, the account manager would combine their roles as a salesperson, customer support agent, technical expert, and financial counselor.

The account manager is a point of contact for client service, upselling, technical support, and relationship management. An account manager could be responsible for several smaller accounts or might choose to concentrate on a few bigger ones.

Responsibilities of an Account Manager

Account managers are employed by businesses to guarantee that clients believe their demands are being addressed. Maintaining current clients is typically less expensive than looking for new clients to replace those who have defected due to subpar customer service. In other words, financial institutions and most organizations, in general, may benefit significantly from concentrating on retention.

Once an organization has spent the money and resources necessary to win a client or customer, it is in that organization's best interest to do everything in its power to keep that customer happy so the organization does not need to move elsewhere to do business.

Account managers collaborate closely with the sales team to ensure that the client understands what goods or services they have acquired and that they are a good fit for their requirements. The account manager may also operate as a point of contact or liaison with other teams or employees who could influence the client's account, depending on the particular kind of account and the nature of the client's wants and concerns.

Career Path for Account Managers

Account managers frequently come from a business, marketing, or communications experience. They frequently occupy more entry-level customer service positions right out of college and frequently possess bachelor's degrees. Account managers may also emphasize gaining experience in interpersonal jobs that enable them to hone soft skills like professionalism, discipline, and communication.

Account managers who want to advance their careers could go to the Strategic Account Management Association for qualifications. Account managers may also receive a promotion to a senior position and be given the choice of managing additional clients or concentrating on higher-value customers.

Promotion to Director of Accounts, Director of Account Management, and Vice President of Account Management are typical positions above account manager. These positions serve as a corporation's leadership team and coordinate the account managers' actions.

Pay Scale and Benefits of Account Managers

Depending on the sort of business and the clients they serve, account managers' specific responsibilities, credentials, and income levels might differ significantly. An account manager frequently comes from a financial or business background and generally holds a degree in a relevant field from a registered college. Advanced or specialized education would probably allow one to demand greater compensation.

According to Payscale, account managers get an average base income of slightly under $58,000 annually. Account managers with less than a year of experience make more than $46,000 annually, while those with at least ten years of experience may make more than $64,000.

According to Payscale statistics, account managers typically receive a total compensation package that ranges from $38,000 to $94,000 per year. Bonuses, profit sharing, or commissions make up additional pay. Common non-financial perks like the ability to work from home, earnings for extra time work, and health insurance are taken into consideration as additional benefits.

Account Management vs. Sales

It is common to confuse the account manager role with a sales role. Even though the duties of salesmen and account managers sometimes overlap, each has specific obligations.

Salespeople are often in charge of luring in new clients. This entails making cold calls to people, reaching out to potential customers, and thinking about innovative methods to expand the firm to serve new markets. During the selling process, they may also gather customer data, such as personal information, hobbies, interests, and company requirements.

The commercial connection may then be transferred to the account manager, and the salesperson may close a contract. When the salesperson informs the account manager of the information gathered and the state of the connections, a formal transition occurs. The account manager is then entrusted with upholding the connection and ensuring that the client's demands are consistently addressed or that the client is informed of the launch of new products.

What does an Account Manager do?

An account manager looks after the needs of clients who have already done (or doing) business with a company. A salesman transfers the customer connection to an account manager once a deal has been started. The account manager ensures that the client's needs are satisfied and nurtures the relationship as well. Also, the account manager looks for methods to expand the client's company through various approaches.

Is managing accounts a difficult job?

Being an account manager may not be tough for those who excel in interpersonal and communication abilities. Building relationships with people is a necessary part of being an account manager. However, an account manager position could be challenging for people interested in technical and analytical responsibilities.

Are Account Managers Accountants?

An accountant is not the same as an account manager. Account managers maintain client connections, whereas accountants are responsible for maintaining a company's financial records.

The Bottom Line

A business must retain its relationship with clients once it has acquired them. The individual in charge of cultivating such a relationship is an account manager. The corporation may reduce the cost of acquiring new customers and raise the likelihood of recurring business by interacting positively with existing clients, strengthening their relationship with the business, and ensuring their business needs are satisfied.