What's an Account Manager, Really?
Role of an Account Manager: Duties, Compensation, and Perks
Ah, the elusive account manager! You've probably heard of 'em, but their true nature is often shrouded in mystery.
Well, here's the skinny on these puppies: A business's account manager is usually their main cat among the pigeons when it comes to one-on-one time with a specific client. Yeah, they're kinda like chUMpions for the clientele.
All about Account Managers
After some sneaky salesperson closes a deal, the account manager takes the reins and manages the ongoing relationship. Why? Simple: businesses folks like to feel like their needs are being met, and account managers are there to make that dream a reality.
A Multi-Tasking Magnolia
These folks are versatile beasts, often needing to adapt their focus to each client's unique situation and how content they are with their current account status. They can juggle everything from being a salesperson, a customer service rep, a tech whiz, and even a financial advisor, all while keeping a cool head.
Taking the Helm
The account manager is like the ship's captain. They're the point of contact and provide customer support, helping to upsell, handle technical issues, and maintain that all-important relationship. They might manage a smorgasbord of smaller accounts, or zero in on a few key, high-value clients.
Responsibilities of an Account Manager
The main goal for account managers is to keep their clients oh-so-happy, which leads to better retention rates and minimizes the need for businesses to constantly go hunting for new clients. After all, it's damn well cheaper to hold onto existing customers than to continually poach new ones, right?
A Tasty Return on Investment
Focusing on retention can offer quite the tasty return on investment for financial firms, and most businesses in general. Once a firm has invested their time and resources into landing a juicy client, it's in their best interest to keep that client happy, content, and nibbling on all those tasty offerings.
Collaborating with the Sales Team
Account managers work closely with the sales squad to ensure the client is happy with what they've purchased and that those products or services are meeting the client's needs. Depending on the nature of the client's needs, the account manager might act as a go-between with various teams or colleagues who could impact the client's account.
Keepin' on Top of the Competition
On top of knowing their clients like the back of their hand, account managers often keep a close eye on their competitors, too. This helps them better understand how the outside world could influence business with their current clients.
Account Manager Career Path
Account managers usually have a solid background in business, marketing, or communications. They often start out with entry-level customer service roles and emphasize landing experience that helps them develop valuable skills like organization, communication, and professionalism.
Enhancing Their Career
As account managers aim to climb the career ladder, they may seek professional development through the Strategic Account Management Association (SAMA). They might also be promoted into senior positions, managing more clients or focusing on key, high-value clients. Promotion might lead to Director of Accounts or Director of Account Management, or even Vice President of Account Management positions, where they'd oversee the activities of other account managers and be part of the company's leadership.
Account Manager Salary and Benefits
The exact job duties and salary level of an account manager can vary widely, depending on the type of business and the clientele it serves. Often, this employee will have some type of financial or business background and usually would also have at least a college degree.
According to Payscale, as of 2024, an account manager earns an average base salary of approximately $62,000 per year. Newbies with less than one year of experience make around $50,000 per year, while those with more than a decade of experience earn over $70,000 per year[1]. Payscale data also suggests that account managers earn a total compensation package ranging from $41,000 to $99,000 per year, which includes bonuses, profit-sharing, or commissions[1]. Don't forget other common perks like remote work flexibility, vacation hours, and health insurance!
Sales vs. Account Management
Account management and sales can occasionally be a source of confusion. Both roles do have some overlapping responsibilities, but each has its unique set of tasks.
Salespeople are typically responsible for attracting new customers, which includes cold-calling, contacting prospective clients, and exploring new business development avenues. During the sales process, they collect data about the clients, including personal information, hobbies, and business needs. Then, once a deal is sealed, the relationship is handed off to the account manager for nurturing and ongoing support.
The Real-World Impact
Even if you never set foot in an account manager role yourself, chances are you'll encounter one in various aspects of your financial life. Companies like banks, credit card providers, and even cable and cell phone services hire account managers to keep their sparkly clients content and prevent them from straying to the competition. And let's face it, who doesn't want to leverage a relationship to get a better deal?
[1] Payscale (n.d.). Account manager job description. Retrieved March 04, 2023, from https://www.payscale.com/research/US/Job=Account%20Manager/Salary
Enrichment Data:- Account managers work closely with clients to maintain their satisfaction, handle account activities, and act as a point of contact.- They often wear many hats, serving as a combination of a salesperson, customer service rep, tech specialist, and financial advisor.- The primary goal is client retention, as it is more cost-effective to keep existing clients than to acquire new ones.- Account managers have some financial or business background, usually hold a college degree, and develop soft skills such as organization, communication, and professionalism.- The role requires substantial travel to meet clients.- In addition to maintaining knowledge of clients, they often keep knowledge of competitors to better understand external factors that may affect the business with their clients.- Account managers can earn a total compensation package between $41,000 and $99,000 per year, including bonuses, profit sharing, and commissions.- Account managers often have a background in business, marketing, or communications.- As aspiring account managers aim to enhance their careers, they may seek credentials through the SAMA and be promoted to higher positions like Directors of Accounts or Vice Presidents of Account Management.- Companies use account managers to ensure that clients feel their needs are being met, fostering the relationship and enabling retention, thereby saving on acquisition costs and increasing the likelihood of repeat business.- Account manager responsibilities can include strategic planning, coordination with internal teams, and resolving client issues, as well as upselling and meeting sales targets.
- An account manager, like a ship's captain, serves as the point of contact for maintaining client relations, providing customer support, and upselling, while managing technical issues and a smorgasbord of accounts.
- To meet their clients' needs, account managers interact with various internal teams and colleagues who could impact the client's account, and also act as a go-between with these teams.
- Account managers need to keep up-to-date on their competitors to better understand external factors that may influence business with their current clients.
- A career in account management typically requires a background in business, marketing, or communications and involves a range of responsibilities such as strategic planning, coordination with internal teams, and resolving client issues, in addition to managing accounts and upselling.
- Professional development opportunities for account managers include seeking credentials through the Strategic Account Management Association (SAMA) and being promoted to higher positions like Directors of Accounts or Vice Presidents of Account Management, which can offer a salary range of $41,000 to $99,000 per year, including bonuses, profit sharing, and commissions.
