Everything You Need to Know about Account Management

It’s easy for companies to become all about the sale, but they often forget that what happens after the sale is just as important.

That’s where account management comes in.

In this post, you'll learn all about account management: what it is, how to do it right, and why taking a "relationships first, sales second" approach works best.

What Is Account Management?

The initial goal of any business is to have a lead go through the sales pipeline and purchase a product or service. But closing the sale doesn’t mean the customer’s journey is over.

In fact, the real relationship begins once the sale goes through and the lead becomes an official client. The goal is to maximize retention by nurturing genuine connections to keep clients happy, loyal and growing with the business.

So, what does that look like in practice? Account management generally involves the following:

• Providing VIP service and support to high-value customers.
• Build strong, long-lasting relationships with all customers founded on trust, respect, and delivering value.
• Serving as the main point of contact for customer accounts, and being responsive to inquiries and requests.
• Demonstrating extensive knowledge of company products/services to provide support and advice.
• Proactively communicating with customers to understand evolving needs and identify opportunities.
• Managing the entire lifecycle of customer accounts, including onboarding, contract negotiations, account reviews, upsells, and renewals.
• Resolving customer issues quickly and effectively to improve satisfaction and loyalty.
• Collecting and analyzing customer data and feedback to spot trends, gain insights, and guide strategy.
• Collaborating cross-functionally with sales, marketing, product, and other departments to align on customer objectives.
• Setting clear metrics and goals for customer retention, expansion, and lifetime value.

Two terms are often used interchangeably when referring to account management: account executive and account manager. Let's explain the distinction between the two before we discuss the benefits of account management.

What Is an Account Executive?

The account executive guides clients towards the initial sale. They work closely with the sales team to bring in new business, and their job concludes once the contract is signed.

Account executives excel at closing deals and are often seen as independent sellers. Unlike roles focused on long-term client relationships, they specialize in the initial stages of the customer journey, where their job is to ensure a successful and seamless onboarding process.

What Is an Account Manager?

An account manager, on the other hand, remains involved long after the sale. Their job is to support and grow the client relationship over time.

When we talk about "account management," this is the person in charge of the process. In some companies, the same individual handles both sales and account management, which is why the terms often get mixed up.

Which Businesses Need Account Management?

Account management is particularly valuable for businesses that sell high-ticket, complex services or products to other businesses, which is why it’s often associated with B2B companies. However, B2C businesses can benefit too, especially those with subscription models, large customer bases, and long sales cycles.

Industries like wealth management and tech depend heavily on account management to guide customers and care for them long-term. Generally, any business with clients needing ongoing support or chances to expand can benefit from formal account management.

Benefits of Account Management

Now that you understand what account management is, let's explore its top benefits. By the end of this section, you'll know whether you should invest in account management and what exactly your business can gain from it.

Here are the top three benefits you can expect from account management:

Maximize Growth through Upselling and Cross-Selling

Account managers are in a prime position to grow accounts through upselling and cross-selling. They can introduce clients to upgraded or complementary products that are right for them.

“Account managers provide a range of hidden benefits for their companies that go beyond just maintaining client relationships,” says Michelle Halbasch Olivas, an online brand reputation expert and account manager at The Mather Group, LLC. “They are adept at identifying opportunities for growth, whether it’s by suggesting new services or upsells, or by streamlining processes.”

For example, maybe a customer isn't taking full advantage of higher-level features that would help them achieve their goals. Or, in previously recorded customer service interactions, the account manager learns of a common frustration that one of the company's other products can solve. A talented account manager serves as an advisor, guiding customers toward better solutions.

“One of the hidden benefits I provide is my holistic and results-driven approach to strategy that often uncovers opportunities others might overlook,” says Ryan Esco, Chief Marketing Officer at FireRock Marketing. “For example, we engaged a mid-sized healthcare client in niching down their digital marketing efforts. By employing detailed customer segmentation and advanced analytics, we identified a specific demographic that was significantly underserved. Optimizing our campaigns towards this target segment resulted in a 35% increase in qualified leads over six months,” he said.

Increase Customer Retention

Fun fact: Acquiring a new customer costs roughly five times more than retaining existing ones. An account manager can help increase customer retention and boost revenue.

“I once spearheaded a multimillion-dollar sales deal that broke previous salary constraints for the company I was working with,” says Gary Gilkison, Principal Analyst at Riverbase Cloud. “By focusing on high-value targets and nurturing these relationships, I help companies secure more significant deals and partnerships, driving considerable revenue growth. My approach integrates thorough market analysis, creative strategy development, and steadfast client engagement, ensuring sustained business development.”

By keeping an ear to the ground, account managers can increase the number of happy customers - and the revenue that comes with it.

Improve Customer Satisfaction

Today, online reputation is everything. An account manager can boost customer satisfaction through attentive communication and fast conflict resolution.

Consider a customer who buys expensive, complex software. If they struggle to implement it on their own and receive no help, they might become frustrated and leave a negative review, which can deter future customers.

With an account manager guiding them through the process, that frustration can turn into satisfaction. Instead of a negative review, the customer might leave a glowing testimonial praising your excellent customer service. As a result, both customer satisfaction and your brand's reputation will improve. Learn more in How CRM Systems Enhance Customer Problem Resolution.

Data, Technology, and Account Management

Account managers rely heavily on technology to do their jobs well. The rise of data-driven decision-making has transformed the way businesses operate, with decisions based on cold, hard facts rather than intuition or guesswork. As such, account management now intertwines data and technology to create the best possible customer experience.

More specifically, account managers use technology to leverage the following strategies:

• Customer segmentation: Account managers look at customer data to put clients into groups that have similar traits or needs. Doing so helps them approach each group in the right way to make a connection.

• Predictive analytics: Software tools help account managers predict what customers might need or want through algorithms. They may also spot clients who might leave. Account managers use this insight to take action and keep customers happy and buying more.

• Performance tracking: Technology lets account managers monitor key performance indicators (KPIs) in real time. Think customer satisfaction scores, renewal rates, and revenue growth. This constant pulse on performance allows for quick identification of areas for improvement and data-driven decision-making.

• Personalized engagement: With CRM platforms and marketing automation tools, account managers can deliver highly personalized communications at scale. They send messages and offers that fit each client's needs, which helps forge stronger relationships, build trust, and drive long-term loyalty.

Take Your Account Management to the Next Level

Account management is all about building profitable long-term client relationships. It's a must-have for most businesses, and getting a CRM is a good way to scale the operation. But with countless options and features, picking the right platform is a tough choice.

Check out our top-rated CRM solutions specifically for scaling world-class account management efforts. These recommendations come from extensive testing and analysis of more than 35 of the top CRM providers.

We evaluate each plan independently and use a weighted calculation model to determine the overall score for each provider. In other words, we’ve done our homework, so make sure you give it a try. If you’re still exploring your options, check out our CRM software Comparison Tool and Finder Tool to boost your chances of finding your perfect match.