What is Account Management?

September 17, 2024

Richard Wright

Managing Director at ASPIRE Account Management

WHAT IS ACCOUNT MANAGEMENT?

As the new business world continues to take shape after Covid we speculate different scenarios as to what might eventually be. However, we already know that the pool of Clients and Prospects is smaller and that winning new business is much harder and more competitive. 

Hence the need to work with greater productivity, delivering on time to the required level of quality with consistency across all Clients and performing risk management activities (module 10) throughout. Failure to do so will be disastrous, resulting in Clients lost to the competition; Clients who have much greater 'value' post Covid.

However, although the new business environment continues to evolve, the basic principles & processes of business best practice will remain, being even more important than before.  

So, the first priority will clearly be for suppliers to retain existing clients and prospects even if they’ve been a pain to deal with in the past, damaged your profit margin or put you under unreasonable pressure - conversely, they may now be very pleased to hear from you, maybe they used to take the credit for your efforts and now feel vulnerable.

Also, as Client organisations have become more and more knowledgeable about how and what their Suppliers are delivering to them, the importance of the relationship between the two parties has become crucial in modern business. Strong and healthy business relationships and maximising financial performance & growth invariably result from adopting Account Management & Development best practice.

In order for suppliers and clients to develop compatible business relationships, it’s absolutely vital that the client’s culture & psyche, and the supplier’s values & ethos, are understood and accepted by both parties.

In addition, the need for consistency across all Clients and Prospects is particularly important regarding continuity of working practices when there are changes in personnel (especially if there is a change in Account Manager).

So, what is Client Account Management really?

I think it best to have two levels of definition for each of the 3 long-term mission objectives:

LEVEL 1   

  • to retain, expand & manage Client business in a controlled & measured way in order to maximise revenue & profit growth.

  • to develop & maintain business relationships at all levels of the Client organisation based on co-operation, trust and personal integrity.

  • to proactively demonstrate a commitment to continuous improvement in all areas of Account Management.

LEVEL 2

  • to ensure every output is delivered on time & to the required level of quality and that Client satisfaction remains paramount at all times.

  • to develop & maintain teamwork where both sets of people (Supplier & Client) work together with openness, commitment & pride.

  • to ensure standard working practices & procedures are followed wherever possible and that all areas of performance are regularly reviewed and improvements made as appropriate.

The heart of your Account Management & Development process will be the Account File. This File accommodates all the information associated with your Company's activities for a particular Account in addition to comprehensive information regarding the Client. A summary of Account File components makes the scope easier to understand:

  • Mission Statement

  • Account Manager

  • Account Background & History

  • Client Overview

  • Client Profile (inc market, business, structure/organisation, people, procurement, suppliers & their own Competition)

  • Current Position, Scope & Objectives

  • Account Blueprint (inc strategy, goals/targets, the Competition & SWOT analysis)

  • Delivery Performance (inc financials, balanced scorecard & issues)

  • Sales & Marketing (inc orders won & lost, current opportunities, qualification, propositions & pricing)

  • Account Progress Reviews with the Client (of the Account, not deliverables)

  • Satisfaction Surveys

  • Reference Site visits

  • Risk Management

  • Contracts, Service Level Agreements, etc

Critical Success Factors

  • nothing is more important than the Client relationship and understanding their culture

  • teamwork, commitment & pride are the keys to Client satisfaction

  • the Account Manager is pivotal to success or failure; their appointment is the most important decision

  • your Company's values, ethos and image will be the foundation for business excellence

  • the Balanced Scorecard is the only tool which enables you to establish exactly where you are and what needs to change in order to stay on course

  • Client Contact Management is the vehicle for developing key business relationships at every level throughout the Client organisation

  • anyone engaging with the Client must be absolutely clear on what is expected of them regarding knowledge, professionalism and output

  • inadequate qualification of sales opportunities can have disastrous financial consequences and a very damaging effect on morale

Best Practice Quote 1 of 12: “as nothing is more important than the client relationship, everyone must understand, accept & comply with the client’s culture at all times”

To explore the key components of Client Account Management, I’m writing a series of blogs which I hope will be of value and appropriate for the type & size of your client, prospect and target organisations:

  • What is Account Management? (today)

  • Understanding Your Clients

  • Values, Ethos & Image

  • The Account Manager

  • Client Relationship Management

  • Client Contact Management

  • Sales Propositions & Opportunities

  • Sales Opportunity Qualification

  • Balanced Scorecard

  • Client Account Performance Reviews

  • Client Satisfaction Surveys

  • Risk Management

As these blogs will be geared to anyone engaged in developing new business with clients or prospects, and for ease of context, I’ll regard all readers as account managers as everyone has the same endgame, no offence!

I really hope you, your colleagues & business associates find value in these blogs; please let me know either way. Please also get in touch if you think there might be potential for our businesses to collaborate.

NEXT POST: Understanding Your Clients (& vice versa!)

20+ components of Client Account Management can be found at ASPIRE Account Management together with over 300 free checks & tips - all of which aim to significantly improve supplier performance and block the competition.

ASPIRE Account Management

25 modules, 1500 checks & tips - best practice at its practical best

ASPIRE Mission Statement: "As the new business world emerges, enable suppliers to minimise risk in all that they do with particular focus on client retention, increased productivity & business growth”