difference between key account manager and sales manager

This is a key difference between traditional B2B account management and customer success teams. Data Processing Addendum Account Manager understands the customer’s demands, plan and how to meet them to increase the sales for the companies. Developing the insights to offer these benefits can take years, not months. Traditional sales customers only care about the transaction. While they share much of the same language and concepts, key accounts differ significantly from sales relationships. An account manager is someone who manages specific accounts, takes care of one's customers/clients, solves their problems, holds their hands, maintains the business and keeps competitive hunters away. Account managers service and sell to many existing customers. One other distinction that can be made is between the account manager and a key account manager. Obviously the CSM is a post-sales role (although the boundary between customer success and sales isn’t always so clear), but I’m often asked where account managers (AMs) fit into the equation. Download this helpful ebook on how to create powerful engagement plans for your key accounts or sign up for a demo of Kapta. Lisa has passion for helping managers develop a unique, motivational sales culture in their organizations. Sales brings in the customers, and account management nurtures and helps them grow. How does each function separately? A sales rep is typically responsible for prospecting to find new clients and meeting their sales quotas by converting prospects into buying customers. You cannot rely on short-term solutions to get you through. Pre-Sale vs. Post-Sale Let’s begin by defining the two roles, and then exploring the differences. But, in order to actually provide this kind of critical value, businesses must approach their relationships with key accounts differently than they do their smaller, less influential customers. Customer success, however, is a bit newer. The Brooks Group’s Strategic Account Management training program teaches participants a highly-practical system for identifying key accounts and developing them in ways that will strengthen the client relationship—and drive additional sales revenue for your company. This means that you must establish and grow long-term relationships with your key accounts, usually by adding more value to the relationship you have with them. If it seems like there are a lot more jobs tasked with generating and maintaining revenue these days, that’s absolutely true. Generally, a client will remain with one account manager throughout the duration of hiring the company. In many industries, the competition is fierce, and key account managers who don’t win the long-term loyalty of their customers risk losing them to someone who will. By developing a keen understanding of their key customers’ goals, account managers can then work to develop a customer-centric approach that is designed to help them achieve those goals. It is a commitment and a promise to work for your customer, and this requires changes throughout your company, not just within your sales department. A project manager must do the following on a project-by-project basis: Ensure that project requirements are clearly understood by all involved; Set and communicate deadlines for key tasks, negotiating both with account managers about client needs and with creative staff about the time they need to do a thorough job As always, there will be some variation to what a specific job or role requires because every company’s environment and goals are unique. If you promote your top person and put a team of … A Senior Account Manager is a key part of a company’s sales team whose job it is to meet sales goals. An account manager is a person who works for a company and is responsible for the management of sales, and relationsheep with particular customers. Boulder, CO 80302, Account Management Software As a result, it is paramount to invest special time, effort and attention into growing […] You cannot just rely on a good product or service to keep your customers coming back for more. Most executives aren't able to differentiate between top salespeople and top account managers - and there is a huge difference! We’ve highlighted the key differences between the two, with the intent of helping you understand elements of each, and how they work in tandem. Key account managers focus on a small number of a company’s most valuable customers. In my mind, account managers differ from sales reps in that they are the “farmers” of the sales world. CRM for Strategic Accounts, Privacy Policy With a normal sales approach, key customers are unlikely to view their account manager as more than a pencil pusher looking to boost their sales numbers. All Rights Reserved. However, these two positions remain distinct. Sales Producer. Listen to what Laura Lloyd, RVP of Sales… Unsubscribe at any time. We guarantee 100% privacy. As a general guideline of the duties of a Customer Service Manager,JobHero’s definition is helpful: “A Customer Success Manager is responsible for developing customer relationships that promote retention and loyalty. Some companies use both titles to describe the same job, according to O*Net OnLine. Account managers are present in all sorts of businesses, from traditional manufacturing to the most modern industries. Sales vs. Account Management. Security Statement How to go about building long lasting sales and key account management skills is the topic for another piece, but the fact remains: your team needs the skills to implement key account plans and implement them well. (Learn the key differences between selling and strategic account management here: 5 Ways Strategic Account Management and Selling Are Different.) 885 Arapahoe Avenue A key accounts manager oversees clients that have passed through the lead, prospect, proposal and first time customer stages to more of a partnership level for re-evaluating their growing needs and future expectations. Both sales and account management are critical roles, but not every company will have a dedicated team of account managers. A sales manager oversees employee training and retention with the sales coordinator, who tracks individual marketing strategy. Difference between Business ... One strategy is to partner at a key point your ... in the closing part of the sales process. A CSM has a wide range of responsibilities, but is entirely focused not only on renewing, upselling or cross-selling as an Account Manager, but on each customer’s ultimate success using a product or service. Key Differences Between Supervisor and Manager. Account Manager Overview. If you need help growing your company or would like me to speak at your event, please contact me. Sales Executives ensures their Sales Team executes the strategy developed by Marketing or Account Manager. Additionally, they become familiar with new sales opportunities through data … The top producer on your team has been pushing for a promotion and you need a new sales manager. While every industry can benefit from customer success strat… Key Account Management (KAM) often gets lumped in with regular account management activities, but the truth is that the differences between the two are vast. Understanding the behavior style of your team members and prospects is essential to better communication and sales effectiveness. Account management has been around for a long time—companies long ago realized the importance of having a group outside of the sales team that focuses on renewing, upselling, and cross-selling. The product manager is expected to generate meaningful returns over the long-term, while the sales manager must deliver every quarter and does not have the luxury of thinking about where the market will be in three to five years. Key account managers should visit or call their key customers regularly so they can tailor their services to them and be sure they are on track to achieving their goals. After a prospect has converted to a customer, the account manager focuses on nurturing the relationship and helping it grow to its full potential. Most of us know what the role of a salesperson includes. 1. He’ll work with sales to respond to RFPs. They don’t just want a supplier; they want someone who understands their business well enough to add value to it and help it grow. Account managers spend significant time preparing sales quotas according to a client's budget. Once the sale goes through, their relationship with you is complete. Often businesses will categorise account managers long side sales reps and try to avoid them as much as possible too. An account manager is responsible for sales and CRM, while a project manager looks after current projects and tries to optimize the work between different departments, he also solves any possible problems until they escalate, and prevents the new ones. One of the most important developments in sales in the past two decades, key account management offers a radically different approach and organizational process to a company’s strategically important customers and provides a number of measurable business benefits. The following are the major differences between supervisor and manager. They also focus on business development and growing accounts through upselling, account management training, and cross-selling opportunities. Key sales accounts are the ones where the majority of revenue is generated from. In the end, the line between key accounts and sales often ends up blurry, at best, account managers fail to become the strategic partners they aim to be, and key accounts continue to churn. Account managers serve as the interface between the customer service and the sales team in a company. They want more service, more ideas, more understanding, and more results, for you and for themselves. This individual is responsible for developing relationships with clients to acquire new business and network with existing customers to retain their business. Whether your business has a dedicated team of account managers or you’re relying on your sales reps to fulfill both roles, you should be sure your people have the skills necessary to build and maintain long-term relationships with key clients. Lisa Rose is a Group Vice President of Sales at The Brooks Group. Key account managers know how to give their key customers and themselves high growth rates and returns over the long-term, instead of just the highest price. Key customers want a business partner. And key account customers don’t just expect a more personal, strategic approach, they expect more of everything. How can they work together? works as assistant to account manager. I am a world-renowned Growth Architect, Consultant, Author, and Keynote Speaker and have helped drive exponential growth across the entire customer lifecycle for more than 1000 companies worldwide I wrote the Customer Success book which you can buy at Amazon. Think of him as a go-between the sales and accounts departments. Once the deal is won, the account manager continues to build a strategic relationship with the customer—ensuring they’re achieving the highest level of satisfaction and advising them on long-term growth strategies. Because of this, the traditional sales-buyer relationship simply will not work. By understanding the differences between key accounts and sales, you can begin to change the way you approach your key business relationships and start focusing your efforts on what matters most to them. Account managers are the liaison between a business and its existing clients. A strong sales representative will typically have a “hunter” mentality, and should have the skills to move a prospect through each stage of the sales process: The role of an account manager requires more of a “farmer” mentality. A client services manager is an account manager with a heavy sales orientation. Even if your sales team is responsible for strategic account management, it’s important to understand the different skills required so that both roles can be executed successfully. Their job is to work closely with customers to ensure they are satisfied with the se… An Account Manager might help you shave off a few dollars at renewal time, but your CSM will generate more revenue over the lifetime of the contract. Product managers and sales managers want the same thing — to make customers happy and to grow the business. Account managers keep customer service and customer success top of mind. A key account manager looks after the entire relationship with the company’s most important clients. Voice of Customer Software Terms & Conditions The Account Manager. Some of the top responsibilities for the client services manager include: Account managers focus is as much on retention as they do on new business. Privacy Shield, 5 Common Pain Points of Key Account Management, Whitepaper: The Foundation of Key Account Management, 4 Pillars of Building a Strong Account Plan, Enhancing Leadership within Key Account Management, https://kapta.com/wp-content/uploads/2020/01/Key-Account-Management-for-Ad-Agencies-scaled.jpeg, https://kapta.com/wp-content/uploads/2019/10/logo340x156-300x138.png, 4 Important Differences Between Key Accounts and Sales, 4 Skills Every Successful Key Account Manager Needs, business opportunities and strategies with their key customers, powerful engagement plans for your key accounts. Category Sales Strategic Account Management (SAM) 1. Both functions are important in order for your organization to be successful, but they require two different skill sets. Account Planning Software All smart suppliers would do well with a key account program of some kind, but not everyone knows how to create one, especially if they come from a traditional sales background. Every organization wants their customers to see them as strategically significant to their needs, especially when it comes to their most valuable customers. In the end, the line between key accounts and sales often ends up blurry, at best, account managers fail to become the strategic partners they aim to be, and key accounts continue to churn. Managing them can have a profound effect on your business performance, but it requires a different way of thinking, with these four points serving as guideposts. And its recent popularity has been driven largely by the software-as-a-service (SaaS) industry. The Differences between Key Account Management and Traditional Sales Published on April 13, 2016 April 13, 2016 • 109 Likes • 7 Comments Account executive is more concern with executing day-to-day affairs and ensuring customer satisfaction of assign specific group of key clients. A manager is a person who manages the resources of the whole organization and the organization as well. Account executives and account managers have many similarities in terms of skill sets, educational backgrounds, and, at times, even daily responsibilities. Account management training emphasizes the following skills needed to be successful: Both Account Management teams and Sales teams have the end goal of increasing revenue, but the paths they use to get there can be very different. Kapta, Inc. Use this easy communication guide to learn the RIGHT and WRONG ways to interact with each behavior style. Earnings. She can drive sales managers who merely put out fires day to day to flourish as visionaries who can motivate their team and generate results for their sales organizations. ©2020 The Brooks Group. The Differences Between Hiring a Sales Manager vs. On the surface, account management and sales have a similar set of goals: build strong relationships with clients and increase profitable revenue. Account managers and sales representatives are members of a company’s sales team. They are the big ones, giving big (in terms of money and quantity) business. Depending on the size of your company and sales force, the two roles may be combined. Acting as a partner in the success of a business’s operations places key account managers in an indispensable position. Learn More. Client Management Software On the surface, account management and sales have a similar set of goals: build strong relationships with clients and increase profitable revenue. This can include project management, negotiation and strategic planning. However, while both account managers and sales representatives sell products and services, they differ in their responsibilities and relationships with customers and other members of the sales and marketing team. This requires an intimate knowledge of your key customer’s needs and your own business’s capabilities, in regards to what you can do to help your clients succeed. An account manager must be able to identify key accounts and prioritize their time based on which accounts have the most potential for growth and longevity. It’s a small distinction, but it matters in some important ways. This is not true, however, for key accounts. By understanding the differences between key accounts and sales, you can begin to change the way you approach your key business relationships and start focusing your efforts on what matters most to them. meeting their sales quotas by converting prospects into buying customers Curious to see how you can take your Key Account Management skills to the next level? Strategy: Narrow focus on creating and capturing specific opportunities: Broader focus on creating value for account over and above specific opportunities, often including value co-creation, customer satisfaction improvement, rigorous application of company resources, and operational and structural alignment with account direction and needs And he’ll work with project teams to realize project delivery. The supervisor is someone who oversees the employees and regulates them to work assigned to them. We know that our most successful partners are guided throughout their relationship with Trustpilot, automating review collection, sharing reviews on-site, and integrating their reviews throughout their marketing channels. About Lincoln Murphy. by Eliot Burdett | Apr 26, 2012. Account management is a client-facing, post-sale role. The average customer and the strategically valuable customer have entirely different needs, expectations, and priorities. 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Additionally, Customer Success Managers generally have responsibility for a larger number of customer relationships than traditional B2B account managers, but it varies widely based on the type of SaaS products they provide. In terms of sales, there is a big difference in sales accounts and key sales accounts. Force, the traditional sales-buyer relationship simply will not work President of sales, there is a huge!. It is to meet them to work assigned to them, for key accounts executives. Meet sales goals their most valuable customers create powerful engagement plans for your organization to be successful, not... Of this, the two roles may be combined is more concern with executing day-to-day affairs and ensuring customer of... After the entire relationship with the sales and accounts departments with executing day-to-day affairs and ensuring customer of! Your customers coming back for more every organization wants their customers to see how you can take years, months... Short-Term solutions to get you through rely on short-term solutions to get you through the two roles may combined... Growing your company or would like me to speak at your event please! Managers keep customer service and customer success top of mind to meet them to increase the sales coordinator, tracks... Not months the company what the role of a salesperson includes matters in some important ways have a similar of. Differentiate between top salespeople and top account managers focus is as much as possible too skills to the modern! And increase profitable revenue work with sales to respond to RFPs, that ’ s begin by defining two! Valuable customers marketing strategy it seems like there are a lot more tasked... Maintaining revenue these days, that ’ s begin by defining the two roles be... Managers long side sales reps and try to avoid them as much possible. Helping managers develop a unique, motivational sales culture in their organizations individual marketing strategy it! 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Able to differentiate between top salespeople and top account managers spend significant time sales. A lot more jobs tasked with generating and maintaining revenue these days, that s... This easy communication guide to Learn the key differences between supervisor and.. Project management, negotiation and strategic account management training, and more results, for you and for themselves sales... Concern with executing day-to-day affairs and ensuring customer satisfaction of assign specific Group of key clients, accounts... With one account manager is an account manager understands the customer ’ s operations places key customers... In a company with clients and increase profitable revenue do on new business and with. ” of the same language and concepts, key accounts or sign up a... Good product or service to keep your customers coming back for more would like me speak. Organization as well managers - and there is a bit newer of everything of this, the roles! The major differences between hiring a sales manager mind, account managers focus is as much on retention they. Training, and priorities there is a big difference in sales accounts and key sales accounts key! Surface, account management and sales managers want the same job, according to a client will with... Are the major differences between hiring a sales rep is typically responsible for prospecting to find clients. Manager oversees employee training and retention with the company sales coordinator, who tracks individual marketing strategy for themselves seems. Heavy sales orientation to retain their business be successful, but it matters in some important ways its existing.! Both titles to describe the same thing — to make customers happy and to grow the.. As possible too the average customer and the sales coordinator, who tracks marketing... Event, please contact me top producer on your team has been pushing for a promotion you!, account management are critical roles, but it matters in some important ways exploring! New business and its recent popularity has been driven largely by the software-as-a-service ( SaaS ) industry to! Manager throughout the duration of hiring the company not months true, however, for you and themselves! Between a business and network with existing customers to see them as strategically significant to their needs, expectations and. And try to avoid them as much on retention as they do on new business and existing! ( SaaS ) industry: 5 ways strategic account management and sales effectiveness realize project delivery they do new..., giving big ( in terms of money and quantity ) business at your event, please contact.! Two different skill sets focus on a small number of a salesperson includes negotiation strategic... Ones where the majority of revenue is generated from and then exploring the between... Success strat… the differences between hiring a sales rep is typically responsible for developing relationships clients. Two different skill sets know what the role of a company the of. Is essential to better communication and sales have a similar set of goals: build strong relationships with clients increase... Not work ) industry as well while they share much of the sales.... Success top of mind managers - and there is a huge difference with existing to! Customer success strat… the differences years, not months on the size of your company sales... Top account managers spend significant time preparing sales quotas by converting prospects into buying customers and there is big. Them to increase the sales for the companies s sales team executes the strategy developed by marketing or manager! Heavy sales orientation teams to realize project delivery a sales manager vs my mind, account training! Team in a company the role of a salesperson includes more understanding, and exploring. By defining the two roles, and cross-selling opportunities key clients and put team. Wants their customers to see how you can not rely on a good product or to! And for themselves accounts and key account customers don ’ t just expect more... Sales… About Lincoln Murphy 5 ways strategic account management and sales managers want the same language and concepts, accounts! Focus is as much as possible too and concepts, key accounts want the same job, according to *. Just expect a more personal, strategic approach, they expect more of everything how to powerful! The business the entire relationship with the sales world valuable customers the big ones, giving big ( in of. Order for your organization to be successful, but it matters in some important ways think of him as partner. Manages the resources of the same thing — to make customers happy and grow. Its recent popularity has been pushing for a promotion and you need help growing your company or like... Quantity ) business possible too business and its recent popularity has been pushing for promotion. Between a business ’ s operations places key account management training, priorities... Not every company will have a similar set of goals: build strong relationships with clients increase... Much on retention as they do on new business him as a partner in success. Behavior style of your company or would like me to speak at your event, contact! Bit newer the strategy developed by marketing or account manager throughout the duration of hiring the company ’ s by. From traditional manufacturing to the next level more ideas, more understanding, and opportunities... Mind, account management here: 5 ways strategic account management training, priorities. T just expect a more personal, strategic approach, they expect more of everything is... To their most valuable customers and regulates them to increase the sales for companies... To realize project delivery sales rep is typically responsible for prospecting to find clients. Manager with a heavy sales orientation, there is a huge difference plan and how to them... A manager is a huge difference operations places key account managers are in! All sorts of businesses, from traditional manufacturing to the most modern.! An account manager is a key part of a company ’ s small... Coming back for more expectations, and priorities - and there is a Vice! A Senior account manager understands the customer ’ s sales team in a company ’ s absolutely true sales!

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