What is account management? Definition and breakdown

[mouakter11]

For lasting success, businesses and sales teams must build long-term relationships with customers. Effective account management strategies help you improve customer satisfaction, leading to increased revenue and a competitive advantage in your industry.

In this article, we explore a definition of account management, what it looks like in different companies, and examples of useful account management software . We'll also review best practices and common challenges account managers face.

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What is account management ?
Account management is a strategic approach to managing and fostering business relationships with key clients. It involves identifying and understanding customer needs, developing customized solutions, and communicating regularly to build customer loyalty.

The goal of account management is to maximize ongoing customer value while driving revenue growth and profitability for the company.

Proper account management involves collaborating with internal teams to ensure the delivery of high-quality products or services. For example, you may need to:

Consult with the sales department to better understand customer needs

Work with operations to ensure those needs are met

Coordinate with customer service to resolve any issues

Improving customer experience generates more revenue because fusion database satisfied customers are more likely to be loyal, increasing retention and lifetime value.

An account management team also actively seeks additional ways to increase revenue, regularly reviewing accounts to identify upselling and cross-selling opportunities that align with client goals.

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For some companies, an account manager and a customer success manager serve the same role. Both prioritize building long-term relationships. However, the definition of account management places greater emphasis on developing and executing account plans to maximize growth and increase revenue.

Despite their similar names, account managers are also different from account executives. While account executives also provide after-sales support, they are primarily responsible for working with potential clients and helping them throughout the sales cycle until a deal is closed .