Posted in Marketing and Strategy Terms, Total Reads: 723
Definition: Account Manager
An account manager is a company executive who holds the designated responsibility of a particular account or accounts. Account managers focus on developing, building and maintaining relationships with client organizations. Since many client organizations deal solely with one account manager for the entire period of the contract, account managers often become key decision-makers with respect to their account(s). Decisions may include everything from financial (resource allocation) to administrative decisions.
- Generating enough sales from accounts in his portfolio to achieve the company’s sales targets
- Ensuring deadlines for all deliverables are adhered to
- Making sure all the nitty-gritties of the contract are fulfilled
- Negotiating with clients on price, time, quality etc.
- Solving conflicts with clients
- Overseeing the work of the team assigned to the account (also includes training)
- Presenting new ideas or opportunities with respect to their account to senior management
A key account manager is assigned the responsibility of the company’s most important customers.
For example, an automotive parts company can have several clients- including automobile companies, OEMs (Original Equipment Manufacturers) as well as service or repair centers. Suppose Kirchoff Automotive Parts Limited supplies spark plugs directly to car companies Maruti, Hyundai & Ford; and also to huge individual service centres, say, Goody Car Service Centre & Parker Repair Shoppe. So, in total the company has five accounts. Two of the options that the company has-
a. Assign 5 account managers: one each for the five accounts
b. Assign 2 account managers category-wise: one for the three car companies (Maruti, Hyundai & Ford) and one for the two service centres.
c. Assign on the basis of size of accounts.
Such an assignment is generally made on the basis of the size & criticality of the accounts as well as the executive’s expertise. If Maruti is a large and critical account, the most eligible account executive would be assigned to Maruti.