Everything you need to know about account management

Schmoozing clients is a skill, and not everyone has it. That’s why top businesses have a dedicated team of client-facing pros who take care of the customer, leaving the rest of the team free to focus on producing good work.

But being an account manager isn’t just about being your client’s best buddy — it’s about being able to balance their needs with company goals. This means showing them support while keeping a close eye on budgets, timelines, resources, and scope, all while staying abreast of industry trends. And that’s just for starters. 

Account managers play a vital role. In this article, we’ll take a closer look at what they do, why it matters, then share some tips on how to do it well. Read on! 

What is account management?

Account management is all about building strong relationships with clients. 

An account manager acts like a client-company messenger, translating the customer’s needs into tasks for the team and the team’s finished work into benefits the client understands. They need to keep both sets of people happy by attending to and balancing their needs. 

Account management typically involves the following: 

• Guiding product usage
• Showing the product’s value 
• Helping clients feel cared for 
• Offering ongoing training; and 
• Giving personalized support.

Account management vs. sales: What’s the difference?

Both deal with customers but at different stages of the journey. Sales teams are all about scooping up new business and closing deals. Account managers, on the other hand, spend their time keeping existing clients happy.  

Think of sales as the start of the relationship and account management as the long-term care.

How is an account manager different from an account executive?

These two roles focus on different stages of the relationship. An account exec is part of the sales team, which means their main goal is finding new clients. They’ll focus on things like pitches and closing deals alongside the sales team. Once they’ve got a new customer on board, just like a runner passing a baton in a race, they hand things over to the account manager. 

Why does account management matter? 

Happy customers are loyal. And loyal customers don’t just stick around — they spend more and spread the word about how great your organization is. Repeat business also means lower customer acquisition costs (CAC), because you don’t need to break a sweat reeling in new clients each time. 

Account management is the key to building real loyalty. By nurturing close relationships with their clients, account managers can spot and solve issues sooner. This keeps your customers smiling while saving the company money in the long run.

Account management is also a really good growth tool. By knowing the client’s goals inside out, an account manager can suggest new products or services that pair perfectly with their needs. This means a tailored, genuinely useful service for the client and more revenue for the business. It’s a win-win situation! 

Remember, it’s not just about selling as much as possible. It’s about working holistically with your client to build a strong, long-lasting partnership. 

What does an account manager do?

The role of an account manager can vary depending on the industry, but their main responsibilities usually include the following:

1. Building strong, long-lasting relationships: Good account managers make their clients their specialist subject. They know their goals, hopes, dreams, challenges, likes, and dislikes. This helps the client feel understood, and the account manager anticipate their needs and be ready with a solution. 

2. Fixing problems: When issues crop up, as they invariably do, the account manager is on the front line with a solution. 

3. Giving updates: Account managers tell clients about new products or changes. They also offer regular check-ins to make sure things are ticking along as they should. This has the added benefit of taking pressure off the team, who can keep their heads down on work without worrying about client management. 

4. Advocating for the client: A great account manager acts as the client’s voice within the company. They make sure the client’s needs are taken seriously by the team.

5. Advocating for the team: It’s equally important the account manager sells the team’s work, presenting it in the best possible way. And if the client isn’t won over, the account manager can explain the rationale behind the work in a way that makes better sense, or at the very least, negotiate a compromise. Because contrary to the old adage, the client isn’t always right. 

What does account management look like in different industries?

While the core goal of keeping clients happy and building strong relationships stays the same, how it’s done can vary.

Retail

In retail, account managers work with larger business clients, like stores or suppliers, rather than everyday shoppers. They handle orders, making sure customers have the right products on time. They also help clients understand new trends and product updates to drive sales.

Tech

In the tech industry, account managers help clients set up software or solutions. They might also help with training and troubleshooting. The focus is on long-term support and keeping clients updated on new features or upgrades. 

Advertising and marketing

Account managers are the link between the client and the team. They gather customer requirements, set expectations, translate this into tasks the internal team can follow, and make sure projects run on time and to budget. They might also track campaign performance (or gather data from marketing and analytics teams) and adjust the plan as they go. 

Financial services

Account managers working in finance help clients manage their investments and navigate complicated financial products. They offer personalized advice, acting as a trusted advisor who keeps the client up-to-date with market changes.

Healthcare

Account managers might work with hospitals, insurance companies, and so on to streamline service delivery. Whether that’s managing contracts or coordinating different departments, it’s their job to keep things running smoothly.  

Real estate

In real estate, account managers help clients by managing portfolios or helping with their investments. They coordinate management services, handle leasing details, and generally make sure their client’s needs are met, including keeping them updated about market trends and potential opportunities. 

Is it worth investing in account management?

For companies, investing in account management is like investing in long-term success. 

A well-managed client is more likely to stick around, spend more, and spread the word about your business. Happy clients also mean both fewer complaints and positive feedback — both of which can boost your company’s reputation while saving your customer services team some effort. 

Account managers are also good for the wider team. Not only do they save time and effort — after all, developers and copywriters have their own unique jobs to worry about — they also collect client feedback and translate it in a way that makes business sense for the team involved. 

And, if that feedback happens to be negative, there’s a buffer between the unhappy client and the person who created the work. This softens the blow, meaning your hardworking staff aren’t demotivated. That’s good news for your client and your team. 

Account management best practices (and common challenges to watch out for) 

Here are some common obstacles account managers face, plus some tips on how to handle them.

Stay proactive, not reactive

Don’t wait for problems to crop up — jump in before they happen. Make it a habit to check in with your clients. Try to anticipate their needs and address issues (and opportunities) sooner rather than later. This shows that you’re always thinking about their success, which builds trust and reinforces your value as their business partner. 

Communicate clearly and often

Be transparent about expectations, timelines, and any challenges that pop up. And don’t wait for your clients to reach out — be proactive with keeping them updated. Regular and honest communication builds trust and keeps everyone on the same page.

Speaking of communication — set clear guidelines for how and when you’ll catch up with your clients. Whether it’s articulating response times or scheduling regular check-ins, make sure they know what to expect. It’s another way to build trust and confidence in the partnership. 

Balance two sets of needs 

Account managers need to be adept at balancing the needs of clients with the goals of the company. Generally speaking, there should be alignment — you both want success for the client. But sometimes clients ask for things that are outside of your remit, be it extra demands on budget, skill, or resources. Be transparent about what’s possible, and find ways to meet the client’s needs within the company’s capabilities.

Account managers also need to juggle various teams within the business. Sales, marketing, customer support, and creative departments all have their own demands. Good communication keeps everyone pulling in the same direction. 

Truly understand your client’s business

The more you know about them, the better you can help them hit their goals. Take time to learn about their target market, capabilities, limitations, and what success looks like for them. Armed with this knowledge, you can offer better solutions while helping them feel understood. 

Build strong, personal relationships

It might be a business relationship, but it doesn’t have to feel cold and transactional. Clients want to feel like they’re more than just another account to you, just as much as you want to feel like you’re more than a service provider to them. Take time to build a real bond by being invested in their success. A personal connection can make a big difference, especially when it comes to negotiating problems like missed deadlines or poor results.

Be responsive

No-one likes radio silence. When clients reach out, whether it’s with a question or a concern, they expect a speedy response. Even if you don’t have an answer right away, simply acknowledging their request shows that you respect their time while reiterating that they’re a priority. 

Manage expectations

Every client has high expectations, but they’re not always aligned with the business. To mitigate any wobbles, set realistic boundaries from the beginning and make sure your clients understand them. If something changes — like a delay — make sure to update the client right away so they’re never left in the dark.

Occasionally, you can’t deliver the results a client wants. If an account is underperforming, have a frank conversation about their goals and the challenges they’re facing. Offer solutions, track progress closely so you can ground your thoughts in objective stats, and make adjustments to improve outcomes.

Always look for ways to add value

Your job isn’t just about keeping problems down — it’s about finding ways to improve your client’s life. Where appropriate, introduce new services or products that can help them grow. Be an expert who guides them, not just a service provider. This has the added benefit of boosting your revenues, too. 

You can add value by being an expert in their field, too. Staying on top of trends and competitor moves is exhausting, so take the strain by being their source of curated knowledge. 

Stay organized

Meetings, emails, reports, client follow-ups, phew! — it’s easy to feel overwhelmed. This is why top-notch time management is a must. Prioritize tasks, delegate when possible, and use tools like calendars or project management software to stay ahead of the game. It helps you hit deadlines while processing a cool and collected front to the client, which puts them at ease.

Follow up regularly

Don’t just wait for clients to reach out; take the initiative. Make time for regular check-ins. It’s a golden opportunity to see how they’re feeling, and whether there are issues looming or opportunities to offer more in the way of support.

Be clear and honest about timelines and expectations. After a discussion, no matter how casual, follow up to clarify points and see if they need anything else. It’s easy to get caught up in daily tasks and forget to nurture the relationship side of things, so consider scheduling in a regular catch up every week or month so it doesn’t slip your mind.

Ask for feedback

Don’t assume everything is going well just because a client hasn’t flagged an issue. Ask for feedback on how you’re doing and see if there’s anything you can do to improve. 

Having your finger on the pulse of your client’s mood also helps lower client churn (that’s when a client leaves or stops doing business with you), which can be tough. Regular health checks are the best way to catch issues early before they lead to untimely goodbyes. 

Fine-tune handovers

When a client moves from sales to account management, make sure the transition is a smooth one. Create detailed handover documents that cover client goals, preferences, challenges, and key contacts. This means the client is taken care of from day one, and they don’t have to repeat themselves. It also makes you look like a polished outfit. 

Have a strategy

This isn’t an ad-hoc gig. Have a strategy for each client that sets out goals, timelines, and key milestones, as well what is, and isn’t included. 

Scope creep happens when a client asks for more than you originally agreed to provide, often without adjusting the budget or timeline. To avoid it, set clear boundaries from the get-go  and make sure you discuss any changes before moving forward. Monitor as you go to make sure the project stays on track.

Track performance

Use key metrics like client satisfaction, retention rates, and revenue growth to assess how well you’re meeting client needs. Tracking helps you spot areas for improvement and celebrate successes along the way.

Practice empathy

Not all clients are easy to work with. Some may be demanding or hard to please. The key is patience and understanding. Listen carefully to their concerns, remain calm, and focus on finding solutions rather than taking things personally. Building trust through good communication can often turn a tough client into a loyal one.

Being able to see things from your client’s perspective is one of the most powerful ways to build trust. Show that you care about their challenges and success, and they’ll feel happy and supported. 

Why collaboration tools should be a key part of your communication plan 

Juggling multiple clients with their individual needs and timelines can be tough. Staying organized is key — but if you’re still limiting yourself to email and phone, you’re missing out. 

Use project management software to streamline workflows, deadlines, and client information so nothing slips through the cracks. Meanwhile, diagramming tools, video calls, and chat apps make communication easier and more flexible. 

Lots of these tools have automation features, too. Save time by handing routine tasks like follow-up emails, scheduling, or reporting over to the software. It leaves you free to focus on building relationships and solving problems rather than getting bogged down by admin.

In the end, account management is about people. It’s about communicating well and making clients feel valued. When you do it well, it benefits both the company and the client in myriad ways. And that’s what makes it such a vital part of any successful business. Ready to try tools to take your talent up a notch? Explore Nulab collaboration tools for free today.