33: Account Management

B A (JMC) (3-YDC), SEMESTER SYSTEM

SEMESTER –IV

SEC III: PUBLIC RELATIONS AND EVENT MANAGEMENT

Unit-2: EVENT MANAGEMENT

LESSON – 33: Account Management

 

Objectives:

1.      Know what is account management.

2.      Explain the role and responsibilities of account manager.

3.      List types of account management.

4.      Learn how to improve account management.

5.      Understand the challenges and solutions in account management.

 

Introduction:

Account management is the process of building, maintaining and nurturing strong relationships with key customers to drive growth and also the revenue for a business. It is all about understanding the clients' needs, providing exceptional service, and creating value that keeps them returning. Account management involves understanding the customer needs, developing solutions, communicating regularly, collaborating with internal teams, providing exceptional service, maximizing retention and growing revenue. Account management is a critical aspect of business success because it leads to loyalty, advocacy, and long-term revenue.

The purpose of an account manager with an event management company is that he serves as the liaison between company and its customers. It is an account manager's responsibility to address customers' needs and concerns as quickly and effectively as possible to develop and maintain strong relationships.

In this lesson we discuss about what is account and its management; role and responsibilities of account manager, types of account management; key skills and best practices of account management; steps to improve account management; challenges in account management and solutions etc.,

Event management & Account management:

As we already learnt about event management, it is the process of planning and hosting a variety of public and private events for social or business purposes. They may be large-scale or small-scale events and can include business conventions, training seminars, industry conferences, trade shows, ceremonies, parties, concerts, festivals, exhibitions and press conferences. Event managers must follow the clients' instructions and work within a specified budget and predetermined schedule. To set up the events, it is a must to collaborate with various vendors. On the other hand, account management is a strategic approach to managing and nurturing business relationships with key customers or clients while managing an event. 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 value for the customer while also driving growth and profitability for the business.

Effective account management involves collaborating with internal teams to ensure the delivery of high-quality products or services. For example, it needs to (1) check in with sales to get a better understanding of the customer’s needs (2) work with operations to ensure those needs are being met and (3) coordinate with customer support to resolve any issues. Improving the customer experience leads to more revenue because happy customers are more likely to be loyal, increasing customer retention and lifetime value. An account management team also actively looks for additional ways to grow revenue, regularly reviewing accounts to identify upsell and cross-sell opportunities that align with customers’ goals.

For some businesses, an account manager and a customer success manager play the same role. Both prioritize long-term relationship building. However, the definition of account management places a greater emphasis on developing and executing account plans to maximize growth and increase revenue. This account manager will also perform the same job with Advertising agencies and Public Relations agencies to do liaison with clients. Despite similar names, account managers are also different from account executives. While account executives also offer after-sales support, they are mainly responsible for working with prospective leads and helping them through the whole sales cycle to closing a deal. Account managers are responsible for maintaining and building relationships after a deal is closed.

Thus account management and event management are both areas that involve planning and managing, but they have different focuses. Account management in the event management industry involves building relationships with clients, understanding their needs, and providing solutions. Account managers are the main point of contact for a company's clients and are responsible for ensuring customer satisfaction. 

Role & Responsibilities

Role: The role of an Account Manager is developing strong relationships with customers, connecting with key business executives and stakeholders and preparing sales reports. Account Managers also answer client queries and identify new business opportunities among existing customers. In this role, he or she will liaise with cross-functional internal teams including Customer Service and Product Development departments to improve the entire customer experience. This position may require occasional travel.

Getting familiar with account management software i.e. customer relationship management, will have a flair for client communication and understand consumer behavior. Ideally, candidates for this role will know how to meet ambitious individual and team-wide sales quotas. Ultimately, a successful Account Manager should collaborate with sales team to achieve quotas while keeping the clients satisfied and engaged with the products or services in the long-run.  

Responsibilities: Here are some of the responsibilities that an Account Manager is to discharge.

a)      Serve as the lead point of contact for all customer account management matters

b)      Build and maintain strong, long-lasting client relationships

c)      Negotiate contracts and close agreements to maximize profits

d)      Develop trusted advisor relationships with key accounts, customer stakeholders and executive sponsors

e)      Ensure the timely and successful delivery of our solutions according to customer needs and objectives

f)       Clearly communicate the progress of monthly/quarterly initiatives to internal and external stakeholders

g)      Develop new business with existing clients and/or identify areas of improvement to meet sales quotas

h)      Forecast and track key account metrics e.g. quarterly sales results and annual forecasts

i)       Prepare reports on account status

j)       Collaborate with sales team to identify and grow opportunities within territory

k)      Assist with challenging client requests or issue escalations as needed

Skills: Proven work experience as an Account Manager, Key Account Manager, Sales Account Manager, Junior Account Manager or relevant role requires certain skills. They are -

a)       Demonstrable ability to communicate, present and influence key stakeholders at all levels of an organization, including executive and C-level

b)       Solid experience with CRM software e.g. Salesforce, Zoho CRM or HubSpot and MS Office, particularly MS Excel

c)       Experience delivering client-focused solutions to customer needs

d)       Proven ability to juggle multiple account management projects at a time, while maintaining sharp attention to detail

e)       Excellent listening, negotiation and presentation abilities

f)        Strong verbal and written communication skills

g)       Appropriate degree in Business Administration, Sales or relevant field

 

Types of Account Management

Here are four types of account management one can use within a business. They are Sales account management, Key account management, Strategic account management, Territory and industry specific account management. The right approach will largely depend on the budget and the business goals.

1.      Sales account management: The most basic form of account management, sales account management involves looking after a wide selection of the company’s customer base. Sales account managers maintain regular contact with their assigned customers and handle any routine inquiries. Typically, there is not a large potential for revenue growth here, so sales account managers spread their attention over a greater number of clients. However, they still look for ways to increase both the product’s value to the customer and the customer’s value to the business. For smaller organizations with more limited resources, these responsibilities may be handled by the sales team.

2.      Key account management: i.e. KAM narrows the focus down to the business’s most important customers, enabling account managers to spend more time with fewer accounts. These clients may be important because they generate a lot of projected revenue, open up new areas for future growth or lead to valuable publicity and prestige. Because they are integral to the company’s success, it is worth spending extra time maximizing your service and exploring additional business opportunities with them. For example, a Software as a Service company may assign one or more key SaaS Account Managers to look after those enterprise clients that represent the most significant source of revenue for the business.

3.      Strategic account management: For many people, key and strategic account management are interchangeable terms. However, some businesses make a distinction. They define a strategic account as one that is not only useful but absolutely critical to the business’s plans and success. These accounts typically generate a significant portion of the organization’s revenue and require a strategic approach to ensure their long-term success. For example, a global technology company might designate its Fortune 500 companies as strategic accounts and prioritize building long-term partnerships with those customers.

4.      Territory and industry-specific account management: Account management is often also categorized by other criteria like territory and industry. For example, a large multinational business might benefit from focusing on clients from a specific geographic region. Customers then get to deal with an account manager who understands the intricacies of the local marketplace. Likewise, accounts could be grouped based on business type and assign account managers who have specialized knowledge of that industry. For example, an equipment manufacturer company could have a dedicated account manager for their construction clients. Providing expertise and advice in that area creates added value for the customer and builds trust.

Best Practices:

The best account managers know that it takes more than just the occasional message checking in with customers to build strong relationships. Here are the best practices the Account Managers need to excel in their roles.

1.      Communication: Communication is one of the most important soft skills to master in any sales-related role. Account managers need to clearly communicate with their assigned customers, quickly identifying their needs and presenting potential solutions. They should communicate regularly, but quality is as important as quantity. As they get to know the customers and find out what is going on beneath the surface, they can uncover challenges the customers may not have fully recognized themselves.

2.      Proactive thinking: Rather than waiting for customers to come to them, account managers need to be proactive. They should use their knowledge of the customer to anticipate their needs. For example, may be a customer has a big upcoming project. The project manager should consider what they will need to make that project successful. Will the company’s solution be sufficient, or will they need additional help? Proactive thinking ensures customers avoid potential obstacles. It helps managers spot growth possibilities while demonstrating their commitment to the customer.

3.      Collaboration: Managers often have to work closely with internal teams to ensure they handle accounts to the best of their abilities. Effective collaboration involves more than simply relaying messages or giving orders. Managers need to get to know their colleagues in the company and the way they work. Rather than making big promises to the customer and then expecting other departments to follow through, managers should let the teams know what they are trying to achieve and ask for their advice. This kind of open communication will help managers find the best solutions without placing impossible demands on the other teams.

4.      Sales and negotiation: While account management is technically a post-sales role, it still generates revenue. A good account manager will identify new mutually-beneficial opportunities within the account. For example, an account manager may spot upsell opportunities where a customer would benefit from a product upgrade. Alternatively, they may know of a related service that would help the customer better achieve their goals. Strong sales skills will help the manager articulate the value of these opportunities to the customer, negotiate the contract terms and close the deal.

5.      Using the right technology: From managing customer data to analyzing sales performance, technology makes account managers more effective at meeting customer needs. To optimize account management processes, consider using account management software designed to improve client relationships and drive sales. A customer relationship management system tracks customer interactions, manages account information and provides insights into the customer and their preferences. This information helps account managers better understand customer needs and tailor their approach accordingly. Similarly, email marketing software helps account managers streamline their customer communication while automation tools take care of time-consuming admin tasks. This frees up account managers to spend time providing customers with more personalized assistance.

6.      Continual learning: Account management is all about growth. Account managers need to find ways to help customers and the business within that account grow. They also need to make time to grow themselves through regular learning. For example, are they up to date on industry trends and developments? What are the latest regulations and best practices that will affect their customers? Attending events in a customer’s industry and reading relevant trade publications will help them understand their challenges and serve as their trusted advisor. Formal sales training can also help people develop vital job skills. Attending conferences, courses, trade shows and other sales events can help them become more proficient account managers.

Steps to improve:

The account management process varies depending on the organization and the type of accounts that are managed. However, following certain steps will improve the experience for both the Account Manager and the Customer. And the steps are -

1.      Choose accounts to manage: Assigning a dedicated account manager to every single one of the customers is not feasible for most businesses. Account management requires a significant investment of time and energy, so one will have to choose where to invest those resources carefully to see a positive Return on Investment. Identify the customer accounts with the greatest potential for revenue growth and long-term profitability. Depending on current objectives, one might also include more strategic accounts that will raise the profile or help break into new markets. Define ideal customer profile (ICP), including industry, company size, location and revenue. Use this picture of ideal customers to prioritize the accounts. Narrow the list further by considering factors such as the level of competition in each account, the strength of existing client relationships and the resources required to manage each account effectively.

2.      Identify account needs: Once it is clear who the VIP customers are, the next step is to get a deeper understanding of what they are trying to accomplish. Why did they buy the product or service? What is their goal? For example, if representing a marketing platform, a key account may be looking to reach a new audience, break into different channels or recreate its brand story. Establish open lines of communication with the customers. Take a proactive approach to understanding their business, conducting regular check-ins with key stakeholders and decision-makers. Can also get insights by conducting customer surveys, holding workshops and analyzing customer data. Account needs will not always be obvious, so conducting a thorough analysis is important. This could mean doing general market research or analyzing the existing sales data to understand customers’ current state, identify areas for improvement and assess potential risks or challenges.

3.      Set account goals: Create internal sales goals to help the accounts move closer to their objectives. In line with the SMART methodology, the goals should be Specific, Measurable, Achievable, Realistic and Time-based. For example, in the case of a marketing agency, one might set a performance objective like increasing website traffic by 20% within the next six months by implementing a social media campaign. Regularly review and adjust goals as necessary based on changes in the market or shifting customer priorities.

4.      Develop solutions: Having worked out the account goals, create a roadmap to reach those objectives. In most cases, a long-term plan is needed for managing the account and understanding the broader market and industry trends. Work with internal team members to develop unique solutions that meet the customer’s needs within the capabilities. A customizable customer relations management can help collect key information and tailor every step of the process to each account. For example, one can store notes and contact history for every account, including meeting recordings, email exchanges and documents sent. Can also personalize future interactions by recalling past conversations, offering relevant recommendations, following up on contract signatures and more. Customers thrive when they get a personalized experience. By offering custom products or services, personalized communication and dedicated support, can differentiate the self from competitors that offer more generic solutions.

5.      Measure and improve: Regularly review the account objectives and verify whether on target to reach the goals. As part of measurable SMART goals, one should already have defined specific sales metrics to measure progress. For example, in this marketing agency example, success is based on a 20% increase in website traffic. A quick glance at the website analytics will tell us whether or not we reached the objective. However, it needs other related metrics to determine the effectiveness of the plan. In this case, looking at activity metrics i.e., how many social media posts you published and engagement with social media campaign impressions, comments, clicks, etc. to determine what worked and what needs to change. On top of the specific plan, looking at the overall account performance is good. It is good to assess the accounts’ satisfaction levels and revenue performance, using metrics such as Net promoter score (NPS), Customer satisfaction (CSAT), Number of cross-sells & upsells, Customer lifetime value (CLV), Average order value (AOV) and Revenue. This data, combined with customer feedback, will identify trends and opportunities for improvement to help maintain strong ongoing relationships.

Challenges & Solutions:

Even the best account management program will run into challenges. Here are some common obstacles account management plans face and the practical steps to overcome them.

Limited resources: Account management can feel like a magic bullet at times, strengthening customer relationships while also increasing revenue. However, it can be easy to become overwhelmed trying to keep up with all the accounts with limited account management resources. Juggling too many dilutes the focus, making it impossible to give each account the attention it needs and leading to lacklustre results.

The solution: Go back to step one and revisit how to decide which accounts get special attention. If almost every customer is being designated a key account, get stricter with the criteria. Cut down managers’ workloads by focusing them on the accounts that bring the biggest results. Can also look for other ways to group accounts, such as by size, industry, region and other factors. Managers can work more efficiently when they have a more singular focus for all their accounts.

Balancing competing demands: Account managers will often face competing demands within the account. For example, a client might be excited about long-term strategic plans for their business, but they still want to see more immediate results. It may result in dealing with competing demands within the business, whether allocating resources to client accounts or coordinating internal departments on account projects.

The solution: Open communication, both internally and externally, is essential. Talking to account contacts to ensure understanding their priorities and expectations is always suggested. Providing them with regular updates on the account plan, breaking it down into smaller milestones so they get a sense of the progress. Working alongside other departments and checking that expectations are realistic is necessary. Being flexible and willing to adjust the plans as necessary to help internal teams and meeting changing client needs is a good practice.

Lack of information: Account managers need a variety of information to carry out their role effectively, from customer details to detailed product specifications. Work suffers when they do not have this information, or when it is spread across multiple locations without any clear organization.

The solution: Determine the exact information needed and work with the customers and internal departments to uncover it. Collect it all in an organized database that is easy to access. Invest in technology such as CRM software and ensure it is regularly updated, making it a reliable single source of truth for the benefit of the company and the customer-facing teams.

Account management takes a lot of time and effort to get results. One shall choose the accounts wisely and work closely with them, effectively becoming part of their business and collaborating on their goals. When managing accounts effectively, finding the deeper alignment between their objectives and the solutions offered, will forge stronger relationships while continuing to expand a business. The result is a genuine win-win scenario for the organisation and its customers.

Summary:

Account management in event management and event planning refers to the strategic process of building and sustaining strong relationships with clients, particularly focusing on understanding their needs, delivering customized event solutions and ensuring their satisfaction throughout the entire event lifecycle, aiming to foster long-term loyalty and repeat business. This involves actively communicating with clients, proactively addressing concerns, and collaborating with internal teams to execute events that align with client objectives.

Key aspects of account management in event management include (1) Client Acquisition i.e. identifying potential clients, understanding their business goals, and crafting proposals that meet their specific event requirements (2) Relationship Building. It means establishing a trusting rapport with clients through regular communication, active listening, and demonstrating a deep understanding of their business needs (3) Needs Analysis i.e. conducting detailed discussions with clients to identify their desired event outcomes, target audience, budget constraints and key performance indicators. (4) Strategic Planning for developing a comprehensive event plan that aligns with client goals, including venue selection, budget allocation, program design, marketing strategies and logistics management. (5) Project Management to oversee all aspects of event execution, ensuring timelines are met, vendors are coordinated, and contingencies are addressed (6) Post-Event Analysis: It means evaluating the success of the event against pre-set metrics, providing detailed reports to clients, and identifying areas for improvement to enhance future events.

By prioritizing account management, event planners can cultivate a loyal client base, maximize client retention and generate repeat business through consistent delivery of high-quality events that effectively meet client expectations. Account management in event planning is not just about executing an event; it is about building a strong, collaborative relationship with clients to ensure their ongoing satisfaction and loyalty.

Frequently Asked Questions (FAQs):

1.        What do you mean by account management?

2.        What are the responsibilities of an Account Manager?

3.        Explain Sales Account Management.

4.        What skills are required for an Account Manager?

5.        What are the best practices in account management?

 

Model answers to FAQs:

1.      Account management is the process of building, maintaining and nurturing strong relationships with key customers to drive growth and also the revenue for a business. It is all about understanding the clients' needs, providing exceptional service, and creating value that keeps them returning. Account management involves understanding the customer needs, developing solutions, communicating regularly, collaborating with internal teams, providing exceptional service, maximising retention and growing revenue. Account management is a critical aspect of business success because it leads to loyalty, advocacy, and long-term revenue.

2.      The responsibilities of an Account Manager are to serve as the lead point of contact for all customer account management matters; to build and maintain strong, long-lasting client relationships; to negotiate contracts and close agreements to maximize profits; to develop trusted advisor relationships with key accounts, customer stakeholders and executive sponsors; to ensure the timely and successful delivery of our solutions according to customer needs and objectives; to clearly communicate the progress of initiatives to internal and external stakeholders; to develop new business with existing clients and identify areas of improvement to meet sales quotas; to forecast and track key account metrics and to collaborate with sales team to identify and grow opportunities within territory.

3.      Sales account management is the most basic form of account management. It involves looking after a wide selection of the company’s customer base. Sales account managers maintain regular contact with their assigned customers and handle any routine inquiries. Typically, there is not a large potential for revenue growth here, so sales account managers spread their attention over a greater number of clients. However, they still look for ways to increase both the product’s value to the customer and the customer’s value to the business. For smaller organizations with more limited resources, these responsibilities may be handled by the sales team.

4.      The skills required for an Account Manager are as follows: Demonstrable ability to communicate, present and influence key stakeholders at all levels of an organization, including executive and C-level; Solid experience with CRM software e.g. Salesforce, Zoho CRM or HubSpot and MS Office, particularly MS Excel; Experience delivering client-focused solutions to customer needs; Proven ability to juggle multiple account management projects at a time, while maintaining sharp attention to detail; Excellent listening, negotiation and presentation abilities; Strong verbal and written communication skills and Appropriate degree in Business Administration, Sales or relevant field

5.      Here are the best practices the Account Managers need to excel in their roles. Communication is one of the most important soft skills to master in any sales-related role. Rather than waiting for customers to come to them, account managers need to be proactive. Managers often have to work closely with internal teams to ensure they handle accounts to the best of their abilities. A good account manager will identify new mutually-beneficial opportunities within the account. Account managers need to find ways to help customers and the business within that account grow.

Multiple Choice Question (MCQs):

1. Account management is the process of building, maintaining and nurturing strong relationships with ____________

a)      Management

b)      Key Customers

c)      Stakeholders

d)      Partners

2. ____________ is one of the most important soft skills to master in any sales-related role.

a)      Communication

b)      Information

c)      Marketing

d)      Budgeting

3. For some businesses, an Account Manager and a ________________ play the same role.

a)      Public Relations Manager

b)      Public Information Officer

c)      Customer Relations Manager

d)      Customer Success Manager

4. __________________ is not a type of account management

a)      Sales Account

b)      Key Account 

c)      Strategic Account

d)      Audit of Accounts

5. Account managers need a variety of ___________to carry out their role effectively,

a)      Tools

b)      Techniques

c)      Information

d)      Funds

 

Keys to MCQs: 1(b) 2(a) 3 (d) 4(d) 5(c)

Glossary:

Event Management: Event management is the application of project management to the creation and development of small and/or large-scale personal or corporate events such as festivals, conferences, ceremonies, weddings, formal parties, concerts, or conventions.

Account Management: Account management is the practice of building and maintaining relationships with customers to increase revenue and retention:

Key Customer: A highly valuable customer who makes significant purchases, is loyal to the brand, and contributes a large portion of a company's sales, revenue, and profitability. Key customers are also known as key accounts. 

Communication:  In management, communication is the process of exchanging information between people to plan, lead, organize, and control. It's a fundamental part of management and is often the most time-consuming activity a manager does. 

CRM: It is a strategic approach to managing interactions with current and potential customers, leveraging technology to enhance customer experiences, build loyalty and drive business growth.

Proactive Communication: Proactive communication is a communication style that involves anticipating problems and reaching out to customers before they occur. It's the opposite of reactive communication, where businesses respond to customer issues after they arise. 

SMART methodology: The goals of this methodology are Specific, Measurable, Achievable, Realistic and Time-based.

Skill: The ability to use one's knowledge effectively and readily in execution or performance.

Strategic Planning: Strategic planning is a business process that helps an organization define its direction, goals, and objectives for the future

Needs Analysis: A needs analysis is a systematic process that identifies and evaluates gaps between what is happening and what should be happening. It can also be called a gap analysis or needs assessment.

Key words: Event, Management, Account, Key Customers, Communication, Customer Relations, Analysis, Planning, Skills, Responsibilities

Y. Babji,

Editor, Public Relations Voice

Academic Counsellor, Public Relations (since 1989)

AP Open University/Dr BR Ambedkar Open University