How do you choose an account executive and account manager? What are the differences?
To bring in new client accounts, an account executive is responsible. There are intricate contracts to work through, details to iron out, and agreements to make when those new clients are brought into the business. The account manager can help in this situation.
In regards to all client issues, the account manager is the primary point of contact. They anticipate the client’s needs, cooperate with the rest of the team to make sure the client’s deadlines are met, and support the client’s success. The account executive is now free to pursue additional potential clients.
The roles, compensation, and qualifications of each position are compared in this article along with the differences between an account manager and an account executive.
Please continue reading for more information about the differences between an account executive and an account manager.
Table of Contents
Account Managers: What Are They?
Account managers typically work on the sales team but are not directly involved in closing deals. Account managers typically enter the picture following the conclusion of a deal and a sale. The task of maintaining client satisfaction falls to account managers, particularly with regard to important or sizable clients.
Account managers might be given charge of several clients’ accounts at once. They collaborate with the sales team to gain knowledge of the client’s requirements and available options. The Account Manager then works to offer the client first-rate support. To better understand the client’s needs and make sure their solution is operating as effectively as possible, they may schedule regular meetings with them.
Account Executives: What Are They?
Account Executives frequently function as a part of a company’s sales team, similar to account managers. The sales process does, however, directly involve them. Account executives are tasked with finding new clients for their business, converting those clients, and building relationships with both existing and potential customers.
Account executives are distinct from corporate executives. Although they typically don’t manage a team, they might have more freedom and control than a typical sales associate. Potential clients are met with by account executives in order to develop a rapport and close a deal. They are frequently used in business-to-business interactions to deliver a tailored sales pitch for an organization.
The Main Differences Between An Account Executive And Account Manager
Their responsibilities and areas of emphasis highlight the main distinctions between an Account Manager and an Account Executive. Account executives find new clients, close deals, and increase sales. Account managers work hard to preserve client relationships and keep clients satisfied with the solution they have chosen.
Work is done in different parts of the sales process by account managers and account executives. Account executives make the first impression on a potential client, but they frequently lose touch after the sale. Although they don’t interact with a client until after a sale, account managers are in charge of upholding client relations. Both positions may answer to a manager or a hire in the fractional sales management. They might play roles for companies that outsource their sales services.
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Industry Differences Between An Account Executive And An Account Manager
The responsibilities of an account executive and an account manager can vary by industry. Based on the goods and services a company offers, specific obligations and duties for each role may change. The following list includes a few hypothetical industry contrasts.
- To provide customer support in some circumstances, an account manager may need to possess a deep understanding of a given product or solution. They may also refer a case to a specialized customer support team in other circumstances.
- In some businesses, account executives supervise salespeople as they guide customers through the sales process. Account executives may work alone for other companies.
- In some organizations, Account Managers and Account Executives may collaborate closely, while in other organizations, their roles may be divided among different teams.
Account Manager Vs Account Executive-Salary
Account Manager Salary
The majority of account manager positions pay a base salary with a bonus or commission structure. The average base pay for an account manager, according to Payscale data, is $56,792 annually, with a typical range of $39,000 to $85,000.
Additionally, annual commission payments range from $2,000 to $38,000, and sales bonuses typically range from $978 to $20,000 per year. Additionally, some account managers claim to receive profit-sharing pay that ranges from $576 to $12,000 annually.
Becoming An Account Manager
Account managers need a number of skills related to dealing with customers and providing customer service, including empathy, teamwork, selling, and general personability. Also required is the technical know-how to operate a customer relationship management (CRM) system or other software that is comparable.
For some businesses and industries, account manager positions may be entry-level. Many account managers, however, have prior sales roles, such as a sales development representative and business development representative (BDR), if the position necessitates prior experience. Additionally, there are others who have worked in customer service or support roles.
Even though there isn’t a specific sales certification needed to be an account manager, choosing the right one could increase your chances of landing a job and raising your salary, especially if it has to do with using CRM software or is tailored specifically to customer service and account management. The free sales courses and certifications offered by HubSpot Academy are a great way to stand out from the competition on the job market.
Account Manager Vs Account Executive-Roles & Responsibilities
Account Manager Roles & Responsibilities
An account manager makes sure that clients get the goods and services they need. They take on several active accounts, meet with the clients involved, and give the account teams more insight into how they can completely satisfy their clients. To anticipate and address the needs of their clients, they need to be excellent communicators and problem solvers. Regular client communication is required of account managers. Despite keeping regular office hours, they might get the chance to travel to meet with clients. Account managers can advance to become key account managers, who work with the most lucrative accounts in their company, or account supervisors, who supervise teams of managers.
An account manager’s duties include:
- Manage the flow of information between customers and project teams
- Foster positive long-term relationships with clients by providing follow-up services
- Stay up-to-date with their company’s offerings and present new products to customers to gain more business
- Help frustrated clients express their needs to project teams
Account Executive Roles & Responsibilities
An account executive finds new customers, whereas an account manager takes care of the needs of current clients. Because account executives do not have executive authority or a management position, the title is unclear. Instead, they locate potential clients, create a pitch that is tailored to the client’s requirements, and then seal the deal with a contract to sell a company’s services. As the first point of contact for a client with the business, they must possess excellent interpersonal skills. Account executives may travel frequently to meet with potential clients even though they keep standard office hours. An account executive may advance within their organization to higher-level marketing, management, or sales positions depending on their industry.
An account executive’s duties may include:
- Network with existing clients to find potential customers
- Represent their company to new customers
- Establish a positive relationship with clients early-on to help foster a long-term relationship
- Meet monthly sales quotas
- Resolve customer complaints
Account Manager Vs Account Executive-Job Outlook
Job outlooks reveal which positions are expanding and which are not. Based on the job outlook, you can ascertain whether companies are hiring account executives or account managers. A field’s growth potential can also be determined by looking at the job outlook.
It is significant to remember that industry-specific job outlooks can vary and that they are only intended to provide a general picture of a given position. You can learn more about the employment outlook for your preferred industry if you’re thinking about a career as an account executive or account manager.
Account Executive Job Outlook
The need for Account Executives is expanding. Account executives are expected to see a 5% increase in employment between 2014 and 2024, according to the Bureau of Labor Statistics. Despite the growth’s modest size, it will nonetheless result in the creation of 19,000 new jobs in the sector over the next ten years.
Account Executives are frequently recruited from within an organization, and jobs may occasionally go to promoted salespeople. Working as an account executive may also present opportunities for advancement. Account executives may be hired for senior positions externally or internally. Account executives frequently pursue career paths that lead them to positions as Chief Operations Officer or Vice President of Business Development.
Account Manager Job Outlook
Compared to Account Executives, information on the employment outlook for Account Managers is less accessible. This might be because different organizations and industries have different definitions of the position. Additionally, the term “Account Management” has been replaced with “Customer Success” for the role. The outlook appears optimistic in general, though.
Account managers can advance their careers along a number of different paths through internal and external promotions. Account managers frequently begin their careers as entry-level sales associates or customer service representatives. Account managers have the potential to advance to director status and manage other account managers or departments.
Account Manager Vs Account Executive – Job Requirements
It’s crucial to pay attention to the job requirements when applying for an account manager or account executive position. Organizational needs will differ since each role requires a particular kind of person to be filled. The demands of an account executive or account manager’s job are similar across industries, though, quite frequently.
The information included in job requirements ranges from experience and skill requirements to educational requirements. Normally, a job description will contain this information, or you can ask the hiring company for it.
Account Manager Requirements
Account managers regularly interact with clients face-to-face. They must be excellent communicators and listeners who can recognize a client’s needs and difficulties. To stay on top of a client’s needs and make sure they are met, they should also possess strong problem-solving and organizational skills.
Account Managers frequently need to be able to:
- Bachelor’s degree in marketing, communication, business, public relations, or a similar field
- Experience as a sales associate or customer service representative
- Ability to multitask
- Attention to detail
- Strong communication skills
- Strategic thinking and problem-solving abilities
Account Executive Requirements
Account managers frequently have similar job requirements as account executives, but the latter’s organizational focus is a little different. In order to ascertain a prospective client’s needs and close a deal, Account Executives must be outgoing and effective communicators.
Account executives typically need to be able to:
- Bachelor’s degree or higher (master’s degree may be preferred) in business management, accounting/finance, marketing, communication, or a similar field
- Several years of experience in the field, including sales and customer service
- Proven sales skills
- Strong communication skills
- Project management skills
- Ability to negotiate
- Public speaking skills
Account Executive Vs. Account Manager: Which Is Better?
The hierarchy of a company frequently treats account executives and account managers on an equal footing. There isn’t necessarily a better role than the other because they typically require similar skill sets, credentials, and training. A senior account manager with many years of experience, rather than a new account manager, may be assigned to those accounts in large companies or organizations that manage extremely valuable or significant accounts. Account executives are also subject to the same possibilities.
Following the development of their expertise and field experience, account executives and managers both have the opportunity to advance. Some account executives and account managers may advance through the ranks to a sales manager position, where they are in charge of leading the sales team, or a regional sales manager position, where they are in charge of managing sales teams across several branches or locations. Following that, former account executives or managers can advance to a variety of executive positions, including vice president of sales or sales director.
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Similarities Of Account Managers & Account Executives
Working with a company’s sales team, account managers and account executives both directly influence revenue. Account Managers maintain recurring revenue while bringing in new revenue through upselling or cross-selling, as opposed to Account Executives who often start their sales with innovative outreach ideas.
The upkeep of relationships and serving as an organization’s representative fall under the purview of both account managers and account executives. Account executives frequently act as a client’s first point of contact with a business, and they have the power to influence how the relationship will develop. Then, account managers make sure a client has a favorable opinion of the business and a good working relationship with it.
Be An Account Executive Or An Account Manager
Account managers and executives have different roles and responsibilities, but both careers start out with very similar training. To become an account manager or executive, follow these steps:
Completing A Bachelor’s Degree
Account managers and executives typically have a bachelor’s degree in marketing, communications, business administration, or a closely related field. Some of them have master’s degrees in business or marketing, particularly if they play more important roles in an organization. However, for this career, a bachelor’s degree in a relevant field is typically all you need.
Gaining Some Work Experience
Since most account executives and account managers have previous sales experience, this gives them the chance to obtain an internship and learn different persuasion techniques. You can seek employment as a sales representative or agent, which enables you to work with an account manager or executive and gain first-hand knowledge of this high-level position. Plan to work in entry-level sales positions for at least three to five years before pursuing a promotion, as most account manager or account executive roles require at least that much experience.
Developing Key Skills
It’s critical to develop a broad range of skills if you want to succeed as an account manager or account executive. Consider the following examples as some examples:
- superior interpersonal abilities: A key component of being an account executive or account manager is having excellent interpersonal skills. It’s crucial to have strong interpersonal skills in these roles because they involve a lot of client interaction. By doing so, you can ensure that you’re meeting their needs and paying attention to what they have to say.
- Account managers and account executives must be adept at communicating through all channels available, so they should have the following communication skills: over the phone, via email and in person.
- A manager or executive in charge of an account can successfully pitch and carry out ideas by using their leadership skills. In order for management and clients to support their strategies, it is crucial that they have confidence.
- Account executives and account managers must be excellent negotiators in order to satisfy both their employers and their clients. In order to make a business relationship mutually beneficial, they work to establish win-win scenarios.
- technical foundations: It takes some basic technological or computer skills for account managers and executives to keep track of all assigned client accounts and their history. This typically implies having a solid grasp of the company’s client relationship management (CRM), which includes spreadsheet and word processing software.
- Account managers and executives frequently work on several accounts at once, so they need to be able to multitask. They must pay careful attention to every detail while selectively concentrating on each account’s crucial features.
- Customer service abilities: Account managers and executives need to be aware of their clients’ needs. Making customers feel satisfied depends on comprehending their needs. Account managers and executives may also benefit from doing this by using their current clientele to generate new business.
Gaining Management Experience
Usually, teams of sales representatives are under the management of account executives and account managers. Since management experience can help you in either of the two roles, it can improve your qualifications. You can enroll in a leadership development workshop at work, sign up for an independent management workshop, or request more management responsibilities from your manager or supervisor to gain management experience.
Final Words
Do you know the differences between an account executive and an account manager now?
Both account executives and managers are crucial to a sales operation’s ability to make money. Although the scope of their roles differs—one deals with current clients, while the other handles new business—they both have the potential to be excellent careers with lots of room for advancement and high earnings.
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