In this insightful article, Andy Preston from Manchester highlights the pitfalls of trying to run an account management strategy. He argues that they are now dead in the water. There is a new paradigm with new roles to generate sales and new business. He cites the three key roles within the new sales department, set out below.
The key point for me is the understanding that it takes different types of people to run these different roles. If you understand the role, then you will find the right people to fill them. Good luck…
1) The first one is ‘New Business’. This is where the individual brings in new, fresh business from prospects that don’t currently spend money with you. Using a variety of prospecting methods, the ‘warmest’ this role gets is trying to win back a lost (or lapsed) customer. Otherwise it’s all about bring it in from scratch!
2) The second role is ‘Account Development’. The main function of this role is about bringing in more business from existing accounts – i.e people who are ALREADY spending money with you. This role is about getting those clients to spend more – whether that’s increasing order value or order frequency, taking business off your competition that may be active in those accounts, or finding new ‘buying points’ in those accounts (and getting them to spend with you), that’s the focus of the Account Development role.
In other words, it’s like having a ‘New Business’ focus within your existing accounts, and therefore requires a different skillset to the ‘new business’ role, and most definitely a different skill-set to the old ‘Account Management’ role!
3) The third role is what he refers to as ‘Account Servicing’ or ‘Customer Service’ – in effect the focus of this role is to keep the customer spending with you, deal with any complains, problems or queries, and ‘service’ their account.
Here is the link to Andy Preston and Death of Account Management