Is strategic account management a cornerstone for your company, or do you limit engagement to casual client interactions? Effective account management can leverage detailed sales metrics and sales to existing clients’ networks to drive up to 80% of a business’s total revenue. While not all companies will achieve this impressive result, it highlights the potential revenue growth I want to help you unlock.
In this article, I’ll guide you through the milestones of transforming account management from lackluster to highly effective, drawing on my experience as an account management executive and Wiseboard advisor. Let’s get started.

When you feel stuck in the grind…

Acting as an advisor for companies with around 100 employees and those scaling to 300 or more, I've noticed a persistent problem: business owners often struggle to meet sales goals. The root of this issue often lies in a lack of systematic engagement with existing clients. Instead, management frequently prioritizes KPIs tied to converting leads and acquiring new customers.
Why does this matter?
This misplaced focus highlights dysfunctional account management with senior management drives inbound marketing and outbound sales. Although acquiring new clients brings revenue growth, if existing clients hesitate to initiate new projects, you miss out on built-in opportunities to generate revenue. Stagnant relationships with existing customers mean that meeting KPIs for upselling and cross-selling and boosting ROI rely heavily on acquiring new leads.
So, how can you fix this? Balance is the key.

Account managers must sell to existing clients and tap into their network

New clients and existing accounts are equally important: Both are essential and valuable for driving business growth. To efficiently generate revenue from both new leads and existing accounts, we need to balance these two factors:
● Long-term client relationships: the cornerstone of a successful business● Short-term gains: sales efforts focused on converting leads and landing new customers
In my experience, long-term strategies that generate sales to existing clients can yield 80% of a business’s revenue, with the other 20% coming from new clients. The reasons for this ratio include:
● Focusing on customer experience drives revenue growth, especially for small and medium businesses that rely on repeat customers for over half their sales.● Existing customers are more likely to try new products and spend more money than new customers.● Increased customer retention rates lead to profit growth over time.● Companies have to acquire three new customers to make up for the loss of one existing customer.
Achieving this ratio indicates a sales strategy is balanced with an account management strategy. Let's explore how to achieve this balance.

80/20 Approach: How to balance account management and lead conversion

First, assess where the account management function fits within your company paradigm. Common scenarios include:
1. Business owner with account manager functions: This might work initially but poses challenges for scaling, maintaining consistent client engagement, expanding service offerings, and managing increasingly complex client relationships.
2. Project manager with account manager functions: Project managers understand client needs and how to satisfy them, but they prioritize project-specific duties, which are not sales-oriented. This limits their ability to be proactive with upselling and leads to neglect of long-term relationships.
3. Delivery manager with account manager functions: Similar to project managers, employees in this role face a high risk of conflicting priorities between delivery management and account management responsibilities.
4. Sales development representative (SDR) with account manager functions: Account management relegated to this role is especially typical for small companies that don’t have many departments or executive units but do have people responsible for lead generation and sales.
In my experience, placing the account management function under the sales umbrella works best, as it helps mitigate the drawbacks seen in the first three scenarios. However, there are special considerations.
Using the following tips, you can efficiently integrate a dedicated account manager into the sales paradigm:
1. Focus on revenue generation: Have AMs dedicate the majority of their time to thoroughly analyzing and spotting opportunities to generate revenue from existing accounts. When done correctly, this can account for the figure I’ve mentioned — 80% of revenue.
2. Parallel integration: Incorporate account management into new client acquisition efforts immediately. Don’t wait until you have the account management process perfectly established before converting leads — balance refining your process and converting leads simultaneously.
3. Value in new clients: The number of projects and revenue generated within existing accounts can plateau. For this reason, account managers should leverage inbound marketing leads to generate 20% of revenue from new clients.
By striking this balance, you can manage both new and existing clients effectively to maintain robust client relationships and drive sustainable revenue growth.
However, to achieve the maximum revenue and continuously measure your AM’s effectiveness, you need to set targets and KPIs.

Now we’re getting to the heart of account management: KPIs. I’m sure you’re already measuring some of them.

KPI implementation tips

My aim here is to provide you with a framework for how to track account management effectiveness on a regular basis:
1.. The KPIs mentioned above are your maximum target; don’t try to implement everything at once.
2. Establish and refer to targets over time.
3. Set targets based on data. 
4. Use dashboards in your BI software or custom-made dashboard tools. While spreadsheets in Google Sheets or Microsoft Excel might seem the easiest and most cost-effective solution, they can become confusing over time.
5. Focus on knowing client satisfaction rates. Maintain focus on the following metrics:    - Sales targets    - Client satisfaction score    - Net promoter score

Key elements to level up your account management

Fine-tuning your account management strategy involves consistent, repetitive actions and interactions that become ingrained in your company's culture and operations. Stay updated on developments in your client’s niche to anticipate needs, tailor solutions, and establish yourself as a trusted advisor rather than just a service provider. Here are the key elements for achieving transformative goals:

1. Client segmentation

You can optimize your AM resources and efforts by prioritizing clients based on product fit, transaction size, revenue potential, purchasing process, customer tenure, and solvency. You can start with the Boston Consulting Group (BCG) matrix, a well-known and straightforward method for client segmentation.

The BCG Matrix categorizes clients into three distinct groups based on their market growth and market share:
Stars and cash cows: These clients have high market growth and/or high market share. Stars are high-growth clients that require significant investment to maintain their position, while Cash Cows generate steady revenue with minimal investment. Assign experienced account managers to nurture and expand these critical relationships, ensuring those clients continue to provide substantial revenue and growth opportunities.
Question marks: These clients have high market growth but low market share. They have opportunities to grow but require careful analysis and strategic investment to increase their market share. Allocate managers skilled in identifying growth opportunities to work with these clients, evaluating whether they can be transformed into Stars or should be deprioritized.
Dogs: These clients have low market growth and low market share. Often referred to as pets, they typically don't provide significant revenue and have limited growth potential. Manage these clients with minimal resources or automation, focusing your efforts on maintaining basic service levels without significant investment.

Typically, managing five to ten accounts per AM is a sound option. Initially, AMs may handle more accounts and make adjustments later based on the required level of involvement, and service needs to maintain client satisfaction and operational efficiency.

2. Communication

If you ask me what the most critical aspect of effective communication for account management is, I’d say consistency. Even if there seems to be nothing new between your biweekly meetings, reach out to your client. Set an effective cadence for meetings and follow-ups as follows:
Strategic communication plan: Develop a plan for ongoing communication with each stakeholder within your account. Expand outreach beyond project managers to C-level executives. Use your company executives for introductions, leverage hooks like new releases, and attend conferences for networking opportunities. Have a killer pitch ready for C-level meetings, as you often have only one chance to make an impression.
Maintain a schedule: Create a consistent schedule for meetings and follow-ups. Avoid missing or rescheduling these engagements to maintain a steady communication flow. Many clients still prefer phone calls, so make actual calls and embrace the old-school vibe for effective communication.
Address changes and questions: Discuss any potential change in services you render or questions your customer might have. Be transparent. If a client’s favorite developer is leaving the project, inform them in advance, offer possible alternatives, and explain how you’ll handle the transition.

3. Value proposition

In a successful company, values are guiding principles instilled by CEOs and effectively implemented by account managers. Here are some examples of how to practice your corporate values:
Understand your client’s industry: Dive deep into your client's industry or niche. Conduct thorough research using social networks, conferences, corporate news, industry events, and even their personal interests or recommended books. This will help you identify areas of common interest and potential opportunities.
Tailor services to client needs: Use your industry knowledge to proactively suggest ways to improve your client's business. For example, if your client is in retail, suggest implementing AI chatbots, which are an emerging trend. Offer to create a rapid proof of concept (PoC) to demonstrate your commitment to their success.
Invest wisely and allocate resources strategically: When allocating resources, consider not only finances but also time and effort. For instance, if your client wants you to have security management certifications like ISO/IEC 27001:2022, invest in getting your team members certified. The certification will benefit both your company and your client.
Measure and present results: Analyze and measure the impact of your initiatives. Create detailed presentations to show how your efforts, such as the above-mentioned case of implementing AI chatbots or achieving ISO certification, improve efficiency or reduce risk. Present these results in client meetings to celebrate mutual success.
Future-oriented thinking: Always consider your clients’ future needs Include questions in your CSAT surveys about what technologies or innovations interest them. Assign your team to explore these areas and present potential solutions to demonstrate your commitment to long-term success.
If you implement these practices, you’ll see a compelling improvement in your client standing.

Key artifacts of effective account management

The ability to structure your knowledge, translate value into practices, and effectively present it to clients is a mark of true professionalism that can set you apart from competitors. How can you showcase this? By taking the time to compile an account development plan (ADP). And how should you present it? During a quarterly business review (QBR). Let's explore each in turn.

1. Account Development Plan

An ADP is a strategic document outlining the roadmap for managing and growing a client account. It focuses on understanding client needs, setting mutual goals, and planning actions to achieve these objectives. It's a comprehensive snapshot of insights gathered by an account manager through collaboration with internal stakeholders, including the project team and C-level executives. While the structure may vary, I gathered the components of an ADP for you in a table.

Download an Account Development Plan Template

2. Quarterly business reviews

If the ADP is your ongoing homework to reinforce your value proposition, QBRs are the perfect platform to showcase it. These essential meetings with your customers are designed to review your partnership, highlight progress, share key ADP metrics, celebrate big wins, and discuss any challenges. When done right, QBRs convey a crucial message: "We care about your success and deliver value throughout the collaboration lifecycle."
Here are some tips for effective QBRs.
● When possible, hold reviews in the client's office for in-person interaction. If not possible, have virtual meetings, which are more sustainable but just as effective if held regularly.● If the client prefers, schedule meetings biannually instead of quarterly.● Involve your company’s top management and the client’s C-level executives in QBRs to broaden communication and deepen engagement with various stakeholders.● Prepare for these meetings as a team, involving account management, project management, the CEO (for strategic perspectives), and the CTO (for technological advancements).
By practicing these strategies, you’ll significantly enhance how your clients perceive and value your partnership.

Bottom Line

Success in account management lies in prioritizing client longevity over immediate profits from new clients. This approach involves consistently delivering value and nurturing trust in long-term business relationships. Establishing clear roles, efficient processes, and consistency are essential for maximizing the benefits of account management.
Every business is unique in its values and offerings. Whether refining your current strategy or exploring new avenues, as a Wiseboard Account Management Advisor, I'll help you map your own path forward.