The language we use matters. At Client Growth Strategy, we prefer "client management" over "account management" because it encapsulates a broader, more holistic view of managing business relationships.
This article will explore the importance of this distinction and why focusing on effective client management across your entire portfolio can lead to sustainable growth and enhanced client satisfaction.
What is the Difference Between Client Management and Account Management?
Client management focuses on building and nurturing personal relationships with clients, ensuring that all clients, regardless of their size or revenue contribution, receive consistent service.
This approach prioritises client satisfaction and long-term loyalty by intentionally matching the level of service delivered to the revenue received and client expectations. It also involves identifying opportunities and managing risks across the client portfolio to provide exceptional service.
In contrast, account management is a term that often centres around the business and revenue aspects of managing key accounts, focusing on a select group of high-value clients.
Is Focusing Solely on Key Accounts Limiting Your Business Growth?
Many organisations fail to deliver training and develop strategies for their critical accounts while neglecting the rest of the portfolio, leading to several issues:
Misaligned Resources: Spending as much time on the 80% of clients that bring in less revenue can erode the time and opportunity to be strategic with your key accounts.
Overwhelmed Teams: Without a balanced approach, your team may become overwhelmed and unable to consistently deliver high-quality service.
Unsatisfied Smaller Clients: Smaller clients may feel neglected and not receive the promised level of service, leading to dissatisfaction and potential attrition.
Missed Growth Opportunities: Smaller clients can be the source of large growth opportunities. By neglecting to have a strategy to manage them, you miss opportunities for upselling and cross-selling.
Addressing these challenges requires a balanced and intentional client management approach.
5 Strategies for Implementing Effective Client Management Across Your Portfolio
Adopt a Client-Centric Approach: Understanding all your client's unique needs and challenges, not just the key accounts, is essential. Tailor your communication and services to address each client's specific requirements, demonstrating your commitment to their success.
Analyse Your Portfolio: Conduct a thorough analysis to understand the composition of your portfolio and assess what services are currently being delivered. This will help identify gaps and areas for improvement.
Segment Your Portfolio: Segment your portfolio based on various factors, not solely on revenue. Consider opportunities for growth, willingness to partner, industry, structure, product relevance, and other aspects pertinent to your business.
Design a Comprehensive Client Management Framework: Develop a framework defining each segment's services, products, and interactions. This ensures that the level of service delivered matches the revenue received, identifies opportunities, and manages risks across the entire portfolio.
Train Your Team: Regularly train your team on the latest client management practices and tools. Ensure they are well-equipped to manage client relationships effectively and deliver high-quality service across all segments.
Effective client management is crucial for sustainable business growth and client satisfaction. A balanced approach will help you provide exceptional client service, foster long-term loyalty, and uncover new growth opportunities.
Many organisations struggle to find the time to step away from the day-to-day to build their strategies and train their teams. If you need help with client engagement, schedule a call with us, or to learn more, click on the links to our training and workshops.
Comments