Account Management skills development - is it only relevant for people in sales roles?

In this article, we look at job roles other than those involved directly in sales for whom account management skills are important and relevant.

Assignments involving account management skills development in sales teams have been one of our biggest growth areas in the last two years. The business drivers for working with clients using a considered and professional account management strategy are clear and compelling.

By looking at the key drivers from both the supplier and the customer perspective we can see why professional account management is attractive for both parties.

The supplier's perspective

• An effective account management strategy enables you to identify the potential value of each account and allocate the resources to realise the opportunity

• In an increasingly competitive market place developing strong relationships with customers, which account management will enable you to do, in protecting existing business

• It is generally accepted that the cost of sale to an existing customer is less than to a new customer. An account development plan, a key element in any key account management strategy enables you to identify the additional opportunities in existing accounts

• No two customers are the same, in terms of their requirements, how they work, and the level of opportunity that they represent. Account management is no one thing. Using an overall Account management framework, specific plans for individual customers can be developed. This optimises the use of sales and other in-company resources

The customer's perspective

• One of the quiet revolutions in the last few years has been the change from the traditional purchasing role to supply side management. The key objectives in this shift have been to reduce costs and drive more value from the suppliers. Working with suppliers who have professional account managers helps this process. By encouraging suppliers to become partners results in the supplier [or partner!] gaining a better understanding of your business, what your needs are and how they can be fulfilled.

• The single point of contact offered by the account manager reduces the time and the effort the customer needs to expend on the relationship.

• Supplier reduction programmes mean that you need to have a closer relationship with the suppliers you retain - their significance to you, your dependency on them is increased. Therefore it is crucial that the supplier has the organisation and resources in place to deliver the service and respond to your needs - account management provides this

So the mutual drivers in the world of "selling and buying" for professional account management are clearly established.

To return to the headline of this article - what other functions in many businesses need account management skills?

The notion of the internal customer is not new, but this has developed;

The development of the internal account manager, the internal consultant

As a result of the concept of the internal customer we have seen the development of the internal account manager, the internal consultant. This change means the skill requirements for many people in these roles have changed. A central service function, once reacting to the demands of the business, now has to be proactive. Functions that were once cost centres are now measured as profit centres. The business expects these internal functions to behave as external suppliers. This means that people who were once judged on their technical competence, the level of expertise in their specialist area, now require commercial skills, and need to be able to apply them in the context of their internal market.

These are the reasons why we are increasingly involved in development assignments on account management and consulting skills with people operating in non sales functions - although arguably of course they are!

Recent examples of such assignments are:

• Account management development with a division of a major bank who are selling their products to other divisions and areas of the bank

• Working with an NHS trust who are now selling some of their central service capabilities to other parts of the NHS, and need to develop an account management strategy, and develop the skills of the people on these new roles

• A learning and development team in a leading housing association employing 2000 people. The team need to move from people training providers to internal consultants, each member of the team taking an account manager role for a specific part of the business

• The HR team of a major US company who again need to add value for their customers by developing their account manager and consulting skills.

Our approach in working with a client is to develop and deliver custom designed learning programmes. From our experience in account management skills processes and skills development in the outside commercial world we are able to develop focused relevant programmes for people in other functions whose role has moved to that of internal account manager.

Click here, to find out more about the principles and concepts of our account management programmes. Alternatively call us on 01435 865711 for an initial discussion, or email us for additional information at: info@hrteam.co.uk