Relationship Management for Account Managers: A Comprehensive Report

This report delves into the critical aspects of relationship management for account managers, providing a comprehensive overview of strategies to build and maintain strong client relationships. It explores the importance of understanding accounts and their competitors, building trust, and providing expertise to improve productivity. The report also covers methods to reduce financial burdens, enhance service quality, and foster account loyalty. Furthermore, it examines the role of networking in sales, consultative selling techniques, and stakeholder analysis. The report concludes with a discussion on monitoring and controlling customer relationships, offering insights into maintaining communication, evaluating feedback, and analyzing information to identify strengths, weaknesses, and areas for improvement within the account management process. This report serves as a guide for account managers seeking to optimize their strategies for long-term success.

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Relationship Management for Account Managers

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Table of Contents
Understanding the way to build relationships with accounts.....................................................4
Explain what information is needed about the account and competitors...............................4
Describe how to build trust with accounts.............................................................................4
Explain how to provide expertise to improve the productivity of the account......................4
Explain how to reduce the account’s financial burden...........................................................5
Explain how to improve the quality of service provision.......................................................5
Describe how to maintain account loyalty to own organisation.............................................5
Understand how to use networking in sales...............................................................................5
Methods for developing a personal network of contacts to meet current and future needs for
information, resources and sales opportunities......................................................................6
Importance of reciprocity and confidentiality in networking.................................................6
Evaluation of methods for maintaining communication with contacts in personal network. 6
Understanding the use consultative selling................................................................................7
Evaluate methods for researching prospective customer organisations.................................7
Evaluate methods for establishing rapport and own credentials with customer organisation7
Evaluate strategic questions to identify issues in the customer organisation which represent
sales opportunities..................................................................................................................7
Quantify in financial and strategic terms the effects of the most important issue or
opportunity.............................................................................................................................7
Evaluate solutions for the customer organisation issue..........................................................8
Knowledge of Stakeholder analysis...........................................................................................8
Describe the importance of and the need for stakeholder analysis........................................8
Describe how to identify and analyse the needs and concerns of different stakeholders.......8
Monitoring and Controlling Customer relationship...................................................................9
Evaluation of the concept of monitoring and control.............................................................9
Evaluate own organisation’s requirements relating to monitoring and control activities......9

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Evaluate methods of formal and informal feedback for monitoring of key customer
activities..................................................................................................................................9
Identify and evaluate techniques to be used to analyse information obtained during
monitoring and control...........................................................................................................9
Identify key strengths and weaknesses of the relationship and areas for improvement.........9
Reference List..........................................................................................................................10

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Understanding the way to build relationships with accounts
The account management is one of the central ways of ensuring that that an organisation is able to
build relationships, go ahead with long-term investments and impart greater focus on the whole
organisation. The global companies have specific requirements demanding very high level of
accounting management. So that they can achieve minimum complexities related to cost making the
entire process simple and cost efficient. A number of companies today claim to have been operating
through key account management strategy that ensures that customers receive customised and special
service based on their value to the company.
Explain what information is needed about the account and competitors
The account manager needs to ensure that they have adequate information of the customers before
they are awarded with the key account status and also evaluate the existing customer base whether
they are worthy of such status as well. In order to gain the information regarding the account and
competition, the manager can compute Account Identification and Selection Matrix (AISM) network.
This method implies the identification of the account with whom they can work and select them
preventing any wastage of time. There are four categories, major account who are important and need
to be looked after by account team. For development account the account needs to look for their
change in preference and the offers they expect. The opportunistic account are those who frequently
shuffle from company to other and can be turned into major account by keeping track of their
spending habits. In case of Maintenance account regular communication is necessary so that they do
not face competition.
Describe how to build trust with accounts
The key aspect of building trust lies in the fact that both the parties engaged in the account
management needs to establish mutual trust and respect that requires honesty, empathy sharing of the
objectives and the policy measures that the account manager are working on. The customers need to
know the effort that the manager is rendering in executing their promises. Being truthful and use of
honest means is the prime means of developing trust. The other aspect is ensuring communication that
keeps the accounts aware of the changes and retains their trust.
Explain how to provide expertise to improve the productivity of the account
Although the relationship between the buyer and the salesperson is important but developing a
relationship for a long time span required additional support. The ideas from the marketing
department needs to check and ensure the viability of an idea prior it is being implemented. The
opportunity snails shows the path that is required for a product launch. The understanding of the
customer’s business is essential and the communication with the operational team can give the
necessary inputs to develop a more customised solution. Market research and marketing go hand in

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hand and the knowledge of the customer business along with the current marketing strategies can help
in developing a more effective solution.
Explain how to reduce the account’s financial burden
The ways of reducing cost include the following:
 Use of automation while transaction
 Use of internet to facilitate virtual meeting to reduce cost on communication
 Use of local transport and pool service to reduce transport cost.
 Use of customer training module to educate them
 Hiring skilled employees and delegation of power and authorities to reduce the cost of
management.
Explain how to improve the quality of service provision
The management needs to implement the continuous improvement approach where a proactive
management ensures that small changes take place to adapt to the dynamic market environment. The
use of Servqual model has been identified effective where the customer answer to reveal their
expectation of the service and the service that they receive (Schneider and White, 2004). In order to
improve the situation, the account manager needs to ensure that there is less bureaucracy in the
system, decision making is effective and timely, training of the staff to increase their skill, a system of
checks and balances to ensure the service quality is updated. The communication of information has
to be ensured.
Describe how to maintain account loyalty to own organisation
The manager needs to develop a set of performance measure that can evaluated, the customers need to
be made aware of the changes and each business goals needs to be measured against the performance
standard. The manager needs to fulfil promises and create of a benchmarking system to understand
each task are required to be monitored. The clear and transparent so that both social and business
obligations are met.
Understand how to use networking in sales
Networking is one of the most significant means of getting to know about the best interest of the
business. Networking has a number of benefits, such as the publicity, ability to attract more and new
customers, developing trust that people generally do not have towards advertising. Networking also
helps in developing different branches of business and often contacts help in difficult situations.
Despite networking has the potential of negative publicity and the inadequacy of continuous work yet
the sharing of knowledge and information pertaining to the latest development in business is
increasingly helpful while setting up business and also for strengthening the competitive advantage of
the current business.

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Methods for developing a personal network of contacts to meet current and future
needs for information, resources and sales opportunities
In order to develop a strong and efficient network the individual or the salesperson needs to gather the
knowledge of all the people surrounding him. This helps in knowing who will be helpful in creating
further leads. The following table helps in calculating the names who would be helpful in providing
the necessary information and business links. The sales person can develop a table like the following
with the names and other contact information of the people with headings to which circle they belong
can significantly help in tapping the details from the known sources while creating some more
contacts through them.
Table 1: The network table
Importance of reciprocity and confidentiality in networking
The basic norm of reciprocity is that people expect that others will respond to them, it is like if one
person helps in solving the problem of another then in future, when they would need the same help
would be reciprocated. In the field of sales, communicating information at the right time helps in
ensuring that the customers gain from market outcomes but such measure cannot be implemented
without the vow of confidentiality. Confidentiality helps on developing trust which in turn is the key
to earn major accounts. For instance, if the customer shares their confidential details it refers to the
need to protect them. Under contractual terms often breach in confidentiality can lead to financial
punishments.
Evaluation of methods for maintaining communication with contacts in personal
network
There are a number of methods that ensure that contributes towards the communication with the
customers and sharing of information. Some of the effective methods that can contribute towards
maintaining communication are the use of diaries so that all the contacts are in order and readily
available when required. It is important that an account manager understands the nature of the

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customer so that he or she can decide on the appropriate means like face-to-face or virtually or
through profession associations. The point of contact needs to be clear along with the reason so that
the customers do not feel they are disturbed with unimportant information. The privacy of the
customers need to be preserved and when communicated the content or the message should be clear
and precise.
Understanding the use consultative selling
The consultative selling involves that that the salesperson behaves like the consultant to the client
where the customer is the focus of sale instead of the product.
Evaluate methods for researching prospective customer organisations
The scale that measures the effectiveness of evaluating the method of reaching prospective customer
needs to include three distinguished elements, namely, culture propensity to benefit the questions and
communication to gather information. It can be a questionnaire survey that can involve taking to the
individuals from within the organisation, ability of the customer in understanding the situation and
accepting the solution.
Evaluate methods for establishing rapport and own credentials with customer
organisation
The methods of building rapport includes the following;
 Identification of the common ground which can be shared interest and likes.
 Pacing and leading: The sales manager requires to understand the manners of the customers
and respect them. The language tone volume should be polite and understanding. The way of
dressing and display of emotions brings in trust which builds the rapport.
 Use of credentials: It builds credibility and the use of corporate image based brochures helps
in not only explaining the value but also builds trust. The knowledge how a company or has
succeeded helps in earning credibility.
Evaluate strategic questions to identify issues in the customer organisation which
represent sales opportunities
The strategic questions helps in making the making the buyer more comfortable so that they can share
their own thoughts and if they have any concerns. However, the order of the strategic questions are
needed to be correct starting with status question, issues, implication and finally the solution. The
customer should be made aware of the fact that the solution that they are being provided adequately
meets their business requirement.

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Quantify in financial and strategic terms the effects of the most important issue or
opportunity
The financial benefits can be quantified by observing the customer’s turnover rate, rise in their
profitability, rise in the cash flow, etc. The quantification in terms of strategy can be observed in the
improvement of market share, opening new market opportunities, addition of new customers, and
improvement in brand visibility.
Evaluate solutions for the customer organisation issue
The manager would need a cost benefit analysis of a range of solutions so that they can choose the
optimum. For example, a solution raises the profit by 25% but it also required highly skilled
employees which involves a rise in cost as they hire new employees. So, if the return the solution is
high then they can adopt a particular solution.
Knowledge of Stakeholder analysis
Friedman and Miles (2006) stated that stakeholders are those who can get affected or in turn can
affect the business by their action.
Describe the importance of and the need for stakeholder analysis
The knowledge of stakeholders’ need helps in identifying and prioritising each stakeholder so that
they can gain higher engagement from them. The objectives can be set with the consultation with
stakeholders and their change in attitude and preference can be tracked to save the corporate image.
Describe how to identify and analyse the needs and concerns of different stakeholders
The salesperson needs to identify and analyse the needs of each stakeholders with the help of
Mendelow matrix.

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Figure 1: Mendelow Matrix
(Source: Norton and Hughes, 2009)
When the stakeholders have high power of influencing the business significantly, there are required to
be satisfied and monitoring also needs to be there.
Monitoring and Controlling Customer relationship
The sales account managers need to be aware of an effective relationship management plan since the
customer might not express his dislike to something and change their decision. The relationship
management plan helps in preventing such occurrences.
Evaluation of the concept of monitoring and control
The cost of exercising the monitoring and control the activities related to relationship management is
significantly yet the benefits are worth spending. Such activities help in assisting the benefit that can
accrue in future, the team can also benefit and develop their potential. Furthermore, such activities
provide the links that can create good corporate image for the company while uplifting the status of
the salesperson’s organisation.
Evaluate own organisation’s requirements relating to monitoring and control activities
The relationship management activities help in measuring the performance level of an account
organisation. The monitoring and controlling helps in achieving high level of customer satisfaction
and future prospects of the organisation can be identified. The opportunities and actual cost of the
maintenance can be identified. It also helps in augmenting the competitive advantage of clients as
well as own organisation.

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Evaluate methods of formal and informal feedback for monitoring of key customer
activities
Formal feedbacks are important to assure the clients that the account manager is serious to work in
favour of their interests and fulfil their promises. On the other hand informal feedbacks are effective
in communicating broader references and information regarding opportunities. Sometimes the
discrepancies in documentation and expectations are also communicated through such feedback
system.
Identify and evaluate techniques to be used to analyse information obtained during
monitoring and control
Some of the techniques that can be identified are fish bone diagrams, cash flow analysis, profitability
analysis, etc. which provides the cause that has resulted in a certain outcome. It also evaluates the
strategy’s impact on the outcome.
Identify key strengths and weaknesses of the relationship and areas for improvement
The feedback helps in identifying the strengths and weaknesses. For example, an unsatisfied customer
would mean that there are weaknesses and the reason can be inefficiency of the account manager,
performance of the company which can be rectified.

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Reference List
Friedman, A.L. and Miles, S., 2006. Stakeholders: Theory and practice. London: Oxford University
Press on Demand.
Norton, A. and Hughes, J., 2009. CIMA Official Learning System Enterprise Management. New
Jersey: Elsevier.
Schneider, B. and White, S.S., 2004. Service quality: Research perspectives (Vol. 107). London:
Sage.