Account Manager vs Account Executive
What are the key differences between Account Manager vs Account Executive?
These two sales job titles often get interchanged or confused, and it’s easy to understand why, seeing as both titles are about the same length and begin with the same word.
However, these two roles have different responsibilities in a sales organization.
An Account Manager primarily nurtures client relationships, ensures satisfaction, and searches for upsell opportunities within existing accounts.
An Account Executive, on the other hand, pitches the product, handles objections, and closes deals with new accounts.
In terms of the overall sales process, the Account Executive closes the deal and then “hands off” the account to an Account Manager who manages the relationship with the new client from that point forward.
Whether you’re a job seeker trying to determine the right career path or a business seeking to fill a role, this article will give you a clear understanding of the similarities and differences between Account Manager vs Account Executive.
Account Manager – Roles and Responsibilities
The Account Manager (AM) can be thought of as the main point of contact for current clients.
They build, maintain, and strengthen client relationships post-sale, ensuring that the client is satisfied with the product or service.
AMs are sometimes referred to as “farmers” because they continue harvesting value from accounts.
Their tasks usually include understanding client needs, coordinating with the internal team to ensure these needs are met, and troubleshooting any problems that arise for the client.
Responsibilities of Account Managers:
- Client Relationship Management: The Account Manager is the primary point of contact for clients after the deal is closed. They maintain and nurture the relationship with the client, ensuring their needs are met.
- Cross-Selling and Upselling: AMs identify opportunities to provide more services to the client, aiming to increase total revenue generated from the account.
- Renewals: When a contract is nearing its end date, the AM is responsible for having a conversation with the client about renewing for another term. This sometimes involves re-negotiating the terms of the initial contract.
- Issue Resolution: AMs are responsible for resolving any issues or challenges that come up for the client, ensuring that they continue to have a positive experience using the product or service.
- Client Retention: Perhaps the most important responsibility of an AM is to retain clients, ensuring they continue to use the company’s product or service.
Remember, the role of an Account Manager can vary slightly depending on the company, but their main objective is always to maintain a healthy, profitable relationship with clients.
Account Executive – Roles and Responsibilities
The Account Executive (AE), on the other hand, is involved in the sale process, typically from the point after the lead is qualified up until the deal is closed.
AEs are sometimes referred to as “hunters” because they are focused on generating new business.
Responsibilities of Account Executives:
- New Business Generation: The AE is responsible for closing new business. This involves pitching the product, handling objections, and ultimately getting the contract signed.
- Negotiation: AEs negotiate contract terms with potential clients, with the aim of achieving the best possible deal for the company.
- Product Presentation: AEs present the company’s products or services to potential clients. They must have a deep understanding of what they are selling to effectively communicate the value proposition.
- Relationship Building: While the AM handles relationships post-sale, the AE is responsible for building initial relationships with potential clients. Establishing trust and building rapport are essential in closing a deal.
- Collaboration with Account Managers: AEs often collaborate with AMs to smoothly transition the client relationship post-sale. This ensures consistency in communication and a good experience for the client.
Just like with AMs, the role of an AE can vary from company to company. However, the core objective for any AE is clear … close deals.
Differences – Account Manager vs Account Executive
Comparing roles and responsibilities: AE vs AM
An Account Executive is primarily focused on generating new business, while the Account Manager is responsible for maintaining and growing these relationships post-sale.
The Account Executive is the salesperson, the negotiator, the presenter. AEs search through a jungle of leads, hunting for new business.
The AM, on the other hand, is like a gardener, nurturing these relationships, ensuring client satisfaction, and looking for opportunities to grow the account.
It’s important to note that not all companies delineate these roles in the same way.
Some companies may have AEs that also manage accounts. Other companies might have AMs that are involved in sales.
So it’s crucial to understand the specific expectations of these roles within a particular company when choosing the role that suits you best.
AEs and AMs focus on different parts of the sales process
AEs secure clients using sales and negotiation skills, laying the groundwork for a lasting relationship.
Once the deal is closed, AMs take over, ensuring client needs are met and the relationship grows stronger and more profitable over time.
The point where an account transitions from AE ownership to AM ownership is often called a “hand off.” There is sometimes a call for the AE to formally introduce the client to their AM.
AEs and AMs have different strengths
Account Executives and Account Managers complement each other.
An AE might have a knack for closing deals, thriving in the high-adrenaline environment of sales pitches, objection handling, and negotiations.
In contrast, an AM might excel in long-term relationship cultivation, client retention, and account expansion.
Both roles are vital for a sales organization aiming to maximize revenue.
Similarities – Account Executive vs Account Manager
Both roles require similar skills
They both act as liaisons between the company and its clients, working closely to understand the client’s business needs, objectives, and issues.
Both positions require excellent communication skills, problem-solving abilities, and a deep understanding of the client’s needs and objectives to successfully navigate the sales and account management processes.
Both roles also require a high level of adaptability as they have to manage unexpected changes or issues that may arise in the client’s business or the marketplace.
AEs and AMs often collaborate
AEs and AMs often collaborate on strategic planning, client meetings, and negotiating contracts.
For example, when an AM is negotiating a renewal with a current client, they might reach out to the AE to ask questions about how the initial contract was drafted and to get pointers on how best to negotiate with the particular client.
And, of course, AEs and AMs have to collaborate when AEs introduce new clients to their AMs.
AEs and AMs have the same ultimate goal
Both Account Executives and Account Managers strive towards the common goal of ensuring customer satisfaction and business growth.
They also share a mutual responsibility to communicate client insights back to the broader company.
Account Manager vs Account Executive Salary
A common question is: Who earns more, an Account Manager or an Account Executive?
In general, salary varies depending on factors such as the company’s size, industry, and location, along with the individual’s experience level.
On average, according to Glassdoor, an Account Executive might earn slightly more than an Account Manager, primarily because they are usually responsible for bringing new clients into the business, which can be a more challenging task.
An Account Manager on average earns $84,203 per year whereas an Account Executive earns $114,335 on average, per year.
Click here for more Account Executive salary data.
However, this isn’t a set rule, and in some companies, Account Managers might earn more due to the complexity and responsibilities of their role.
Which One Is the Right Role for You?
Factors to consider
If you’re deciding between becoming an Account Executive or an Account Manager, here are several factors to consider:
- Client interaction: If you enjoy client interaction and building relationships, an Account Manager role might suit you better as it involves maintaining and strengthening client relationships.
- Sales orientation: If you have a knack for sales and enjoy the thrill of bringing in new business, the Account Executive role might be a better fit for you.
- Career aspirations: Consider your long-term career goals. Do you want to be on the post-sale side, or is selling more appealing to you?
- Personality traits: Account Managers generally require patience, excellent communication skills, and the ability to handle pressure. Account Executives, on the other hand, might need a higher degree of perseverance, excellent negotiation skills, and a competitive spirit.
Remember, the choice between an Account Executive and an Account Manager role is highly personal and should align with your skills, interests, and career goals.
Potential career progression
For Account Executives, top performers are promoted to Senior Account Executive, Enterprise Account Executive, Sales Manager, Director of Sales, Head of Sales, VP of Sales, or CRO.
They might also transition into other strategic roles within the organization, given their deep understanding of the product or service and their acumen for business development.
Account Managers, on the other hand, might move up the ladder to become Senior Account Managers, Enterprise Account Managers, Directors of Account Management, or even VPs of Account Management.
Note: Customer Success, Customer Support, Customer Service, and Client Service are all names of departments that are very similar to Account Management.
Which career path you choose depends on your preference for a more sales-driven role versus a client relationship-focused role.
Reflect on your skill set and your professional preferences. If you enjoy the thrill of sales and have a persuasive personality, the AE role might be a great fit for you.
On the other hand, if you’re more inclined towards nurturing long-term relationships and working closely with clients to meet their needs, the AM role could be your calling.
FAQs
Which position is higher ranking: Account Manager or Account Executive?
In terms of hierarchy, Account Managers and Account Executives are often on par.
The required qualifications, education, and skill sets are typically similar for both positions, so one does not inherently outrank the other.
However, there may be exceptions in larger organizations or those dealing with exceptionally large or valuable accounts.
In these cases, Senior Account Managers, by virtue of their extensive experience, may be assigned to manage these key accounts over less experienced Account Managers.
The same could apply to Account Executives as well.
So, while neither role is inherently superior, the responsibility and prestige associated with managing major accounts can often be a reflection of the individual’s experience and proven capabilities in the field. ✨
However, it’s crucial to note that both roles are equally important for the overall success of a business.
In terms of career discernment, it’s less about which position is higher ranking and more about which role aligns better with your skills and career goals.
What is the difference between an Account Executive an Account Manager and an Account Director?
The difference between an Account Executive, an Account Manager, and an Account Director largely lies in their specific roles within an organization’s hierarchy and their responsibilities.
An Account Executive’s role is primarily sales-oriented. They are responsible for acquiring new clients and selling the company’s products or services.
The Account Manager, on the other hand, focuses on maintaining and strengthening the company’s relationship with existing clients post-sale—they are the go-to person for any client-related issues or inquiries.
At the top of the chain is the Account Director.
This role is strategic; they oversee and coordinate the activities of both the Account Executives and the Account Managers.
They ensure the smooth operation of the Sales and Account Management departments, often meeting with top clients and making high-level decisions.
Their tasks involve strategic planning, team management, and making crucial decisions that affect the company’s relationship with its clients.
What skills are needed to succeed as an Account Executive versus an Account Manager?
Both Account Executives and Account Managers need a unique set of skills to excel in their roles.
Account Executives typically require:
- Excellent persuasion skills
- The capacity to handle rejection
- Must be goal-oriented and driven
- Should possess a deep understanding of the company’s product or service.
Conversely, Account Managers, the experts in building relationships, typically require:
- Proficiency in problem-solving
- Strong project management capabilities
- Empathy towards clients
- Customer-centric mindset
- Patience to effectively manage client expectations
By optimizing these qualities, Account Managers can successfully navigate the dynamic landscape of client relationships.
So, while there’s a clear overlap in the competencies required for both roles, the emphasis varies depending on whether you’re looking at an Account Executive or Account Manager position.
This distinction might help you decide where your skills can be best utilized.
Conclusion
Choosing whether to become an Account Executive or an Account Manager comes down to personal strengths, preferences, and career aspirations.
Consider which part of the sales process aligns with your aspirations: primarily focusing on selling (AE) or post-sale (AM).
Both roles have plenty of career growth potential with clear promotion paths beyond the entry-level roles.
You really can’t go wrong if you’re deciding between these two positions. Good luck! ☘️
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