What does an account executive do?

Account executives help you sign new clients for your business. When you get a new lead, the account executive communicates with them online, over the phone or in person. This often means traveling to a client’s location to demonstrate products or offer sales pitches.

When a client is ready to sign with your company, the account executive typically negotiates the terms and uses strategies to close the deal.

What does an account manager do?

Account managers work in a client relationship management capacity to meet the needs of your current clientele. In addition to being clients’ primary point of contact, account managers reach out proactively to nurture their connection with them. They often use upselling and cross-selling strategies to increase sales.

Account managers also manage client retention, resolving issues related to a product or service. When a client’s contract is almost up, the account manager usually handles the renewal process, including any negotiations regarding the terms.

Differences between an account manager vs. an account executive

Taking a detailed look at account manager vs. account executive roles can help you determine which role aligns with your sales goals.

Average salaries

On average, an account executive makes $72,329 per year plus $20,000 in commissions, according to Indeed Salaries. The base salary for an account manager averages $72,392 per year, with the average commission at $18,000 per year.

Skills

Many skills overlap between account executives and account managers. Both roles typically require sales, negotiation, relationship management, communication and problem-solving skills. They both should have a strong understanding of customers’ wants and needs and how your company’s products solve those issues. Being able to assess a client quickly and customize their approach is also helpful.

Account executives need to be proficient at closing deals, negotiating, networking, generating leads and presenting. Helpful skills for account managers may include upselling, cross-selling, client retention and customer service.

Position goal

Account executives aim to increase the number of customers you have. They actively pursue leads and nurture relationships to convince prospects to sign a contract with your organization.

Account managers focus on retaining clients and increasing the sales of your current client base. While the goals differ, the overall purpose involves increasing profits for your business.

Interactions with clients

Account executives begin the relationship before the individual or company becomes a client. They work with prospects until they close the deal and receive a signed contract. Their interactions focus on building trust and credibility to encourage the lead to use your services.

At that point, an account manager takes over the relationship. Account managers and executives work together to make the transition smooth. Account managers work with the client for their entire tenure with your company. Their interactions with the client may increase when you release a new service or they’re trying to reach sales goals.

Account executive vs. account manager: Who should you hire?

Account executives and account managers are both crucial for a sales department. If you only have the budget to hire one role, consider these factors:

• Current client management process: Evaluate your company’s interactions with clients, from finding leads to keeping them with your organization. Identifying where you need support can help you decide which role may be most beneficial.

• Client acquisition success: If your company needs support acquiring new customers, an account executive may be a better choice.

• Client retention rates: Check the metrics to calculate your client retention rates. You might prefer an account manager when focusing on retaining your current customers and expanding their business.

• Existing team: If you already have account managers and account executives, assess your current team, including their talents and skills, to determine the best addition.

• Profit plans: Consider your company’s goals and how you plan to increase revenue. An account manager can help you make money from your existing clientele. If you want to bring in new clients regularly, an account executive might help.

When an account executive is best

Hiring an account executive can be ideal under these circumstances:

• Your organization wants to bring on new clients.

• Your client acquisition process is inconsistent or nonexistent.

• You don’t have enough people to follow up on leads.

• Your account managers need more clients.

When an account manager is best

You might hire an account manager in these situations:

• Other employees manage client accounts in addition to their regular duties.

• You have an account executive on the team but no one to take over once clients sign with you.

• You want to improve client satisfaction.

• You want to increase revenue from your current client base.

Frequently asked questions about account managers vs. account executives

Is an account executive or an account manager a higher-ranking position?

Neither position generally ranks higher than the other. They both work in the sales process and interact with clients in similar capacities. Job requirements, including skills and experience, are usually similar for both positions.

Some companies may have different levels for each position, such as junior account executives, account executives and senior account executives.

Do companies need both account executives and account managers?

It’s common to have both positions within an organization since they work with clients in different areas. You may need an account executive to keep a steady supply of new clients coming into the business. Hiring a separate account manager lets your account executive focus solely on closing deals. Having both positions can help maximize your profits and allow team members to focus on their strengths.

How do you hire an account executive or an account manager?

Once you decide which role you need, create a job description detailing your requirements. Based on those expectations, create account executive or account manager interview questions to evaluate how well candidates match your needs. You might ask your final candidates to do a work simulation that replicates the duties of the position.

For an account executive role, consider asking candidates to create and present a short pitch for a prospective client. When you hire an account manager, you could conduct a mock call with a negotiation scenario for a contract renewal.

Do account executives and account managers collaborate?

Account managers and account executives have different responsibilities but often work together when your organization signs a new client. The account executive is the initial point of contact for a client. Since they learn a great deal about clients, they often share that information with the account manager, who takes over the account.