If you’re looking for a new member to join your company’s sales team, you may have considered hiring an account manager or account executive. While these roles share a few similarities, they also have significant differences, which are critical for your hiring team to understand in order to attract and select qualified candidates. This overview will cover key similarities and differences between account managers and executives, including examples of typical job duties, to help you determine which position is right for your hiring needs at this time.
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What is an Account Manager?
Like an account executive (sometimes referred to as an AE), an account manager (or AM) engages with clients and collaborates with the sales team. However, in contrast to an AE, an account manager does not participate directly in the initial pitch or sales processes.
An account manager differs from an account executive in several other important ways, as well. For example, account executives are responsible for identifying prospective clients, whereas AMs specialize in assisting clients who have already signed with the company.
What does “assisting” mean in this context? While it depends on the organization and role, an AM’s duties generally involve meeting with clients to learn how well their needs are being met and whether they require any additional services or products. Read on to learn more about the typical duties of an account manager.
What are an Account Manager's responsibilities?
An account manager is responsible for providing support to existing clients, which involves two core tasks or objectives: maintaining customer satisfaction and attempting to upsell or cross-sell, if the client’s situation merits it. Here are a few examples of the duties and job responsibilities that an AM might be expected to handle, depending on the employer and position:
- Identifying solutions to new challenges as they arise for existing clients
- Maintaining contact and meeting with clients to ensure they’re still satisfied
- Representing your business in a positive and professional fashion
- Resolving any issues the client may be experiencing with your product or service
- Selling additional products and services to existing clients when appropriate
What is an Account Executive?
An account executive (AE) is a vital member of the sales department whose responsibility is to identify prospective leads — and convert them into paying clients. This essential role covers duties like meeting with potential clients and discussing their unique needs and challenges.
Unlike account managers, account executives are directly involved in the sales and lead conversion process. Because they are responsible for networking, making sales pitches, and forging connections with other businesses, AEs must possess outstanding communication skills. Depending on the nature of the position, they may also be required to travel routinely (assuming it is safe to do so).
What are an Account Manager's responsibilities?
An account manager is responsible for providing support to existing clients, which involves two core tasks or objectives: maintaining customer satisfaction and attempting to upsell or cross-sell, if the client’s situation merits it. Here are a few examples of the duties and job responsibilities that an AM might be expected to handle, depending on the employer and position:
- Identifying solutions to new challenges as they arise for existing clients
- Maintaining contact and meeting with clients to ensure they’re still satisfied
- Representing your business in a positive and professional fashion
- Resolving any issues the client may be experiencing with your product or service
- Selling additional products and services to existing clients when appropriate
What are the differences between an Account Executive and Account Manager?
There are areas where the positions of account executive and account manager overlap, such as the way both are responsible for representing their brands positively and fostering profitable relationships with clients. However, there are also important differences between these related-yet-distinct sales roles. Understanding these differences will enable your hiring team to write better, clearer job postings that are appropriately tailored to your company’s needs.
The main difference between these positions is the stage of the sales funnel where AEs and AMs engage with your clients. While AEs establish initial contact and work to convert potential leads into paying customers, AMs — who are not involved in the initial sales process — provide ongoing customer support exclusively for existing clients. AMs may also work to upsell or cross-sell to clients after the AE handles the initial transaction, bringing in and maintaining revenue for your business.
In short, AEs acquire new clients while AMs ensure that current clients remain satisfied. Both roles are responsible for increasing your company’s revenue, but operate at different stages of the sales funnel.
Account Manager vs. Account Executive Salary
On average, AMs and AEs earn slightly different salaries, which are discussed in more detail below. Please note that the following figures are intended only to provide general information about account executive vs. account manager salary data. Factors such as the size of your company, the region where you’re located, and the industry you’re part of will all impact the salary for your AM or AE position, along with the experience level of the candidate.
According to Salary.com, account managers earn an average base salary of approximately $60,255 in the United States, in addition to an average annual commission of $18,000. Some of the top cities where account managers were paid the most included New York, Los Angeles, and Chicago.
Salary.com also provides compensation information for account executives, who earn an average salary of roughly $97,000 per year, which also encompasses commission. Remember that raises, promotions, and bonuses should also be factored in when considering salary for AEs or AMs.
Should you hire an Account Manager or Account Executive?
The answer to whether you should hire an account manager or an account executive — or both — depends on your organization’s specific goals, priorities, and needs. Therefore, it’s critical to perform a thorough job analysis, which will help your hiring managers pinpoint the skills and qualifications that are most needed on your team — not only for the season or quarter, but for your brand’s long-term success.
Here’s a simple, side-by-side comparison chart to help you evaluate whether an AE or AM better aligns with your hiring needs at this time.
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