In numerous organisations with which I am affiliated, I have frequently observed a curious commercial structure characterised by ambiguous titles and roles. A primary concern is the indistinct separation between business development roles and account management roles.
Individuals holding these positions often fail to adhere to the defined responsibilities, frequently transitioning into technical engineering roles or strategic functions related to priority definition. It is imperative for an organizsation to establish clear roles and responsibilities, effectively differentiating between “farming” (account management) and “hunting” (business development).
Although external titles may not hold significant importance, it is essential that internal roles and responsibilities are well-defined and focused. A coherent strategy should establish distinctions among strategic partners, clients, and suppliers, as well as the imperative to scale the market. This clarity facilitates a structured approach to account management roles—which may also be referred to as partnership or even product roles—alongside business development and sales roles.
Furthermore, it is critical to recognise that organisations, depending on their growth phases, may require a greater emphasis on either sales or business development roles; however, this should not be conflated with the essential functions of account management.
Business development and account management are distinct, but related, roles within a company. Business development focuses on acquiring new business and expanding the client base, while account management focuses on maintaining and growing relationships with existing clients. Account managers nurture existing clients and maximize revenue from them, while business development reps are focused on generating leads and new business opportunities.
Key Differences:
- Focus: Business development focuses on acquiring new clients and expanding the customer base, while account management focuses on maintaining and growing existing client relationships.
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Strategy: Business development is often proactive, seeking out new leads and opportunities. Account management is more reactive, focusing on client needs and ensuring satisfaction.
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Skills: Business development requires strong communication, networking, and sales skills. Account management requires relationship-building, problem-solving, and technical expertise.
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Responsibilities: Business development reps generate leads, conduct initial sales calls, and hand off qualified leads to account managers. Account managers are responsible for building relationships, understanding client needs, and maximizing revenue.
In essence:
- Business development is about “hunting” for new business, while account management is about “farming” existing clients.
- Business development expands the customer base, while account management maximizes the lifetime value of each customer.
Benefits of Both Roles:
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Business development:Creates new revenue streams, expands market share, and drives company growth.
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Account management:Ensures customer retention, improves customer satisfaction, and generates repeat business.
Example:
Imagine a software company. A business development representative might focus on identifying potential clients, researching their needs, and creating presentations to showcase the software’s benefits. An account manager, on the other hand, would focus on providing ongoing support to existing clients, identifying opportunities to expand their usage of the software, and ensuring they are satisfied with the product and service.
In summary, both roles are essential for a company’s success. Business development drives new revenue, while account management ensures customer retention and satisfaction, leading to sustainable growth.
Sources:
AI Support: v1 My Draft, Google Search (Gemini AI) for some references, Grammarly for the tone of voice, Claude Somnet 4.0 for SEO Optimisation
