Individual account management: Difference between revisions

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{{infobox4
|list1=
<ul>
<li>[[Bricks and clicks model]]</li>
<li>[[Customer driven]]</li>
<li>[[Aggregator model]]</li>
<li>[[Indirect sales]]</li>
<li>[[Service]]</li>
<li>[[Strategic Buyer]]</li>
<li>[[Disruptive innovation]]</li>
<li>[[Fair competition]]</li>
<li>[[Marketing innovation]]</li>
</ul>
}}
Individual account management is the [[process]] of maintaining a balance or an account of an individual in financial, real estate or any other advisory [[firm]] by a dedicated manager is called '''individual account [[management]]'''.  
Individual account management is the [[process]] of maintaining a balance or an account of an individual in financial, real estate or any other advisory [[firm]] by a dedicated manager is called '''individual account [[management]]'''.  
'''Account management''' is a broad topic of managing clients in various industries. In order to provide individualized [[client]] [[service]], individual account management enter the game.
'''Account management''' is a broad topic of managing clients in various industries. In order to provide individualized [[client]] [[service]], individual account management enter the game.
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The general agreement was for salesmen to be accountable for selling to companies only within their own geographic region. As buyers needed greater [[quality]] service and lower costs, some businesses began assigning a single seller to lead and develop a few accounts. The enhanced service and responsiveness to the key account client was valued by those clients who were looking to off-load some of the charges normally handled by their own representatives <ref> Weilbaker and Weeks (1997) </ref>. Moreover, suppliers also happen to gain, as study by Homburg, Workman and Jensen (2000) points that actively managing key accounts seems in enhanced [[supplier]] performance <ref> Homberg, Workman and Jensen (2002)</ref>.
The general agreement was for salesmen to be accountable for selling to companies only within their own geographic region. As buyers needed greater [[quality]] service and lower costs, some businesses began assigning a single seller to lead and develop a few accounts. The enhanced service and responsiveness to the key account client was valued by those clients who were looking to off-load some of the charges normally handled by their own representatives <ref> Weilbaker and Weeks (1997) </ref>. Moreover, suppliers also happen to gain, as study by Homburg, Workman and Jensen (2000) points that actively managing key accounts seems in enhanced [[supplier]] performance <ref> Homberg, Workman and Jensen (2002)</ref>.


According to Storbacka, individual account management focuses on co-creation of value and is both outside-in”, that classifies business and renewal opportunities by strongly learning the customer's value-creating process, and “inside-out”, that executes the [[strategy]] in order to reach agreed corporate aims<ref>Storbacka (2012)</ref>.
According to Storbacka, individual account management focuses on co-[[creation of value]] and is both outside-in", that classifies business and renewal opportunities by strongly learning the customer's value-creating process, and "inside-out", that executes the [[strategy]] in order to reach agreed corporate aims<ref>Storbacka (2012)</ref>.


==Advantages of individual account management to buyers==
==Advantages of individual account management to buyers==
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==Examples of Individual account management==
==Examples of Individual account management==
* '''Managing investments''': Individual account management involves managing a portfolio of investments for a single individual. This could involve creating a custom portfolio of stocks, bonds, mutual funds, ETFs, and other investments that are tailored to the individual’s goals and risk tolerance.  
* '''Managing [[investments]]''': Individual account management involves managing a portfolio of investments for a single individual. This could involve creating a custom portfolio of stocks, [[bonds]], mutual funds, ETFs, and other investments that are tailored to the individual’s goals and [[risk]] tolerance.  
* '''Managing real estate''': Individual account management can also involve managing a portfolio of real estate investments for a single individual. This could involve selecting and managing rental properties, investing in commercial real estate, or even flipping houses.
* '''Managing real estate''': Individual account management can also involve managing a portfolio of real estate investments for a single individual. This could involve selecting and managing rental properties, investing in commercial real estate, or even flipping houses.
* '''Managing an inheritance''': Individual account management can involve managing an inheritance for an individual. This could involve investing the money in a variety of assets, setting up trust funds, or managing the finances of the individual.  
* '''Managing an inheritance''': Individual account management can involve managing an inheritance for an individual. This could involve investing the [[money]] in a variety of assets, setting up trust funds, or managing the finances of the individual.  
* '''Managing insurance''': Individual account management can also involve managing an individual's insurance policies. This could involve reviewing existing policies, making recommendations for new policies, and helping the individual to select the best coverage for their needs.  
* '''Managing [[insurance]]''': Individual account management can also involve managing an individual's insurance policies. This could involve reviewing existing policies, making recommendations for new policies, and helping the individual to select the best coverage for their [[needs]].  
* '''Managing budgets''': Individual account management can also involve helping an individual to manage their budget. This could involve helping the individual to track their expenses and income, creating a budget that meets their needs, and helping them to stick to their budget.  
* '''Managing budgets''': Individual account management can also involve helping an individual to manage their budget. This could involve helping the individual to track their expenses and income, creating a budget that meets their needs, and helping them to stick to their budget.  
* '''Managing debt''': Individual account management can also involve helping an individual to manage their debt. This could include helping them to negotiate with creditors, create a repayment plan, and find ways to pay off their debt faster.
* '''Managing debt''': Individual account management can also involve helping an individual to manage their debt. This could include helping them to negotiate with creditors, create a repayment [[plan]], and find ways to pay off their debt faster.


==Limitations of Individual account management==
==Limitations of Individual account management==
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* It can be difficult to maintain the same level of service for all clients, as individual accounts require more attention than a group of accounts managed as a portfolio.  
* It can be difficult to maintain the same level of service for all clients, as individual accounts require more attention than a group of accounts managed as a portfolio.  
* Managing multiple accounts can be challenging if the clients have different levels of risk tolerance, as the manager must be able to adjust strategies accordingly.
* Managing multiple accounts can be challenging if the clients have different levels of risk tolerance, as the manager must be able to adjust strategies accordingly.
* It can be difficult to keep track of market trends and changes, as it requires constant monitoring of individual accounts.  
* It can be difficult to keep track of [[market]] trends and changes, as it requires constant monitoring of individual accounts.  
* As individual account management requires more attention, it can be difficult to provide regular updates and communication about the accounts.
* As individual account management requires more attention, it can be difficult to provide regular updates and [[communication]] about the accounts.


==Other approaches related to Individual account management==
==Other approaches related to Individual account management==
One-sentence introduction: Other approaches related to individual account management include:  
Other approaches related to individual account management include:  
* '''Client Relationship Management (CRM)''': CRM is a process of building relationships with clients, understanding their needs, and providing them with tailored services.
* '''Client Relationship Management (CRM)''': CRM is a process of building relationships with clients, understanding their needs, and providing them with tailored services.
* '''Client Portfolio Management (CPM)''': CPM is a process of managing the investments of an individual client, and providing advice on portfolio optimization.
* '''Client Portfolio Management (CPM)''': CPM is a process of managing the investments of an individual client, and providing advice on portfolio optimization.
* '''Risk Management''': Risk management is a process of identifying, analyzing and responding to potential risks that may arise from an individual's investments.
* '''Risk Management''': [[Risk management]] is a process of identifying, analyzing and responding to potential risks that may arise from an individual's investments.
* '''Financial Planning''': Financial planning is a process of helping individuals manage their finances, by providing advice on budgeting, saving, investing, and retirement planning.
* '''Financial [[Planning]]''': [[Financial planning]] is a process of helping individuals manage their finances, by providing advice on budgeting, saving, investing, and retirement planning.
* '''Retirement Planning''': Retirement planning is a process of helping individuals plan for their retirement by providing advice on savings and investments, as well as tax planning.
* '''Retirement Planning''': Retirement planning is a process of helping individuals plan for their retirement by providing advice on savings and investments, as well as tax planning.


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==Footnotes==
==Footnotes==
<references/>
<references/>
{{infobox5|list1={{i5link|a=[[Investment counsel]]}} &mdash; {{i5link|a=[[Buying cycle]]}} &mdash; {{i5link|a=[[Strategic Buyer]]}} &mdash; {{i5link|a=[[Customer driven]]}} &mdash; {{i5link|a=[[Commercial agent]]}} &mdash; {{i5link|a=[[Trade receivables]]}} &mdash; {{i5link|a=[[Bancassurance]]}} &mdash; {{i5link|a=[[Income stream]]}} &mdash; {{i5link|a=[[Cross merchandising]]}} }}


==References==
==References==
* Dan C. Weilbaker & William A. Weeks (1997) ''The Evolution of National Account Management: A Literature Perspective'', Journal of [[Personal selling|Personal Selling]] & [[Sales management|Sales Management]], 17:4, 49-59, DOI: 10.1080/08853134.1997.10754110
* Dan C. Weilbaker & William A. Weeks (1997) ''The Evolution of National Account Management: A Literature Perspective'', Journal of [[Personal selling|Personal Selling]] & [[Sales management|Sales Management]], 17:4, 49-59, DOI: 10.1080/08853134.1997.10754110
* Homberg, C., Workman, Jr, J.P. and Jensen, O. (2002) ''A configuration perspective on key account management'', Journal of Marketing, 66, April, pp. 38–60.
* Homberg, C., Workman, Jr, J.P. and Jensen, O. (2002) ''A configuration perspective on key account management'', Journal of Marketing, 66, April, pp. 38-60.
* H Vyas, P. (2012). [https://web.iima.ac.in/assets/snippets/workingpaperpdf/13002953852012-06-08.pdf,''Key Account Management.''] Indian Institute of Management.
* H Vyas, P. (2012). [https://web.iima.ac.in/assets/snippets/workingpaperpdf/13002953852012-06-08.pdf,''Key Account Management.''] Indian Institute of Management.
* Millman, T. and Wilson, K. (1996). [https://www.escholar.manchester.ac.uk/api/datastream?publicationPid=uk-ac-man-scw:2n537&datastreamId=FULL-TEXT.PDF,''Developing key account management competences.''] Journal of Marketing Practice: Applied Marketing Science, 2(2), pp.7-22.
* Millman, T. and Wilson, K. (1996). [https://www.escholar.manchester.ac.uk/api/datastream?publicationPid=uk-ac-man-scw:2n537&datastreamId=FULL-TEXT.PDF,''Developing key account management competences.''] Journal of Marketing Practice: Applied Marketing Science, 2(2), pp.7-22.
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* Salojärvi, H, & Saarenketo, S (2013), ''The effect of teams on [[customer]] [[knowledge]] processing, esprit de corps and account performance in international key account management'', European Journal Of Marketing, 47, 5/6, pp. 987-1005
* Salojärvi, H, & Saarenketo, S (2013), ''The effect of teams on [[customer]] [[knowledge]] processing, esprit de corps and account performance in international key account management'', European Journal Of Marketing, 47, 5/6, pp. 987-1005
* Storbacka, K. (2012). ''Strategic account management programs: Alignment of design elements and management practices.'' Journal of Business & Industrial Marketing, 27(4), pp.259-274.  
* Storbacka, K. (2012). ''Strategic account management programs: Alignment of design elements and management practices.'' Journal of Business & Industrial Marketing, 27(4), pp.259-274.  
* Weilbaker and Weeks (1997) op. cit.; Abratt, R. and Kelly, P.M. (2002) ''Customer–supplier partnerships: perceptions of a successful key account management program'', Industrial [[Marketing]] Management, 31, pp. 467–76.
* Weilbaker and Weeks (1997) op. cit.; Abratt, R. and Kelly, P.M. (2002) ''Customer-supplier partnerships: perceptions of a successful key account management program'', Industrial [[Marketing]] Management, 31, pp. 467-76.
{{a|Mariia Gordiyenko}}
{{a|Mariia Gordiyenko}}
[[Category:Marketing]]
[[Category:Marketing]]

Latest revision as of 22:47, 17 November 2023

Individual account management is the process of maintaining a balance or an account of an individual in financial, real estate or any other advisory firm by a dedicated manager is called individual account management. Account management is a broad topic of managing clients in various industries. In order to provide individualized client service, individual account management enter the game.

Dan Weilbaker and William Weeks in their literature study, highlight that selling has developed enormously nowadays and there are various types such as key account management, large account selling and global account selling [1]. That is the reason why account management goes hand in hand with marketing, sales and production.

The general agreement was for salesmen to be accountable for selling to companies only within their own geographic region. As buyers needed greater quality service and lower costs, some businesses began assigning a single seller to lead and develop a few accounts. The enhanced service and responsiveness to the key account client was valued by those clients who were looking to off-load some of the charges normally handled by their own representatives [2]. Moreover, suppliers also happen to gain, as study by Homburg, Workman and Jensen (2000) points that actively managing key accounts seems in enhanced supplier performance [3].

According to Storbacka, individual account management focuses on co-creation of value and is both outside-in", that classifies business and renewal opportunities by strongly learning the customer's value-creating process, and "inside-out", that executes the strategy in order to reach agreed corporate aims[4].

Advantages of individual account management to buyers

Among various benefits of account management, the most valuable are following:

  • Improved service quality: Account manager has more time for each client and hence has time to ask questions about the service and improve it when needed.
  • Individual offers: Client's demand may be satisfied by tailored offer specially for a particular client which makes service more unique and stands out from competitors.
  • Long-term relationship: the clients contact only one person from the suppliers side (the key account manager) and that's how account manager can build a relationship with the client as he is the only route for all incoming enquiries.
  • Better contract terms: key account customers are in a solid status to negotiate lower prices, credit and other contract terms because of their relevance to suppliers.

Examples of Individual account management

  • Managing investments: Individual account management involves managing a portfolio of investments for a single individual. This could involve creating a custom portfolio of stocks, bonds, mutual funds, ETFs, and other investments that are tailored to the individual’s goals and risk tolerance.
  • Managing real estate: Individual account management can also involve managing a portfolio of real estate investments for a single individual. This could involve selecting and managing rental properties, investing in commercial real estate, or even flipping houses.
  • Managing an inheritance: Individual account management can involve managing an inheritance for an individual. This could involve investing the money in a variety of assets, setting up trust funds, or managing the finances of the individual.
  • Managing insurance: Individual account management can also involve managing an individual's insurance policies. This could involve reviewing existing policies, making recommendations for new policies, and helping the individual to select the best coverage for their needs.
  • Managing budgets: Individual account management can also involve helping an individual to manage their budget. This could involve helping the individual to track their expenses and income, creating a budget that meets their needs, and helping them to stick to their budget.
  • Managing debt: Individual account management can also involve helping an individual to manage their debt. This could include helping them to negotiate with creditors, create a repayment plan, and find ways to pay off their debt faster.

Limitations of Individual account management

Individual account management has some limitations that should be taken into consideration when choosing this type of management:

  • It is difficult to manage accounts for multiple clients. Having to manage individual accounts for each client can be time consuming and costly.
  • It can be difficult to maintain the same level of service for all clients, as individual accounts require more attention than a group of accounts managed as a portfolio.
  • Managing multiple accounts can be challenging if the clients have different levels of risk tolerance, as the manager must be able to adjust strategies accordingly.
  • It can be difficult to keep track of market trends and changes, as it requires constant monitoring of individual accounts.
  • As individual account management requires more attention, it can be difficult to provide regular updates and communication about the accounts.

Other approaches related to Individual account management

Other approaches related to individual account management include:

  • Client Relationship Management (CRM): CRM is a process of building relationships with clients, understanding their needs, and providing them with tailored services.
  • Client Portfolio Management (CPM): CPM is a process of managing the investments of an individual client, and providing advice on portfolio optimization.
  • Risk Management: Risk management is a process of identifying, analyzing and responding to potential risks that may arise from an individual's investments.
  • Financial Planning: Financial planning is a process of helping individuals manage their finances, by providing advice on budgeting, saving, investing, and retirement planning.
  • Retirement Planning: Retirement planning is a process of helping individuals plan for their retirement by providing advice on savings and investments, as well as tax planning.

In summary, individual account management is a process of managing the financial accounts of an individual, and providing tailored advice on investments, budgeting, and retirement planning. Other related approaches include Client Relationship Management (CRM), Client Portfolio Management (CPM), Risk Management, Financial Planning, and Retirement Planning.

Footnotes

  1. ↑ Weilbaker and Weeks (1997)
  2. ↑ Weilbaker and Weeks (1997)
  3. ↑ Homberg, Workman and Jensen (2002)
  4. ↑ Storbacka (2012)


Individual account management — recommended articles
Investment counsel — Buying cycle — Strategic Buyer — Customer driven — Commercial agent — Trade receivables — Bancassurance — Income stream — Cross merchandising

References

  • Dan C. Weilbaker & William A. Weeks (1997) The Evolution of National Account Management: A Literature Perspective, Journal of Personal Selling & Sales Management, 17:4, 49-59, DOI: 10.1080/08853134.1997.10754110
  • Homberg, C., Workman, Jr, J.P. and Jensen, O. (2002) A configuration perspective on key account management, Journal of Marketing, 66, April, pp. 38-60.
  • H Vyas, P. (2012). Key Account Management. Indian Institute of Management.
  • Millman, T. and Wilson, K. (1996). Developing key account management competences. Journal of Marketing Practice: Applied Marketing Science, 2(2), pp.7-22.
  • Philippe Gosselin, D. and André Bauwen, G. (2006). Strategic account management: customer value creation through customer alignment. Journal of Business & Industrial Marketing, 21(6), pp.376-385.
  • Salojärvi, H, & Saarenketo, S (2013), The effect of teams on customer knowledge processing, esprit de corps and account performance in international key account management, European Journal Of Marketing, 47, 5/6, pp. 987-1005
  • Storbacka, K. (2012). Strategic account management programs: Alignment of design elements and management practices. Journal of Business & Industrial Marketing, 27(4), pp.259-274.
  • Weilbaker and Weeks (1997) op. cit.; Abratt, R. and Kelly, P.M. (2002) Customer-supplier partnerships: perceptions of a successful key account management program, Industrial Marketing Management, 31, pp. 467-76.

Author: Mariia Gordiyenko

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