New business development is responsible for generating sales with new clients. Most often this means finding new clients, building revenue and profitability for the business.  Account management is responsible for managing relationships with existing clients, retaining clients and, ideally, increasing revenue opportunities with existing clients.  Aka upselling.  

Those definitions really explain the differences between these two roles succinctly, so why write a whole blog post about it?  We can stop here, right? 

And yet... 

All too often, I see companies expecting one person serve as a new business developer and an account manager. And then they are surprised that only some of the goals are being met, either retention or new client goals.  These are two very different sales roles, which require different skills.  Just like you can’t expect a cardiothoracic surgeon to complete a craniotomy.  Sure, a cardiothoracic surgeon and a neurosurgeon are both doctors, but they operate on very different parts of the body. 

(Fun fact, you may think that is an unfair comparison because you may believe that doctors require more skills and, dare I say it, intelligence than salespeople.  However, a study conducted by the University of Wisconsin found that the following 10 jobs were best suited for those with high IQ scores, and those jobs include:  doctors and surgeons, college professors, electrical engineers, lawyers, scientists, materials and design engineers, software and IT professionals, sales, finance, and real estate.) 

What skills are needed for new business development? 

People often compare new business development with hunters.  There is a good reason for this.  Hunters like working alone, initiating new activity, and improvising in unpredictable situations.   

Traits of a Good New Business Developer: 

• Motivated to work on their own 
• Money driven and thrive on competitive commission structures 
• Able to derive business from nothing, thereby efficiently and effectively ask the right questions 
• Focus on end results or sales that have higher profits and margins 
• Collaborate 
• Communicate (oral and written) well 
• Active listeners 
• Assertive 
• Excellent persuaders and negotiators  
• Compassionate 
• Strategic thinkers, with the ability to adapt and adapt quickly 
• Project managers with good time management skills 
• Excellent researchers with a hunger for knowledge, including industry and economic data 
• Motivated and excel while under constant pressure. 

When I think of new business development, I think about what Ann-Marie Heidingsfelder, The 20 Minute Sales Coach said, “Customers expect salespeople to stimulate the sales process, to ask the right questions and finally to ask for their business.  When this initiative or confidence is lacking, no matter how much they like you personally, they aren’t going to respect or value you as a business partner.” 

What skills are needed for account management? 

Wherein the new business developer is a hunter, an account management is comparable to a farmer.  They take time to cultivate and grow relationships with clients.  The account manager and client share a clear etiquette and methodology that both parties agree to and engage in.  The account manager stays with the client for the long haul.   

Traits of a Good Account Manager: 

• Long term planners and strategists 
• Highly detailed in order to meet client expectations 
• Patient 
• Communicators that are comfortable with addressing c-suite executives, as well as directors, managers, etc., so that they can address the entire organization and make sure the client needs and expectations are met. 
• Nurtures with the aptitude to develop in-depth knowledge to the client and its customers 
• Negotiators 
• Skilled at value-based selling (By deeply understanding the business as a whole, they know how and where to demonstrate value.) 

When I think about account management, I think about a famous quote by Bob “Idea Man” Hooey, A Canadian business and leadership success author and speaker, “If you are not taking care of your customer, your competitor will.” 

What happens when you have one person who serves as a new business developer and account manager? 

Simply put, client frustration.  

Ultimately, if a new business developer who loves to hunt and find new clients is expected to serve as an account manager as well, clients will be left dissatisfied because the new business developer won’t have the patience, nurturing capacity, or ability to plan the details for long term strategies for clients.  Additionally, the new business developer who is also serving as the account manager will be frustrated and feel held back from their true passion, hunting.  If an account manager who loves to farm and grow relationships with clients is expected to also serve as a new business developer, your new client goals and quotas will not be met, which also means your sales pipeline will not be developed. 

When is the best time to transition a client from new business development to account management? 

The best time to transition a client from new business development to account management is as soon as the client is onboarded.  Better yet, introduce the account manager to the client as the new business developer is closing with the client.  The goal is for the client to not feel passed around, but that the account manager is their dominant point of contact. 

The key takeaway is that for a business to succeed, a strong retention rate is key, but ongoing development of the sales pipeline cannot be ignored.  One is not more important than the other. Both require different skills.  Just like the cardiothoracic surgeon/neuro surgeon analogy made earlier, I think we can all agree we both need our heart and our brain and we want the right specialist to operate on those key critical organs.