Educational Background
Account executives have a wide variety of educational backgrounds depending on the particular industry. In engineering or manufacturing, an account executive may have a bachelor’s or Master’s degree in an engineering field, as well as a Masters in Business Administration. In other industries that sell low technology commodities, years of sales experience may be more important than a degree. The more technical the field, the more likely the account executive has a higher degree. In addition, if the company has only a few major customers, the account executive will need to have expertise within the field, as well as an intimate understanding of the manufacturing, delivery and support arms of the company.
Experience
The title of account executive is used for many different levels across different industries. In advertising and some sales organizations, account executives are actually sales representatives, with a typical territory and revenue or sales target and various account executive duties. These positions may be entry level or staffed with candidates who have prior sales experience. A well-crafted, professionally written account executive resume is requisite in accurately and effectively portraying your skills, experience, and education.
The highest paid account executives are usually referred to as National account executives, or National Account Managers. The main unifying characteristic across all industries is the greater level of sales per customer compared to normal sales representative positions.
Account Executives may handle the sales of an entire national chain for their employer, resulting in large dollar sales – sometime in the millions of dollars for the manufacturer. Because the clients of National account executives represent a large percent of the company’s sales, any contract failure could result in the entire company missing their sales goal for the year. Because of this high level of risk, companies normally hire highly experienced people for this role.
Account executive responsibilities include providing two-way communication between the client and the company, including bringing technical teams to assist the client organization with properly using the product. Or, the account executive may work with marketing and distribution departments to improve delivery or packaging options to improve shelf turn-around based on sales data provided by the client.
Because an account executive needs to be able to work with large, cross-functional teams, they usually have experience with a variety of departments as well as a solid understanding of the industry.
Job Requirements
Account executive jobs have some similarities across all industries. The account executive must have excellent verbal and written communication skills. These skills will be used within the client organization, as well as within the employer organization, to make value-added contacts with all key client staff members.
For sales representative level account executives, the requirements will be similar to a sales representative. The candidate must fully understand the products manufactured by the company, as well as understand the features and benefits of the products.
For account executives who handle national accounts, the job requirements are more in-depth, taking into consideration the higher level of risk and reward potential of gaining or losing the contract.
Because of the duration of the selling cycle, account executives must be experienced with consultative selling. Consultative selling uses a win-win strategy and depends on creating new approaches for using the product by the client that saves the client money, as well as making money for the manufacturer. Trust is the key factor to maintain with all contacts in the client companies. The account executive should fully understand the benefits and limitations of all products that compete in the industry, as well as understand the buying and selling cycles as well as the business models of the client companies. Through helping client companies maximize sales, the account executive will be able to sell more products.
Within some industries, the account executive will also coordinate pull-through activities with local sales representatives to help increase product sales at local stores.
Job Prospects and Salary
Because of the wide range of industries that employ account executives, it is challenging to give an average salary or job prospect projection. While the number of manufacturers and purchasers in almost every industry is consolidating, the number of national account executives in many industries is increasing. In certain specialty areas and niche markets like inventory liquidation, or specialized transportation services, the salaries of the National account executives may be some of the highest in the company.
An average salary for account executives that function more as sales representatives across all industries is currently under $60,000, with an average bonus of about $8,600. With industry consolidations, some areas are experiencing a reduction in the number of positions, as well as a reduction in salary.
However, the situation for the upper end of the spectrum looks more promising. National account manager salaries average about $102,000 with an average bonus of about $30,000.
Conclusion
Applying for an account executive position requires homework, given that the title is utilized for a wide variety of positions with dramatically different job responsibilities and pay. To prepare for becoming an account representative at any level requires a thorough understanding of the company’s products, major customers, and major competitors. For national account executives or account managers, developing solid business skills in an industry is mandatory. While the risks of losing a contract may be great, the rewards, both financially and professionally are equally great.
