What is an Account Executive?
An account executive (AE) takes new leads from a sales development representative (SDR) and nurtures them. The idea is to take someone who’s new to our offer and move them along the funnel, towards a closed deal.
An AE’s skill set includes communication, organization, negotiation, and leadership. They are also naturally motivated and driven.
Why are Account Executives Important?
Account executives play an important role in the sales lifecycle. Along with finalizing deals, they also represent the face of the company. They’re often the first person a prospect speaks to directly.
An AE’s involvement ensures a client’s unique needs are understood and met, fostering trust and rapport. AEs directly impact a company’s revenue by converting qualified leads into paying customers. AEs’ focus on customer satisfaction increases the likelihood of repeat business.
Account Executives vs. Sales Development Representatives vs Business Development Representatives
An Account Executive’s role is to nurture leads. They do not generate these leads; they just help build the sale.
Sales development representatives (SDRs) focus on qualifying inbound and outbound leads. An SDR is the initial touchpoint in the sales cycle. They filter and pass on high-potential leads to account executives.
An SDR shouldn’t be confused with a business development representative (BDR) either. A BDR identifies new business and explores opportunities in different markets. Sales development representatives are the touchpoint for leads after a BDR finds them.
There is often some confusion between BDRs and SDRs because their roles overlap. An organization will sometimes only hire either either role. That being said, an AE’s role is quite different - and experienced BDRs/SDRs will often turn into AEs over time as a result.
How Account Executives Fit Into the Sales Process
An account executive steps in after a sales development representative qualifies and reaches out to a lead.
They take the time to understand a customer’s needs more deeply. This allows them to provide tailored product demonstrations, handle objections, and negotiate terms. To close a deal, an AE works on aligning a customer’s expectations with the company’s goals.
Thereafter, an AE will need to maintain the client relationship. This would include facilitating a smooth onboarding process and addressing questions and concerns. Once there is trust between the AE and the client, there are opportunities for upselling and asking for referrals.
Understanding Account Executive Career Progression
An account executive is often the foundation of a sales career. Growth opportunities become available as they improve their expertise and meet or exceed targets.
- Account Executive. A regular account executive. Often promoted from BDR/SDR ranks.
- Senior Account Executive. With experience, AEs are able to handle larger accounts or regions. This often entails dealing with more complex sales cycles or high-ticket items.
- Account Manager. While an AE focuses on closing new deals, account managers nurture and expand existing client relationships. This could include upselling or encouraging the sale of additional products or services.
- Sales Manager/ Director. A sales manager or director leads teams of account executives, develops sales strategies, and sets team targets.
- VP of Sales or Chief Revenue Officer. These are executive roles. They focus on overarching sales strategies, structuring teams, and growing revenue.
Overall, account executives play a crucial role in growing a business. However, knowing how to gauge customer needs and negotiate is what an AE requires to succeed and move up the career ranks.
