Why Is Your Account Manager Underperforming?

Account managers play a crucial role in maintaining and growing client relationships, but what happens when they’re not driving new revenue? If your account manager is well-liked but isn’t expanding accounts, it’s time to diagnose the issue. Before making any changes to compensation, consider whether the problem is training, motivation, or a fundamental misalignment in the role itself.

Why Your Account Manager Isn’t Growing Revenue

Not every account manager is a natural salesperson, and that’s okay—if their role is structured correctly. Many account managers find themselves struggling to drive revenue growth due to a variety of factors. A lack of proper training could be preventing them from executing effective sales strategies. Without the right mechanics and coaching, they may not have the skills needed to identify and seize sales opportunities.

Fear of selling can also be a major roadblock. Some account managers avoid growth conversations altogether because they don’t want to come across as overly pushy or “salesy.” If they’re hesitant to engage clients in upselling or expansion discussions, their ability to drive revenue will remain limited.

Another key issue is motivation. If an account manager simply doesn’t have the drive to expand business, no compensation plan or incentive structure will be able to change that. Sometimes, the reality is that the individual is more suited for maintaining existing relationships rather than actively seeking new opportunities.

How to Diagnose the Problem

Before restructuring compensation or making a hiring decision, take the time to diagnose the root cause of the issue. Start with a direct conversation. Ask the account manager how they perceive their role and where they feel they struggle the most. Their responses can provide crucial insights into whether they see themselves as a salesperson or more of a customer service representative.

Next, observe their client interactions. Are they proactive in spotting and pursuing opportunities, or do they shy away from sales discussions? Watching how they engage with clients can help determine whether they naturally seek out growth opportunities or simply maintain the status quo.

A final test is to assign them a simple sales task. For instance, have them set up a meeting with a client to explore additional needs. Their response to this challenge will reveal a lot about their approach to sales, their comfort level with initiating business conversations, and their ability to handle objections.

Fixing the Issue

Once you identify the problem, you have three primary paths forward.

1. Train and Incentivize for Growth

If the issue is a lack of skills, investing in sales training can be a game changer. A well-structured coaching program can equip account managers with the necessary tools to engage clients more effectively. Additionally, modifying incentives can encourage upselling without forcing them into an unnatural sales role. The right balance of training and rewards can often unlock hidden potential.

2. Redefine the Role

If the account manager is exceptional at relationship-building but struggles with sales, consider restructuring their role. Instead of forcing them to sell, you might benefit from making their position non-selling with a fixed salary. Another option is pairing them with a dedicated sales representative who handles the closing process while they focus on relationship maintenance.

3. Make Selling a Requirement

If account growth is a critical expectation of the role, then sales must be a non-negotiable responsibility. Clearly define sales targets and set measurable benchmarks. If the individual continues to resist or underperform despite support and incentives, you may have the wrong person in the role. Not everyone is cut out for sales, and it’s better to recognize this early rather than force a misalignment.

Compensation Models That Work

If compensation is part of the issue, it’s important to structure it in a way that aligns with performance expectations. A base salary combined with growth incentives ensures that bonuses are tied to new revenue rather than maintaining existing business.

For more sales-driven account managers, a commission-based model can work well, particularly if they are motivated by financial rewards. In some cases, a hybrid approach—where a stable salary is paired with aggressive upside potential—creates the best balance between security and performance-based incentives.

Red Flags to Watch For

Even with the right incentives and training, some account managers simply aren’t cut out for growth-oriented roles. Watch for key warning signs, such as avoiding sales conversations despite coaching, blaming external factors like market conditions rather than problem-solving, or displaying no urgency in expanding client relationships. These behaviors indicate that the individual may not be suited for a growth-focused role.

Final Thoughts

Before jumping to compensation as the problem, ensure you’re working with the right person in the right role. Take the time to assess their strengths, provide necessary training, and structure their incentives accordingly. If they show potential, the right approach can help them succeed. If not, you may need to reconsider their place in your organization. Making informed decisions about your account management team will ultimately lead to stronger client relationships and increased revenue growth.