Account manager turnover and the influence of context: an exploratory study

Mario Vafeas

doi:10.1108/jbim-04-2012-0064

Abstract

Purpose – The purpose of this study is to investigate the contextual factors that influence the impact of account manager turnover on the client–agency relationship, an under-researched area of relationship management literature. Design/methodology/approach – A case study approach and one-to-one interviews are used to conduct the exploratory study, analysing client–agency relationships within the UK design industry. A conceptual framework covering individual and organisational characteristics is used to examine the contextual factors impacting account manager turnover. Findings – The findings identify both organisational and individual contextual factors that influence the outcome of turnover. Categorized into three core contexts (client-specific knowledge, multiple relationship ties and turnover process management), factors such as agency structure and culture, agency knowledge management policies and client experience were all found to impact on account manager turnover. Research limitations/implications – This small, qualitative, exploratory study suggests the need for further research to investigate the transferability of the findings to a broader range of organisational types and industries and to highlight additional contextual factors that influence the impact of turnover. Practical implications – Account manager turnover does not necessarily mean the end of the client–service firm relationship. Agencies can create contexts that mitigate the potential negative effects. Small firms appear to have advantages inherent in their size, but larger firms can take steps to emulate some of the conditions found in micro firms. Originality/value – This paper adds to the limited number of studies into account manager turnover, making a theoretical and practical contribution, enabling marketing managers to take steps to ensure staff turnover does not result in client switching.

Highlights

There is wide recognition of the importance of a selling firm’s account managers to maintaining, developing, and enhancing relationships with customer firms (Biong and Selnes, 1996; Guenzi and Pelloni, 2004; Karantinou and Hogg, 2009; Murry and Heide, 1998). Prior (2012) suggests that the bonds that develop between principal actors in an inter-firm relationship are valuable and contribute to competitive advantage
A review of the relationship management literature revealed a limited number of empirical studies focusing on account manager turnover and, in particular, highlighted a gap with respect to the influence of context on the effects of turnover
While account manager turnover may be unavoidable, its influence on the client-firm relationship is by no means a foregone conclusion

Summary

Introduction

There is wide recognition of the importance of a selling firm’s account managers to maintaining, developing, and enhancing relationships with customer firms (Biong and Selnes, 1996; Guenzi and Pelloni, 2004; Karantinou and Hogg, 2009; Murry and Heide, 1998). Prior (2012) suggests that the bonds that develop between principal actors in an inter-firm relationship are valuable and contribute to competitive advantage. The higher the level of personal bonds that exist between these actors, the greater key account success is likely to be (Sharma, 2006). Face-to-face contact is seen as an essential marketing element of service delivery with services varying from high to low on the service employee-customer contact continuum (Chase and Tansik, 1983). While there is interdependence between the account manager and other service firm employees, marketing services, the context for this study, typify the type of service where the account manager is the primary customer contact (Mayer et al, 2009). Sharma (1994) maintains that the account manager is the single most important source of the relationship with the client, while Evans et al (1995) identify the account manager as playing a pivotal role in the success of the organization. The heightened importance of the human element can lead to a situation where the relationship that develops between individual key contacts at contracting firms can become stronger than the relationship between the firms themselves (Halinen, 1997)

Methods

Results

Conclusion