The myth of relationship management: why strong customer relationships sometimes yield surprisingly little

Business partners shake hands as a symbol of customer relationships and relationship management.

Many account managers believe that a strong client relationship will eventually automatically lead to increased revenue, more assignments, and a long-term partnership. That idea sounds logical. After all, clients prefer doing business with people they trust. However, practice shows something different. There are account managers who are well-liked by their clients, have regular contact, and are welcome everywhere, yet commercial results lag behind. At the same time, there are professionals who have less frequent contact and yet acquire a much stronger position within the same organization.

That difference arises because relationships are often overestimated and relevance is underestimated. The question, therefore, is not how good the relationship with a client is. The more interesting question is: what role do you play in that client's decision-making?

Customers assess relationships differently than suppliers think.

One of the biggest misconceptions within account management is that a pleasant collaboration automatically means that a supplier has become strategically important. From the supplier's perspective, long-term relationships often feel like proof of loyalty. For customers, however, the situation is different.

Customers constantly distinguish between two types of suppliers:

  • Suppliers with whom it is pleasant to work;
  • Suppliers who demonstrably contribute to their objectives.

That distinction seems subtle, while in practice it has major consequences for a supplier's commercial position.

For example, a financial director may be genuinely satisfied with a supplier. The collaboration runs smoothly, agreements are honored, and interactions are constructive. However, that satisfaction does not necessarily mean that the same supplier will be involved when important strategic decisions need to be made. At that moment, attention shifts to parties that can assist with issues surrounding growth, cost control, risk management, innovation, or change processes.

Satisfied customers regularly create a false sense of security.

Satisfied customers, in fact, sometimes pose a greater risk than critical customers. This is because critical customers reveal where tension arises in the collaboration. They ask questions, express concerns, and make visible which expectations are not yet being sufficiently met.

With satisfied customers, the opposite often happens. The relationship appears stable, communication is pleasant, and there are few signals pointing to a potential risk. As a result, the conviction easily arises that the supplier's position is firmly anchored.

However, behind that satisfaction, developments may be taking place that remain completely out of sight. Organizations change continuously. New managers bring different priorities, market conditions shift, technology evolves, and strategic ambitions change. Consequently, the criteria on which suppliers are evaluated also change automatically.

Therefore, most suppliers do not lose customers due to a deteriorated relationship. More often, a situation arises in which the customer develops, while the supplier continues to contribute in the same way as a few years ago.

Growth rarely arises from trust alone

Trust is an important prerequisite for collaboration. Without trust, there is hardly any room for open conversations, joint projects, or long-term partnerships. Yet, trust explains only part of the success.

Interestingly enough, trust disappears as a distinguishing factor as soon as multiple suppliers have built up the same level of trust. The customer is then faced with a different choice: Who helps us move forward best?

Organizations then no longer compare exclusively reliability, accessibility, or service quality. They look primarily at the added value a supplier provides.

This is because business decision-making ultimately revolves around results. Decision-makers are held accountable for objectives, budgets, performance, and risks. They seek suppliers who contribute to achieving those goals.

Suppliers who distinguish themselves therefore often do three things well:

  • They understand the market in which their client operates;
  • They recognize developments before they become urgent;
  • They help customers make better choices.

It is precisely that combination that ensures a supplier is seen as a valuable discussion partner rather than an executing party.

Many customer conversations unconsciously revolve around the past.

Many account conversations are less strategic than both parties realize. They discuss the collaboration, progress, service, KPIs, and ongoing projects. While this yields useful information about how the partnership is progressing, these topics share one important characteristic: they almost always focus on the past. They describe what has happened, whereas commercial growth actually stems from insight into what is going to happen.

The most valuable account managers therefore consciously steer their conversations toward the future. They are genuinely curious about the developments that will influence the organization in the coming years. They focus on questions such as:

  • Which developments will change this market?
  • What ambitions does the organization want to realize in the coming years?
  • Which risks concern management?
  • Which changes affect customers, processes, or employees?
  • Which opportunities are currently not being sufficiently utilized?

Asking these types of questions provides insight into the context in which decisions are made. It is precisely there that the role shifts from supplier to sparring partner. People appreciate suppliers who offer solutions. They trust parties that help them better understand issues and be better prepared for what lies ahead. This position emerges early in the decision-making process and is therefore much stronger. After all, relevance is rarely determined by the quality of the last delivery. It is determined by the extent to which you contribute to the next important decision.

Are you relevant to your customer?

Relationship management remains an important part of account management. It creates access, trust, and openness. True commercial power emerges when that relationship is combined with relevant insights, strategic understanding, and the ability to help clients go beyond their original request.

Perhaps that is the most important question every account manager should ask themselves regularly: If my client has to solve their biggest challenge tomorrow, am I one of the first people they call?

The answer to that question often says much more about the quality of a customer relationship than any satisfaction score.

Are you curious how your account managers can convert their client relationships into more strategic impact? Feel free to contact one of our experts to discuss the possibilities of a training or coaching program.

Share this post on

Related publications

Training courses and professional literature provide knowledge, but the real breakthrough occurs when you discover that...
Development begins with a mirror that is sometimes uncomfortable.
Disappointing results are often quickly explained: the team needs to work differently, the manager needs to...
Disappointing results? First investigate what behavior causes them.
KPIs provide direction, but do not tell the whole story. Sustainable improvement occurs when managers do not...
Why most managers focus on results, while behavior determines the outcome
In sales, speed feels like progress, but experienced professionals know that slowing down actually leads to...
The art of slowing down in sales conversations
An involved manager who constantly steps in can unintentionally create dependency. Sustainable growth occurs when leaders...
How involved leaders can unintentionally reinforce dependency
A smooth meeting can give the impression that everyone agrees, whereas true consensus...
The illusion of consensus in management teams
Many organizations focus on strategy and processes when results lag behind. But when people withhold information...
Trust as a condition of performance

A new course,
a new career

Ready to make a difference in your careers? This informative partner brochure tells you everything you need to know about partnering with Kenneth Smit.

* " indicates required fields

This field is hidden when viewing the form

By clicking 'Send', you indicate that you have read and agree to Kenneth Smit's Privacy Policy and the processing and storage of your data.

The first step to your success

* " indicates required fields

Date*
This field is hidden when viewing the form

By clicking 'Send', you indicate that you have read and agree to Kenneth Smit's Privacy Policy and the processing and storage of your data.

We will place you on the waiting list for this training and contact you as soon as possible.

* " indicates required fields

Request information

* " indicates required fields

This field is intended for validation purposes and should not be changed.
How would you like us to contact you?*
Newsletter

By clicking 'Send', you indicate that you have read and agree to Kenneth Smit's Privacy Policy and the processing and storage of your data.