Difference between Relationship Manager and Business Development Manager

In the world of business, it is crucial to grasp the various positions in one’s organization to achieve lasting success. When comparing Difference between relationship manager and business development manager , it is critical to understand that Relationship Manager and Business Development Manager are fundamentally distinct positions. But what is so special about these roles, and why are both of them important for your business? Can your company thrive without a balance between client retention and new client acquisition? How do these roles work together to drive your business forward? By answering these questions, you can better determine how to allocate resources and develop strategies that leverage the strengths of both roles for maximum impact.

What Is a Relationship Manager?

Relationship managers work to improve business relationships with partner firms and clients.

Relationship management is generally divided into two fields: client relationship management and business relationship management. Both fields share the common goal of facilitating good relationships so that businesses can maximize the value of those relationships and maintain a good reputation.

What does a Relationship Manager do?

Relationship Managers handle special client accounts for the company. They are usually assigned to essential clients or corporate accounts. They ensure that the company keeps these clients engaged. Client Relationship Managers work hard to build professional working relationships. They give special attention to the assigned client accounts and provide clients with updates on company services and promotions. They tend to any concerns that clients may have, and they ensure that these concerns are properly addressed and resolved. Client Relationship Managers are entrusted to build and strengthen the company's relationship with a client. As such, they are expected to be professional, friendly, and collaborative.

What Goes into Good Relationship Management?

Good relationship management is about communication, conflict management, people skills, and the technical aspects of a particular business or industry.

What Skills Do Relationship Managers Need?

Relationship managers need:

• Analytical skills
• Communication skills
• Coordination skills

Relationship managers also need to work closely with customer-facing staff to help them better understand clients’ needs and motivate them to provide the highest service standards.

What Are the Two Main Relationship Manager Types?

The two main types of relationship manager are:

• Business relationship managers, who oversee the internal communication of business units within a larger corporation or with suppliers and other outside entities
• Client relationship managers, who build a culture of relationships with clients based on trust and value and not only on price

What is a business development manager?

A business development manager (BDM) is responsible for finding and pursuing new business opportunities for a company. This mid-level career role involves a combination of strategic planning, sales, and relationship management.

In addition to sales, BDMs collaborate with other teams in the organization, including marketing and operations. They work closely with account executives, where they share intelligence, prioritize outreach, and address any challenges. To be effective, BDMs need to have an open line of communication with different teams within the organization to make sure that everyone is on the same page with strategy and long-term planning.

What does a business development manager do?

The majority of day-to-day activities of a BDM involve people management — things such as one-on-one coaching and mentoring, leading team meetings, training the organization, and personnel decisions. Managing different personalities and smoothing ruffled feathers is one of the most challenging roles of a BDM. Successful BDMs should also be able to think quickly and solve problems on the fly.

Other responsibilities of a BDM include:

- Market research: 

These BDMs need to scope the market regularly to unearth new business prospects, tactics, and affiliations. It also analyzes the strategies implemented by the competitors to identify what they are doing right or wrong with their sales approach.

- Strategic planning:

 These are the individuals who come up with and implement development plans and strategies necessary for their company to achieve the necessary sales figures. They also define target markets and potential clients, and come up with ways and means of contacting these categories.

- Client acquisition: 

BDMs foster and sustain client, partner, and stakeholder relationships. Furthermore, they bargain to reach agreements on various business transactions.

Sales: BDMs are the major reason behind the moves to ensure that their respective companies realize the targeted sales. They also spend much of their time with the salespeople in the formulation of proposals, sales presentations, and sales speeches.

- Networking:

 Socialization is inherent to this profession because a BDM goes to events and conferences to publicize their company, its line of products, and services. Locally, they work with other departments to coordinate and provide backing for business development activities.

- Performance tracking: 

BDMs assess the success of business development strategies and drive business development efforts. In that regard, they often provide updates on revenue, market share, and the acquisition of new clients.

- Training: 

BDMs are also responsible for the recruitment and management of business development representatives (BDRs) within a given sales team.

Difference between relationship manager and business development manager:

Here is a comparison table highlighting the Difference between relationship manager and business development manager :

Relationship Managers and Business Development Managers work in parallel in an organization but have different responsibilities. While Relationship Managers actively manage and work on deepening the existing client relationships to guarantee their further satisfaction and retention, Business Development Managers are expected to prospect for new business opportunities. Each position is very important and involves different skills oriented towards the company’s success, although they are aimed at securing clients as the primary goal of some positions.

How relationship manager and business development manager are most important for any business ?

The Relationship Managers and Business Development Managers are two vital components in any organization. Their functions may differ, but both are essential and crucial to the organization’s growth and sustainable development. 

- Relationship Manager 

A Relationship Manager is responsible for managing current or existing clients and therefore they are the ones who safeguard or own those relations. They are crucial to building and sustaining the customer loyalty and trust of customers. Relationship Managers work closely with their clients to understand their needs and wants guaranteeing value delivery in a consistent method, hence improving customer satisfaction and increasing customer retention. The fact that they are capable of fixing any problem and providing appropriate solutions to the client not only helps to cement the already established relationship of the client business but also creates more opportunities for further charges via cross-sell and up-sell. In other words, Relationship Managers are the key players when it comes to client maintenance, thus making sure that the clients are kept happy while they keep on generating revenue for the business.

- Business Development Managers

On the other hand, Business Development Managers are the working horses that are responsible for business development. The major responsibility lies in searching for new business opportunities, as the company’s market should be extended. Business Development Managers are involved in the identification of new markets and potential clients through the assessment of market forces and competition and carry out networking opportunities for the business. It is essential for any business since it directly influences the value as it guarantees new clients, negotiations, and contracts. In brief, they are the master of the growth and prosperity of business.

After analyzing the Difference between relationship manager and business development manager. These roles interact in a manner that creates synergy, which is a crucial aspect of any business organization. It is the job of Relationship Managers to maintain all the clients and keep them satisfied, on the other hand, Business Development Managers find new clients and new business opportunities for the company to grow. It is quite important to maintain a fine line between retaining many clients and, at the same time, gaining new ones; having professional and competent people that will help the business to remain consistent and profitable in a fluctuating market environment.

Conclusion:

Understanding the Difference between relationship manager and business development manager. Manager is crucial for any business looking to succeed. Relationship Managers ensure that your existing clients remain loyal and satisfied, while Business Development Managers focus on bringing in new business opportunities.

References: 

• https://www.investopedia.com/terms/r/relationship-manager.asp
• https://www.zippia.com/client-relationship-manager-jobs/client-relationship-manager-vs-business-development-manager-differences/
• https://www.salesforce.com/blog/business-development-manager/