1. Maintain a regular cycle of contact. Doing so doesn’t only help salespeople get to know their customers better, it also increases the chance salespeople will be the first ones to know when a service issue arises. That often minimizes the damage, and it may even provide an opportunity for salespeople to strengthen the relationship.
2. Solicit constant, proactive feedback. Give customers a voice and they’ll repay you with their business. So make sure you’re soliciting ongoing feedback before, during and after each sale. One word of warning — research shows less than half of prospects are willing to be completely honest with a salesperson they’ve already refused to do business with.
3. Celebrate benchmarks. Do you keep track of — and/or publicly acknowledge — when a customer’s been with you for one year? Five years? 10 years? 20? Loyal customers are the lifeblood of your organization. Let them know their business is appreciated by providing rewards and incentives for hitting certain milestones.
4. Create a rewards program. Most Fortune 500 companies have some version of a rewards program. Why? Because customers who are closing in on a goal are less likely to leave and do business with another company. Not only that, but rewarding customers with “points” (e.g., frequent flyer miles, Camel Cash, Marlboro Miles, etc.) ensures they’ll make all of their purchases from your company because it’s in their best interest to do so.
5. Promote referrals. Let customers know your company rewards those who attract new prospects and/or business. The more colleagues a customer refers to your company, the more powerful an advocate they become. And, long term, the more they become invested in what you’re organization does.
6. Host regular seminars/luncheons. Invite your best customers to your headquarters for lunch or a one-day seminar. This provides a perfect opportunity for them to meet other customers, as well as C-level executives and other notable employees from your company. The more staff members each customer meets, the more he/she starts to feel like an extended part of your corporate family.
7. Take personal accountability for solving problems. More than 50%  of customers claim they’d never do business with a company again if it took more than 24 hours to resolve a service issue, according to a recent survey. The point being, customers want to feel assured they have someone they can trust at the company who has their best interest at heart. If customers are forced to wait on hold for 15 minutes before dealing with an anonymous service rep who doesn’t have any real stake in ensuring their problems get resolved, chances are they’ll start looking for another supplier/salesperson.
8. Relinquish a certain amount of control. Empower customers by letting them know they’re the ones calling the shots. Doing so positions the salesperson as an advocate. And it also makes buyers feel they’re being treated with the respect they deserve.
9. Don’t make everything about business. Spend some time out of the office with your best customers. Go to a game. Play a round of golf. Meet them at happy hour. And make it a point not to discuss business, unless they bring it up. One of the keys to being an effective salesperson is making sure customers feel comfortable dealing with you. The stronger your personal relationships with buyers, the more comfortable they’ll feel.
10. Get to know several people at the customer’s company. Building strong relationships is a two-way street. The more points of contact salespeople have at each customer’s company, the stronger their foothold. In addition, they’re in a much better decision to win a majority vote if a purchase needs to be approved by a board of decision makers.

Do you have any other customer relationship-building tips you’re willing to share? Feel free to add them in the Comments Box below.

The study’s findings were based on:

• Feedback from more than 450 managers at Fortune 500 companies with a specific focus on the shared characteristics of 30 of those managers who were fired during the three years the study was conducted, and

• Additional feedback from more than 11,000 everyday business leaders  (with a specific focus on the least effective 10%).

While a lot of the characteristics that made up the top 10 may seem like no-brainers, the study also revealed that most ineffective leaders weren’t even aware they exhibited negative behaviors. In fact, those who exhibited the most negative behaviors often rated themselves very positively when surveyed.

Here are the top 10 shared characteristics of ineffective leaders (in descending order):

1. A lack of enthusiasm. Energy trickles down in corporate cultures and leaders who show a general lack of interest in pursuing new initiatives (or helping employees succeed) are a drain on productivity.
2. Acceptance of mediocre results. Complacency is the name of the game. They aim low so there’s no risk of failure (or real success).
3. A lack direction and vision. Leaders who don’t provide feedback or lack the foresight to develop new ways to help the organization evolve create a stagnant work environment.
4. Poor judgment. They make decisions based more on whims or personal feelings than hard numbers and facts. As a result, they lose the faith of their troops (and upper management).
5. Inability to collaborate. They lack the ability to compromise and they don’t respond well to constructive feedback from employees, subordinates or their superiors.
6. Failure to practice what they preach. Ineffective leaders follow “do-as-I-say-not-as-I-do” politics. In many cases they feel they’re exempt from the same rules as employees because of their position.
7. Resistant to change. They view progress as a threat. They don’t like learning new things and balk at the idea of taking on additional responsibilities, even if it means helping the company generate more revenue.
8. Failure to learn from mistakes. This means they’re doomed to repeat them.
9. A lack of communication skills. They criticize in public, praise in private (if they praise at all).  They tell employees what to do rather than empowering them by asking good questions that help them uncover the answers for themselves.
10. Failure to develop others. They see anyone with potential as a threat. They’re much more concerned with having total control than increasing productivity by delegating responsibilities or developing top employees into reliable managers.

For more (or to purchase the complete findings of the study), visit “Ten Fatal Flaws That Derail Leaders” by Jack Zenger and Joseph Folkman, Harvard Business Review.

The study, which was conducted by the Society for New Communications Research, also revealed more than 35% of Fortune 500 companies had a Twitter account as of last year.

One of the study’s more interesting findings was that 22% of Fortune 500  companies also maintain a company blog that focuses on customers’ needs.

In addition:

• eight out of 10 of those companies had a direct link between the posts on their corporate blogs and their company’s Twitter feed, and
• nearly 75% of all companies plan on launching new social media initiatives in the next year, according to a Marketing Executives Networking Group survey.

If your company already has a Twitter account, or plans to register for one in the months ahead, here are some tips that’ll help make it work for boosting business:

• Don’t use your Twitter feed as a billboard. Instead, engage buyers by asking for feedback about products or services, and provide useful, actionable info.
• Use Twitter’s search tools to join as many industry groups as possible. Make sure the groups you join are easily found using the keywords your customers typically search for.
  
• Occasionally use Twitter to hold contests or offer small incentives. It’s an effective way to boost your following, and it gives customers a reason to monitor your feed on a regular basis.

Source: “Big Biz Embracing Twitter,” by Mark Dolliver, AdWeek, 2/25/10.

The survey, conducted by BusinessWeek, asked CEOs to name three companies outside their industry that they felt were the most innovative, and provide evidence to back up their claims. Here are the results, along with the prevailing philosophy behind each CEO’s choices:

James Skinner, CEO, McDonald’s:

1. Apple
2. Dreamworks
3. Google

Prevailing wisdom: These are three companies that have proven their ability to adapt and change quickly based on what the market dictates. They also have tremendous global appeal because they invest in cutting-edge ideas that keep them a step ahead of international competitors.

Kris Gopalakrishnan, CEO, Infosys Technoogies:

1. Apple
2. Cisco Systems
3. Samsung

Prevailing wisdom: While a lot of other companies are racing to market with new products and upgrades, these three companies have learned to anticipate what customers will want next, then move quickly to provide it. Unless other companies can learn to replicate that business model, they’ll always be playing catch up.

Craig R. Barrett, Chairman, Intel:

1. Apple
2. Nokia
3. BMW

Prevailing wisdom: These companies are always offering new, exciting products that capture the imagination of the buying public. But they’re also masters of marketing those products to the masses, which is the key to making new product lines successful.

George W. Buckley, CEO, 3M:

1. Caterpillar
2. IBM
3. Deere

Prevailing wisdom: While the manufacturing sector is facing tough times due to automation, technology, and less reliance on manpower, these companies are transitioning from a manufacturing-based culture to a service-based culture, which allows them to market themselves more effectively and maintain a considerable share of the market.

Obviously, Apple is the gold standard for most CEOs when it comes to innovation. The company has retained its best-in-class status for more than a decade now, based largely on proactive moves it made prior to the economic downturn. Apple has continued to introduce new products and invest in new technology despite the economic downturn. In that sense the company has positioned itself to emerge from the recession on top.CEO Steve Jobs boils Apple’s success down to a very simple marketing philosophy: “Apple products work, and if you buy more than one, they work even better.”

What companies would you add to this list? And why? We’d love to know what you think in the comments section below.

Source: “CEOs’ Picks: Most Innovative Companies,” BusinessWeek, 4/9/09.

This year’s Fortune 500 proves that despite the down economy, there are three things American consumers simply cannot do without - oil, cars and drugs. While several big-name corporations continue to thrive, we look at 10 companies that experienced epic meltdowns during the past year (and what led to their undoing): 

1. American International Group: AIG lost almost $100 billion in 2008. The company overextended itself by agreeing to pay off tons of high-risk mortgages if holders defaulted on their home loans. When the economy went south, a lot of those homeowners had no choice but to default and leave AIG holding the bag. The takeaway: Don’t bet what you don’t have.
2. Fannie Mae: As a government entity, Fannie Mae could borrow huge sums of money at very low interest rates, and it did so to the tune of 20 million mortgages. Unfortunately, when the housing crisis hit, borrowers ran for the hills and Fannie Mae was unable to pay back its loans. The takeaway: Never spread your business too thin.
3. Citigroup: With losses of nearly $30 billion last year, Citigroup’s fall from grace could be chalked up to a $14 billion loss in mortgage loans. But the company lost another $10 billion due to businesses it had acquired while revenues were soaring. The takeaway: Specialization spells success. The more diversified a company becomes in this economy, the more it risks dwindling profits.
4. Merrill Lynch: Like a lot of brokerages, Merrill Lynch was falling fast toward the end of 2008. That’s when CEO John Thain did something very smart - he arranged to sell the company to Bank of America. Then Thain did something very dumb – he demanded a huge bonus from his new employers and ended up losing his job. The takeaway: In a down economy, greed is not good.
5. Ford Motor: Much like GM and Chrysler, Ford was bleeding profits at an unprecedented clip throughout 2008. But the company brought in a new CEO, it offered a better payment plan for union employees, and it focused on improving its public image – a move which has already paid off (a recent survey revealed that nearly one-third of customers who considered buying a GM or Chrysler during the past six months ended up buying a Ford instead). The takeaway: In these trying times people want to do business with (and work for) a company that values their loyalty.
6. Time Warner: This media company lost roughly $13 billion in 2008. A lot of those losses have been attributed to the fact that the media world is shifting and the ripple effect has taken its toll on several industry giants. The takeaway: The future is now. Business is moving online, and those who can’t accept or adjust to that fact could suffer dire consequences.
7. Delta Air Lines: The acquisition of Northwest Airlines and the announcement of more flights to international destinations made it seem like Delta was on a roll. But the fuel costs associated with those routes and the cost of acquiring a major competitor translated into major losses. The takeaway: Always consider all the long-term risks associated with any major business move in a down economy, no matter how tempting on the surface.
8. Harrah’s Entertainment: The joint companies that bought Harrah’s in 2007 ended up taking a bath on their investment as consumers tightened their belts and cut out any unnecessary spending. The takeaway: Do as much research as possible before branching out into new markets. There are great opportunities to expand, but successful companies pick their spots wisely.
9. Macy’s: When consumer spending hit the skids, it took several retail chains down with it. Macy’s lost $5 billion last year, but continued to generate some profits thanks to a brisk online business. The takeaway: Sometimes it’s not the brand, but the marketing channels that need to change.
10. Coca-Cola: This soft-drink magnate was the victim of high fuel prices, as well as rising shipping and delivery costs in 2008. While Coca Cola has been fighting an uphill battle on those fronts for years, 2008 was particularly tough given the drop in consumer confidence. The takeaway: Always be on the lookout for unique ways to minimize ancillary costs without sacrificing the quality of your products or services.

Source: “The Fortune 500′s Biggest Losers” byTelis Demos.

Click here for a full list of this year’s Fortune 500 companies.