Clark Howard's Tips

Treat your customers well by treating your employees well

January 11, 2008

Clark loves companies that put the focus on the customer. To name just a few, there's Costco, USAA, Amica Mutual and Southwest Airlines. It's as if these elite companies get up every morning and think, "How can we please our customers?"

Amazon.com is another company that also puts the customer first -- yet it has become the Rodney Dangerfield of Wall Street. Analysts have always taken issue with the company's offers of free shipping. But you have to create a level of trust with the customer and this is one way to do it.

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Similarly, USAA and Amica don't earn trust with low premiums; they do it by really helping customers when they have claims.

As a counterpoint, Allstate suffers from low public opinion. This insurer spends a lot on imaging ads, but doesn't always deliver a good customer experience. Management is trying to turn that around, according to The Chicago Tribune.

Meanwhile, Amazon's management has been pleasing customers from the beginning. So it's no wonder their stock is up 140 percent over the last year; company size is up 35 percent; and revenues are at $15 billion year.

Companies know they should treat their customers well, but how many realize that the way to do it is by treating your employees like gold?

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