Standard "magic list" Customer-specific services. Cuddling Achievement Test

Jack Mitchell

Hug your clients. Outstanding Service Practice

Copyright © 2003 John R. Mitchell

© Translation into Russian, edition in Russian, design. LLC "Mann, Ivanov and Ferber", 2013


All rights reserved. No part of the electronic version of this book may be reproduced in any form or by any means, including posting on the Internet and corporate networks, for private and public use, without the written permission of the copyright owner.

Legal support of the publishing house is provided by law firm"Vegas Lex"


© Electronic version book prepared by LitRes ()

This book is well complemented by:


Clients for life

Carl Sewell, Paul Brown


sincere loyalty

Fred Reicheld and Rob Markey


Delivering happiness

Tony Shay


Word of mouth marketing

Andy Sernowitz


Secrets of the perfect store

Stanley Marcus

Perfect, just perfect!

I believe that the ideal business book should meet three criteria.

Second: he must - without "water"! - Give simple and practical advice.

Third: the book should contain many stories from life.

So, you really have the perfect business book in your hands! My congratulations. I read it ten years ago, when it was first published in Russia, but, unfortunately, then the book went unnoticed by our reader. And now - the second birth.

You will read many life stories that will surprise and delight you and that you will certainly want to take on board.

You will find many simple and practical tips and I hope you will apply them.

This is the main thing in reading business books.

Read - and start hugging your customers.

Hugging you, Igor Mann

Bill Mitchell

For being a brother, husband, father and friend.

For your courage to face real life face to face.

For your corporate leadership style.

For being my partner in bringing our parents' ideas to business.

For the pride and joy of passing the baton to our sons.


Prologue. And doesn't everyone do that?

It's funny how one single exact phrase, spoken at the right time, can lead to a real insight. Something similar happened to me.

I run the Mitchells/Richards profitable business selling high quality clothing. One day, I was invited to a conference attended by executives from the textile industry. It took place in a spa hotel in a city with the pleasant name of Kefrey. However, few of its participants actually felt carefree. Retailers were constantly criticized, and everyone was uncomfortable. Department stores were against cheap-selling companies, dot-coms were about to change the world of retail, and everyone was complaining that customer service left a lot to be desired. The topic of the discussion was in keeping with the overall gloomy mood: "The Black Hole in the Textile Industry."

But I wasn't gloomy at all. I am one of those for whom the glass is never half empty, it is always at least five-eighths full, and often its contents completely overflow. Even before all the panelists were introduced, one of the keynote speakers and organizers of the event, noting the decline in the level of service, doubted that any of the leaders present here in principle knew their main clients. He asked those who know the top 100 buyers to raise their hands. I was embarrassed to find that one raised his hand. I was even more taken aback by the fact that no one had basic and valuable information about their business. In my free time, I usually sit down at the computer and memorize the data on a hundred or a thousand of those who leave us the most money, as I once studied everything about my favorite baseball players. This is what the game is about: know your buyers.

After the panellists were introduced, each of us was given seven minutes to speak. First of all, I said that I consider retail today not a black hole, but a volcano. I see it as a combination of energy, light, warmth and various benefits that can be obtained with the right approach.

I expressed surprise at the fact that my colleagues did not know even hundreds of their main clients, explaining that I myself knew a thousand. And he told how everyone at Mitchells, from the salesperson to the tailor to the courier, is customer focused and that's why we succeed. As I spoke, I was thinking of all our customers who annually spend five thousand dollars in our stores, some twenty or one hundred, and some two hundred and fifty thousand. I thought about how we greet every customer with a smile and a hello, and about two dozen employees who each sell at least a million dollars a year (which is what we expect from a newcomer in the first year of operation). Five of them boast two million sales, and one more - an unthinkable amount of three million! And this is in a city of 28,000 people! Then I talked about the complex and sometimes daring steps we take to exceed customer expectations. After exhausting my seven minutes, I returned to my seat, still full of enthusiasm, and my neighbor smiled: “Well, yes, of course, Jack. Say also that you are all hugging your customers there. I stared at him in bewilderment, “Of course. Isn't everyone doing that?"

That's when it dawned on me.

We in fact we hug them. And Not all do the same.

We are a team of huggers. Sometimes we physically hug customers - I've seen our salespeople wrap their arms around them and dance with them on the sales floor - but more often we hug them metaphorically, giving them a lot of attention. What every business should do, but doesn't. Since then, I've started referring to our relationship with customers at Mitchells/Richards as a "hug" - first to myself, then out loud - and the name fitted like a great suit. Everything else—for example, what I call The Big Secret, Formula, and Game Day (more on all of that later)—flows from this simple but important principle. Hugs, in my opinion, suggest passion, and without passion and dedication, service cannot be outstanding. They say to me: “Jack, you obsessed outstanding service!”

This book is about one particular family's sales philosophy. For three generations, my family has been dressing men and women in Fairfield and Westchester counties, where many top executives live and work. Our stores are less than an hour's train ride from Grand Central Station in New York, but we're told we're a universe away from some of the New York stores. At least in terms of the care, time and attention given to each visitor. My parents started the business in 1958 by placing former store plumbing a modest assortment of three suits and offering shoppers free coffee. Mom brewed it in a home coffee pot and took the coffee pot home at the end of the day to clean it properly. They sold $50,000 worth of merchandise the first year and were thrilled.

Today we have two stores in Connecticut, Mitchells and Richards. Our turnover exceeds 65 million dollars a year. And this is in Westport, a city of only 28,000 people, and in neighboring Greenwich, whose population is twice that. Approximately every second family is our regular customers. Once we gave them a very pleasant and memorable shopping experience - a few hugs and it keeps them coming back to us again and again. We've been called one of the most successful (if not the most successful) high-end apparel business in the country and possibly the world in our weight class. Not because of our products and not because of prices (after all, you can find the same thing in other stores), but because of our attitude towards people.

I will not exaggerate if I say that it is we who are dressing corporate America. Our customers include more than five hundred senior executives, presidents and owners, as well as thousands of managers and employees of many famous companies: GE, IBM, Verizon, Coca-Cola, Pepsi, JP Morgan Chase, Gillette, Merrill Lynch, Lehman Brothers, American Skandia, Xerox and many more. We dress a lot of movie and sports stars - in other words, successful people who care about how they look. They know that clothing is an extremely powerful tool in the business world, although it doesn't "make" you who you are.

Like many, I am constantly faced with indifference. Not so long ago I went to a familiar supermarket for a turkey, but it was not there. How is this possible? What's more, the supermarket manager didn't offer help, didn't direct me to another store, and didn't even apologize. His reaction was something like this: "Well, you're out of luck." Another example: in fifteen years, my family bought a good twenty Chevrolets from a local dealer, and in all this time the seller never called to find out if the car was in order, if it was time for an update. Not a sound. After the car left the dealership, they forgot about me as a client.

Other behavior is rare and surprises every time. Many years ago, I was talking to an IBM employee who was trying to sell us computers and accidentally mentioned that I needed to go to New Hampshire to see my son's sports competition. He said, “You know, I just got my pilot's license. I'll take you. They flew." Wow!

Thus began our relationship with IBM. From hugs in a small plane.

That's what we at Mitchells are aiming for - to get people to say, "Wow!" Without a doubt, our philosophy can easily be applied to selling anything: spaghetti, aircraft engines, carpets, stocks, insurance policies, and rattles. This theory of management will be relevant everywhere.

Our philosophy is built on everyday experience retail clothes. I still try to visit the trading floor every day: hanging a centimeter around my neck, looking for the right size or directing the buyer to the right department. But over time, I began to spend more and more time critically reviewing and promoting great ideas. Our sales philosophy is a family philosophy. There are nine Mitchells in our business, including my father who started it all, and each has contributed something vital. Having decided to open their own business, my parents formulated the principles that we adhere to to this day. My brother Bill gave me countless lessons on how to sell hugs. Bill is always on the trading floor, smiling and joking, he's kind of the Mitchells headwaiter. We have seven sons between us, and they also taught me something. So I'm laying out a philosophy created by the ingenuity of three generations of Mitchells.

Our motto from day one: "Becoming a customer, you become a friend forever." And so it will always be. People crave to see companies driven by personal relationships. They want to be carried. They like to be smiled at. They appreciate Thanksgiving letters. And best sellers also want to work in such companies because they are more successful, because sales based on carefully built relationships inevitably lead to high efficiency and high profitability. It is a pleasure to work in such companies. And we want it to be a pleasure to buy from us.

The most difficult thing is to establish such a relationship, and that's what hugs are for. They are what I hope to teach you.

I have confused here the big picture of business philosophy with real stories, including elements from the Mitchells chronicle, and included lists of key ideas and principles throughout the chapters for those who enjoy such lists. And because I want to hug my readers, at the end of each part I give " Tutorial hugs”, which summarizes the key ideas discussed in it. In the app, you'll find a kind of game that I call the Hug Achievement Test. Don't worry, the results won't be made public!

I am really very lucky with my family and business. I love telling stories and sharing experiences, and I especially love talking about what I know best, which is sales. And about hugs. So let's finally learn how to hug.

Part one

Basic hug course

Inspired Service Principles

New conditions in the business world

Why is hugging culture so important? Retail and the business world as a whole have undergone a fundamental shift in thinking and behavior in the past decade that calls for the need for cuddling. In particular, I noticed three major changes that successful companies take into account.

response -> Active participation

The first big change is the transition from being reactive to being proactive. Until the early 1980s, shop assistants waited for people to come into stores and then responded, "How can I help you?" We did the same. But it doesn't work anymore. Now you need to take measures that will ensure the influx of buyers. In other words, you need to initiate the sales process, not just complete it.

Deals -> Relations

Many years ago, interaction with a buyer began with a deal and ended with a deal. Let's say a person bought three suits, six white shirts, and a pair of ties, striped and solid. No complaints have been received. It was considered a good sale. You didn't know and didn't want to know what exactly he was going to do with those suits and shirts.

Today it is not enough just to sell. You need to ask what exactly he is going to use the three new suits for, and then determine what type of suit, what fabric, color and model will suit him. We are often much more knowledgeable about what to wear in a given setting to look and feel great. If your buyer travels a lot, you will advise him on fabric with the right composition so that the clothes do not end up hopelessly wrinkled in suitcases. You need to listen carefully to understand his needs, and this means building personal relations.

"How can I help you?" became “Do you need this outfit for work or for a special occasion?”. The key to this transition is as you are now thinking about your customers.

Standard "magic list" -> Customer-Oriented Services

There is also a third change. Companies used to have what I call a “magic list”: a range of small extras that served as an incentive to buy: free parking, free fitting, free coffee, and flexible return policies. Any business could make its own list. We have it too. All this is important, but not enough. You need to get to know each customer better and offer Additional services that are important to him.

I call it customer-specific services. Some may want to buy something in your non-working hours because they work late or hate crowds. So open a store for them at night. Another extraordinary example. Looks stupid but works great. In summer, every Saturday next to the store, we distribute hot dogs. Including kosher hot dogs for Jewish customers. And for our regular customer Carol, who has high cholesterol, we order turkey hot dogs and call them "Carol dogs." Carol Dog is an example of customer focus. It's all about the willingness to do something beyond the standard list.

AT hotel business the standard list of services provides you with three, four or five stars. But have you ever stayed in a four-star hotel that you liked more than other five-star hotels? For sure. So, you remember this hotel because you were “hugged” there. Perhaps the waitress remembered your favorite tea or coffee and served it for breakfast without you asking. The magic list is not so important. Important service with enthusiasm and embrace.

From Satisfied Customers to Extremely Satisfied

If you apply all the changes, then turn your satisfied buyers in extremely satisfied. You have gone from meeting expectations to exceeding expectations. The day I served Carol her first carol dog, she hugged me back and kissed me on the cheek with feeling. Wonderful feeling.

Simply satisfied customers are no longer enough to thrive in a business. They are not particularly loyal to you and will leave you at the first opportunity. Only Extremely Satisfied Customers Are Extremely Loyal. (We will return to this in the last chapter.)


Customer Oriented Organization

At Mitchells, we have adapted to global change by creating customer oriented company and not on products or prices. I mean, for us, the client is the center of the universe, everything revolves around him. Everyone says that the customer is important, but in most companies, actions do not match words. You won't succeed until everyone in the company learns how to embrace the client passionately.

Many leading companies, whether they sell clothes or bread, put the product first. Our colleagues in the shop are interested, for example, what wool is in front of them: Super 100 or Super 180? Hand or machine knitting? Light gray or olive? Two or three buttons? Short or long shirt?

The priority of our employees is not clothes. Do not misunderstand me. We love great quality products and work hard to find them, but what matters most to us is the people we sell them to.

A clothing store where clothes are not the main thing? Yes. If we were a restaurant, food would not be the main thing for us. If we were an electronics store, technology would not be the main thing for us either. Those who think that it is enough to have a lot of great products at a good price for buyers to swarm like locusts lose sight of the fact that the product is not the priority at all. A great blue blazer or black skirt can be bought anywhere. A wonderful flat-screen TV is sold in any electronics store. A beautiful sofa can be purchased at many furniture stores. Your long-term success depends on how you treat your customers. Today, to be successful, you must think about them before you think about such concepts as return on investment and profit. Too many executives don't know who their customers are, what they want, how they perceive the world, and have no idea how to figure it all out.

If your company becomes customer-centric, the relationship between seller and buyer will be personal. This means that the entire company will listen to and learn from customers. This means that you will give them what they want, not what you want to sell them. This means that you know their preferences better than they do and can anticipate their desires.

In our business there is such a thing as an assortment position. It uniquely defines the product: style, size, color of a suit or dress. We at Mitchells/Richards joke that we put our customers in the assortment position (of course, I always explain what I mean so that no one thinks anything bad). We try to appreciate and understand them all possible ways. We had over 115,000 people in our database at the time of writing. By listening and learning over the years, we learn a lot about each of them.

For such relationships, it is very important that employees work for you for a long time. Sometimes it takes an employee quite a lot of time to in fact understand everything. But once that happens, cuddling becomes a completely natural thing for them. That is why our old-timers are so effective. According to our salespeople, we work much better than most other big stores. Our managers Tom Malerey and Jeff Kozak have been with us for an average of seventeen years. Master tailors work on average for thirty years. Agree, during this period you can build excellent relationships. The owners of other stores often complain to me about staff turnover. If they mention the “old-timers” of their company, then, as a rule, they are talking about very old and tired people who, in the opinion of the employer, should retire.

By building a customer-centric company, you will find that customer loyalty grows over time, and with it comes profitability. If you have a strong relationship, customers will make more purchases. They will recommend you to others. They will communicate more openly and tell you what they like or don't like, which will make your business even more efficient. You will become more willing to forgive mistakes and less likely to return purchases, because you know their sizes and tastes.

Let me tell you a little story that demonstrates customer focus.

Ray Rizzo is a great client. His father had that character, and it was not easy for him to find clothes of the right size. He was a short and portly man, as they say, with a non-standard figure, besides, his weight constantly fluctuated. He came from New Orleans to Connecticut to spend Christmas with Ray. On Christmas Eve, the Rizzo family gathered to visit friends, and Ray's father forgot to bring clothes for such an occasion. And Ray invited him to come to us.

By the time they got to the store, it was already four. At six they had to leave the house, so time was running out. Ray leaned towards me and said softly:

Jack, we have a problem.

He explained the situation, we took measurements, and it turned out that things were bad. The size of his jacket was 68, and the trousers were required in the 64th size, and for an average height. No store in the world would have found a ready-made suit that would correspond to these sizes at least approximately. Where does Santa Claus go when he is really needed?

Ray and I chuckled softly, and I suggested:

“Let's talk to Dominic, our head tailor.

I invited Ray and his father to sit down, offered them drinks, and our tailor got to work. He already knew both of them and worried about them. And it didn't matter to him that the store was closing and it was actually Christmas Eve. What mattered was that Ray's father needed clothes—and urgently.

Dominic took the biggest jacket and the biggest trousers he could find. Within an hour, he and his team at the tailor shop turned them into clothes that fit Ray's dad perfectly. He looked great and felt the same way. He hugged and thanked us endlessly.

"Golden Principle"

There are very few rules in our company, because I hate them since childhood. A company built on rules is not easy to hug, so instead of rules, we have principles. The “golden principle” so important to the culture of hugging is that every employee, including me, should work on the floor for some time. And when dad comes into the store, at ninety-eight he also goes to the hall to chat with customers. They follow him as if spellbound.

Every day I go out with a centimeter around my neck to the trading floor at least for a short time, and on Saturdays and on especially busy days - for the whole day. My goal is to make it clear that no one in the company is "above" working with customers. This message must come from above. I believe that this work is an honor, a privilege and a pleasure. Relationship selling begins with the owner or manager walking onto the floor. Some companies do not have a trading floor as such (in the brokerage business, the phone plays the role of a trading floor, while insurers trading floor is, perhaps, the living room in the client's house), but everyone should be able to communicate with clients.

The reason for the emergence of the "golden principle" is simple: in the hall it is easiest to see, touch and feel real buyers.


I will not exaggerate if I say that it is we who are dressing corporate America. Among our customers are more than five hundred senior executives, presidents and owners, as well as thousands of managers and ordinary employees of many well-known companies: GE, IBM, Verizon, Coca-Cola, Pepsi, JP Morgan Chase, Gillette, Merrill Lynch, Lehman Brothers, American Skandia , Xerox and many others. We dress a lot of movie and sports stars - in other words, successful people who care about how they look. They know that clothing is an extremely powerful tool in the business world, although it doesn't "make" you who you are.

Like many, I am constantly faced with indifference. Not so long ago I went to a familiar supermarket for a turkey, but it was not there. How is this possible? What's more, the supermarket manager didn't offer help, didn't direct me to another store, and didn't even apologize. His reaction was something like this: "Well, you're out of luck." Another example: in fifteen years, my family bought a good twenty Chevrolets from a local dealer, and in all this time the seller never called to find out if the car was in order, if it was time for an update. Not a sound. After the car left the dealership, they forgot about me as a client.

Other behavior is rare and surprises every time. Many years ago, I was talking to an IBM employee who was trying to sell us computers and accidentally mentioned that I needed to go to New Hampshire to see my son's sports competition. He said, “You know, I just got my pilot's license. I'll take you. They flew." Wow!

Thus began our relationship with IBM. From hugs in a small plane.

That's what we at Mitchells are aiming for - to get people to say, "Wow!" Without a doubt, our philosophy can easily be applied to selling anything: spaghetti, aircraft engines, carpets, stocks, insurance policies, and rattles. This theory of management will be relevant everywhere.

Our philosophy is built on the everyday experience of clothing retail. I still try to visit the trading floor every day: hanging a centimeter around my neck, looking for the right size or directing the buyer to the right department. But over time, I began to spend more and more time critically reviewing and promoting great ideas. Our sales philosophy is a family philosophy. There are nine Mitchells in our business, including my father who started it all, and each has contributed something vital. Having decided to open their own business, my parents formulated the principles that we adhere to to this day. My brother Bill gave me countless lessons on how to sell hugs. Bill is always on the trading floor, smiling and joking, he's kind of the Mitchells headwaiter. We have seven sons between us, and they also taught me something. So I'm laying out a philosophy created by the ingenuity of three generations of Mitchells.

Our motto from day one: "Becoming a customer, you become a friend forever." And so it will always be. People crave to see companies driven by personal relationships. They want to be carried. They like to be smiled at. They appreciate thank you letters. And the best salespeople also want to work for such companies because they are more successful, because selling through carefully built relationships inevitably leads to high efficiency and high profitability. It is a pleasure to work in such companies. And we want it to be a pleasure to buy from us.

The most difficult thing is to establish such a relationship, and that's what hugs are for. They are what I hope to teach you.

I've mixed here the big picture of business philosophy with real stories, including elements of the Mitchells chronicle, and included lists of key ideas and principles throughout the chapters for those who enjoy such lists. And because I want to hug my readers, at the end of each part I give a "Hugging Tutorial" that summarizes the key ideas covered in it. In the app, you'll find a kind of game that I call the Hug Achievement Test. Don't worry, the results won't be made public!

I am really very lucky with my family and business. I love telling stories and sharing experiences, and I especially love talking about what I know best, which is sales. And about hugs. So let's finally learn how to hug.

Creating a culture of hugs

Is not it, emergencies always appear at the most inopportune moment? That's exactly what happened with the navy blue cashmere coat. On a cold February afternoon, when my brother was on a business trip and I was in a publicity meeting, Mitchells got a call. Our client, a top corporate executive whose office was nearby, was in dire need of a navy blue cashmere coat. He was going to New York for an important meeting and, looking in the closet, found that his sons had borrowed all of his outerwear. He actually dressed lightly, but the forecast was cold and heavy snow, and he had to walk pretty much in New York. The request was passed on to me. I called the store and it turned out that the navy blue cashmere coats in the required size 52 were sold, but there was one light gray one left. I asked Dominique Condoleo, our head tailor, to prepare a gray coat, as well as some suits, jackets and accessories. I am a salesman to the core, and if you really need to sell a coat, why not offer something else along with it.

One of our suppliers was in Philadelphia and the other was in Rochester. Both of them had navy blue cashmere coats in stock, and both promised to have them delivered to the store by morning. After talking to them, I called the client's secretary and said that Dominic and I were going to them. We dragged bags of clothes to the third floor of the office.

The client jumped up from the table:

- Where is my coat?

I calmly opened the package and threw my coat over his shoulders.

Jack, it's grey.

He decided that either I was not listening carefully or I was colorblind, and conveyed this to me in unprintable terms.

“I know,” I nodded calmly. We have sold all the blue coats. Two more will arrive tomorrow.

- I can not wait! he cried. “Now I’ll find out if it’s possible to use the company’s helicopter. Where are they being taken from?

“Don't worry,” I said. “There is time until tomorrow. I will come to you in New York.

At that moment, the news from the stock market was broadcast on TV, the shares of his company went up, and he became noticeably better. I took a moment to move on to the suits, jackets and shirts I had brought over. As I expected, he chose a few things, but did not forget about the coat. Someone was waiting for him in the waiting room, we began to dress, and then it dawned on me: I have just a navy blue cashmere coat from Hickey-Freeman size 52. There were hugs on the stage. I said:

- Try this on.

The coat fit perfectly. He just jumped for joy. I continued:

“You know what, we'll lend you my coat for a couple of days.

He liked this idea:

“Wow, Mitchells is also a leasing company, just like us!

Two days later we brought him a new coat. You may think that I put in too much effort to please the client - literally took off the last shirt. We always do this, even with those who buy from us for the first time.


Jack Mitchell

Hug your clients. Outstanding Service Practice

Copyright © 2003 John R. Mitchell

© Translation into Russian, edition in Russian, design. LLC "Mann, Ivanov and Ferber", 2013

All rights reserved. No part of the electronic version of this book may be reproduced in any form or by any means, including posting on the Internet and corporate networks, for private and public use, without the written permission of the copyright owner.

Legal support of the publishing house is provided by the law firm "Vegas-Lex"

© Electronic version of the book prepared by Litres (www.litres.ru)

This book is well complemented by:

Clients for life

Carl Sewell, Paul Brown

sincere loyalty

Fred Reicheld and Rob Markey

Delivering happiness

Tony Shay

Word of mouth marketing

Andy Sernowitz

Secrets of the perfect store

Stanley Marcus

Perfect, just perfect!

I believe that the ideal business book should meet three criteria.

Second: he must - without "water"! - Give simple and practical advice.

Third: the book should contain many stories from life.

So, you really have the perfect business book in your hands! My congratulations. I read it ten years ago, when it was first published in Russia, but, unfortunately, then the book went unnoticed by our reader. And now - the second birth.

You will read many life stories that will surprise and delight you and that you will certainly want to take on board.

You will find many simple and practical tips and I hope you will apply them.

This is the main thing in reading business books.

Read - and start hugging your customers.

Hugging you,

Igor Mann

Bill Mitchell

For being a brother, husband, father and friend.

For your courage to face real life face to face.

For your corporate leadership style.

For being my partner in bringing our parents' ideas to business.

For the pride and joy of passing the baton to our sons.

Prologue. And doesn't everyone do that?

It's funny how one single exact phrase, spoken at the right time, can lead to a real insight. Something similar happened to me.

I run Mitchells/Richards, a profitable upscale clothing business. One day, I was invited to a conference attended by executives from the textile industry. It took place in a spa hotel in a city with the pleasant name of Kefrey. However, few of its participants actually felt carefree. Retailers were constantly criticized, and everyone was uncomfortable. Department stores were against cheap-selling companies, dot-coms were about to change the world of retail, and everyone was complaining that customer service left a lot to be desired. The topic of the discussion was in keeping with the overall gloomy mood: "The Black Hole in the Textile Industry."

But I wasn't gloomy at all. I am one of those for whom the glass is never half empty, it is always at least five-eighths full, and often its contents completely overflow. Even before all the panelists were introduced, one of the keynote speakers and organizers of the event, noting the decline in the level of service, doubted that any of the leaders present here in principle knew their main clients. He asked those who know the top 100 buyers to raise their hands. I was embarrassed to find that one raised his hand. I was even more taken aback by the fact that no one had basic and valuable information about their business. In my free time, I usually sit down at the computer and memorize the data on a hundred or a thousand of those who leave us the most money, as I once studied everything about my favorite baseball players. This is what the game is about: know your buyers.

After the panellists were introduced, each of us was given seven minutes to speak. First of all, I said that I consider retail today not a black hole, but a volcano. I see it as a combination of energy, light, warmth and various benefits that can be obtained with the right approach.

I expressed surprise at the fact that my colleagues did not know even hundreds of their main clients, explaining that I myself knew a thousand. And he told how everyone at Mitchells, from the salesperson to the tailor to the courier, is customer focused and that's why we succeed. As I spoke, I was thinking of all our customers who annually spend five thousand dollars in our stores, some twenty or one hundred, and some two hundred and fifty thousand. I thought about how we greet every customer with a smile and a hello, and about two dozen employees who each sell at least a million dollars a year (which is what we expect from a newcomer in the first year of operation). Five of them boast two million sales, and one more - an unthinkable amount of three million! And this is in a city of 28,000 people! Then I talked about the complex and sometimes daring steps we take to exceed customer expectations. After exhausting my seven minutes, I returned to my seat, still full of enthusiasm, and my neighbor smiled: “Well, yes, of course, Jack. Say also that you are all hugging your customers there. I stared at him in bewilderment, “Of course. Isn't everyone doing that?"

That's when it dawned on me.

We in fact we hug them. And Not all do the same.

We are a team of huggers. Sometimes we physically hug customers - I've seen our salespeople wrap their arms around them and dance with them on the sales floor - but more often we hug them metaphorically, giving them a lot of attention. What every business should do, but doesn't. Since then, I've started referring to our relationship with customers at Mitchells/Richards as a "hug" - first to myself, then out loud - and the name fitted like a great suit. Everything else—for example, what I call The Big Secret, Formula, and Game Day (more on all of that later)—flows from this simple but important principle. Hugs, in my opinion, suggest passion, and without passion and dedication, service cannot be outstanding. They say to me: “Jack, you obsessed outstanding service!”

This book is about one particular family's sales philosophy. For three generations, my family has been dressing men and women in Fairfield and Westchester counties, where many top executives live and work. Our stores are less than an hour's train ride from Grand Central Station in New York, but we're told we're a universe away from some of the New York stores. At least in terms of the care, time and attention given to each visitor. My parents started the business in 1958, stocking a modest assortment of three suits in a former plumbing store and offering free coffee to shoppers. Mom brewed it in a home coffee pot and took the coffee pot home at the end of the day to clean it properly. They sold $50,000 worth of merchandise the first year and were thrilled.

Today we have two stores in Connecticut, Mitchells and Richards. Our turnover exceeds 65 million dollars a year. And this is in Westport, a city of only 28,000 people, and in neighboring Greenwich, whose population is twice that. Approximately every second family is our regular customers. Once we gave them a very pleasant and memorable shopping experience - a few hugs and it keeps them coming back to us again and again. We've been called one of the most successful (if not the most successful) high-end apparel business in the country and possibly the world in our weight class. Not because of our products and not because of prices (after all, you can find the same thing in other stores), but because of our attitude towards people.

"Culture of hugs"

Jack Mitchell is the enthusiastic chief Executive Director clothing stores Mitchells and Richards, owned by the Mitchell family. Stores located in affluent suburbs in Connecticut generate $65 million in annual sales. Mitchell is sure: the main thing is to know your customers. At the Mitchells, everyone from the CEO to the employee values ​​and cares about their customers, in other words, they do everything they can to make them exclaim, “Wow!”

One day, a customer called at Mitchells store, who needed to urgently purchase for an important business meeting dark blue cashmere coat. The store didn't have one like that at the time, but the customer couldn't wait, so Jack Mitchell literally took it off his shoulder - loaned the customer his own coat. the right quality and the size that he wore to the meeting. This example may seem out of the ordinary, but it is fully consistent with the culture adopted in the Mitchells and Richards. The company values ​​its customer relationships so much that Mitchell himself calls it a "hug culture." The buyer does not just purchase the goods - he trusts the company and enjoys visiting the store. Warm, friendly relations are established between staff and customers. The CEO is convinced that only satisfied customers are truly loyal. Shops offer clothes of the most High Quality, but customers are even more important to a company than products. Employees are more important than customers. Purchasing managers think about the buyer before the product or the profit margin. When a company sincerely puts the interests of customers first, commercial success is sure to follow. Customer loyalty ensures business profitability.
The work of Mitchells and Richards stores is based not on instructions, but on principles. The main principle says: everyone should work in the hall in order to get to know the clients properly. Mitchell himself, with a tape measure draped around his neck, talking animatedly with customers, can be seen in the store every day, including on Saturdays. His presence is a symbol of the fact that not a single store employee, no matter what department or level of hierarchy is discussed, puts himself above working with customers. Even those who are responsible for the delivery of goods personally communicate with buyers. This policy is a continuation of the tradition of Jack Mitchell's parents, who opened the first family store.

How to hug clients

You can express a cordial disposition to the buyer with a handshake, a benevolent look, or other signs of attention. You “hug” the customer by sending him a greeting card, walking him to the car, or offering especially favorable conditions for the return of goods. When one of the visitors asked a tailor working in the store to alter a dress purchased elsewhere, the tailor gladly complied with her request. This is also a “hug” - as well as the help of sellers in tying a tie and much more. If paying attention to the customer becomes a priority for you, you will immediately discover many ways to please him. In Mitchells and Richards stores, customers are treated to coffee, soft drinks and sweets. Shoppers are even offered an emergency phone number they can call if they need new clothes during the hours the stores are closed. In case of emergency, one of the top managers will drive up and open a store for one client! Here are the basic rules of “hugging culture”:
Watch, listen and learn to see your customers as friends.
Exceed customer expectations, even in small ways. Be client oriented.
Show special attention to buyers; learn all you can about them.
Offer services that are not typically offered in your industry. Create a homely atmosphere.
Be creative and imaginative in customer service.
To value customers means to think about people. Here is an example of a mindless attitude. A regular customer of the auto repair shop witnessed how its owner spoke in a boorish way to a woman who looked in there in search of a lost dog. The client immediately decided that he would never contact this workshop again. Business owners who are indifferent to people do not realize how much such an attitude costs them. Customers may contact you once to use your service or purchase a product, but if you show genuine interest in them, they will certainly come back again and again.
Many businessmen spend huge sums of money to locate their business in the most advantageous place, although the outstanding quality of services can ensure their success even in an unfavorable location. Customers crave a caring attitude. They like to be greeted with sincere joy and show a personal interest in their affairs. Mitchells and Richards, like any store, needs new customers, but Jack Mitchell believes that the best source of growth is those customers who already have. He wants them to be so satisfied with the selection and service that they end up buying all their clothes from those two stores. Mitchell's Tip: Try to get a little more from existing clients, then - more and more, until you become their exclusive supplier.

Get rid of unnecessary expenses

“Culture of hugs” does not solve all problems. In the early 1990s, Mitchells, then called Ed Mitchell, was going through hard times. The store faced serious difficulties, such as overstocking, a decline in sales, and bankrupt customers. The owners hired a highly professional financial manager and focused on solving budgetary problems. Jack began personally signing every invoice and was incredibly surprised to find that the company was wasting huge sums of money. Employees were required to pay even more attention to building personal relationships with customers. Focus group research revealed that women felt the store's name was too masculine, so the company decided to change the name to Mitchells. The austerity policy helped the company to cope with the problems, and she became so confident that she was able to purchase Richards, a luxury menswear store. "Culture of hugs" made the process of mergers easier, while Richards retained its name. Management emphasized that it was a merger, not an acquisition, in part to instill confidence in Richards employees who were afraid of losing their jobs. In the end, the merger process went so smoothly that the former owner of Richards still works at the store and everyone calls him "boss" - a small "hug" in gratitude for having once ceded his business.

Peculiarities family business

According to statistics, only eight out of a hundred family firms pass into the hands of the third generation of owners. To prolong the life of their company, the Mitchells hired a family business consultant. An advisory council has been set up and is paid. It consists of five experienced executives from other firms and several family members. The council meets quarterly to help run the business. Regarding the employment of adult children of the owners of the company, management formulated two rules:
1. Before joining Mitchells or Richards, the owner's son or daughter must have worked elsewhere for at least five years. This helps the heirs to develop an independent view of the business, and also encourages colleagues to take them more seriously when they move to the family firm.
2. This is a job, not a sinecure. You should look first of all at the result. What is good for business more important than that which is beneficial for the family. When heirs enter the business, they must not take the work of others. They come to work, and they accept them only because they have the necessary qualifications.

The main thing is the staff

Mitchell believes that people are more important than services, and much more important than goods. If you have talented employees, you will succeed. The main criteria for selecting employees in Mitchells and Richards stores are as follows:
Not only competence, but also confidence. Store owners hire people with honors degrees, no matter what college or university. In any case, this indicates that a person is able to achieve the highest results.
Positive thinking. About the same weather, you can say: “Sunny, and small clouds”, or you can: “Cloudy, and sometimes the sun peeps through”. The best employees- those who are sunny. An optimistic attitude can work wonders.
Enthusiasm. You should hire people who are passionate about something: reading, golf, painting - whatever. These are the people who are able to be enthusiastic about customer service.
Decency. Every potential employee of Mitchells or Richards passes the “decency test”. During the interview, the candidate is asked if he has done things that he is ashamed of. If a person cannot remember anything, it is likely that he has problems with decency.
By hiring the best people take care of them:
Give employees the freedom to make decisions so they can perform their duties well.
Maintain a flat organizational structure. There should be no bureaucracy.
Pay employees decently.
Help them maintain a healthy work-life balance. Life cannot be entirely devoted to work.
Find out what your employees like and try to provide it to them. For some, it is important that you greet them in the morning, while others want them not to be pulled over trifles. Still others greatly appreciate flowers or birthday cards. Show a special attitude to your subordinates: organize trips abroad, buy tickets for sports competitions - in a word, everything that will be really pleasant for them.
In stores owned by the Mitchells, salespeople are referred to as partners. The company provides them necessary resources and powers. Several employees sell goods for more than a million dollars a year, some exceed the bar of two million, and one employee has reached the level of sales of three million dollars a year! The management of the company tries to maintain a balance among employees between interaction and competition. When a new customer comes to the store, the staff tries not only to help him, but also to establish a personal relationship with him. If one of the sellers sees that his colleague is not serving the client well enough, he can come to his aid; it is likely that in this way he will be able to constantly work with this buyer. However, the choice, of course, always remains with the client. The management of the company encourages friendly personal relations between employees: even competing with each other, they receive a reward for cooperation. While maintaining the spirit of healthy competition, leaders at the same time are confident that the whole team benefits from cooperation.
Respect for customers is instilled in employees during training, which includes a detailed acquaintance with the product, the study of sales-related calculations, and the development of the principles of working with customers. The company offers its employees a range of educational programs and learning situations. Managers teach employees to put the interests of customers first, to be friendly, to show attention to customers. Employees collect information about customers and establish informal friendships with them based on an understanding of the personal preferences of each. In addition, salespeople are taught to use common sense. “Hugging” customers does not mean acting unwisely.

Technology at the service of customer relationships

Modern technologies should not become a hindrance to warm human relationships with customers - they should contribute to them. Mitchells and Richards never delete customer data. Managers use them to better understand the needs of each customer, as well as to keep up with new trends and target their marketing efforts in the right way. The database contains a huge amount of information about thousands of customers, including first and last names, important dates, information about their jobs and their spouses, and even the names of pets. Employees draw their knowledge about customers in the process of service, listening and remembering. Customers like to be remembered; they make sure that this information will never be misused. In any industry, 20% of customers provide 80% of the turnover, so these 20% should be especially valued. Mitchell sends thank-you notes to anyone who makes a one-time purchase of $2,000 or more. For customers who for some reason are unable to come to the store, employees send e-mail photos of new collections.
Use your knowledge. Managers must know the names of line employees, the names of the 100 largest customers, all the main financial information such as gross, operating and net income. Check the performance of all employees daily so that they themselves understand how things are going. “Culture of hugs” helps financial efficiency in many ways: a committed attitude towards each client ensures long-term, stable income and increases the profitability of the business, because customers like it when they are given attention.

Current page: 1 (total book has 16 pages) [accessible reading excerpt: 4 pages]

Jack Mitchell

Hug your clients. Outstanding Service Practice

Copyright © 2003 John R. Mitchell

© Translation into Russian, edition in Russian, design. LLC "Mann, Ivanov and Ferber", 2013


All rights reserved. No part of the electronic version of this book may be reproduced in any form or by any means, including posting on the Internet and corporate networks, for private and public use, without the written permission of the copyright owner.

Legal support of the publishing house is provided by the law firm "Vegas-Lex"


© Electronic version of the book prepared by Litres (www.litres.ru)

This book is well complemented by:


Clients for life

Carl Sewell, Paul Brown


sincere loyalty

Fred Reicheld and Rob Markey


Delivering happiness

Tony Shay


Word of mouth marketing

Andy Sernowitz


Secrets of the perfect store

Stanley Marcus

Perfect, just perfect!

I believe that the ideal business book should meet three criteria.

Second: he must - without "water"! - Give simple and practical advice.

Third: the book should contain many stories from life.

So, you really have the perfect business book in your hands! My congratulations. I read it ten years ago, when it was first published in Russia, but, unfortunately, then the book went unnoticed by our reader. And now - the second birth.

You will read many life stories that will surprise and delight you and that you will certainly want to take on board.

You will find many simple and practical tips and I hope you will apply them.

This is the main thing in reading business books.

Read - and start hugging your customers.

...
Hugging you,Igor Mann

Bill Mitchell

For being a brother, husband, father and friend.

For your courage to face real life face to face.

For your corporate leadership style.

For being my partner in bringing our parents' ideas to business.

For the pride and joy of passing the baton to our sons.

Prologue. And doesn't everyone do that?

It's funny how one single exact phrase, spoken at the right time, can lead to a real insight. Something similar happened to me.

I run Mitchells/Richards, a profitable upscale clothing business. One day, I was invited to a conference attended by executives from the textile industry. It took place in a spa hotel in a city with the pleasant name of Kefrey. However, few of its participants actually felt carefree. Retailers were constantly criticized, and everyone was uncomfortable. Department stores were against cheap-selling companies, dot-coms were about to change the world of retail, and everyone was complaining that customer service left a lot to be desired. The topic of the discussion was in keeping with the overall gloomy mood: "The Black Hole in the Textile Industry."

But I wasn't gloomy at all. I am one of those for whom the glass is never half empty, it is always at least five-eighths full, and often its contents completely overflow. Even before all the panelists were introduced, one of the keynote speakers and organizers of the event, noting the decline in the level of service, doubted that any of the leaders present here in principle knew their main clients. He asked those who know the top 100 buyers to raise their hands. I was embarrassed to find that one raised his hand. I was even more taken aback by the fact that no one had basic and valuable information about their business. In my free time, I usually sit down at the computer and memorize the data on a hundred or a thousand of those who leave us the most money, as I once studied everything about my favorite baseball players. This is what the game is about: know your buyers.

After the panellists were introduced, each of us was given seven minutes to speak. First of all, I said that I consider retail today not a black hole, but a volcano. I see it as a combination of energy, light, warmth and various benefits that can be obtained with the right approach.

I expressed surprise at the fact that my colleagues did not know even hundreds of their main clients, explaining that I myself knew a thousand. And he told how everyone at Mitchells, from the salesperson to the tailor to the courier, is customer focused and that's why we succeed. As I spoke, I was thinking of all our customers who annually spend five thousand dollars in our stores, some twenty or one hundred, and some two hundred and fifty thousand. I thought about how we greet every customer with a smile and a hello, and about two dozen employees who each sell at least a million dollars a year (which is what we expect from a newcomer in the first year of operation). Five of them boast two million sales, and one more - an unthinkable amount of three million! And this is in a city of 28,000 people! Then I talked about the complex and sometimes daring steps we take to exceed customer expectations. After exhausting my seven minutes, I returned to my seat, still full of enthusiasm, and my neighbor smiled: “Well, yes, of course, Jack. Say also that you are all hugging your customers there. I stared at him in bewilderment, “Of course. Isn't everyone doing that?"

That's when it dawned on me.

We in fact we hug them. And Not all do the same.

We are a team of huggers. Sometimes we physically hug customers - I've seen our salespeople wrap their arms around them and dance with them on the sales floor - but more often we hug them metaphorically, giving them a lot of attention. What every business should do, but doesn't. Since then, I've started referring to our relationship with customers at Mitchells/Richards as a "hug" - first to myself, then out loud - and the name fitted like a great suit. Everything else—for example, what I call The Big Secret, Formula, and Game Day (more on all of that later)—flows from this simple but important principle. Hugs, in my opinion, suggest passion, and without passion and dedication, service cannot be outstanding. They say to me: “Jack, you obsessed outstanding service!”

This book is about one particular family's sales philosophy. For three generations, my family has been dressing men and women in Fairfield and Westchester counties, where many top executives live and work. Our stores are less than an hour's train ride from Grand Central Station in New York, but we're told we're a universe away from some of the New York stores. At least in terms of the care, time and attention given to each visitor. My parents started the business in 1958, stocking a modest assortment of three suits in a former plumbing store and offering free coffee to shoppers. Mom brewed it in a home coffee pot and took the coffee pot home at the end of the day to clean it properly. They sold $50,000 worth of merchandise the first year and were thrilled.

Today we have two stores in Connecticut, Mitchells and Richards. Our turnover exceeds 65 million dollars a year. And this is in Westport, a city of only 28,000 people, and in neighboring Greenwich, whose population is twice that. Approximately every second family is our regular customers. Once we gave them a very pleasant and memorable shopping experience - a few hugs and it keeps them coming back to us again and again. We've been called one of the most successful (if not the most successful) high-end apparel business in the country and possibly the world in our weight class. Not because of our products and not because of prices (after all, you can find the same thing in other stores), but because of our attitude towards people.

I will not exaggerate if I say that it is we who are dressing corporate America. Among our customers are more than five hundred senior executives, presidents and owners, as well as thousands of managers and ordinary employees of many well-known companies: GE, IBM, Verizon, Coca-Cola, Pepsi, JP Morgan Chase, Gillette, Merrill Lynch, Lehman Brothers, American Skandia , Xerox and many others. We dress a lot of movie and sports stars - in other words, successful people who care about how they look. They know that clothing is an extremely powerful tool in the business world, although it doesn't "make" you who you are.

Like many, I am constantly faced with indifference. Not so long ago I went to a familiar supermarket for a turkey, but it was not there. How is this possible? What's more, the supermarket manager didn't offer help, didn't direct me to another store, and didn't even apologize. His reaction was something like this: "Well, you're out of luck." Another example: in fifteen years, my family bought a good twenty Chevrolets from a local dealer, and in all this time the seller never called to find out if the car was in order, if it was time for an update. Not a sound. After the car left the dealership, they forgot about me as a client.

Other behavior is rare and surprises every time. Many years ago, I was talking to an IBM employee who was trying to sell us computers and accidentally mentioned that I needed to go to New Hampshire to see my son's sports competition. He said, “You know, I just got my pilot's license. I'll take you. They flew." Wow!

Thus began our relationship with IBM. From hugs in a small plane.

That's what we at Mitchells are aiming for - to get people to say, "Wow!" Without a doubt, our philosophy can easily be applied to selling anything: spaghetti, aircraft engines, carpets, stocks, insurance policies, and rattles. This theory of management will be relevant everywhere.

Our philosophy is built on the everyday experience of clothing retail. I still try to visit the trading floor every day: hanging a centimeter around my neck, looking for the right size or directing the buyer to the right department. But over time, I began to spend more and more time critically reviewing and promoting great ideas. Our sales philosophy is a family philosophy. There are nine Mitchells in our business, including my father who started it all, and each has contributed something vital. Having decided to open their own business, my parents formulated the principles that we adhere to to this day. My brother Bill gave me countless lessons on how to sell hugs. Bill is always on the trading floor, smiling and joking, he's kind of the Mitchells headwaiter. We have seven sons between us, and they also taught me something. So I'm laying out a philosophy created by the ingenuity of three generations of Mitchells.

Our motto from day one: "Becoming a customer, you become a friend forever." And so it will always be. People crave to see companies driven by personal relationships. They want to be carried. They like to be smiled at. They appreciate thank you letters. And the best salespeople also want to work for such companies because they are more successful, because selling through carefully built relationships inevitably leads to high efficiency and high profitability. It is a pleasure to work in such companies. And we want it to be a pleasure to buy from us.

The most difficult thing is to establish such a relationship, and that's what hugs are for. They are what I hope to teach you.

I've mixed here the big picture of business philosophy with real stories, including elements of the Mitchells chronicle, and included lists of key ideas and principles throughout the chapters for those who enjoy such lists. And because I want to hug my readers, at the end of each part I give a "Hugging Tutorial" that summarizes the key ideas covered in it. In the app, you'll find a kind of game that I call the Hug Achievement Test. Don't worry, the results won't be made public!

I am really very lucky with my family and business. I love telling stories and sharing experiences, and I especially love talking about what I know best, which is sales. And about hugs. So let's finally learn how to hug.

Part one

Basic hug course

Inspired Service Principles

Creating a culture of hugs

Isn't it true that emergencies always occur at the most inopportune moment? That's exactly what happened with the navy blue cashmere coat. On a cold February afternoon, when my brother was on a business trip and I was in a publicity meeting, Mitchells got a call. Our client, a top corporate executive whose office was nearby, was in dire need of a navy blue cashmere coat. He was going to New York for an important meeting and, looking in the closet, found that his sons had borrowed all of his outerwear. He actually dressed lightly, but the forecast was cold and heavy snow, and he had to walk pretty much in New York. The request was passed on to me. I called the store and it turned out that the navy blue cashmere coats in the required size 52 were sold, but there was one light gray one left. I asked Dominique Condoleo, our head tailor, to prepare a gray coat, as well as some suits, jackets and accessories. I am a salesman to the core, and if you really need to sell a coat, why not offer something else along with it.

One of our suppliers was in Philadelphia and the other was in Rochester. Both of them had navy blue cashmere coats in stock, and both promised to have them delivered to the store by morning. After talking to them, I called the client's secretary and said that Dominic and I were going to them. We dragged bags of clothes to the third floor of the office.

The client jumped up from the table:

- Where is my coat?

I calmly opened the package and threw my coat over his shoulders.

Jack, it's grey.

He decided that either I was not listening carefully or I was colorblind, and conveyed this to me in unprintable terms.

“I know,” I nodded calmly. We have sold all the blue coats. Two more will arrive tomorrow.

- I can not wait! he cried. “Now I’ll find out if it’s possible to use the company’s helicopter. Where are they being taken from?

“Don't worry,” I said. “There is time until tomorrow. I will come to you in New York.

At that moment, the news from the stock market was broadcast on TV, the shares of his company went up, and he became noticeably better. I took a moment to move on to the suits, jackets and shirts I had brought over. As I expected, he chose a few things, but did not forget about the coat. Someone was waiting for him in the waiting room, we began to dress, and then it dawned on me: I have just a navy blue cashmere coat from Hickey-Freeman size 52. There were hugs on the stage. I said:

- Try this on.

The coat fit perfectly. He just jumped for joy. I continued:

“You know what, we'll lend you my coat for a couple of days.

He liked this idea:

“Wow, Mitchells is also a leasing company, just like us!

Two days later we brought him a new coat. You may think that I put in too much effort to please the client - literally took off the last shirt. We always do this, even with those who buy from us for the first time.

This is what we call the "basic hug course".

For the past forty-five years, my family has gone to great lengths to provide the best possible customer service. We use the term to cuddle to describe our unique sales culture, and in the first part of the book, I will take you on a personalized tour of the world of the Mitchell hugs. I see the hug as a way to make an employee a member of the team to build long-term loyal relationships with customers with enthusiasm. This is what marketing gurus call relationship marketing. Enthusiasm comes when you believe in something wholeheartedly. You could say that I am enthusiastic about enthusiasm.

The hug implies the ability of a company employee to get so close to the client that he becomes more important than everything else. Over time, a unique personal and professional relationship develops between them: loyalty built on trust. In our case, sales that fill customers' closets with clothes that suit them and like them.

Through such relationships, customers become our friends. I'm not suggesting that each of them begins to confide their deepest secrets to us and that we will invite anyone to come with us on vacation (although some actually become so close). talking "friend", we mean a person who trusts us and enjoys our company. The difference is that we get to know our customers better than we traditionally do, and they get to know us better. It's all thanks to hugs.

For the culture of hugs to work, everyone in the company must embrace it: from me to buyers, tailors, credit managers and delivery workers. In a culture of hugging, hugging and selling all, and not just the people who are owed commissions. This is the most important rule. Such a culture is not easy to establish, but I am sure that the game is worth the candle.

Of course, this also affects finances. Our financial director tells us monthly cash flows, turnover and other indicators that demonstrate that the system is working.

Try it yourself. Try today. Smile and hug someone. And see if your buyer (or your daughter, or your assistant) responds in kind.

New conditions in the business world

Why is hugging culture so important? The retail industry and the business world as a whole have undergone a fundamental shift in thinking and behavior over the past decade that calls for the need for cuddling. In particular, I noticed three critical changes that successful companies take into account.

...
response Active participation

The first big change is the transition from being reactive to being proactive. Until the early 1980s, shop assistants waited for people to come into stores and then responded, "How can I help you?" We did the same. But it doesn't work anymore. Now you need to take measures that will ensure the influx of buyers. In other words, you need to initiate the sales process, not just complete it.

...
Deals Relations

Many years ago, interaction with a buyer began with a deal and ended with a deal. Let's say a person bought three suits, six white shirts, and a pair of ties, striped and solid. No complaints have been received. It was considered a good sale. You didn't know and didn't want to know what exactly he was going to do with those suits and shirts.

Today it is not enough just to sell. You need to ask what exactly he is going to use the three new suits for, and then determine what type of suit, what fabric, color and model will suit him. We are often much more knowledgeable about what to wear in a given setting to look and feel great. If your buyer travels a lot, you will advise him on fabric with the right composition so that the clothes do not end up hopelessly wrinkled in suitcases. You need to listen carefully to understand his needs, and this means building personal relations.

"How can I help you?" became “Do you need this outfit for work or for a special occasion?”. The key to this transition is as you are now thinking about your customers.

...
Standard "magic list" Customer-Oriented Services

There is also a third change. Companies used to have what I call a “magic list”: a range of small extras that served as an incentive to buy: free parking, free fitting, free coffee, and flexible return policies. Any business could make its own list. We have it too. All this is important, but not enough. You need to get to know each customer better and offer additional services that are important to him.

I call it customer-specific services. Some may want to buy something during your off-hours because they work late or hate crowds. So open a store for them at night. Another extraordinary example. Looks stupid but works great. In summer, every Saturday next to the store, we distribute hot dogs. Including kosher hot dogs for Jewish customers. And for our regular customer Carol, who has high cholesterol, we order turkey hot dogs and call them "Carol dogs." Carol Dog is an example of customer focus. It's all about the willingness to do something beyond the standard list.

In the hospitality industry, the standard list of services gets you three, four, or five stars. But have you ever stayed in a four-star hotel that you liked more than other five-star hotels? For sure. So, you remember this hotel because you were “hugged” there. Perhaps the waitress remembered your favorite tea or coffee and served it for breakfast without you asking. The magic list is not so important. Important service with enthusiasm and embrace.

From Satisfied Customers to Extremely Satisfied

If you apply all the changes, then turn your satisfied buyers in extremely satisfied. You have gone from meeting expectations to exceeding expectations. The day I served Carol her first carol dog, she hugged me back and kissed me on the cheek with feeling. Wonderful feeling.

Simply satisfied customers are no longer enough to thrive in a business. They are not particularly loyal to you and will leave you at the first opportunity. Only Extremely Satisfied Customers Are Extremely Loyal. (We will return to this in the last chapter.)