Europa Star: How's business?
Jack Mitchell: Business is fantastic. Our business has seen double digit increases for the last few years. It's all about the personalization of the relationship. If you came here, you would feel the atmosphere. We have fun here, we always have something going on, and people enjoy it.

ES: Your business started with clothing, how did you get into watches?
JM: About five years ago, our son Todd, who had been the driver of the women's ready-to-wear business in our store in Westport, saw a huge opportunity in jewellery. We had always carried David Yurman and we did a good business. Todd went back to gemmology school and he became certified for jewellery and we hired some really great people for diamonds and jewellery, and watches as well. We dropped a number of huge cases of jewellery and watches right in the middle of the store. We are really doing well with the upper-end of the business. Our customers trusted us, that's why we got into it. Why go on a trek to New York or go to another store when they are already in our store? We offer a great selection of watches - Cartier, Franck Muller, IWC, Michele, Anonimo, Locman and others. We don't quite fit into the classic watch store, we are a specialty store retailer and we have the personal relationships with these people, so they buy from us because they trust us.
Our jewellery and watch business is the most explosive part of our business. We started in designer apparel. We are a cross between a Nieman Marcus and a Saks, and the whole niche is the personalization.





ES: How does watch retailing differ from your core business?
JM: It doesn't, really. It's very similar. The only difference is that we have to know what other retailers are selling the watches for and we know we have to remain competitive. We don't do that with clothing, ever - in the clothing business, in the ready-to-wear, the prices are the same everywhere in legitimate retailers. My customers have to trust us and know that they can't go anywhere else in the world and find a better price. In watches and jewellery, we have to make sure that we aren't a dollar more than any legitimate retailer.

ES: Are the customer service principles
the same?
JM: If clothes wear out or they don't last like they should, or if we altered the garment incorrectly, we stand behind our products. Watches are somewhat more of a challenge, because if we can't do it ourselves, we have to send it back. We do have a watchmaker here to do most of the repairs.

ES: Why did you decide to write your book, Hug Your Customers?
JM: I always wanted to share our family business and why we are totally customer centric, from me to our fitters and tailors and our associates. It started with my mum and dad and we have grown over the years and I wanted to share all that. I have learned so much from other people who have shared with me, so I wanted to pass it on. In the beginning of my book, I talk about a story where I told a group of retailers I could name my top 1,000 customers, and I can, and every single retailer should be able to do that.
"I realized that not everyone hugs their customers and I wanted to share my vision with them. The book is an easy read and it's about our family. It's thrilling to have people interested in it. We get e-mails from around the world. It's been published in a number of different languages. It's been a nice experience and one of the missions of the book is to enhance the Mitchells/Richards/Marshs brand.

ES: What does 'Hug Your Customers' mean?
JM: Everyone within the company is really focused with the highest priority on customers and getting to know them on a personal level. When you make that personal connection, giving them a smile and knowing that their name is Jack not John, or that they play tennis not golf, and you know their kids’ names, when that happens and your associates do it with passion, the customers become clients for life. The hug is a metaphor for any caring gestures or deeds that make people say that they are nice people and I'm going to shop here again. Most retailers have been brought up in an environment where product and price is more important than anything.

ES: What are the benefits?
JM: It is a culture that is profitable. It's not just fuzzy, warm stuff, it makes money. It's also more fun to be in an environment where you can get to know the people. Life is more enjoyable. The employees in our stores want to come to work because it's a positive environment. For us, it has proven to be profitable. We think about one customer, one person at a time - the personalization of the customer.

ES: Are there any disadvantages?
JM: Sometimes it can be so overwhelming that you don't know where to start. I suggest that people start with a workable number. Do you know your top 100 customers intimately? Once you start doing it, it's fun. It can be done. You can teach your employees to do this. You teach your employees to capture this information and put it into the computer and you learn it. When we do this at the top, it becomes a way of life with our people. I've talked to Starbucks and Nike, but jewellery and watches relate so well because there are so many smaller retailers where it should be so easy to do. They do know their top customers, but they haven't systematized it - obtaining information and using it, like a friend.

ES: If someone doesn't feel the hug philos-ophy, does it still work?
JM: You have to be genuine. You don't have to do it all, though, use what works. I grew up playing tennis without a topspin shot, but I have now learned how to hit with topspin, so you can learn this with practice.

ES: What is the secret of your success?
JM: The big secret is hugging your employees. If I don't hug my employees, I'm not doing it right. We have to find out what motivates our employees and have a personal relationship with them. What is special for one is different for another. When the personal connection happens, they will go to the moon for me and I will go to the moon with them. Then you can use the same warm deeds and acts to the customers. They go the extra mile for the customers.

ES: What do you like about your job?
JM: I love the people part. The hardest thing personally is balancing the business with my books and speeches. My clear priority is my family and my family business. I love mentoring people who are just starting out. They have raw talent and if they can get the hugging thing down, they will be extremely successful.

ES: What don't you like?
JM: I don't like when you have to fire someone because they don't fit into the culture. The worst is when someone steals from you. Over my career, we have had people that aren't honest and honesty is our most important principle. When you find out someone has been dishonest, it hurts. We prosecute, and it has to be that way. We are nice guys but when somebody doesn't uphold the integrity, it's a serious matter with us.

ES: What does time mean to you?
JM: Time is precious to me. I try to utilize every minute of every day to the fullest.

ES: What do you like about watches?
JM: I think watches are really fun to have and I have several. I find myself changing watches from day to day. I always kid that my wardrobe is A - Z, from Armani to Zegna. When I meet Zegna, I am not foolish enough to wear an Armani suit. That's one form of a hug to me.

ES: Does the 'Hug Your Customers' philosophy translate well to other countries?
JM: People say it's impossible culturally, but I think people like to be treated like friends all over the world. People want a personalized relationship. You have to get over that it's only an American thing. It can be used all over the world. It has to be done with dignity and respect, but it can be done in any culture around the world. Just get your people to try it.


Source: Europa Star June-July 2007 Magazine Issue
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