CrimeAug 04, 2026
Crew of Thieves Break Into Indiana Jeweler’s HomeFour men were charged in connection with the break-in and accused of stealing $365,000 in cash, jewelry, and designer goods.
IndependentsApr 26, 2016
Generating Consistent Profits with a Formal Referral System
Everybody in the jewelry business loves referrals, Jim Ackerman writes. Strange, then, that so few jewelers have a well-conceived, formal system for generating them.
Jim Ackerman is a renowned retail jewelry marketing expert who has spoken to jewelry retailers at the nation’s biggest marketing events, including JA New York, JCK, The Smart Jewelry Show and others.
Everybody in the jewelry business loves referrals. Strange, then, that so few jewelers have a well-conceived, formal system for generating them.
Look, there is simply no downside to having mass numbers of referrals walk through the door. When they do, here’s what you know.
-- This will be a lie-down sale.
-- You didn’t have to shell out a dime, up front, to acquire this new customer.
-- The close will be easier and faster.
-- You’ll encounter less price resistance.
-- There is less chance the customer will want to “shop around.”
-- You’ll probably get a larger sale.
-- This is likely to become another loyal customer.
-- This new customer is more likely to refer others.
See? There’s downside, except for one …
While this is a happy incident when it happens, it is almost always an incident. You can’t count on it, can’t predict the referral business you’ll do each month, which is why you must install an incentive-based referral system in your business.
The two kinds of incentive-based referral systems
Passive referral systems reward your clients for sending in their friends, relatives, neighbors and business associates. When someone comes in from this kind of referral, they’re going to buy, probably today.
But you still don’t get control of the referral’s name, so you have to wait for them to come into the store.
Pro-active referrals systems also reward your clients for sending in their friends. But in this case you do get control of the referral’s name and contact information up front so you can proactively market to them. You’ll reach them sooner, but you may have to court them for a while to get them in the door the first time.
Pieces of the puzzle
Passive referral systems consist of the following parts and pieces.
You must provide your client with an incentive to send in their friends. (This can be a store credit but that might not provide enough instant gratification to motivate them to refer consistently. Consider food or entertainment … or cash.)
You must provide an incentive to the person who’s being referred to get them to come in the first time. (A no-strings-attached, in-store gift certificate is recommended. Fifty dollars is OK; $100 is better.)
You might need to provide your staff with a short-term incentive to get the word out about the program until all of your clients know about it. Cash spiffs, candy, time off with pay,
Editors' Picks
Sponsored by
or other low-cost inducements can work well.
You’ll need scripts for your staff to introduce the program to your clients.
Training for your staff is also very important, and the training will need to be consistent over 30, 60 or even 90 days to establish new habits in them.
You will need several items of support materials. These will include the certificates your clients will hand out to their friends, a letter to your customer base that will introduce them to the program, and reward letters to clients who are now eligible to receive their rewards because their referrals have come in and done business with you. You may also want some in-store signage to remind clients of your referral rewards program.
Finally, you’ll need a tracking system to make sure the program is working, and to make sure your referring clients get rewarded with the right rewards in a timely fashion.
In the case of a pro-active referral system, you’ll also need some small, token reward to give clients simply because they give you contact information, even before the contact becomes a client. This could be something as simple as a free dessert certificate at a local restaurant, a RedBox movie rental or a $5 Starbucks gift card.
Making it work
The first ingredient is consistency. This is a system that will snowball. It’s not likely to generate crazy responses in a week, although we’ve seen that happen. But if you’re committed to the process, it won’t be long before you see a substantial increase in referrals and the percentage of your business coming from referrals will increase each month.
Begin by introducing your new Referral Rewards Program to customers who come into your store. Explain the program (using your script) and give them three gift certificates to hand out to their friends.
Send the introductory letter to all of your clients along with three certificates to hand out to their friends. (These letters don’t have to go out all at once. Send a couple hundred a week until you’ve worked through your entire database.)
When a new referral comes in, send the referring client the reward letter along with the actual reward along with three more certificates they can hand out to more of their friends.
Again, commitment is the key. You install these systems and, before long, you might find it’s the only marketing you have to do.
Jim Ackerman is a renowned retail jewelry marketing expert who has spoken to jewelry retailers at the nation’s biggest marketing events, including JA New York, JCK, The Smart Jewelry Show and others. He is offering National Jeweler readers a complimentary Marketing Fitness Check-up. He can be reached at 800-584-7585, ext. 3 or by email at mail-at-ascendmarketing.com. Check out his jeweler’s website at JewelersMarketingGems.com.
You’ll need scripts for your staff to introduce the program to your clients.
Training for your staff is also very important, and the training will need to be consistent over 30, 60 or even 90 days to establish new habits in them.
You will need several items of support materials. These will include the certificates your clients will hand out to their friends, a letter to your customer base that will introduce them to the program, and reward letters to clients who are now eligible to receive their rewards because their referrals have come in and done business with you. You may also want some in-store signage to remind clients of your referral rewards program.
Finally, you’ll need a tracking system to make sure the program is working, and to make sure your referring clients get rewarded with the right rewards in a timely fashion.
In the case of a pro-active referral system, you’ll also need some small, token reward to give clients simply because they give you contact information, even before the contact becomes a client. This could be something as simple as a free dessert certificate at a local restaurant, a RedBox movie rental or a $5 Starbucks gift card.
Making it work
The first ingredient is consistency. This is a system that will snowball. It’s not likely to generate crazy responses in a week, although we’ve seen that happen. But if you’re committed to the process, it won’t be long before you see a substantial increase in referrals and the percentage of your business coming from referrals will increase each month.
Begin by introducing your new Referral Rewards Program to customers who come into your store. Explain the program (using your script) and give them three gift certificates to hand out to their friends.
Send the introductory letter to all of your clients along with three certificates to hand out to their friends. (These letters don’t have to go out all at once. Send a couple hundred a week until you’ve worked through your entire database.)
When a new referral comes in, send the referring client the reward letter along with the actual reward along with three more certificates they can hand out to more of their friends.
Again, commitment is the key. You install these systems and, before long, you might find it’s the only marketing you have to do.
Jim Ackerman is a renowned retail jewelry marketing expert who has spoken to jewelry retailers at the nation’s biggest marketing events, including JA New York, JCK, The Smart Jewelry Show and others. He is offering National Jeweler readers a complimentary Marketing Fitness Check-up. He can be reached at 800-584-7585, ext. 3 or by email at mail-at-ascendmarketing.com. Check out his jeweler’s website at JewelersMarketingGems.com.
More on Independents
The Latest
MajorsAug 04, 2026
Pandora Hires Former Signet Board Member to Lead North American MarketAndré Branch has more than 25 years of experience with various brands, most recently serving as CEO of Ariana Grande’s cosmetics company.
MajorsAug 04, 2026
Sasha Primak Acquires GemlokNew York-based atelier Gemlok is best known for creating the innovative “bridge” setting that became popular in the bridal market.
Brought to you by
Why More Jewelry Retailers Are Hosting Turnkey Estate Buying EventsRetailers are seeking new ways to attract customers, increase traffic, and create revenue – Estate buying events are a popular solution.
CollectionsAug 04, 2026
Musician Carlos Santana Launches Jewelry BrandSantana Now's debut collection, “Unidad,” features symbolic motifs as well as pieces of wood from the Woodstock stage.
Weekly QuizJul 30, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CrimeAug 03, 2026
Florida Man Gets 15 Years in Trio of Jewelry Store RobberiesThe 50-year-old man pleaded guilty earlier this year to robbing two jewelry stores and a pawn shop of more than $700,000 in merchandise.
WatchesAug 03, 2026
Citizen's New Spider-Man Watch Is a Collector’s DreamThe watch’s dial features an original design by Marvel comics illustrator Adam Kubert.
Brought to you by
Wedding Band Trends 2026: Personalization Takes Center StageColored gemstones, artisan finishes, mixed metals, and meaningful details are shaping demand in bridal jewelry.
CollectionsAug 03, 2026
Chatham Releases First Men’s CollectionThe new collection of lab-grown diamond and colored gemstone jewelry provides a “fresh perspective” on the category, Chatham said.
TrendsAug 03, 2026
Amanda’s Style File: Spinel vs. Peridot While some August babies are team peridot, the month's time-honored birthstone, others are team spinel, the newer alternative.
TrendsJul 31, 2026
These Pieces of the Week Are Sweet Edina Kiss’ “Popsicle” pendant and Karina Choudhrie’s “Ice Cream” charm satisfy that summer craving for a sweet piece of jewelry.
MajorsJul 31, 2026
Macy’s Iconic Red Shopping Bag Sign Torn DownThe massive billboard has been in the same spot on the department store’s Herald Square flagship store for decades.
SourcingJul 31, 2026
Gemfields’ H1 Revenue Jumps 72%The miner’s ruby and emerald auctions brought in a combined $102.9 million.
SourcingJul 30, 2026
De Beers Sale in ‘Final, Most Challenging’ Phase, Anglo CEO SaysThe goal is for the De Beers sale to be finished by the second half of 2026, with the subsequent approvals process expected to take a year.
Policies & IssuesJul 30, 2026
JA Heads Back to Washington as New Wave of Tariffs Takes Effect David Bonaparte, along with Tim Haake and Ronnie VanderLinden, continue to lobby for tariff exemptions for diamonds, gemstones, and pearls.
SurveysJul 30, 2026
Consumer Confidence Slips in JulySurvey respondents were concerned about the rising prices of food and groceries as well as unemployment.
Events & AwardsJul 30, 2026
Vicenzaoro Releases 2026 Education LineupThe trade show, slated for Sept. 4-8 in Vicenza, Italy, will feature sessions on trends, AI, gemology, and manufacturing.
Events & AwardsJul 30, 2026
Hillsborough Show Moves to New Location for 2026The public shopping event featuring art, jewelry, watches, and rare collectibles, will take place in Santa Clara, California, this fall.
EditorsJul 29, 2026
Q&A: The Past and Future of Angola’s Diamond Industry Endiama Commercial Director Elton Escrivão knows people have a lot of misperceptions about Angola. He wants to change that.
MajorsJul 29, 2026
Kevin Reilly Retires After 39 Years in the Jewelry Industry Reilly has been with PGI USA for the last 20 years, leading partnership development and professional education.
FinancialsJul 29, 2026
Kering’s H1 Jewelry Sales Up 14%Boucheron reached record sales while Pomellato found success in its signature collections.
Events & AwardsJul 29, 2026
Lauren Harwell Godfrey Designs a Flag for ArkansasShe was one of more than 120 American designers who created flags for the “United Flags of Fashion” project led by CFDA and Vogue.
ColumnistsJul 28, 2026
Peter Smith: Why Your Job Postings May Be Working Against You Smith reveals the method The Retail Smiths use to help retailers and vendors write better job postings.
FinancialsJul 28, 2026
Tiffany & Co., Bulgari Lead the Way for LVMH in H1LVMH’s jewelry and watch brands outperformed the company’s other divisions in an environment the company described as “disrupted.”
CollectionsJul 28, 2026
Lionheart’s New Collection Unites Spiritual Iconography“Sacred Heart” features symbols like crosses, angel wings, the Star of David, and the evil eye as a representation of coexistence.
Events & AwardsJul 28, 2026
The Edge Funding 2 Scholarships Via 24 Karat Club SEUS The scholarships will go to early-career professionals looking to study gemology, bench work and jewelry design, or store operations.
SurveysJul 27, 2026
Jewelry Leads Luxury Market Amid Stabilization, Bain SaysBain & Company delved into the trends shaping the luxury market, the impact of AI, and more in its recent study.
