ColumnistsMar 14, 2023
On Data: How Did Independent Jewelers Do in January and February? ColumnistsMar 21, 2023
Squirrel Spotting: Customer Retention Mindset—The New CRM
With jewelry sales coming down from their pandemic highs, retailers need to do all they can to retain existing customers, Peter Smith says.
Peter Smith is an industry consultant, speaker, sales trainer, and author. He can be reached via email at TheRetailSmiths@gmail.com.
There is an old maxim that says, “When customers don’t want to come, nothing can stop them.”
As we transition from an era of jewelry retailing that was nothing short of epic, we would do well to consider the implications of that sentiment.
According to one source, 61 percent of businesses identify customer retention as their biggest challenge. That shouldn’t be a surprise, as the average U.S. business loses 23-30 percent of its customers each year.
Those losses, bad enough in a healthy retail environment, could be catastrophic in a more challenging economy.
With foot traffic returning to an almost two-decades-long downward trajectory, retailers should be paying close attention to their data, and that includes foot traffic counts, rates of conversion, and average sale.
While there are many ways to positively influence those metrics, there is none more so than driving repeat business.
Repeat customers are 70 percent more likely to make a purchase than first-time customers and, on average, they spend 30 percent more.
Additionally, returning customers are a fraction of the cost to get into your store when compared with the expense of new customer acquisition.
As we transition from an era of jewelry retailing that was nothing short of epic, we would do well to consider the implications of that sentiment.
According to one source, 61 percent of businesses identify customer retention as their biggest challenge. That shouldn’t be a surprise, as the average U.S. business loses 23-30 percent of its customers each year.
Those losses, bad enough in a healthy retail environment, could be catastrophic in a more challenging economy.
With foot traffic returning to an almost two-decades-long downward trajectory, retailers should be paying close attention to their data, and that includes foot traffic counts, rates of conversion, and average sale.
While there are many ways to positively influence those metrics, there is none more so than driving repeat business.
Repeat customers are 70 percent more likely to make a purchase than first-time customers and, on average, they spend 30 percent more.
Additionally, returning customers are a fraction of the cost to get into your store when compared with the expense of new customer acquisition.
“There is one compelling reason why it ought to be a bedrock of any retail strategy—your customer wants you to clientele.” - Peter Smith
As I talk to owners of retail stores, they often express frustration that they can’t get their salespeople to do it, as if customer relationship management (CRM) was no more important than choosing which soap to buy rather than a critical strategic initiative for the business.
With no excuses accepted for owners and managers who don’t bother with CRM, or who do not facilitate structured CRM time for their people, it is important to understand why salespeople might be reticent to clientele.
Some of those reasons include the following.
1) They don’t want to be pushy.
2) They don’t know what to say.
3) It feels intrusive, perhaps even desperate.
4) They worry about offending customers.
5) They have no structure or process, often because of indifferent managers.
6) There is no culture in the store for capturing customer information.
7) They’re caught up managing sales and not relationships.
While the list of excuses to not clientele are endless, there is one compelling reason why it ought to be a bedrock of any retail strategy—your customer wants you to clientele.
Customers want to be appreciated and courted by their chosen businesses. They want to be in the club, and any hang-ups salespeople may have about engaging that client denies them that sense of belonging.
We have, in effect, relegated their previous purchases to the status of transaction only instead of the beginning, or continuation, of a trusted relationship.
Threshold resistance is not something experienced only at Graff, Harry Winston, or Bulgari. It is also true for shoppers when contemplating luxury purchases in any jewelry store, including at the mall.
Jewelry stores can be intimidating places for many shoppers and that first transaction is a major psychological breakthrough.
The advantages to customers once they have made that initial purchase are enormous. There now exists an ease of communication for what might previously have been a high-stress purchase.
And while we frequently see habitual loyalty (shopping without having to think too hard about where to go) with banks, grocery stores, dry cleaners, and gas stations, the psychological loyalty (emotional, higher anxiety, trust matters) that comes with “belonging to” a select jewelry store is really important to customers.
In “The Buying Brain, Secrets for Selling to the Subconscious Mind,” Dr. A.K. Pradeep wrote, “The subconscious seems to assign superior value to an experience that combines a sense of exclusivity, on the one hand, with a sense of belonging on the other—a difficult act to balance.”
Difficult indeed, but we have the opportunity, even the obligation, to facilitate that connection and trust through purposeful and structured clientele initiatives. There are numerous outreach possibilities, and they should not be all pitching product.
Examples could include:
1) Thank you (for purchase/for repair/for attending event);
2) To acknowledge a family milestone;
3) In advance of an important occasion;
4) Sending a link or article of interest;
5) Announcing a new brand in the store;
6) A pre-sale on goods that are being phased out;
7) Ring cleaning/check; and
8) Invitation to events for select customers.
While many of us previously were reluctant to give out our cell numbers to a given salesperson or business, we seem much more ready to do so today if someone suggests they will text us when something comes in, or with updates on requested information.
I regularly get and appreciate texts from my dentist, my car repair shop, and my pharmacy. If it’s in my interest to do so, I will readily hand over the number because that method of communication is most convenient for me.
A simple request along the lines of, “I’ll text you when that is ready to be picked up,” makes so much sense for the customer and most often will provide the necessary information.
Once the cell number is given, an immediate request for, “And the best email to reach you?” should follow.
Building a customer profile is an ongoing process. Asking 20 questions to fill out customer profile sheets will be a turnoff.
A good example of this is online retail, where cart abandonment is a major issue, and a big contributor to that is asking the customer to work too hard.
A few tips when reaching out:
1) Be proactive and purposeful;
2) Don’t go back to the same customer too often but also …
3) Don’t wait too long;
4) Every outreach should be unique;
5) Make it easy for the customer to know you; and
6) Tap into orphaned customers (introduce yourself/offer a free inspection, cleaning, etc.).
And lastly, be prepared when the customer comes into your store.
1) Understand the purpose of the visit.
2) Know the purchase history and have a plan.
3) Be aware of time sensitivities and work on the customer’s schedule.
4) Schedule appointments for best success.
5) Be clear and confident in what you are presenting.
In “Decoding the New Consumer Mind: How and Why We Shop and Buy,” Kit Yarrow wrote, “Anxiety turns hassles and any impediment to purchase into deal-breakers. Increased levels of societal anxiety are part of why consumers are more smitten than ever with companies that make shopping and buying easy.”
Let’s do our part to make it easy for customers to shop with us.
Here’s to your success!
More on Columnists
The Latest
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ PendantThe Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated StoreThe jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day CampaignThe “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.
Weekly QuizApr 18, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsApr 17, 2025
John Hardy, Athena Calderone Partner on Art Deco Decor-Inspired CollectionInterior designer Athena Calderone looked to decor from the 1920s and 1930s when crafting her first fine jewelry collection.
FinancialsApr 17, 2025
Movado Group to Increase Prices to Offset Tariffs ImpactDuring a call about its full-year results, CEO Efraim Grinberg discussed how the company is approaching the uncertainty surrounding tariffs.
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They DeserveBench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.
Lab-GrownApr 17, 2025
NDC Launches Its Diamond Learning CenterThe free program provides educational content for jewelry salespeople and enthusiasts to learn or refresh their diamond knowledge.
Policies & IssuesApr 17, 2025
Jewelers of America Requests Tariffs Testimonials from MembersThe feedback will be used to prepare other jewelers for the challenges ahead, the organization said.
TechnologyApr 17, 2025
Technology Therapy Group Expands AI Training for Jewelry RetailersThe online sessions are designed to teach jewelers to use AI tools like ChatGPT and Claude to grow their business.
IndependentsApr 16, 2025
Catbird Expands to ChicagoThe opening marks the jewelry retailer’s first location in the Midwest.
CollectionsApr 16, 2025
Foundrae’s First Commitment Jewelry Collection Unites Through LoveThe “United in Love” collection offers tangible mementos of hearts entwined with traditional and non-traditional commitment heirlooms.
IndependentsApr 16, 2025
Indiana Jeweler to Host Black Jewelry Designer Pop-UpRobert Goodman Jewelers will hold a “Black Jewelry Designers and Makers” event on April 27.
MajorsApr 16, 2025
WJA Announces Board Members, New Chicago Chapter PresidentThe announcements follow a tumultuous start to 2025 for WJA, which saw a wave of resignations following controversial statements about DEI.
EditorsApr 15, 2025
Tariffs: What We Know Right Now Editor-in-Chief Michelle Graff answers questions about how the new taxes levied on countries like India and China will impact the industry.
EditorsApr 15, 2025
Q&A: Bogolo Joy Kenewendo on Making Deals, Marketing DiamondsKenewendo, Botswana’s minster of minerals and energy, discusses closing the deal with De Beers and the work that was missed along the way.
AuctionsApr 15, 2025
23-Carat ‘Golconda Blue’ Heads to AuctionThe historic fancy vivid blue diamond set to headline Christie’s Geneva sale next month could sell for up to $50 million.
FinancialsApr 15, 2025
LVMH’s Q1 Sales Slip 2 PercentLVMH CFO Cécile Cabanis also discussed the effects of tariffs so far.
CrimeApr 15, 2025
Jon Hamm Plays a Jewel Thief on Apple TV+The “Mad Men” and “The Morning Show” star steals jewelry, art, and handbags from his wealthy neighbors in “Your Friends & Neighbors.”
SourcingApr 15, 2025
Diamond Club West Coast Names 2025 BoardThe organization has reelected Kalpesh Jhaveri as president.
FinancialsApr 14, 2025
Movado to Restate Years of Financials Due to ‘Misconduct’ in Dubai An investigation found that the former managing director of Movado’s Dubai branch overstated and prematurely recorded sales.
CollectionsApr 14, 2025
Sauer Embraces Emptiness Through ‘Ma’ CollectionThe collection pays tribute to the Japanese philosophy of Ma, studying balance, stillness, and the interplay between presence and absence.
IndependentsApr 14, 2025
Illinois Jeweler Closing After 45 YearsMari Lou’s Fine Jewelry in Orland Park, a suburb of Chicago, is closing its doors.
GradingApr 14, 2025
GIA Expands Overseas Services as Tariffs Kick InGIA’s labs in Dubai and Hong Kong are now accepting larger diamonds in light of the “logistical challenges” presented by the new tariffs.
AuctionsApr 11, 2025
Piece of the Week: A Replica of Princess Grace’s Wedding EarringsThese earrings by Van Cleef & Arpels, featuring the same design as a pair worn by Princess Grace, are up for auction at Woolley & Wallis.
Recorded WebinarsApr 11, 2025
Watch: Top Tips for Saving Time With AITwo experts share how artificial intelligence tools can help retailers run a more efficient business.
