CrimeAug 20, 2025
Another CA Jewelry Store Rammed With Car, RobbedThe latest incident happened Monday at a store in Oakland, California, continuing a pattern JSA first warned about last month.
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
WatchesAug 20, 2025
Oris Launches Watch Benefiting NYC Harbor Oyster RestorationThe new aqua green New York Harbor Limited Edition II is the watchmaker’s second collaboration with the Billion Oyster Project.
Events & AwardsAug 20, 2025
Take the Jewelers for Children ‘Trinity of Purpose’ ChallengeParticipants who attend any three Rings of Strength events will be awarded a special medal.
Brought to you by
Rallying Call for the Jewelry Industry on Tariffs and Other Key IssuesJewelers of America is leading the charge to protect the industry amidst rising economic threats.
SourcingAug 19, 2025
Dubai’s Jemora Group Buys Diamond Miner LucapaThe investment company, founded by Dev Shetty, has acquired the struggling miner and its assets, including the Lulo mine in Angola.
Weekly QuizAug 15, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
ColumnistsAug 19, 2025
Peter Smith: The Arrival Fallacy and Jewelry RetailSmith shares wisdom he gleaned from a podcast he was listening to one morning while being walked by his dog, a Malshi named Sophie.
CrimeAug 19, 2025
Customs Seizes 7,300 Pairs of Fake ‘Alhambra’ EarringsThe counterfeit Van Cleef & Arpels jewels would have been worth more than $30 million if genuine.
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine JewelryAs a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.
MajorsAug 19, 2025
MJSA Apprenticeship Program Is Nationally RecognizedThe MJSA Mentor & Apprenticeship Program received the Registered Apprenticeship Program designation by the U.S. Department of Labor.
WatchesAug 19, 2025
Casio America Names New Timepiece Division ManagerCasio executive and watch enthusiast Masaki Obu is the new general manager of its U.S. timepiece division.
MajorsAug 18, 2025
Verragio’s Michael Barabash, a ‘Kind Soul,’ Dies at 58Barabash, Verragio’s client relations representative, was a vital member of the team and is remembered as being warm and full of life.
CollectionsAug 18, 2025
John Hardy’s New ‘Dot’ Collection Is on PointOriginally introduced in 1992, the “Dot” collection is back with a capsule featuring five archival designs and three new creations.
Events & AwardsAug 18, 2025
IJO Announces 2025 Vendor of the YearAllison-Kaufman has received the honor for the fourth year in a row.
FinancialsAug 15, 2025
In Q2 Results, Pandora Talks Tariffs, Q4 Plans The company had a solid second quarter, with sales of non-charm jewelry outpacing sales of pieces in its core collections.
EditorsAug 15, 2025
Piece of the Week: Etho Maria’s Showgirl-Approved Ruby Drop Earrings Taylor Swift dons the vibrant pair in new promotional imagery for her upcoming album, “The Life of a Showgirl,” set to release in October.
WatchesAug 15, 2025
Audemars Piguet Acquires Majority Stake in ManufacturerIts investment in micromechanics expert Inhotec will preserve skills essential to the watchmaking industry as a whole, said the company.
MajorsAug 15, 2025
Rio Grande Names New Marketing DirectorNicolette Bianchi joins the wholesale provider with more than 15 years of cross-industry experience in marketing and product development.
CollectionsAug 14, 2025
In Midst of ‘Sardine Girl Summer,’ Pippa Small Looks to ‘Flounder Fall’Her new “Ocean” collection was inspired by Myanmar’s traditional articulated fish jewelry, with depictions of flounder, catfish, and more.
MajorsAug 14, 2025
Casio America Names New CEOLongtime Casio executive Yusuke Suzuki is the new president and CEO of Casio’s U.S. subsidiary.
SourcingAug 14, 2025
West Coast Orgs to Host Trading Event, Mixer in LAThe full-day sourcing and networking event, slated for Aug. 18, will be followed by the fifth annual Mega Mixer Summer Soirée.
TrendsAug 13, 2025
Cristiano Ronaldo Proposes With Gigantic Oval-Cut DiamondModel Georgina Rodríguez received a rock of an engagement ring, with her diamond estimated to be 35 carats, experts say.
SourcingAug 13, 2025
ICA Names 2025 Board of DirectorsThe board elected 9 new directors at its recent ICA Congress in Brazil.
TrendsAug 13, 2025
Colorado Jeweler, Whiskey Maker Collab on Ring GiveawayThree winners will receive a custom ring from Honest Hands Ring Co. inlaid with a piece of history from Denver-based distillery Stranahan’s.
SurveysAug 13, 2025
These Are The 25 Hottest Retailers, Says NRFJD Sports and Wawa were among the fastest-growing retail companies in the U.S. last year.
SourcingAug 13, 2025
Columbia Gem House Launches Winza Sapphires, RubiesThe new inventory, all untreated, features vibrant hues and unique bicolor combinations.
SourcingAug 12, 2025
Gemfields Sells Fabergé for $50MAcquired by a tech investor, the historic brand will continue to focus on jewelry, accessories, and timepieces.
Policies & IssuesAug 12, 2025
Higher Tariff on Chinese Imports Paused for 90 Days, Trump SaysPresident Donald Trump issued an executive order extending the pause on higher tariffs to November as negotiations with China continue.
