WatchesJun 30, 2026
Pokémon Fans Will Want to Catch This New G-Shock WatchThe new watch commemorates Pokémon’s 30th anniversary.
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,
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
MajorsJun 30, 2026
Saks Global Emerges From Bankruptcy With New NameThe luxury retailer is now called Exemplar Luxury Group.
CollectionsJun 30, 2026
Jade Ruzzo’s New Collection Embodies the Art of Being a LadyThe “Lady” collection is a new take on old beauty standards with gemstone-adorned hair pins and combs, a compact mirror necklace, and more.
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.
SourcingJun 30, 2026
Blue Nile Introduces Montana Sapphire CollectionThe new line is included in the e-tailer’s curation of jewelry celebrating America’s 250th anniversary.
Weekly QuizJun 25, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
GradingJun 30, 2026
AGS Opens 2026 Recertification ExamAll active members who earned their credential or designation before Dec. 1, 2025, are required to recertify.
CollectionsJun 29, 2026
Briony Raymond’s New Collection Is a ‘Carousel’ of Hard StonesThe new jewelry collection uses a colorful palette of onyx, malachite, tiger’s eye, mother-of-pearl, lapis, turquoise, and coral.
Brought to you by
Building the Future of Jewelry Retail: DCA Expands Education, Leadership Development, and Workforce SolutionsDCA is preparing the next generation of professionals by supporting workforce development, leadership growth, and career advancement.
GradingJun 29, 2026
National Rarities Announces New Gemology ManagerSean Milliner has joined the company.
GradingJun 29, 2026
GIA to Open New London CampusClasses will begin in August at GIA’s new Canary Wharf location.
AuctionsJun 26, 2026
‘Hogback’ Diamond Ring Finds a New Home A ring set with “hogback” diamonds, an early stone cut dating to around the 16th century, sold for more than $20,000 at a U.K. auction.
CollectionsJun 26, 2026
Strength Is Sharpened Into Beauty in Kris Averi’s ‘Prism Thorn’ RingThe rainbow version of the ring, our Piece of the Week, features angel-cut, octahedral lab-grown sapphires designed to be worn as armor.
MajorsJun 26, 2026
Rembrandt Charms Debuts ‘Charms That Give Back’The new initiative donates a portion of the proceeds from select charms to charitable causes.
TrendsJun 26, 2026
Bernard James Celebrates Knicks’ Win with RingThe Brooklyn-based jeweler created a limited-edition version of its “Aura” eternity band, set with gemstones in the team’s colors.
SourcingJun 25, 2026
ICA Names Brandee Dallow as CEODallow will lead the International Colored Gemstone Association, effective July 6.
EditorsJun 25, 2026
Out & About: How Jewelers Mutual, SCAD Are Tackling the Bench Jeweler ShortageSenior Editor Lenore Fedow headed to Savannah to learn more about the 10-year, $10 million partnership between JM and the art school.
CollectionsJun 25, 2026
Mejuri Experiments With SteelIts new capsule jewelry collection features gold-finished stainless steel pieces designed for a maximalist look without a luxury price tag.
Events & AwardsJun 25, 2026
Watches & Wonders Announces 2027 DatesThe week-long event in Geneva is slated for April 2027.
SourcingJun 25, 2026
Annie Doresca, Mark Smelzer, Sara Yood Join Gem Legacy BoardThe three industry leaders bring financial, communications, and legal expertise to the nonprofit’s board of directors.
ColumnistsJun 24, 2026
The Revenue Hiding Between Your Counter and Your Online CartJewelers are missing out by not offering this one key add-on at the online point of sale, Emmanuel Raheb writes.
CollectionsJun 24, 2026
Greenwich St. Jewelers, Jewel Boxing’s Latest Drop Is On-TrendThe fourth collaborative collection from the retailer and jewelry content creator focuses on gemstone charms and strands of colorful beads.
Events & AwardsJun 24, 2026
AGTA Accepting Entries for Spectrum 2026This year’s AGTA Spectrum & Cutting Edge Awards will feature two new categories.
SourcingJun 24, 2026
Columbia Gem House To Offer Alexandrite Melee OnlineThe collection features traceable alexandrite from Brazil in calibrated sizes that is sorted by grade.
MajorsJun 24, 2026
CaratLane Names New Chief Sales OfficerDhaval Raja has been appointed to the role.
CollectionsJun 23, 2026
Francesca Villa Goes ‘On the Road’The capsule collection looks to vintage trunk pins that echo the spirit of speed, freedom, and the mythology of the American road trip.
SourcingJun 23, 2026
New Paraíba Tourmaline Source Reportedly Discovered in EthiopiaSSEF issued a notice about the potential new source of the sought-after gemstone, citing “credible reports” from trade sources.
MajorsJun 23, 2026
Etsy Says ‘Shop Other Jeffs’ This Prime DayAs Amazon Prime Day kicks off, Etsy is encouraging shoppers to support small businesses.
