AuctionsJun 10, 2026
31.62-Carat ‘Azure Blue’ Diamond Sells For $8M+ at Christie’sIt was a banner day for blue gemstones, with another blue diamond topping $8 million and a 41-carat sapphire going for $2.3 million.
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 10, 2026
Saks Global Receives Bankruptcy Court Approval for ReorganizationThe approval means the retailer is on track to exit bankruptcy proceedings this summer.
CrimeJun 10, 2026
2 Suspects Arrested in Texas Jewelry Store RobberyThe men are believed to be part of the group of several masked suspects that robbed Marc Robinson Jewelers in April.
Brought to you by
All Eyes on Gold Prices. Alternatives to Look For. And What to BEWARE of in VegasAs gold prices rise, today’s retailers are looking for alternatives at prices that will appeal to wider audiences.
CollectionsJun 10, 2026
Sylvie Debuts ‘Elevated’ Bridal Collection Inspired By Designer’s RingThe bridal-focused brand is also launching its Custom Atelier this summer, a digital custom design tool for its authorized retailers.
Weekly QuizJun 05, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
EditorsJun 09, 2026
Q&A: Al Cook on the Lab-Grown ‘Bubble,’ Dwindling Diamond Supply The De Beers Group CEO also discussed tariffs, Desert Diamonds, and the pending sale of De Beers in an interview with Michelle Graff.
MajorsJun 09, 2026
Wilkerson's Russ Whitehouse RetiresThe industry veteran is bringing his 56-year run in the fine jewelry sector to an end.
Brought to you by
How Modern Training Is Becoming a Competitive Advantage for Jewelry RetailersWith the trade and customer trust in mind, GIA® developed NextGem™ – on-demand training designed specifically for retail.
Events & AwardsJun 09, 2026
Pride Month Panel to Highlight LGBTQ+ Jewelry VoicesThe panel discussion will feature LGBTQ+ leaders across the jewelry, luxury, and creative industries.
CollectionsJun 09, 2026
Marie Lichtenberg’s New Capsule Collection Is a Smash, LiterallyInspired by a locket that got run over, the “Smash” capsule collection reimagines the shape of Lichtenberg’s signature style.
MajorsJun 09, 2026
Frederick Goldman Names Director of Sales for SoutheastThe company has promoted Katherine Whitacre to the role.
MajorsJun 08, 2026
Stuller Expands Selection of Lab-Grown Diamonds, Demi-Fine JewelryThe jewelry manufacturer has added Taylor Swift-esque diamond shapes, and more silver, gold vermeil, and gold-plated jewelry.
SourcingJun 08, 2026
Sally Morrison to Depart De Beers This Summer Morrison has been marketing diamonds on and off since the early 2000s and said she is leaving to “pursue new projects.”
TrendsJun 08, 2026
Amanda’s Style File: June’s Birthstone TrioThose born in June can celebrate with pearl, alexandrite, and moonstone jewelry.
TechnologyJun 08, 2026
Overnight Mountings Launches Ring Builder PlatformThe platform allows retailers to guide clients through a customizable engagement ring buying experience in a branded interface.
SurveysJun 05, 2026
Consumers to Cut Back on Spending Amid Rising Prices, Survey Shows When conducting its May consumer confidence survey, The Conference Board asked extra questions about consumers’ budgeting strategies.
CollectionsJun 05, 2026
Rebel Jewelry’s Charm Symbolizes Perseverance for Pride MonthThe “Tunnel” charm, our Piece of the Week, celebrates Pride Month with its design inspired by hope and the light at the end of the tunnel.
SourcingJun 05, 2026
State of Diamonds: The Way Forward for Natural DiamondsThe jewelry industry is reassessing its positioning as Gen Z reshapes the retail landscape and lab grown continues to gain market share.
AuctionsJun 04, 2026
Treasures from Maurice Tempelsman’s ‘Marvelous’ Life Head to AuctionUp for auction at Sotheby’s, the collection of Tempelsman’s personal effects includes a Cartier Tank watch Jackie O. gifted him.
CollectionsJun 04, 2026
Buddha Mama to Spend the Summer in AspenThe Miami-based fine jewelry brand will host its first summer residency in the Colorado mountain town from June 5 to Aug. 23.
MajorsJun 04, 2026
AGS Honors Late Peter Yantzer, Holds Time Capsule CeremonyThe organization also announced its international board of directors for the 2026-2027 term.
MajorsJun 04, 2026
Neiman Marcus’ Downtown Dallas Store to Close in SeptemberSaks Global confirmed the closure this week, spelling the end for a store that’s been part of downtown Dallas for more than 100 years.
ColumnistsJun 03, 2026
Peter Smith: When Top Talent Leaves and What It Says About YouSmith discusses how managers should handle a top performer's exit, warning that a poor response could have a lasting impact.
GradingJun 03, 2026
GIA’s Tracr Investment Is First Step Toward Industry-Owned PlatformThe Gemological Institute of America is now a 30 percent stakeholder in Tracr, the De Beers-backed blockchain for diamonds.
WatchesJun 03, 2026
The 1916 Company Taking Pre-Owned Rolexes on the Road, AgainThe retailer is bringing Rolex Certified Pre-Owned watches to five U.S. cities in 2026 for collectors to see, try on, and purchase.
TrendsJun 03, 2026
State of Design: Only the Innovative Will SurviveThe price of gold has risen, affecting the number of pieces designers make, the materials they use, and how they position themselves.
FinancialsJun 02, 2026
Signet Jewelers’ Q1 Sales Up 2% As It Focuses on ‘Core Four’ The jewelry retailer is zeroing in on Zales, Jared, Kay Jewelers, and Blue Nile as it looks to create unique brand identities for each.
