The JA Report: News, Tips & Trends from Jewelers of America

Ramp Up Email Marketing for the Holidays

The economic news may seem dismal right now, but regardless, consumers will still spend this holiday season. It just may be a little harder to get their attention. That’s why ramping up your email marketing efforts is a key component to thriving.

“Countdown to the Holidays: 100 Days to Ramp Up,” from online business publication E-Commerce Times, provides steps to ensure your email marketing campaign is optimized as you head into the holidays:

Teach Men the Art of Gift Giving

Helping clients pick out the perfect gift for their loved ones is what jewelers do best. But do you offer enough input -- especially to your male customers -- on how to present the gift?

In his column “How do you help men who lack the gift-giving gene?” at the National Jeweler magazine website, freelance consultant Dale Perelman writes, “How the gift is presented is every bit as important as the jewelry itself.” He notes that a salesperson that provides this kind of input can transform a one-time shopper into a “lifetime friend and customer.”

Perelman suggests the following tips to thrive in romancing the sale:

Increase Existing Customers' Loyalty

As you prepare for what promises to be a challenging holiday season, customer care will be critical to your success. Jewelers of America Director of Education David Peters says the key to survival is to focus on existing customers and increase their loyalty to your store.

He says jewelers should focus on loyal, existing customers because:

• It is easier and cheaper than finding and selling to new customers.
• It leads to larger and more frequent purchases and enthusiastic referrals.
• Loyal customers are more profitable, trusting and less likely to defect.

Drive Customer Demand Digitally

We live in a digital world. Direct mail, newspaper ads, and telephone calls are no longer the most efficient ways to reach all of your clientele. In addition to your traditional promotion and instore customer service, to thrive today you need to start building a digital relationship, through your company website and email communication, with current and future customers.

The Jewelry Information Center offers the following input on how even small steps can make a huge impression:

Counteract Customer Dissatisfaction

How you deal with an angry customer can mean the difference between keeping them at your store, or watching them go off to a competitor (and complain about you along the way).

Over at The Bottom Line blog, Shanu S. Guliani of Guliani’s Fine Jewelry shares her thoughts on “Calming Angry Customers.” She writes that these hostile customers want retailers to help them, even if they can’t solve the entire problem. By making a genuine effort, it’s possible to calm them down and build loyalty to your store.

Guliani offers the following advice to counteract customer dissatisfaction:

Help Customers Freshen-Up Jewelry

Providing great customer service for your clients should not end after the purchase is made -- in fact, it’s only the beginning. Gain long-term loyalty by offering creative ways for your customers to update their jewelry collection -- even when they’re not ready to buy a new piece.

In her JCK Online blog “Jewels on Jewels”, Cynthia Sliwa offers tips on updating your customer’s jewelry wardrobes. “Now’s the time to replace a boring clasp with something interesting that might be worn front and center. Or to dismantle a set of pearls or beads and add some interesting elements to create a much bolder statement necklace.”

Compensate Employees with Special Spiffs

Incentives can go a long way to motivate your sales staff this holiday season. A key component to your compensation strategy can be special commissions or "spiffs" on selected merchandise. These can inspire employees to focus more effort on selling particular products.

Jewelers of America Director of Education David Peters says spiffs may increase the sales of merchandise like:

Plan Ahead: Tips for Surviving an Emergency

As the recent onslaught of Hurricanes Ike and Gustav have shown, you need to be prepared in the event of an emergency, regardless of where your store is located.

Jewelers Mutual Insurance Company advises businesses to have an updated contingency plan in case of a disaster.

As your emergency contigency plan -- for everything from hurricanes, to fires, to power outages --  Jewelers Mutual suggests storing the following materials in a safe place, away from your business:

Take Small Steps to Independent Revival

Thriving during the upcoming holiday season doesn’t require that you make major changes to the way you do business. In fact, a lot of little changes can go along way.

In “10 Ways to Revitalize the Independent Jeweler,” JCK Magazine’s Rob Bates shares suggestions from several industry experts, including Jewelers of America Director of Public Affairs Peggy Jo Donahue.

Some simple steps to start thriving, offered by Donahue and others:

• Make the best use of your employees. “Jewelers have to become more businesslike in their decisions. Look at the productivity of each employee. If your sales per employee are low, you may be too people-heavy or just need to work to generate more volume from existing staff.” -Peggy Jo Donahue

Target "Designing" Women

Jewelry designers follow the seasons when creating their designs, but is your store in tune with the changing design seasons, or falling behind?

Most women don’t wear the same pocket book in the summer as they do in the fall. They also recycle shoes, clothing, and household items. Are these fashion-forward women coming into your store each season in quest of the latest jewelry designs?  If they don’t turn to you, why not? 

Jewelry Information Center has provided these public relations and marketing suggestions to ensure your store attracts more fashion-forward shoppers:

Give Considerate Compensation to Employees

How you compensate your employees for their work -- especially during the holiday season when the right incentives could make a big difference in your store’s sales -- is a crucial element of your overall business strategy.

Jewelers of America’s Director of Education David Peters says that for most independent retail jewelers, salary in the form of an hourly rate plus small commission rates based on established schedules is the most popular compensation strategy for sales associates. In the coming weeks, we’ll look into specific strategies you can use to compensate your staff.

Peters details how to establish a compensation strategy:

Avoid Managerial Mistakes

We’ve written a lot about how you can make the most of your store’s employees and improve their performance. Now it’s time to look in the mirror.

Whether you oversee a handful of employees or hundreds, your skills at leading your team are essential to your success. It’s important to be aware of traps or bad habits managers can fall into. Suze Bragg shares the “13 Biggest Mistakes Managers Make” at the website, Expert Business Source.

In order for your store to thrive, here are five mistakes you don't want to make:

Keep Customers Comfortable with Seating Areas

When it comes to improving your store’s environment, every corner counts. One area that can be improved with simple positioning and furniture changes is the sitting area, which needs to be inviting and versatile to make customers feel comfortable when making important purchase decisions.

In his INSTORE magazine editorial, “Have a Seat,” Paul Holewa shares simple ideas from Ruth Mellergaard, principal of retail design firm GRID/3, that will instantly improve the lounge area of your store:

Fuel Employees with Feedback

Employees will perform better in the short and long term when you provide feedback on a regular basis. That’s because a worker needs to know where they stand. Offering regular feedback (as opposed to once-a-year reviews) can have a big impact on your store’s bottom-line, since even minor changes can transform an okay salesperson into a stellar one.

Jewelers of America’s Director of Education David Peters offers the following tips on providing feedback that will motivate (not undermine) your employees:

• Be descriptive. Offer specific examples rather than generalities.
• Be accurate. Make sure that the feedback you provide contains information that is first-hand, factual and valid.

Choose the Right Burmese Ruby Alternatives

In July, President Bush signed legislation banning the import of rubies and jadeite from Myanmar, including stones processed in third-party countries, into the United States. Jewelers of America supported the bill, titled Tom Lantos Block Burmese JADE Act of 2008, and applauded the passage of the legislation.

As early as last fall, Jewelers of America issued an advisory to its members, detailing its deep concern about the Burmese military government’s longstanding human rights violations. As of Sept. 25, Burmese-mined gems and jewelry are prohibited from entering the country, so your store must consider alternatives.

In the National Jeweler magazine article, “Which stones are substitutes for rubies?”, Mary Johnson writes that, due to the wide range of price and quality of gems from Burma (Myanmar), there are numerous sources to choose from.

Tap into Fall Trends

Twice a year, Jewelry Information Center, the industry source for consumer information on fine jewelry and watches, writes a Trend Report forecasting the upcoming season’s hot looks and trends, as a guide for jewelers and consumers. For the Report, JIC scours the market and evaluates trends in fashion, socio-economics, pop culture and so much more. 

Understanding and stocking the season’s trends can bring a new dimension of sales into your store. JIC members receive the JIC Trend Report exclusively to inform restocking and buying for the season ahead.

Here, "Thriving in 2008" readers get a special peak at the fall/winter trends as predicted by JIC:

Strike Gold, Part 2: Create Lasting Impressions with Gold Jewelry

As gold becomes more valuable, consumers look to gold jewelry as a long-term investment. Given the challenging economic environment, the World Gold Council (WGC) says it’s more important than ever to convey the lasting value of gold to consumers.

WGC offers the following action points to reinforce gold jewelry's value to your customer:

• Select Classic & Versatile Pieces: Avoid overly lightweight gold pieces that can damage easily and focus on pieces with versatility (for instance, two looks for the price of one), added value options and classic designs that never go out of style.

Make an Impact with Email Releases

One of the best ways to attract people to your store is through public and media relations. Email can be a great tool to send your press releases quickly and efficiently, but it’s important to utilize it in a way that turns your press release into positive coverage, versus fodder for the SPAM folder.

At the JCK Voices blog, JCK Magazine Editor-in-Chief Hedda Schupak discusses how to send press releases in “Email Etiquette: How To Get Good P.R. Exposure.”  Here's what she advises to start thriving with press coverage:

• Do not send large file attachments unsolicited. While it’s fine to send a huge file or attachment if you’ve been asked for it, if you send out huge files routinely you risk crashing the recipients' inboxes, and that's not how you want to be noticed.

Conserve Your Energy

With gas and oil prices through the roof, energy usage in your store can have a big impact on your bottom-line. The Wall Street Journal (subscription required) article “Strategies for Reining In Energy Costs,”  notes that prices aren’t likely to go down anytime soon, so it’s important to figure out where to make changes for both short and long-term cost savings.

Small business reporter Kelly K. Spors shares the following tips to help companies save energy (and money):

• Focus first on the big energy sappers: While a patchwork approach can be tempting, Spors says you’ll get the most bang from your buck if you target the big culprits. She gives the example of a restaurant installing more energy efficient refrigeration and lighting systems. As a jeweler, lighting costs -- for overall ambiance and displays -- are probably number one on your list. One way to put a dent into these costs is to use more energy-efficient light bulbs. While these cost more than standard bulbs, Spors says they will pay for themselves in longer-term savings.

Strike Gold, Part One: Key Gold Jewelry Messages

Unless you’ve been hiding under a large rock, you know that gold and other precious metals prices have been rising steadily. Chances are your customers know this as well, so the World Gold Council advises retailers to reinforce positive messages that make gold a powerful purchasing decision.

WGC shares three key sales messages that will have sales associates thrive at selling gold jewelry:

Restock and Restyle for the Holidays

One of the reason’s consumers frequently visit stores is to simply see what is new. The shopping craze has already started across America, as consumers are restocking their wardrobes with fall’s newest fashions. Now is the perfect time for you to restock and restyle your jewelry cases with new fall styles.

Here are a few essential tips from Jewelry Information Center to assist in making your store a go-to destination this fall:

Coach Employees Part 5: Performance Plan Primer

In our recent series on coaching employees, we discussed the need to get your sales staff in shape for the holiday season. Coaching, which can improve performance, attitude and relationships in your store, is a key component of this process. But what gives a coaching session real substance is the performance improvement plan that comes out of it.

Jewelers of America Director of Education David Peters offers these insights on how move from talk to action: