In today’s 24-hour news cycle, it's easy to feel a bit on the edge. But rather than pointing to the sky in abject fear a la Chicken Little, you’ll do your business (and yourself and your family) much more good by remaining calm.
Industry analyst Ken Gassman put the current economic climate into perspective in a recent IDEX Online column, “Don’t Panic, It’s Not The End of the World.” He reminds retailers that while jewelry demand may soften in a tough economy, it’s remained relatively strong this cycle and more importantly, it will rebound. “Jewelry is not a fad product; it has been around for at least 50,000 years,” he notes.
Gassman says jewelers need to hit this period of softness head-on. He offers up a “Plan of Action,” which includes the following tips:
Increase Customer Contacts: Set up a “clientelling” program to contact your best customers. Gassman reminds us that while just over 25% of jeweler’s business comes from the big holidays, the rest comes from life cycle milestone events like anniversaries and birthdays. Jewelers with good customer records can call their clients to remind them that they have “just the thing” for an upcoming life cycle event.
Target Advertising: In a slow economy, highly targeted advertising -- like direct mail and phone calls -- is the way to go. Use them to reach out to your best customers.
Properly Incentivize Sales Associates: Make sure the compensation system for sales associates rewards them primarily for doing their job -- selling. And don’t let them get bogged down with paperwork.
Focus on the Real Competition: Gassman says don’t fret over other jewelers -- whether they’re of the Wal-Mart, online or down-the-street variety -- because a jeweler's biggest competition for dollars comes from merchants selling handbags, scarves, sunglasses, cosmetics, shoes, and other accessories.
Take The Tip:
Click here to read Gassman’s full report at IDEX. We plan to revisit it for advice (and to stay calm) as the season progresses.
- Many of our previous tips give simple solutions for some of Gassman's well-researched suggestions, review them by checking out our tip archives on Marketing, Working with the Web, Management and Merchandise.
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