Most Jewelers Know Their Best Customers by Name. The Smart Ones Also Know Them By a Number.

Independent jewelry store owners and managers are divided on whether to formally track “customer lifetime value,” with many preferring personal relationships over the hard data provided by modern point-of-sale systems.

In a recent INSTORE Brain Squad survey, respondents were asked if they track the total value a customer brings to their jewelry business over time. The results – 66% said “Yes” and 34% said “No” — revealed a spectrum of management styles, ranging from high-tech data analysis to a reliance on “gut feeling” and community connection.

For those who do track the metric, specialized software is often the primary tool. Users of The Edge and GUILD software noted that these systems automate the process by totaling sales and noting referrals on customer profiles.

“GUILD software totals are most helpful,” said Eileen Eichhorn, of Eichhorn Jewelry in Decatur, IN. “We additionally note relationships and referrals on customer profile pages. We are now selling to great-grandchildren of our original customers.”

Other retailers use the data to drive specific marketing efforts. J. Dennis Petimezas, of Watchmaker’s Diamonds & Jewelry in Johnstown, PA, said the software tracks lifetime purchases to help determine “what dollar value of incentives to direct mail to each customer right before major holidays.” One Florida jeweler said his store limits Christmas cards to the top 350 clients based on a three-year spend.

However, a significant portion of respondents expressed skepticism toward reducing customers to a dollar amount. Many argued that in a small-town atmosphere, formal tracking is unnecessary.

“I go by gut feeling,” said Klaus Kutter, of A Jour Inc. in Bristol, RI. “In a small operation, it’s automatic.”

Tim Wright, of Simply Unique Jewelry Designs in Yorktown, VA, echoed this sentiment, stating that his regular customers are treated like family. “We know without tracking their spending worth,” Wright said. “We take care of our regulars and they keep coming back and bringing their friends.”

Even some who have the capability to run reports choose to prioritize the human element. Jo Goralski, of The Jewelry Mechanic in Oconomowoc, WI, said that while she can run spend reports, she values custom design stories and “human experience with a customer far more than the dollars they bring.”

For some, the concept was entirely new. “I didn’t know that was a thing,” said one California jeweler. “Now, I am going to make spreadsheets and stuff!”