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Digital is the Future; But Traditional Media Brings Clients Today

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Recently, I was on the phone with a jewelry event organizer who said, “We want to stay on the cutting edge of social media and digital marketing.”

Just one problem with that … the digital marketing emperor isn’t wearing any clothes! I can count on one hand the number of jewelers I know who are primarily making a living on their digital marketing efforts. 

Yet, the industry is more than obsessed with it. I’ll wager 90 percent plus of all marketing-related educational content at jewelry trade shows is focused on social, email, SEO, SEM, etc. I teach some of those classes myself. (Above case in point: If I don’t, I won’t get booked to speak.)

Stop buying the hype; rebalance your marketing and education to work on both.”

Unfortunately, the results for brick and mortar jewelers just don’t justify the attention. Want to know what the research shows?

As few as 5 percent of your Facebook posts are exposed to your followers — the people you’re trying to sell to. Typical open rates for email are under 14 percent and falling. While click-through rates for social media, search engine ads and email are cheap individually, the conversion-to-sale (acquisition) costs are about the same as traditional media. 

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But, because so few people are actually seeing your digital marketing in the first place, even good conversion rates tend to generate only a few sales. And those precious millennials you covet so much? Abandoning Facebook in droves, in favor of other platforms … at least until those other platforms get too “addy” for them.

My experience with hundreds of jewelers shows if you want to generate sales in volume, traditional media still works better. That means “snail mail” first, radio in the right markets, even TV and occasionally print.

Part of the reason digital results are so abysmal is advertising there is executed so poorly. New media, but everybody applies old techniques. Emails are designed to look like ads in a magazine. So are Facebook posts. But people don’t engage with either of those media for the advertising.

I’m not saying abandon digital marketing. Simply return to balance in your marketing approach. Remember, you still need to make sales day after day, and for that, there is no more a current substitute for traditional marketing strategies than there is for fossil fuels to run cars.

Stop buying the hype; rebalance your marketing and education to work on both. Traditional for today; digital for the future.

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David Geller

Why David Geller Says You Should Sell Lab-Grown Diamonds

You’re a merchant, so sell the customer what they want.

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ONE OF THE JEWELER pages on Facebook has been discussing whether a store should stock and sell lab-grown diamonds. The dad says no, while the millennial son says, “I think we should try it.” The reader vote is split about 50/50.

Can we talk about making a living here for a moment? And selling consumers what they want?

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Customers want to know their options and make their own decisions. Be their personal shopper.

I started in 1974 as a trade shop. I used to do work for a store at our mall, Wellington Jewels. I sized the gold rings they sold and set stones.

What stones? Strontium titanate. It’s a diamond simulant that has colors like an opal. Hardness on Mohs’ scale? About 5.5! But sparkle, oooh weeee!

The store was mostly black walls and showcases, with bright lights to make the stones pop. They made great money, and these are diamond look-alikes with the hardness of an opal. The mountings were 14K gold with real melee diamonds. They didn’t sell much fashion, which I told them was crazy, because a woman can only buy so many engagement rings.

I became friendly with the store manager and she agreed. So I ordered a dozen at a time in fashion mountings from a catalog, furnished the mountings and diamond melee, and she gave me center stones, which I set. They’d sell most of each dozen I gave them within five weeks.

So let’s talk profits on this product. All merchandise was quadruple markup.

They gave a lifetime warranty on these stones. If the stone scratched or chipped or fell out, they’d replace them for 50 percent of the price (so they still made keystone).

This was junk compared to lab-created diamonds. Remember: a lab-created diamond will last as long as the human does.

What about resale value? Well, they can’t get their money out of what they spent on your natural diamond, so try lab-created, make a better margin and keep that young person from buying it someplace else.

When you quote a price to a customer for anything, you may be thinking, “They aren’t talking. Maybe I should come down on the price. OMG I need to make payroll this Friday.”

They may be thinking: “Darn, my student loan note is due at the end of the month. Maybe I should opt for a lab-created diamond. I can’t tell the difference and we need to save for a house.”

Be their personal shopper, make a customer happy and make some money!

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Editor's Note

These Are The Three Factors Driving Revolution in the Jewelry Industry

All three are technology-based.

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WHEN A BUSINESS REVOLUTION arrives, there’s no stopping it. Your only options are to ignore it and die a slow death, or join it and learn, quickly, how to do business within the new paradigm.

Three powerful pistons are driving revolution in the jewelry industry. The first is e-commerce. Some retailers have complained of manufacturers going direct to consumers, but many are now learning to compete in the online space as well. We just started judging this year’s crop of America’s Coolest Store contestants, and we are impressed not only by how many of the applicants sell online, but also by the quality of their websites. Read about retailers doing e-commerce right in our story, “E-Commerce For Everyone,” beginning on page 74.

The second piston is the lab-grown diamond phenomenon. The category continues to gain traction among consumers, and largely driven by consumer demand, not marketing. Read about Soha Diamond Co., a retailer who sells only lab-grown diamonds and gemstones, in our “Talkin’ ‘Bout a Revolution” story starting on page 63.

The third piston is social media, which offers retailers the opportunity to engage local consumers for very little monetary investment. Social media is where the people are; it’s just a question of how to reach them, and then how to interest them in your jewelry and your store.

A revolution is on your doorstep, whether you like it or not. Will you join it or be left behind?

Trace Shelton

Editor-in-Chief, INSTORE
trace@smartworkmedia.com

Five Smart Tips You’ll Find in This Issue

  • During slow times, take photos of all waxes not already in your CAD library and add them. (Manager’s To-Do List, p. 46)
  • Use an aggressive commission to incentivize salespeople to sell old items. (Ask INSTORE, p. 108)
  • Present customers’ kids with gift-wrapped presents to make them feel special. (Tip Sheet, p. 98)
  • Match the percentage of marketing dollars spent on a department with its store performance. (David Brown, p. 112)
  • Make a list of all verbal buying cues and have staff practice their question closes for each. (Sales Truths, p. 112)
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Dave Richardson

24 Verbal Buying Signals Your Sales Staff May Be Missing

Do this exercise to improve your team’s closing ratio.

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WHY IT IS TRUE: The customer will say things that indicate they are ready to buy, but many salespeople talk right through these cues.

PLAN OF ACTION: During a meeting with your staff, write these verbal buying signals on a flip chart and ask your staff if they can think of any to add to the list.

  • Do you take credit cards?
  • I really like it.
  • I think she’ll like it.
  • Do you have a warranty program?
  • Will you gift-wrap it?
  • You provide an appraisal?
  • What if she doesn’t like it?
  • What time do you close tonight?
  • Do you have it in white gold?
  • Will you be able to size it for me?
  • If I buy it, when can I pick it up?
  • I really like the feel of it.
  • I really like the way it looks on me.
  • Can I put it on my store credit?
  • Can you engrave it for me?
  • You have a layaway plan?
  • Since I can’t take until it is sized, do you deliver?
  • Does it come in a box?
  • How can I care for it?
  • Do you have the matching earrings?
  • Can I borrow a calculator?
  • If I buy the ring, will you pay the tax?
  • What is your return policy?
  • What do you think?

Then, divide your salespeople into groups of two or three and have them write the appropriate closing question to each one of the verbal buying signals. Then you can compare the results.

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