In a competitive diamond market, bridal specialists at Jim Kryshak Jewelers in Wausau, WI, have found a way to consistently differentiate themselves and clinch the sale by offering an attention-getting ‘lifetime warranty’, covering materials and workmanship, from a nationwide network of independent jewelers. The offer is so stunning that competitors tell customers that “it can’t be real.”
IDEA
This Benefit is Portable
Members of Preferred Jewelers International, a nationwide network of jewelers, can offer clients a lifetime warranty on jewelry, including diamonds up to 0.20 TCW, as long as the client brings it in every six months to be checked. It also covers prong re-tipping, resizing, tightening of stones, refinishing and polishing, and repairing or replacing loose earring backs.
Because the program is national, the customer’s warranty stays intact if they move; they can find another jeweler in the network. Some jewelry retail groups offer a warranty that may cost the client as much as $500. This one is free.
EXECUTION
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Integrate the Warranty Into the Sale
Jim Kryshak manager Tara Smith says the warranty is integral to the sales process and is an important part of the store’s sales training. “It’s an actual benefit, so we use it in the process and presentation rather than after the sale. It’s as integral to a piece of jewelry as a prong on a ring.”
Customers receive a phone call every six months as a reminder to have their rings checked. But often they keep track themselves and take the initiative to call Smith if they are running late on their warranty check.
Jim Kryshak Jewelers started implementing the warranty plan in 2012, but they grandfather in all past purchases if customers will pay to restore them to like-new condition first.
They advertise the warranty heavily on radio. Word of mouth has also been strong.
“People come in and say, `Tell me about this! How can you give this away?’ Other stores tell people, ‘There’s no way they can really do this.’”
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Customer Acquisition is Automatic
“Every time we’re up against another store, we say we’re going to do this and do it for free, for a lifetime,” Smith says. “Nobody else has anything like it. This is hundreds of thousands of dollars we are covering that normally customers would have to pay for.”
New customers automatically seek out the store without the typical cost of advertising associated with acquiring new customers.
In addition, nine customers who bought rings out of the area and later moved to the Wausau, WI, area sought out Jim Kryshak Jewelers to become their new jeweler because of their participation in the warranty plan.
In one example, a new customer, Karla, had moved to Wisconsin and was looking for a Preferred Jeweler in her area for replacement of a diamond that was missing from the shank.
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While replacing the diamond, the jeweler noticed that one of the prongs on the center stone was bent, so he straightened and tightened her center stone as well. The ring was also polished and cleaned.
“Karla was thrilled when she saw her ring. She hugged me and thanked me for the service,” Smith says. She also ordered her wedding band and became a frequent shopper.
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