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Shane Decker

These Statistics Show That Most Jewelers Can Dramatically Improve Their Closing Ratios

Opportunities abound for sales growth.

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I’VE BEEN RESEARCHING, collecting numbers and gathering information for almost 40 years from over 4,500 jewelry stores. Most think their closing ratio is higher than it actually is. The truth hurts, but it also presents you with opportunity. Check out these figures and compare them with what’s happening in your store.

  • Closing ratios in malls are at an all-time low. Not all, but most, are running 8-12%. That means they wait on 100 clients to write up 12 sales slips. That’s why so many jewelry stores are trying to get out of malls and go after a different clientele.
  • Stores in downtown areas or in strip centers are closing at around 27-33%. Not much better, but it is an improvement.
  • Closing ratios for freestanding stores are running between 35-40%. And if they’re heavily branded, some are even around 50%. These numbers are higher, but still not where they need to be.
  • Only 7% of clients who say “I’ll be back” actually return.
  • 70-80% of clients who say “I’ll be back” buy at another store within two hours after leaving your location. That’s a lot of dollars leaving your store.
  • 60-70% of clients cannot make up their own mind. They’re paying you as a professional to make a decision for them. That is one reason why you should never ask, “Can I wrap it up for you?” They don’t want to make a decision.
  • Over 80% of shoppers buy the day they shop. If they’re shopping today, they don’t have time to shop tomorrow. I buy the day I shop, and so do you. For the client who comes in and says “It’s my anniversary and I want to buy a two-carat diamond,” the closing ratio should be 100%. They told you what they want and what they’re celebrating.
  • Over 70% of all bridal sales right now are millennials. If they sit with a CAD/CAM designer, the closing ratio is over 80%. They don’t come in saying “I’m just looking.” They did all the “just looking” on their devices.
  • Closing ratios on appointment sales are over 80%. Why? Because the stage is set. All the tools are organized. You’ve looked over their purchase history and know why they’re coming in. This is the most professional of all presentations because it’s planned just for them.

Here’s what can damage your closing ratio:

  • Not “wowing” every customer
  • Not team-selling to close
  • Not doing the ask-listen-paraphrase close all the way through
  • Not following the absolutes (which I’ve written articles about in the past)
  • Not being a “servant seller” for your teammates, which makes you look unorganized
  • Not adding on
  • Not following up and clienteling properly and professionally

Start holding sales meetings to train on areas of weakness. Work professionally to get your closing ratio up!

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SPONSORED VIDEO

Moving Up — Not Out — with Wilkerson

Trish Parks has always wanted to be in the jewelry business and that passion has fueled her success. The original Corinth Jewelers opened in the Mississippi town of the same name in 2007. This year, Parks moved her business from its original strip mall location to a 10,000-square foot standalone store. To make room for fresh, new merchandise, she asked Wilkerson to organize a moving sale. “What I remember most about the sale is the outpouring excitement and appreciation from our customers,” says Parks. Would she recommend Wilkerson to other jewelers? “I would recommend Wilkerson because they came in, did what they were supposed to and made us all comfortable. And we met our goals.”

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