Who Are Your Most Valuable Customers? How 37 Jewelry Retailers Are Tracking — and Acting On — the Answer

INDEPENDENT JEWELRY STORE OWNERS remain divided on the benefits of tracking customer lifetime value. While many leverage modern POS systems like The Edge or GUILD to automate data collection and drive targeted holiday marketing, others argue that hard numbers cannot capture the essence of community-based retail. For these professionals, “gut feeling” and personal connections take precedence over spreadsheets. In a recent INSTORE Brain Squad survey, we asked readers to elaborate on the question of:

Do you track customer lifetime value?

Yes: 66%

• “GUILD software totals are most helpful. We additionally note relationships and referrals on customer profile page. Now selling to great grandchildren of our original customers.” — Eileen E., Decatur, IN
• “Lifetime value is tough, it is more so just how many times they visit the store. If they are a consistent customer I am not overly worried about the dollar amount they spend, because that will come naturally. I track everything through Edge. I make sure I know birthdays, anniversaries, big life events, etc.” — Cole R., Bradenton, FL
• “The Edge software calculates it under the client profile automatically.” — Jill H., Coral Gables, FL

“Our POS does it. Our average customer spends between $30,000 and $50,000. We have several with much, much more.” — Amanda L., Steinbach, MB

• “The computer has it in it and we look very often.” — Manuel M., Northbrook, IL
• “I do it through the Edge and I make sure I celebrate them in all their special occasions.” — Krystal S., Plymouth, MI
• “We have the Edge so it does it for us. Don’t really pay much attention to it since we are a small company and know most of our clients. We also have a lot of people who are not big jewelry buyers but still refer a lot of people to us so they still get a little extra when they do come in.” — Scott M., Jacksonville, MD
• “We know who our core and loyal customers are. We tend to go above and beyond for them because of the value they bring. Gifts with purchases, special invitations, gift baskets, exclusive views of new product, etc. These are some of the things we do for our ‘VIP’ customers.” — Marc M., Midland, TX
• “I can run a report that shows by customer over time, what they have spent, but that isn’t how we value customers. Our favorites are the color gemstone lovers. We can lose hours to conversation about gems. Never had that with a diamond client. Next, are the custom design clients. Each piece is created for the person we are working for. The stories behind the piece are never forgotten even when the client name escapes us. We value the human experience with a customer far more than the dollars they bring.” — Jo G., Oconomowoc, WI
• “Our computer tracks all purchases — we use it to send specials to customers with more than a $5,000 lifetime record.” — Ragnar B., Vancouver, BC
• “We track through our POS — that’s how we determine who gets invited to our private events and gets holiday cards.” — Elizabeth S., San Diego, CA
• “We use it as a connection point for the sales team.” — Laurie L., Omaha, NE
• “My POS system, The Edge, does track lifetime purchases. However we have only been with them since 2012 and we have been open since 1968. It’s a small picture for our overall lifetime.” — Sue P., Escanaba, MI
• “We use Edge software and that gives us lots of info.” — Joseph D., Rotterdam, NY

“When we send out Christmas cards every year, we limit them to the top 350 clients who spent the most money in the past three years. Plus each employee picks some of their favorites. We miss a few but it’s worked out.” — Rick S., Gainesville, FL

• “We have a cumulative list of all prior sales to each customer.” — Gary R., Granger, IN
• “We certainly track our top customers and where their dollars in sales sit. We clientele to them based on what we know they like and have purchased in the past along with tempting them with new and different items we feel the recipient would like once we get to know them. Clienteling works many ways…” — Tom N., Spencer, IA
• “Not as much as we could, but we are improving our tracking.” — Katrina S., Racine, WI
• “It is very easy to track within the Edge program.” — James M., Bedford, VA
• “The Edge tracks lifetime purchases for us. The average purchase price of cumulative purchases helps us determine what dollar value of incentives to direct mail to each customer right before major holidays.” — J. Dennis P., Johnstown, PA
• “We track the door count every day. From there we track whether it is a first-time customer or an existing customer via sales data. We also track the day’s closing ratio and the sales manager reviews all open sales or sales that didn’t close. Customer retention is great, new customer acquisition is even better for long-term growth.” — Tom D., Warren, OH
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No: 33%

• “I know who the regulars are, and you never know when someone ‘peripheral’ will become a regular, so I treat everyone with kindness and deference.” — Stacey H., Lincolnwood, IL
• “We have lots of customers that will never make that big spend, but they are valuable to the business and as strong word-of-mouth advertising in the community.” — Trevor W., Myerstown, PA
• “We use The Edge POS system. I’m guessing there is a way to do this, but we do not see a reason to do so. We try to treat every customer new or old the same each time we see them.” — James S., Lowell, IN
• “We don’t track it formally but can look up lifetime purchases in our system and continue to be aware of it.” — Georgie G., Palo Alto, CA

“I actually don’t ‘not’ track it, I just don’t really pay attention. I’m not a traditional jeweler; I am a one-woman handcrafted operation, and have been for over 40 years. I know my regular customers. If I want to see how much they’ve spent over the last 20 or 25 years, I can look that up in my QuickBooks program. But the numbers don’t mean as much to me as the relationships.” — Janne E., Cocoa, FL

• “I keep in touch by email with my clients, letting them know of their private sales and promotions, but it’s difficult to know how to track their value.” — Drue S., Albany, NY
• “We don’t have accurate measurements, but as those are long-term clients, we know them well and try hard to give them very good service.” — Eve J. A., Evanston, IL
• “Not computerized.” — Laurie C., Hyde Park, NY
• “We track it online but not in the store. We do know who our best customers are, but hard numbers and analytics are not our thing. We’re too small of an operation.” — Gretchen S., Sherman Oaks, CA
• “We don’t and probably because the bulk of our customers are like our family. We know without ranking their spending worth. We take care of our regulars and they keep coming back and bringing their friends with them.” — Tim W., Yorktown, VA
• “We value relationships, not how much or little they spend.” — Gene A., Reidsville, NC
• “I don’t really know how — maybe an article for you all? Many small businesses could benefit from a ‘how to’ and ‘why you should.'” — Loann S., Stillwater, MN

“I go by gut feeling. You know. In a small operation it’s automatic.” — Klaus K., Bristol, RI

• “We sort of do to qualify customers for special promotions, special events and VIP gifts throughout the year.” — James G., Memphis, TN
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What’s the Brain Squad?

If you’re the owner or top manager of a U.S. jewelry store, you’re invited to join the INSTORE Brain Squad. By taking one five-minute quiz a month, you can get a free t-shirt, be featured prominently in this magazine, and make your voice heard on key issues affecting the jewelry industry. Good deal, right? Sign up here.