AuctionsMay 15, 2026
American Collector Ponies Up Almost $17K for John Wayne’s RingThe Western star’s 14-karat gold signet ring sold for six times its low estimate following a bidding war at U.K. auction house Elmwood’s.
IndependentsApr 26, 2016
Generating Consistent Profits with a Formal Referral System
Everybody in the jewelry business loves referrals, Jim Ackerman writes. Strange, then, that so few jewelers have a well-conceived, formal system for generating them.
Jim Ackerman is a renowned retail jewelry marketing expert who has spoken to jewelry retailers at the nation’s biggest marketing events, including JA New York, JCK, The Smart Jewelry Show and others.
Everybody in the jewelry business loves referrals. Strange, then, that so few jewelers have a well-conceived, formal system for generating them.
Look, there is simply no downside to having mass numbers of referrals walk through the door. When they do, here’s what you know.
-- This will be a lie-down sale.
-- You didn’t have to shell out a dime, up front, to acquire this new customer.
-- The close will be easier and faster.
-- You’ll encounter less price resistance.
-- There is less chance the customer will want to “shop around.”
-- You’ll probably get a larger sale.
-- This is likely to become another loyal customer.
-- This new customer is more likely to refer others.
See? There’s downside, except for one …
While this is a happy incident when it happens, it is almost always an incident. You can’t count on it, can’t predict the referral business you’ll do each month, which is why you must install an incentive-based referral system in your business.
The two kinds of incentive-based referral systems
Passive referral systems reward your clients for sending in their friends, relatives, neighbors and business associates. When someone comes in from this kind of referral, they’re going to buy, probably today.
But you still don’t get control of the referral’s name, so you have to wait for them to come into the store.
Pro-active referrals systems also reward your clients for sending in their friends. But in this case you do get control of the referral’s name and contact information up front so you can proactively market to them. You’ll reach them sooner, but you may have to court them for a while to get them in the door the first time.
Pieces of the puzzle
Passive referral systems consist of the following parts and pieces.
You must provide your client with an incentive to send in their friends. (This can be a store credit but that might not provide enough instant gratification to motivate them to refer consistently. Consider food or entertainment … or cash.)
You must provide an incentive to the person who’s being referred to get them to come in the first time. (A no-strings-attached, in-store gift certificate is recommended. Fifty dollars is OK; $100 is better.)
You might need to provide your staff with a short-term incentive to get the word out about the program until all of your clients know about it. Cash spiffs, candy, time off with pay,
Editors' Picks
Sponsored by
or other low-cost inducements can work well.
You’ll need scripts for your staff to introduce the program to your clients.
Training for your staff is also very important, and the training will need to be consistent over 30, 60 or even 90 days to establish new habits in them.
You will need several items of support materials. These will include the certificates your clients will hand out to their friends, a letter to your customer base that will introduce them to the program, and reward letters to clients who are now eligible to receive their rewards because their referrals have come in and done business with you. You may also want some in-store signage to remind clients of your referral rewards program.
Finally, you’ll need a tracking system to make sure the program is working, and to make sure your referring clients get rewarded with the right rewards in a timely fashion.
In the case of a pro-active referral system, you’ll also need some small, token reward to give clients simply because they give you contact information, even before the contact becomes a client. This could be something as simple as a free dessert certificate at a local restaurant, a RedBox movie rental or a $5 Starbucks gift card.
Making it work
The first ingredient is consistency. This is a system that will snowball. It’s not likely to generate crazy responses in a week, although we’ve seen that happen. But if you’re committed to the process, it won’t be long before you see a substantial increase in referrals and the percentage of your business coming from referrals will increase each month.
Begin by introducing your new Referral Rewards Program to customers who come into your store. Explain the program (using your script) and give them three gift certificates to hand out to their friends.
Send the introductory letter to all of your clients along with three certificates to hand out to their friends. (These letters don’t have to go out all at once. Send a couple hundred a week until you’ve worked through your entire database.)
When a new referral comes in, send the referring client the reward letter along with the actual reward along with three more certificates they can hand out to more of their friends.
Again, commitment is the key. You install these systems and, before long, you might find it’s the only marketing you have to do.
Jim Ackerman is a renowned retail jewelry marketing expert who has spoken to jewelry retailers at the nation’s biggest marketing events, including JA New York, JCK, The Smart Jewelry Show and others. He is offering National Jeweler readers a complimentary Marketing Fitness Check-up. He can be reached at 800-584-7585, ext. 3 or by email at mail-at-ascendmarketing.com. Check out his jeweler’s website at JewelersMarketingGems.com.
You’ll need scripts for your staff to introduce the program to your clients.
Training for your staff is also very important, and the training will need to be consistent over 30, 60 or even 90 days to establish new habits in them.
You will need several items of support materials. These will include the certificates your clients will hand out to their friends, a letter to your customer base that will introduce them to the program, and reward letters to clients who are now eligible to receive their rewards because their referrals have come in and done business with you. You may also want some in-store signage to remind clients of your referral rewards program.
Finally, you’ll need a tracking system to make sure the program is working, and to make sure your referring clients get rewarded with the right rewards in a timely fashion.
In the case of a pro-active referral system, you’ll also need some small, token reward to give clients simply because they give you contact information, even before the contact becomes a client. This could be something as simple as a free dessert certificate at a local restaurant, a RedBox movie rental or a $5 Starbucks gift card.
Making it work
The first ingredient is consistency. This is a system that will snowball. It’s not likely to generate crazy responses in a week, although we’ve seen that happen. But if you’re committed to the process, it won’t be long before you see a substantial increase in referrals and the percentage of your business coming from referrals will increase each month.
Begin by introducing your new Referral Rewards Program to customers who come into your store. Explain the program (using your script) and give them three gift certificates to hand out to their friends.
Send the introductory letter to all of your clients along with three certificates to hand out to their friends. (These letters don’t have to go out all at once. Send a couple hundred a week until you’ve worked through your entire database.)
When a new referral comes in, send the referring client the reward letter along with the actual reward along with three more certificates they can hand out to more of their friends.
Again, commitment is the key. You install these systems and, before long, you might find it’s the only marketing you have to do.
Jim Ackerman is a renowned retail jewelry marketing expert who has spoken to jewelry retailers at the nation’s biggest marketing events, including JA New York, JCK, The Smart Jewelry Show and others. He is offering National Jeweler readers a complimentary Marketing Fitness Check-up. He can be reached at 800-584-7585, ext. 3 or by email at mail-at-ascendmarketing.com. Check out his jeweler’s website at JewelersMarketingGems.com.
More on Independents
The Latest
Events & AwardsMay 15, 2026
JA, MJSA To Sponsor Roundtable at TJSThe discussion, "Rebuilding the Jewelry Workforce," will take place on Saturday, May 16, in Troy, Michigan.
SourcingMay 15, 2026
State of Diamonds: The Way Forward for Natural DiamondsThe jewelry industry is reassessing its positioning as Gen Z reshapes the retail landscape and lab grown continues to gain market share.
Brought to you by
How Modern Training Is Becoming a Competitive Advantage for Jewelry RetailersWith the trade and customer trust in mind, GIA® developed NextGem™ – on-demand training designed specifically for retail.
AuctionsMay 14, 2026
White Diamonds Lead Sotheby’s Auction, Blue Diamond Does Not SellA matching pair of 18.38-carat, D-color diamonds from Botswana’s Jwaneng mine sold for $3.3 million, the top lot of the jewelry auction.
Weekly QuizMay 14, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Supplier BulletinMay 14, 2026
A Diamond Is Forever Continues Desert Diamonds – Bridal ReinvigoratedSponsored by A Diamond Is Forever
SourcingMay 14, 2026
State of Colored Stones: The Spirit of Young American Gemstone CuttersThe next generation of lapidarists are entrepreneurial, engaged online, and see the craft as a means for artistic expression.
Brought to you by
Discover Timeless Treasures: A Showcase of Antique Jewelry & Timepieces in Las VegasGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
AuctionsMay 14, 2026
‘Ocean Dream’ Makes Waves at Christie’s, Fetching $17MIt was the second auction appearance for the fancy vivid blue-green diamond, which sold for $7.8 million at Christie’s Geneva 12 years ago.
CrimeMay 14, 2026
Second Man Arrested in Florida Pawn Shop Shooting Members of the U.S. Marshals Task Force took a 22-year-old man into custody. He was charged with tampering with evidence.
CrimeMay 13, 2026
JSA’s 2025 Crime Report Shows ‘Concerning’ Rise in ViolenceWhile the overall number of crimes was down, there were more incidences in which robbers pulled out guns, mace, or rammed cars into stores.
SourcingMay 13, 2026
Smithsonian Acquires ‘Winston Red’ Diamond PaintingReena Ahluwalia’s painting of the rare red diamond is the first contemporary painting to join the National Gem Collection.
TrendsMay 13, 2026
State of Design: Only the Innovative Will SurviveThe price of gold has risen, affecting the number of pieces designers make, the materials they use, and how they position themselves.
ColumnistsMay 12, 2026
It’s Official: We’re Getting ‘Brain Rot’ From Watching Short-Form Videos Peter Smith gives tips on leading meetings, developing marketing, and making trade show appointments in the age of short attention spans.
CollectionsMay 12, 2026
Jessica McCormack Debuts Antique Coin-Inspired Medallions for SummerThe 11-piece “Medallions” capsule collection features five motifs: a crying eye, a heart on fire, a spiral, a flower, and a swallow.
Events & AwardsMay 12, 2026
The Tiffany & Co. x CFDA Jewelry Designer Award Is BackThe partners have announced the second cycle of the program, which has expanded to include a $25,000 student scholarship.
IndependentsMay 11, 2026
Kansas Jeweler Closing After 70 YearsThe owners of Staats Jewelers are heading into retirement.
TrendsMay 11, 2026
Former Macy’s CEO Joins Signet Jewelers BoardJeffrey Gennette, who retired in 2024 after 41 years with Macy’s, is the newest member of the jewelry retailer’s board of directors.
TrendsMay 11, 2026
Amanda’s Style File: Lucky May May babies are lucky to have emeralds, a gemstone admired for centuries, as their birthstone, writes Amanda Gizzi.
TechnologyMay 11, 2026
Clientbook’s New Tool Helps Jewelers Plan In-Store EventsThe new module allows retailers to plan, promote, and measure the success of events from a single dashboard.
Lab-GrownMay 08, 2026
NDC Publicly Criticizes Pandora Over ‘Misleading’ Natural Diamond ClaimsNDC said in an open letter that Pandora’s statements about the carbon footprint of lab grown versus natural diamonds are inaccurate.
SourcingMay 08, 2026
Ronnie VanderLinden Takes Over as WDC President The diamantaire and industry leader succeeds Feriel Zerouki and said he will focus on being a “champion” for natural diamonds.
TrendsMay 08, 2026
Rihanna Chooses ‘Desert Diamonds’ for 2026 Met GalaShe wore our Piece of the Week, Glenn Spiro’s “Old Moghul Golconda” earrings, featuring fancy brown-yellow diamonds totaling 51.90 carats.
Events & AwardsMay 08, 2026
JA Announces 2026 CASE Award WinnersTwo pieces were named “Best in Show,” one from the retail category and one from the supplier category.
FinancialsMay 07, 2026
Brilliant Earth Appeals to Higher-Income Shoppers in Q1The jewelry retailer noted resilience among its higher-end customers while demand softened for its lower-priced offerings.
AuctionsMay 07, 2026
‘Spectacular’ Kashmir Sapphire Headlines Heritage Spring Jewelry SaleLed by the 6.59-carat sapphire, the sale garnered $9.7 million, a record total for a Heritage jewelry auction.
MajorsMay 07, 2026
Gannon & Scott Names New Regional Account ExecutiveIn his new role, sales specialist Billy Welshoff will focus on the eastern United States.
