Policies & IssuesApr 17, 2024
NDC Prevails in U.K. Case Over Lab-Grown Diamond AdvertisingNDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
IndependentsMar 14, 2019
Coach’s Corner: 3 Tips for Improving Customer Retention
It costs a lot less to keep the customers you have than to get new ones, Pat Henneberry writes.
Pat Henneberry is president of consulting and sales training company The Jewelry Coach. Reach her at pat@thejewelrycoach.com.
Would you like to improve your company’s profits this year? What a question; of course you would!
It might surprise you, however, to learn that to reach that objective, you don’t have to chase new customers.
In fact, you don’t even need a single new customer.
According to research cited in a 2014 Harvard Business School article called “The Value of Keeping the Right Customers,” you can improve profitability by 25 to 95 percent by improving your customer retention rate by just 5 percent.
While this might seem implausible, the numbers make sense when you consider the high costs of customer acquisition. According to that same article, it costs at least five times more to land a new customer than to keep a current one.
The key here is to slow customer turn and nurture growth. I’ve come up with three tips to get you on your way.
1. Reinvent Your Customer Service
More than ever, it’s time to be proactive and stay in touch with your customer.
First, consider whether there are any obstacles to your customer realizing full value from her or his purchase. Your job is to remove any hurdles.
Plan a post-purchase call around the time when you think new customers might need your help. Ask how the item she or he purchased is working.
While you might be able to answer questions in a phone call, it’s also useful to have some quick online tips to which you can refer a customer or … invite she or he back to the store.
Also, explore further what your customers want to accomplish and ensure they’ve discovered the product features that can help them.
In addition to calling customers, you can use email or conduct your own jewelry-focused podcast (yep, you read that correctly.) Or publish a newsletter that links to informative blog posts. Or offer webinars.
The point is, by communicating with current customers, you’ll educate them, demonstrate your company’s expertise and build trust.
Remember: the more value your customers gain from your product, the more loyal they will be. Stay top-of-mind and value the customers you have.
2. Ask Questions
You don’t know what you don’t know. You can’t assume that customers are loyal just because they continue to buy from you.
You need to survey your customers to really understand what they are thinking.
A good question to include is: How likely would you be to recommend the store to
your friends? A recommendation demonstrates a high level of loyalty.
If you structure your survey correctly, you’ll gain insights that enable you to improve your store and service. And as you track loyalty over time, you can see whether you’re moving in the right direction.
3. Get Social
Further to No. 1, it’s important to communicate with your customers where they are already conversing. Today, many of them are on Twitter, LinkedIn, Facebook, Instagram, YouTube and online discussion forums.
Encourage communication with your customers on these platforms. Doing so enables customers to learn from your subject matter expertise as well as others who are using your store. Plus, it builds your relationship.
Ask the brands you carry for help with this. They can share posts and exciting news about, for example, new styles or education about a diamond.
Also, use online social interactions to listen to customers and identify needs and opportunities. Are there any changes you should make to your store or service?
Build your relationship with these individuals by liking, sharing and commenting on their content. Find out if you can collaborate with them, and leverage the trust and influence they’ve built. For instance, you might want to interview the influencer for a post on your store’s blog.
To summarize: increase customer retention and growth by treating customers like the center of your universe after the sale, monitoring their loyalty, making necessary adjustments to your store and service to improve satisfaction, and maintaining strong relationships with customers online and off.
Enhancing loyalty is worthwhile because, remember, if you raise retention by just 5 percent, you could increase profitability by 25 percent or more.
It’s much easier to take care of the customers you have than to constantly hunt for new customers. It’s not that you shouldn’t generate new customers; just start looking at the resources you are putting into it and cost balance.
I believe we all can do a better job at taking care of the customers we have.
Make it the best sales day ever!
Pat Henneberry is president of consulting and sales training company The Jewelry Coach and an advocate for natural diamonds. Reach her at pat@thejewelrycoach.com, 512-203-3414, or on Facebook, Twitter or LinkedIn.
If you structure your survey correctly, you’ll gain insights that enable you to improve your store and service. And as you track loyalty over time, you can see whether you’re moving in the right direction.
3. Get Social
Further to No. 1, it’s important to communicate with your customers where they are already conversing. Today, many of them are on Twitter, LinkedIn, Facebook, Instagram, YouTube and online discussion forums.
Encourage communication with your customers on these platforms. Doing so enables customers to learn from your subject matter expertise as well as others who are using your store. Plus, it builds your relationship.
Ask the brands you carry for help with this. They can share posts and exciting news about, for example, new styles or education about a diamond.
Also, use online social interactions to listen to customers and identify needs and opportunities. Are there any changes you should make to your store or service?
RELATED CONTENT: 4 Jewelers on Navigating the World of Online ReviewsFinally, try to identify whom your store advocates are and whether they are influential in your market. An influencer is someone who creates content and has a following online (and sometimes offline as well).
Build your relationship with these individuals by liking, sharing and commenting on their content. Find out if you can collaborate with them, and leverage the trust and influence they’ve built. For instance, you might want to interview the influencer for a post on your store’s blog.
To summarize: increase customer retention and growth by treating customers like the center of your universe after the sale, monitoring their loyalty, making necessary adjustments to your store and service to improve satisfaction, and maintaining strong relationships with customers online and off.
Enhancing loyalty is worthwhile because, remember, if you raise retention by just 5 percent, you could increase profitability by 25 percent or more.
It’s much easier to take care of the customers you have than to constantly hunt for new customers. It’s not that you shouldn’t generate new customers; just start looking at the resources you are putting into it and cost balance.
I believe we all can do a better job at taking care of the customers we have.
Make it the best sales day ever!
Pat Henneberry is president of consulting and sales training company The Jewelry Coach and an advocate for natural diamonds. Reach her at pat@thejewelrycoach.com, 512-203-3414, or on Facebook, Twitter or LinkedIn.
More on Independents
The Latest
Events & AwardsApr 17, 2024
And the 2024 Winner of the Shipley Award Is … John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
FinancialsApr 17, 2024
LVMH’s Q1 Jewelry Sales Fall 5%LVMH said the company performed well despite an uncertain geopolitical and economic environment.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
MajorsApr 17, 2024
Stuller’s B&D Opens New HeadquartersB&D Sales and Service held a ribbon-cutting event for its new location in Cranston, Rhode Island.
Weekly QuizApr 11, 2024
This Week’s QuizTest your jewelry news knowledge with this seven-question quiz.
CollectionsApr 16, 2024
Akaila Reid Launches ‘Eat Cake’ CollectionIt’s ultra-feminine and filled with gold, pearls, and soft pastels.
MajorsApr 16, 2024
Loudr Adds 2 DirectorsEmily Highet Morgan and Emily Bennett have joined the agency’s team.
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
MajorsApr 16, 2024
Stuller Releases First Lab-Grown Diamond Jewelry CatalogIts updated book for mountings is also now available.
SourcingApr 16, 2024
Karen Rentmeesters Takes Over as Interim CEO of AWDCShe has been with the organization since 2010, most recently serving as its chief officer of PR and industry relations.
TechnologyApr 15, 2024
Judge Rules Jeweler’s Lawsuit Against PNC Bank Can Move ForwardJoyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.
AuctionsApr 15, 2024
Madeleine K. Albright Jewelry, Pins Coming to AuctionHosted by Freeman’s | Hindman, the sale will take place May 7-8.
AuctionsApr 15, 2024
All of Sotheby’s ‘Rough Diamonds’ Sold in Less Than an HourThe auction house said all 24 timepieces offered in its underground sale of rare and avant-garde watches quickly found buyers.
Events & AwardsApr 15, 2024
10 Can’t-Miss Sessions at AGS Conclave 2024From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.
Recorded WebinarsApr 12, 2024
Watch: What Jewelers Need to Know About InsuranceFrom cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.
CollectionsApr 12, 2024
Piece of the Week: Lionheart’s Evil Eye Gemstone CharmThe charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.
Events & AwardsApr 12, 2024
The Jewelry Symposium Announces 4 Scholarship WinnersAhead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.
Policies & IssuesApr 11, 2024
SRK Exports’ Journey Toward Net Zero Impact By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.
Lab-GrownApr 11, 2024
AGTA Bans Lab-Grown Diamonds, Gemstones at GemFairMembers can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.
MajorsApr 11, 2024
Macy’s Opens Books for Possible BuyoutThe retailer also appointed two new board members, avoiding a proxy fight from a potential buyer.
CollectionsApr 10, 2024
Sylvie Launches New Nature-Inspired Collection, ‘Tulira’The bridal collection consists of 35 engagement rings and seven wedding bands.
WatchesApr 10, 2024
These Are Rolex’s New Watches for 2024 The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
IndependentsApr 10, 2024
Levy's Fine Jewelry Explores Diamond History The family-owned jeweler has a new education section on its website dedicated to the history of diamond cutting.
CollectionsApr 10, 2024
With Clarity Partners With NFL on Wedding Bands The limited-edition men’s rings can be customized with one of 12 team logos.
SourcingApr 10, 2024
Compliance, Caution, and Concern: The Current Outlook of Indian Diamantaires There is a willingness to comply with new government-mandated regulations, with an insistence that they should be practical and realistic.
WatchesApr 09, 2024
Chrono24 Debuts Pre-Owned Watch Authentication ProgramThe program, now live in Europe, will roll out to the U.S. this summer.
AuctionsApr 09, 2024
Phillips to Offer 6.21-Carat Vivid Pink DiamondColored gemstones and signed jewels are the focus of its upcoming Geneva sale.
