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Daniel’s Jewelers: Personalized Financing Enhances Customer Accessibility May 31, 2023 (0 comments)
Los Angeles, CA--Daniel's Jewelers CEO David Sherwood emphasized the crucial role of financing in making jewelry accessible to customers in an interview with PYMNTS.
“We understand that not everyone may have the immediate means to afford their desired ring or piece of jewelry in full,” said Sherwood in the interview. “Therefore, financing has been ingrained in the core principles of our business from the very beginning. Credit has always been foundational to what we do.”
Approximately half of the company's financing comes from its resources, with partners including prime and second-look financing providers and leasing companies supplementing this. Their financing arrangements, collected and underwritten internally, offer the flexibility to provide personalized solutions to a broad range of customers.
Customers can opt for their preferred financing provider despite the flexibility of in-house financing.
The report noted that Daniel's Jewelers evaluates various financing applications, even from customers with unfavorable credit histories. The company factors in long-term customer loyalty and payment behaviors, allowing it to tailor interest rates based on each customer's financial narrative.
Approximately 90% of Daniel's Jewelers' sales involve some form of financing. Sales associates are, therefore, required to have financial expertise acquired over time. When dealing with customers, basic information is collected to start the application process, and the best offer suited to the customer's needs is sourced from various partners.
Risk is mitigated through different methods, including down payments and leasing options. In the interview, Sherwood noted that the company actively seeks to credit first-time customers, a significant portion of its clientele.
Even with increasing tech influences, shopping for jewelry remains a personal experience and an experiential journey. In the interview, Sherwood emphasized that the appeal of buying jewelry extends beyond product acquisition, involving the emotions tied to the planning process, anticipation, and the moment of seeing the ring for the first time.
Moreover, Daniel's Jewelers offers a trade-in program that allows customers to trade in their purchased item at any point for its initial total value, enhancing customer trust and loyalty.
The company has also embraced the trend toward lab-grown diamonds, which constitute about half of its sales. These diamonds have made jewelry more affordable for a broader customer range and enhanced customer purchases' value.
Learn more in the full PYMNTS interview.