La Costa, CA—For the past several months, we have been delving into sales statistics to assess the loyalty of customers and their frequency of purchases. We know numbers don’t lie—but you will wish they did by the time you finish reading this article.
While reviewing sales data from the 2017 holiday season (November and December), we noticed an alarming statistic: the customers who shopped in November and December were shockingly low compared to the number of customers in a given database: only 6%.
These numbers seem consistent regardless of the size of store. We looked at jewelers ranging in annual sales volume from $2 million to over $20 million, and the results remained the same. If you doubt these statistics, as we first did, take a look at your customer data to assess your customers’ true loyalty.
We consistently found that customers who purchased during the months of November and December comprised only 6 % of the store’s database. Even more worrisome, 75% of those purchasers bought only once at the holidays during the past five years—and the percentage of those who purchased faithfully each year was only slightly over 1%. Yes, you read that right: slightly over 1%.
You send out mailers, you host events, and advertise through all the traditional means, and yet your most “loyal” or “regular” customers aren’t nearly as regular as we all thought. To find out that they’re only buying jewelry for the holidays from you ONE time in a five-year span is shocking.
This begs the question, “what are they buying?” We can blame it on new cars or expensive trips, but the truth is, there is always room and a “reason” for a piece of jewelry, even if it is for no “reason” at all. But the romance of jewelry has lost its sparkle in many customers’ eyes, and it’s your job to bring the enchantment back.
It is easier and less expensive to keep an existing customer than it is to gain a new one, and this presents an excellent opportunity.
By now, advertising in traditional mediums should be set and ready to drop for fourth quarter. However, it is not too late to execute something spectacular. You have a customer list of people who have purchased from you before. When is the last time you called and asked, “How can I help make this Christmas as special as the last time you gave her a piece of jewelry?” Or, perhaps you should have a private showing to a select customer group, emphasizing the exclusivity of the invitation. Certainly, all your customers will see your advertising, but will you be top of mind when they make that decision to buy?
Hopefully your store has better than a 6% response rate in a 5-year span from customers who know and trust you. We challenge you to boost your numbers whatever they are this year by contacting customers NOW—before they make other buying plans for the holidays.
Here are some suggestions:
As we said above, take a look at your customer data to assess your customers’ true loyalty. (If you would like assistance on how to accomplish this, call (760) 633-2959 or email firstname.lastname@example.org.)
Until then, make it a point to reconnect with your customers and enjoy helping them bring the romance of jewelry back and give someone’s holiday extra sparkle in their Christmas.
Dan and Lori Askew of Vantage Group provide decades of expertise to both retailers and manufacturers in the jewelry industry. They strategically examine each area of business and address concerns in the order that will make the greatest impact in the most time efficient way, specifically with cash flow, merchandise planning, inventory control, advertising, and store management. www.VantageGroupinfo.com or 760-633-2959.