Jeweller - December 2024

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DECEMBER 2024

Table of Contents

EDITOR’S DESK 13

MINDSET MANAGEMENT

How to stay positive and

focused on sales when

the odds are against you

Effective sales

management in a

challenging economy

PRICING PRINCIPLES

Pricing is more than

numbers: It’s your

strategic advantage

14

16

18

The hidden costs

of discounting 20

The pros and cons of

displaying prices on

your website

SALES STRATEGY

22

Six compelling reasons to

rethink jewellery repairs 28

The formula to boost

repeat sales and retain

loyal customers

Look and learn from

customers: Embrace

their pain points

Unravelling the all

important clues: What

will customers want next?

Personalised selling

strategies for different

customer types

Proven techniques to

quickly improve your

up-selling skills

Retail jewellery sales

debunked: Eliminate the

myths holding you back

30

31

32

34

35

36

DIGITAL DOLLARS

Understanding the

evolving reality of

retail customer loyalty

Mastering the marketing

funnel for online

jewellery sales

Why asking for online

reviews is crucial for

your business

42

44

45

Small changes lead to

significant savings 46

Harnessing the power

of digital marketing

to increase store visits

Creating a customer

loyalty program that

drives success

48

49

Customer Service v Sales:

Let’s set the record

straight

24

Understanding fuel and

friction: The psychology

behind sales

38

Designing an effective

content marketing

strategy for your business

50

Blueprint for business

success: Understanding

the fundamentals

26

Revamping our mental

approach to improve

closing rates

39

Learn to speak the sales

language and boost

your results

27

Fostering a motivated

sales team 40

VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY

Published by Befindan Media Pty Ltd

Locked Bag 26, South Melbourne, VIC 3205 AUSTRALIA | ABN 66 638 077 648 | Phone: +61 3 9696 7200 | Subscriptions & Enquiries: info@jewellermagazine.com

Publisher Angela Han angela.han@jewellermagazine.com • Editor Samuel Ord samuel.ord@jewellermagazine.com • Advertising Toli Podolak toli.podolak@jewellermagazine.com

Production Prince Bisenio art@befindanmedia.com • Digital Coordinator Riza Buliag riza@jewellermagazine.com • Accounts Paul Blewitt finance@befindanmedia.com

Copyright All material appearing in Jeweller is subject to copyright. Reproduction in whole or in part is strictly forbidden without prior written consent of the publisher. Befindan Media Pty Ltd

strives to report accurately and fairly and it is our policy to correct significant errors of fact and misleading statements in the next available issue. All statements made, although based on information

believed to be reliable and accurate at the time, cannot be guaranteed and no fault or liability can be accepted for error or omission. Any comment relating to subjective opinions should be addressed to

the editor. Advertising The publisher reserves the right to omit or alter any advertisement to comply with Australian law and the advertiser agrees to indemnify the publisher for all damages or liabilities

arising from the published material.

12 | December 2024

EDITOR’S DESK

Tiny seeds sprout into mighty trees,

small sparks ignite roaring fires

Are you ready to take a risk and try something different for the first time?

SAMUEL ORD encourages retailers to embrace a changing landscape.

It would seem somewhat customary to sign off

the December issue of Jeweller by echoing the

familiar refrain of “It’s hard to believe another

year has come and gone.”

This time around, I’ll do no such thing. The past

year has been long and demanding for many in

the Australian jewellery industry, and I won’t

pretend otherwise.

Though it may not have been the year some

dreamed of, I hope that, as we enter the new

year, the industry will be better equipped to

tackle the future and embrace the chances

and opportunities that lie ahead.

With this in mind, we have produced another

unique issue of Jeweller — not just to bid

farewell to 2024 but to welcome the new

year with renewed energy and optimism.

This issue features a selection of the most

popular and well-read business columns

from the past decade, carefully chosen to

cover as many areas of the trade as possible.

Whether you’re seeking guidance on sales

strategy, pricing principles, digital marketing,

staff management, or maintaining focus under

pressure, this issue has something to offer.

As I discussed in a recent editorial, I’m drawn

to the study of pricing, and this issue includes

several columns dedicated to the subject.

From the subtle impacts of discounting to

the importance of not letting competitors set

your prices, these articles explore the factors

influencing how tags are written.

Many of these articles delve into psychology,

another fascinating topic that also intersects

with sales strategy, which this issue addresses

at length and in great detail.

For those keen to explore the practical side,

the Digital Dollars section provides actionable

guides on creating effective online marketing

strategies and loyalty programs and the secrets

to acquiring more positive online reviews.

In the same vein, if you're finding it difficult

to engage with the youngest generations of

customers, this issue includes columns with

practical advice on how to approach these

emerging consumer groups.

I hope that at least one of these ideas or strategies

will resonate with you and your business, helping

you build a stronger foundation for the new year.

Achieving more by doing less?

As you read this issue, I encourage you to consider

the Pareto Principle, more commonly known as

the 80/20 Rule.

This simple yet powerful concept suggests that

a small percentage of causes often leads to most

outcomes, a phenomenon reflected in business

and life.

For example, in everyday life, you probably wear

20 per cent of the clothes in your wardrobe on

80 per cent of days.

Similarly, you might spend 80 per cent of your

social time with only 20 per cent of your friends.

It’s a philosophy that’s often applied to business.

For jewellery retailers, this could mean that

80 per cent of your revenue comes from just

20 per cent of your products.

One small idea or piece of

knowledge could have a major

impact on your business.

With that in mind, you can optimise your inventory,

reduce dead stock, improve cash flow, and refine

your marketing efforts - all by identifying your

best-performing items.

One retailer inadvertently described the principle

in a way that perfectly illustrates its impact:

“It’s easier for a jewellery store to sell one

$5,000 diamond ring than ten $500 rings.”

Similarly, some retailers find that 20 per cent

of their customers account for 80 per cent of

their sales.

By focusing on personalised marketing and

loyalty programs, you can foster deeper

connections with those customers who

are already engaged with your business.

The Pareto Principle can also be applied to

customer service. Often, a small number

of recurring issues lead to most customer

complaints. There's a simple solution.

Addressing these repeat concerns improves

customer satisfaction and offers peace of mind.

Diamond in the rough

Of course, as with any broad principle,

the 80/20 Rule is not without its critics!

Some argue that it oversimplifies complex

business dynamics.

This might lead to a disproportionate focus

on the most visible and obvious factors,

overlooking other subtle areas that may

contribute to long-term success.

Your business might not fit neatly into the

80/20 framework, and that’s perfectly fine.

The key is to find balance and apply the

principle to suit your specific needs best.

Keep the Pareto Principle in mind as you read

this issue. Remember that not every article

and idea will apply directly to your business.

If you’re already confident in your store's

customer service, digital marketing strategy,

or pricing practices, that’s excellent!

But even so, I hope you’ll find something —

that elusive 20 per cent — that could make

a meaningful difference to your business

as you enter the new year.

We all know there is no ‘silver bullet’ when it

comes to overcoming challenges in business.

Despite what many business gurus, experts

and consultants may suggest, there is no

such thing as a one-size-fits-all solution.

What matters most is staying proactive,

flexible, and open to change — because

the world and the jewellery industry will

evolve, whether we’re ready or not.

As a former editor of Jeweller once wrote,

the key to thriving in difficult times is to

"do something.” What that ‘something’ is

— a bold new initiative or a series of minor,

incremental improvements — is up to you.

You cannot afford to stay stagnant and refuse

to evolve because change is inevitable.

One small idea or piece of knowledge could

have a major impact on your business.

SAMUEL ORD

Editor

December 2024 | 13

MINDSET MANAGEMENT

How to stay positive and focused on

sales when the odds are against you

Running a jewellery store can be challenging, and getting stuck in a routine is easy.

RICH KIZER and GEORGANNE BENDER offer solutions for struggling salespeople.

It’s easy to get blindsided by challenges in

your business, especially those that you

never thought you would have to handle.

When cash flow isn’t consistent, sales go

into hibernation, advertising stops working,

and customers are bored, what should

a jewellery retailer do?

Consider employing the following strategies

to improve your focus and build confidence

when you feel overwhelmed by your workload

or your business is ‘treading water’.

Setting new standards

Successful retailers are forward-thinking

planners who set written operating

standards for every area of their business.

These standards help everyone do their jobs

better and allow owners and managers to

easily measure store performance at every level.

Your business needs written standards and

expectations for customer service, training,

associate appearance, and use of personal

social media.

Brainstorm any additional standards that make

sense for your store. Expectations should

always be specific, attainable, and measurable.

Remember, what gets measured gets done!

Escaping your comfort zone

The ‘comfort zone’ is lethal to every business.

The moment you hear your associates start to

say things have ‘always been done a certain way’,

you’re in trouble.

Retail is a constantly changing environment,

and your business can’t afford to stand still.

It’s common for successful retailers to repeat

yesterday's actions, which proved successful;

however, that can lead to problems.

Exploring new areas is a great way to promote

internal improvement. Attend a trade show

that sounds interesting. Join a Facebook

group to swap stories with other retailers.

Consider hiring a consultant or personal assistant

to implement those changes you have talked

about for years but have yet to make.

Letting it go

Are you one of those business owners who

proudly tell others that you are a perfectionist?

Do you constantly compare yourself to others

or your store to the competition?

Retail is a constantly changing

environment, and your business

can’t afford to stand still.

Do you focus on your flaws instead of your

strengths? Do you think there is a way for

everyone who works for you to do it better?

It’s time to stop!

We know you’re willing to do whatever it

takes for your store to succeed; however,

sometimes, you must give yourself a break.

Running a retail store is hard work.

There’s no right way to do anything and many

people open new stores every year and fail.

If you’re still operating, you’re clearly doing

something right – so don’t torture yourself

with needless comparisons.

Doing something new every day

"Simple things can make a big difference.

What you do doesn’t have to be rocket science;

it just needs to take you out of your routine."

Marks and Spencer commissioned a study

which found 96 per cent of people described

themselves as living on ‘autopilot’.

Ruts and routines can squash your creativity.

To combat this in our lives, we decided to

take the ‘do something new each day’

challenge for 30 days.

We highly recommend the challenge for

jewellery store owners - it's rewarding.

Keep a notebook so you can reflect on any new

things you try. The 30-day challenge has reaped

benefits for us both personally and business-wise.

Making a difference

Once upon a time, retailers competed only

for the business of their customers.

Today, they need to compete for their hearts.

People choose to shop at one store over

another for many reasons, and a significant

factor in this decision-making process

can be the store’s charitable impact.

In modern retail, supporting a cause has

become mandatory! Sometimes, you choose

a cause; sometimes, the cause chooses you.

You may already be working with a charity,

or perhaps you’re open to new causes.

If you’re unsure where to start, ask your

customers which charities operate in

your area and what they think of them.

Getting started now

“Don’t wait too long. Your kids will only

be little once; your spouse deserves your

attention, and your dog needs to be walked.

"Business is important, but it’s not everything.

No one on their deathbed ever said,

‘I wish I had spent more time at work.’”

These words were written long ago and

hang on a sign in our office to remind

us of what’s really important.

Don’t wait for the right time to change

your business approach; something

will always get in your way.

If you’re unsure where to start, try one

of these ideas at a time – the most

important thing is you start today!

RICH KIZER and GEORGANNE BENDER

are retail strategists, authors and consultants.

Learn more: kizerandbender.com

14 | December 2024

MINDSET MANAGEMENT

Effective sales management

in a challenging economy

Knowing how to navigate adversity is critical to success in business.

BRIAN JEFFREY offers his insights on leading staff during a crisis.

It doesn’t matter if the global economy goes bad

around the country, around the block, or around

your industry or market - because managing

means making difficult decisions.

And as an owner or manager, you’re the best

person who has to make them.

Even with small retail businesses such as

jewellery stores, I know there are many

sales management challenges, but during

tough economic times, two always stand out.

First, maintain your staff's overall morale

and motivation so that they continue to

perform at the highest level possible,

no matter the market conditions.

Second, fine-tuning the business to ensure

optimum performance.

Fine-tuning can involve thinning out the herd by

laying off people, and obviously, any downsizing

can significantly impact motivation and morale.

Mismanaging during tough times

When times are tough, you need to review costs,

but not necessarily slash and burn.

Larger companies headed by non-marketing

people, such as accountants or engineers, often

use difficult trading periods to justify cost-cutting.

They terminate training, advertising, and staff -

anything else they see as a cost to the company.

This is a short-sighted view!

For example, the problem with cutting

advertising costs is that it diminishes visibility

in the marketplace. It stops people from

buying, and revenue drops further.

The powers at the top, seeing less revenue,

make even more cuts, and the downward

spiral continues.

When the cost-cutting gets to downsizing,

the wrong people are sometimes affected

as it’s tempting to sack highly paid salespeople.

Remembering the sales arrow

More importantly, in the digital age, can store

and website design, marketing segmentation

and customer navigation be accurately predicted

and mapped through traditional demographics?

It’s easy to forget that the salespeople are

the tip of a ‘sales arrow’. Like any arrow,

it’s only effective when it hits the target.

When times are tough, you need

to review costs, but not

necessarily slash and burn.

Let’s look at what makes up an arrow. The tip

penetrates the target, the shaft provides

mass, and the feathers provide direction.

Your salespeople are the tip of the arrow,

products and services are the arrow’s shaft,

and the feathers represent management.

As a retail sales manager, you must always

keep the tip of the arrow sharp.

Tough economic times are often an ideal

opportunity to sharpen the arrow.

While investing in external sales training

and motivational meetings may be out

of the question, don’t rule them out.

It could make a difference.

Fine-tuning your staff

One of the most difficult decisions for a manager

is parting ways with people they know and like.

Deciding who goes or stays is a gut-wrenching

experience for even the most seasoned manager.

Avoid the last-in/first-out approach, and

certainly do not play favourites.

If you’re going to reduce your staff, make

sure you keep proven performers and those

who have the potential to quickly develop

into performers.

Desperate times, desperate measures

Desperate economic times - global or local -

usually call for desperate measures, and apart

from closing doors on the business, putting

people out on the street is something to consider.

The key is knowing which people to keep

and supporting them with everything

you have while you weather the storm.

As the staff champion, you must be prepared

for measures that could harm the business’

ability to operate effectively.

As a sales manager, you often walk a thin line

between upper management and your sales staff.

It is equally important for you to represent the

needs of your staff to management, just as it is to

carry upper management’s message to the staff.

It’s critical for your staff to see you as their

champion, particularly during tough times.

It’s crucial that upper management sees you

as proactive or part of whatever solution is

required to weather the economic storm.

Taking risks is a part of business. Advertising cuts

or other marketing measures that endanger the

source of sales leads should be opposed if the

reason for the cut is simply to save on expenditure.

It goes both ways, and you should always be

prepared to cut staff members if needed.

The bottom line

If you see tough times on the horizon, plan and be

prepared to make difficult decisions when needed

if you expect to come out safe on the other side.

If you can stay ahead of the curve, even when it’s

heading down, you’ll be in a better position to take

advantage of the situation when the time comes

and the market improves and sales increase.

BRIAN JEFFREY has more than 50 years

of experience in sales management,

training, and business consulting.

Learn more: thesaleswizard.ca

16 | December 2024



December 2024 | 17

PRICING PRINCIPLES

Pricing is more than numbers:

It’s your strategic advantage

Is your business undervaluing itself? Are you too easily influenced by competition?

DAVE WAKEMAN examines critical factors to consider when pricing in your jewellery store.

Pricing is one of the crucial strategic decisions

that can easily be neglected.

It is one of the three most significant strategic

decisions an executive makes, right up there

with brand codes, target market segments,

and position in the overall market.

Your price manifests these decisions for your

target market. Why? Price is a signal.

It tells your market whether you are a premium

product or a budget service. Price conveys to your

target market what your position is in the market.

The price you set can tell your audience that

you are top shelf or just ‘average’. It can

underline or undermine your brand equity.

Underline by being consistent with your strategy

and undermine by using price as an afterthought

to your plan. Why am I mentioning this? Your price

impacts the delivery of your strategy in three

critical ways: awareness, perception, and profits.

Awareness matters – customers can’t buy from

you if they don’t think about you when they are

ready to purchase.

In business-to-business sales, if you aren’t in

the three to four business considerations set

when the research phase happens, no amount

of persuasion will help.

The average business I work with finds that it

takes 11-13 touchpoints before a customer buys.

Both examples highlight the importance of

awareness. This is why I remind everyone to

always remember the two iron rules of marketing.

The 60/40 rule states that your marketing mix

should consist of about 60 per cent brand

building and 40 per cent sales activation.

The 95/5 rule states that only 5 per cent of your

business-to-business customers are in the

market for your services anytime.

Perception can make you, and it can also break

you. The perception your price creates can

help you or hurt you in several ways.

Your price can shift or underline the perception

of value in your target market. It can also signal

whether you are high-quality or low-quality,

a good value or a poor value.

This is one of the reasons I tell you that the

price-setting moment is marketing’s MVP

moment. It can define perceptions of you.

The final factor to consider is the pricing is

equal to profits. This magic equation is why

I tell marketers to fight for their place in the

pricing conversation.

For every 1 per cent of the price you maintain

or increase, your profits improve by around

11 per cent. This has been studied many times

and tracked with my work.

The opposite also applies; for every 1 per cent

you discount, you lose 10 per cent or more

of your profits.

This has been studied and observed many times.

Discounting can destroy your brand and is

the fastest way to undermine its perception.

It also eats away at your profitability.

Remember that it’s not about what you

make but what you keep!

These three intersections make me say,

"Discounts are for dummies!”

Where does pricing strategy come into this?

First, there is the ‘Endless Growth Trap’.

It's the idea that the only direction sales

can go is up.

It is often said that anything other than

increasing sales is a disaster; however,

this isn’t true. You can make a significant

amount of sales and collect little profit.

The reality is there is a finite number of

opportunities, and the buyer’s path is long

and, in many examples, is getting longer.

Your branding efforts take time to root

themselves; however, your price can tear

these efforts down quickly.

Strategy is about three key ideas:

Focus: What does success look like?

Consistency: Are you delivering in line with

that focus again and again?

Through Line: Are you staying focused on the

strategy evening when inevitable change occurs?

Your price sets should reflect your focus. Who

is it for? What do we want our position to be?

It should also underline your brand. Are we

showing up how we want to? Does our

market see us the way we want to be seen?

Your price should help you achieve success and

so, take the time to ask yourself these questions.

• Is your business selling at the right price?

• Is your business signalling the right value?

Does the cost of your products and services

act as a strategic weapon, or is it scattered

and inconsistent?

Are you charging the right price?

What is your biggest fear when quoting a price

for your products and services?

Do you worry that it’s too high? Are you afraid

of what your competitors are charging for

similar products? Are you concerned that

other businesses are charging an hourly rate?

Many businesses are dominated by relentless

negative self-talk. I’m sure you’re familiar

with this kind of thinking.

“I’m a small business; there’s no way my

customers will pay this price. If I don’t offer a

discount, they’ll walk away. I can’t possibly

justify quoting the right price because it will

only take me an hour to finish the job.”

These are all pricing myths and misconceptions.

Below are several quick ideas to help you set

better prices for your business.

Consumers buy due to the intangible and tangible

value, even when shopping on price.

Sometimes, if the problem the product addresses

isn’t super important, the cheapest option wins.

18 | December 2024

PRICING PRINCIPLES

In other cases, no price is too high because the issue is so very

important. Competitive advantage is life or death to a business.

One is a commodity, and one is an advantage.

Focus on the essentials and don’t sell based on arbitrary units.

Lawyers do this with their ridiculous embrace of the ‘billable hour’.

Don’t be like a lawyer!

Apple doesn’t price iPhones based on the number of phone calls

you make; they sell iPhones for the price. It would be best if you

thought about how you can do the same.

Price according to the service or the product you deliver, not the

arbitrary unit of time it might take you to provide the results.

Don’t fall into the trap of comparative pricing. What is being

charged by your competition is irrelevant to your business.

Charge what you are worth and what you think is fair! It could

be possible that your competition has a different strategy.

The market may place a different value on your business than

your competitors. What the competition is doing is irrelevant

unless you are a commodity. That’s a story for another day.

Don’t discount: There are so many reasons not to discount.

Whether it’s lost profit, lowered brand equity, or the rising

difficulty of future sales, you do not want your store to be

viewed as a discount location.

There are always customers who will want to haggle with you

and beat down your price. Don’t let that attitude impact your

business' overall image. So, what is your biggest pricing

challenge? What makes you afraid to quote the price you

know you deserve?

Are you asking the right questions?

Pricing is a critical yet often overlooked strategic decision

that directly impacts the perception of your business, its

market position, and profitability.

The price you set signals to your target market whether your

product is premium or budget, affecting its perception.

A well-considered pricing strategy will align with your

marketing efforts and influence a range of areas in your

business, including the all-important profitability.

Discounting hurts your bottom line and damages your perception

among consumers. It also sends the wrong message about

your products and services, especially regarding jewellery.

Avoid arbitrary or comparative pricing; instead, set prices

that reflect the true value of your business and its offerings.

It's time to ask the big questions about your pricing structure.

XXXXXXXXXXXXX

XXXXXXXXXXXXX

Discover the beauty of Australian

sapphires at Sapphire Dreams.

Explore our diverse range of

certified, inscribed, and sustainably

sourced Australian sapphires.

Overset Text

DAVE WAKEMAN is a consultant, writer, and teacher

who believes in profits, not promises.

Learn more: davewakeman.com


PRICING PRINCIPLES

The hidden costs of discounting

It’s the oldest trick in the book – retailers who lower prices will increase sales. Is it really that simple?

BARRY URQUHART argues that while the idea is straightforward, there are questions to be asked.

Price cutting is infectious and possibly endemic.

Short-term sales events and promotional offers

are rampant and have a widespread and lasting

impact on the integrity of brands and the trust

consumers place upon a product’s value.

Full price is supposed to exist – it says so on

the ticket – but when was the last time anyone

paid it? It is a figment of imagination, typically

seen; however, never paid.

Consistent, tactical price discounting is about

more than just the cost of products.

Other costs include poorer customer relationships

and the loss of loyalty, which are often casualties

in this race-to-the-bottom strategy.

Retailers must consider whether discounting

is worth it.

The new order

There’s no denying how much the retail market

has changed in Australia in recent years.

This can be seen most clearly in fashion retailing;

the proliferation of global fast-fashion outlets

like Zara, H&M, UNIQLO and Forever 21 has

dictated the need for all in the fashion-retailing

supply chain to strive for greater productivity,

velocity and volume, and to trim margins to

remain competitive, relevant and compelling.

Those chains will say they’re not discounting

prices. Instead, they will say the initiatives are

the aspects of a dynamic, customer-focused

business model that constitutes a new order.

This is exciting for consumers but burdensome

for the industry as a whole.

Cost v benefit

The underlying premise of discounting is that

lower prices stimulate more interest and

increase sales, compensating for the loss

of profit integral to lowering prices.

Retailers should never forget that 100 per cent

of a discount is taken from the profit margin

and that fixed and variable costs remain

constant in the short term.

Disturbingly, few discounters properly analyse

how much increased turnover is required

to compensate for and neutralise the

impact of lower prices on profits.

Attendant costs and operational considerations

are incurred, including increases in inventory,

warehousing and retail space.

There’s no denying how much the

retail market has changed

in Australia in recent years.

There are also staff numbers, electricity costs,

rentals, insurance premiums, advertising

and shrinkage to take into consideration.

For example, if a retail business has a 30 per cent

profit margin, a 10 per cent across-the-board

discount will require an increase in turnover

of around 296 per cent – that’s almost a

three-fold increase in turnover!

For those who market, seek and retail

services, physical inventories are not

a key factor in the equation.

Travel agents fall into this category, for example.

A service-only provider would require a ‘modest’

180 per cent average increment in turnover to

counter a 10 per cent company-wide discount.

Personally, I readily accept and can endorse

discount propositions only once I’m assured

of a two-to-three-time acceleration in turnover.

Even in that scenario, there’s another hidden cost.

Ongoing price variability erodes the integrity

and trust customers attribute to a brand.

This can be dismissed – or discounted! – as an

opportunity cost, but while its presence is not

apparent on spreadsheets, its manifestations

are quantifiable in the long term.

Start at the beginning

Too often, introducing a discounting policy is

the unintended beginning of the end.

A rush to implement corrective contingency

plans is the usual consequence, and it is

arguably too late to expose the virtues of

self-induced obsolescence, given that mantle

has been assumed by economic, competitive

and innovative disruptions.

An alternative is to recognise and respond

to the prevailing structural order of the

industry with a fresh business model.

It’s essential to avoid comparative analyses

and not to lament buoyant times of the past.

A clean slate, a focus on customers and clients,

and an orientation to the future must come first.

Fortunately, in the new order, there are no

traditions, norms or established rules,

allowing businesses to dictate their standards.

Productivity, velocity and volume will remain

the most important focal points.

Closing thoughts

Some fundamentals in commerce are constant;

ignoring them has consequences.

History is littered with case studies of failure

resulting from unabashed, typically

aggressive discounting campaigns.

Ultimately, offering consumers attractive

savings can mean that little prospect exists

to save the company itself.

BARRY URQUHART is the managing

director of Marketing Focus. He has

worked as a consultant in the retail

industry for more than 40 years.

Learn more: marketingfocus.net.au

20 | December 2024

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December 2024 | 21

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PRICING PRINCIPLES

The pros and cons of displaying

prices on your website

Setting prices through online marketing can be tricky and there are many factors to consider.

JEREMY MILLER offers advice to help you determine whether it's a strategy worth pursuing.

When in the midst of redesigning our website,

we had a big internal debate: do we publish

our rates online?

I don’t have the answer; however, I’d like to

take you through the thinking behind whether

to publish your pricing on your website.

The 'hell no' stance

I have been mentored to believe publishing

prices is a big 'no, no'. The reasons against

publishing pricing are straightforward and

can be attributed to a few clear concerns.

Sticker shock: There’s a perceived risk that

you may scare customers away. They will see

the price without understanding your value

proposition, which may drive them to seek

cheaper solutions.

If your customers can’t identify your value

proposition from your front door, you might

have a branding problem.

Life’s too short to build your business by selling

to price-sensitive, bottom-feeding customers.

Educating the competition: The other reason

to avoid publishing prices is you can make

it too easy for your competition. They can

use that intel against you.

This is a tricky issue, especially for industries

that sell through a bidding process. Publishing

your pricing may create an opening for the

competition to slightly undercut your prices

in an RFP (request for proposal) or tender.

Avoid overestimates and assumptions

That said, we can also overestimate

the competition.

As the old saying goes, “mimicry is the

highest form of flattery.”

If the competition is copying your services

and pricing models then your company is

defining the brand category and industry

expectations.

Price is a segue: My number one reason

for not publishing the price up until now

is it is a great call to action.

When someone is ready to discover the

price, it’s time for a conversation.

They are receptive to a sales call, and

you can accelerate the sales process by

getting the customer on the phone.

If the customer wants that

information, then give it to them.

Positioned to negotiate: The other major sticking

point for publishing price, which really concerns

me, is it sets up the customer to negotiate.

For example, if a customer sees a service that

costs $10,000, they might say, “We love it, but

we’ll only pay $8,000.”

Engaging in a price negotiation at the start of

a sales cycle is dangerous.

It’s not how I want to start a relationship!

I don’t have the experience to know if this situation

is real, but it does give me cause for concern.

The 'hell yes' stance

The internet has changed expectations. We live

in an information-rich market, and if customers

want the price, they should be given it.

Price is everywhere. It isn’t hard to find anymore.

Car companies first conditioned us to discover

the price. You can configure any car, and their

websites will give you the exact price.

This practice has extended well beyond the

automotive industry. Even if the price isn’t

published on a company’s website, you can

usually get it from an existing customer on

social media.

Ask the question on Twitter or Facebook, and

if the company is large enough, or prominent

enough, you’ll get an answer.

Published prices save time: Let your customers

determine if your services are the right fit.

My company’s goal is to achieve the two-call

close — and if I could make it a one-call close,

that's even better.

A primary way I achieve this is through making

my website sell as well as my best sales person.

I think any information I would give in a sales

call should be on the website.

This helps in two ways. First, it eliminates people

who aren’t a good fit, which saves us both time.

Second, it positions the services by helping

customers understand where the services

fit in the spectrum of marketing options.

Price is a positioning tool.

The customer wants pricing: This is the number

one reason I publish prices. If the customer

wants that information, then give it to them.

It’s a key aspect of their decision-making process.

If it helps them make better buying decisions

faster, publishing your rates proudly on your

website makes sense.

Publishing your prices on your website

doesn’t fulfil your value proposition or make

your brand stickier, but it can whet your

customers’ appetite to buy faster.

JEREMY MILLER is a marketing strategist,

branding expert, and best-selling author.

Learn more: stickybranding.com

22 | December 2024

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December 2024 | 23

SALES STRATEGY

Customer Service v Sales:

Let’s set the record straight

The essential skills of selling in retail is frequently underestimated and oversimplified.

BRIAN WALKER explores the key elements that contribute to successful selling.

Even among those who should know better,

there’s an often-repeated falsehood –

‘anyone can sell’.

Many retailers believe that every trained

salesperson can engage the customer in

a non-business approach, assess customer

needs through questioning, retain vital

information, and then skilfully introduce

the right product to the customer through

a benefits-driven pitch.

Wait a minute! It gets better. This talented

salesperson effortlessly bundles the add-on

to the product that the customer must have.

Elated, the customer leaves the store ready

to share the tale of the experience with 20

other potential customers and turns them

into ‘evangelists’ for that business.

It’s important to remember that customer

service is not the same as selling.

Some sales staff don’t know how to sell well,

or indeed, even at all. While a smiling face,

sunny disposition, and helpful manner are

important, they don’t make these people

profitable salespeople.

The greatest asset of any salesperson is being

a strong, active listener who is confident, has

the right degree of humility, and is genuine

in their interest in the customer.

They should know the product and be enthusiastic

when explaining its features and benefits.

The correct sales training will go a long way

to delivering these increases and help you

stay fit and resilient in today’s uncertain

and unpredictable market.

Avoiding the missed opportunity

Over the years, we’ve seen selling data from a

large range of retailers, including more than

6,000 individual stores over the past two years,

and one area where opportunity is consistently

lost is the add-on or up-sell.

Our research suggests that sales staff may lose

this opportunity in as many as 50 per cent of

encounters – this is profit walking out the door.

Once again, a strong sales strategy will never be

delivered if the investment in selling skills and

performance framework is not in place.

Between 70-80 per cent of purchases are

completed based on impulse.

Strong engagement starts with

strong induction.

These customers will buy that add-on with their

product purchase - if only somebody would ask!

So, this begs the question: Are we selling more

to our existing customers, and are we measuring

this by ‘items per sale’, ‘average sale’, ‘conversion',

and 'gross sales’ by staff members?

Did you know that the conversion ratio of

shoppers-to-buyers in specialty retail only

averages approximately 15 per cent?

This means 8.5 out of every ten people who

walk through the typical store are leaving

empty-handed!

Consider what the effect would be on your

bottom line if transactions remained static

while your average sale figures were increased

by 10 per cent or if your conversion rate

increased to 30 per cent and items per sale

rose by even just one unit.

Selling more to the customers you already have

is a vital objective in today’s environment.

Operationally ‘fit’ companies maximise sales

conversions and, therefore, dollars without any

capital investment or increase in overheads.

What would it take to increase the ‘suitability’ of

your salespeople so they have the skills

and motivation necessary to convert more

shoppers into buyers?

What should you be doing?

Think, talk, and make sales: ‘Fit’ businesses

have an aligned culture, and employees accept

the importance of making sales.

What do I mean by aligned? If the owner of the

business and the manager are not discussing

sales at every opportunity with each staff

member, then it is unrealistic to expect that

the other staff will think, talk and make sales.

Consider the following example: A customer

approaches someone whose job is to maintain

the cleanliness and inventory of a jewellery

store with a question.

If that employee were focused solely on their

responsibilities, it would be understandable

for them to answer the question as quickly as

possible and return to whatever task is at hand.

However, when that same employee is ‘sales

conscious', extra care is taken to direct the

customer to an employee tasked with securing

a sale. Ideally, the customer will leave the

business not only with another sale secured

but also with another customer pleased with

their experience.

It’s important that everyone working in your store

has a sales focus. Even if their responsibilities

don’t specifically involve sales, they should still

be consistently conscious of this.

Keep everyone in the loop: The owner or manager

should regularly communicate the state of the

store’s sales performance to all staff members.

I believe that this information should be relayed

at a minimum each quarter.

I recognised this with a client a few years ago,

and it has stayed in my mind as an effective way

to speak of the importance of sales efforts and

the joint teamwork required by everyone at

every level to deliver increased sales.

Recruitment guidelines: Clear and standardised

recruitment guidelines will help align your staff

to a common goal and create an authentic

'sales culture’ in your business.

24 | December 2024

SALES STRATEGY

Examine the turnover rate and consider the

reasons when and why employees choose to

leave the business.

Depending on the size of your operation, you

will see some common trends, and, in many

cases, inconsistent recruitment practices are

a significant factor.

Recruit from a base of straightforward, salesaligned

behavioural questions with the adage

‘recruit the will, teach the skill’.

More than 70 per cent of staff exit surveys we

complete show that staff that initiate leaving

do so because they did not feel ‘engaged’

with the business.

Strong engagement starts with strong induction:

Whether it be a buddy or mentor system, making

sure the new staff member has a clear ‘go to’

person – who is not the boss – is a helpful step to

inducting them to the sales focus of the business.

Match your new employees with someone with

whom they are comfortable asking questions and

expressing concerns and who can communicate

the value of this sales-driven culture.

The secret ingredient: No business will succeed

without motivated people. We all know that great

people make great businesses. Ask workers

whether they feel great working for their boss,

and you will likely get a mixed response.

Our research tells us that engaged, motivated

staff deliver 20 per cent higher sales on average.

Conversely, consider the damage the unmotivated

team member can do. Brand damage by stealth

can be detrimental, so keep your staff happy with

you, and they will make you happy in return.

Set clear performance standards and goals,

provide coaching, training, and feedback and

offer reward systems for excellence.

It should reach the stage where you do not have

to worry about making sales or delivering great,

consistent customer service; it will happen

as part of your winning culture!

Ask your managers and staff to anonymously

nominate their top three goals in the business.

If 100 per cent of your staff are not nominating

sales as their number one goal, it’s time to

consider increasing your cultural alignment.

Think back to that conversion rate!

Don’t worry if you don’t achieve over 70 per cent

alignment; our research shows this is common.

‘Fit’ businesses, however, will measure this

regularly and always aim for 100 per cent!

Provide teams with knowledge for confidence.

Are your salespeople fully confident in their

product ranges and the features and benefits

of the products they are selling?

If the answer is not a resounding ‘yes’, work

on further training in this field. Introduce new

products and have your salespeople ‘sell’

them to their fellow team members at

weekly team meetings.

Be sure they know the features and benefits of

all products, associated accessories, and

add-ons to assist them in maximising conversion.

Knowledge is the key to making additional sales!

BRIAN WALKER is the founder and

managing director of Retail Doctor

Group, a retail consulting company.

Learn more: retaildoctor.com.au

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SALES STRATEGY

Blueprint for business success:

Understanding the fundamentals

Every business is unique; however, the principles of success are universal.

THOMAS YOUNG explains these core principles and how to apply them.

Running a successful retail business may appear

complex to an outsider. However, once the basics

are in place, the key to success is common sense.

It’s a simple and easy-to-understand process

that involves relating with people. And yet, still,

so many organisations and businesses don’t

employ this pivotal practice.

Instead, many businesses function well below

their potential due to the fear and anxiety of

leaders, managers, and employees at all levels.

Errors, emotions, and ego often block the

fundamental laws of business success

from being implemented.

Leadership and rewards

Success begins with the lead taken by the

head of the business.

The business leader sets the tone for the

culture and focus. The leader's approach

flows throughout all levels below.

This is particularly true for small retailers

such as jewellers. Leaders, usually store

owners, must have a clear mission and

effectively communicate it, along with

their values and goals.

Any business can achieve high performance

if its staff accepts its mission statement and

works to make it a reality.

Every individual associated with the business,

including customers, must understand

why the business exists.

Successful retailers build relationships with

staff, customers, and other stakeholders

through the shared values of trust, integrity,

and honesty.

On average, people tend to be very good at

sensing when they’re being misled or deceived.

Customers and staff have a low tolerance for

dishonesty and environments that lack trust.

Businesses that can build trust will have the

best employees and the most loyal customers.

From there, customers who repeatedly

purchase their products or services will

naturally promote the business to others.

These organisations then attract and hire

highly motivated staff who feel valued

because trust is present in the workplace.

On average, people tend to be

very good at sensing when they’re

being misled or deceived.

Organisational compensation, motivational

programs and rewards systems should

always be precise and in tune with the

mission, values, and goals of any business.

When a business prospers, the staff should

benefit. Staff incentives and rewards should

be evaluated from the perspective of the

employee, not the business or owner.

The key is to see motivation from the mind

of the employee, not the business.

Understanding customer needs

Studies have shown that members of staff

want to feel valued by their employers above

other factors.

It’s natural to want to feel important and to be

sure that the business values your contribution.

Business leaders must find ways to communicate

how they value staff.

Staff make decisions based on their emotions

and thoughts, which are not always rational

or logical and are sometimes abstract

and unpredictable.

Money paid to staff does not express value

in the long term. Employees want respect,

recognition for their work, and to feel valued.

Furthermore, a business is nothing without

its customers, yet many businesses make

decisions based on the perception of the trade

as seen by the managers, not the customers.

All decisions need to be evaluated based on

the impact on the customer.

The question all leaders must routinely ask

themselves is, “How will this decision impact

our current and potential customers?”

Storeowners and managers should get into

the minds of their customers and make decisions

based on what is valued by the people who pay

their salaries — the customer.

Finding success between sales

Every member of staff has a role to play when

it comes to marketing. After all, they’re the

face of the business.

Customers have many choices to make and

let there be no mistake, they will not hesitate

to switch to your competitor if the price or

environment is right.

Retailers must communicate effectively

with all customers, informing them of the

value they offer through marketing and

sales efforts.

It’s too common for businesses to solely

focus on making sales or generating revenue.

Managers, however, look at the bottom line

and make decisions based on that.

The success of any business – large or small –

is determined by what happens before and

after the sale.

THOMAS YOUNG is CEO of Intuitive Websites.

He has more than 25 years of marketing and sales

experience. Learn more: intuitivewebsites.com

26 | December 2024

SALES STRATEGY

Learn to speak the sales language

and boost your results

Salespeople everywhere are overwhelmed, under-resourced, and struggling to succeed.

RYAN ESTIS emphasises that business owners must support their staff to unlock potential.

According to statistics, 43 per cent of salespeople

are actively looking for a new job.

If that’s not big enough news, then consider that

a large portion of those are looking to get out of

sales completely!

I discussed this topic with one sales professional

who explained the current state of affairs inside

her organisation, describing it as “abysmal”.

The business was losing market share, facing new,

disruptive competition and struggling to keep up

with a shift in customer expectations.

The organisation was cost-cutting, which meant

not investing in the future and responding

quickly to reality. She was starting to succumb

to a very challenging, uncertain situation.

The unfortunate outcome was her shaken

self-confidence. She was going to miss her

performance target for the first time and

was questioning if she was cut out for the

future of professional selling.

She was wrong. It’s not the salesperson who

is failing; it’s the organisation and its leadership

because they aren’t putting their people in a

position to compete and win.

Selling is a game of confidence, and sales

staff must believe they can win.

Salespeople wanting out

More than 80 per cent of salespeople would

consider leaving sales altogether if they

could make the same amount of money

in another role.

That sentiment eventually has a significant

impact on performance.

To help business owners and sales managers

respond, my organisation published our

research results in an e-book.

The research uncovered some surprising

and informative findings.

Secrets of employee engagement

Salespeople are more engaged than non-sales

orientated employees.

• 17 per cent of salespeople are fully engaged;

46 per cent are disengaged or under-engaged

• 13 per cent of non-sales employees are

fully engaged; 57 per cent are disengaged

or under-engaged

• Salespeople are also more likely to leave,

with 46 per cent of salespeople actively

looking for a new job, compared to just

26 per cent of non-sales employees

There are eight key drivers of employee

engagement. Engaged employees say:

• I have confidence in my organisation’s

senior management

• Employees at my organisation have good

career advancement opportunities

• I have confidence in the future of my

organisation

• Our values guide how people at my

organisation behave

• My work gives me a feeling of personal

accomplishment

• My organisation treats employees well

• Senior management shows a sincere

interest in employee well-being

• In my work group, we work well together

as a team

For salespeople, money also matters.

When salespeople are compensated based

on their performance with commissions or

bonuses, they are much more engaged.

Indeed, 63 per cent of commission-based

salespeople are fully or moderately engaged.

Training also has a direct effect on engagement.

Salespeople who receive the training they

need to do their jobs well are 10 times more

likely to be fully engaged.

Start preparing for success

In the future, winning organisations will be

the ones that are the most prepared.

Here are five ways to prepare your sales staff

for success in the future.

Go first: Before managers ask their teams to

commit to performance goals, they need to tell

those teams what will be done to help them

meet those goals.

Promote continuous learning: Build a culture

of continuing education.

Assign teaching topics that challenge salespeople

to stretch and grow and share case studies from

outside of the organisation.

Leverage the power of storytelling: Include

customer case studies in every sales meeting.

Focus on customer outcomes and reinforce

the business’ compelling value proposition.

Check-in: Provide feedback and have 'future

direction' conversations every 30 days.

Salespeople require a consistent feedback

loop and expect to be given the opportunity

to contribute thinking and feedback to help

businesses improve.

Drive performance: This is done by focusing on

performance targets and customer outcomes.

Recruit and develop the best sales talent.

Remove barriers and provide the resources

and coaching that salespeople need to not

only compete, but also to win.

RYAN ESTIS is a bestselling author,

keynote speaker, and the founding

partner of ImpactEleven.

Learn more: ryanestis.com

December 2024 | 27

SALES STRATEGY

Six compelling reasons to

rethink jewellery repairs

Repairs present a valuable revenue opportunity for retailers aiming to increase their profits.

DAVID BROWN discusses how jewellers can maximise the potential of their repair services.

When my kids were growing up, one of

my favourite stories to tell them was

The Tortoise and the Hare.

Everyone is familiar with the story enough

to know the moral – slow and steady will

ultimately win the day over faster and

more glamorous alternatives.

For many store owners, the tortoise part

of their business is repairs.

Repairs typically have a low average sale,

are time-consuming, and lead to the

highest number of complaints.

There are also all those returns where the

repaired item mysteriously ‘broke’ shortly

after completion.

Undoubtedly, diamonds are and should be

a big part of your business. As I often like to

emphasise, diamonds can take as little as

2 per cent of the staff’s selling time and still

contribute 50 per cent of a store’s revenue.

Diamond sales are important and should be

encouraged at every opportunity; however,

the slow and steady business of repairs is

also crucial to stores.

Repairs represent an important but often

neglected service in jewellery stores.

Are you taking advantage of the benefits

that repairs can offer you?

The main advantages that repairs have to

offer are clear.

Driving foot traffic: This is true, particularly

during those quiet times.

The opportunity to sell to customers already

in the store is sorely neglected by far too

many retailers.

A customer standing in front of the register

is the most effective marketing opportunity

any business will ever have, regardless of

why they came in.

Building databases: An easy way to create a

customer database is through repairs.

Many store owners still say they don’t have

a database, yet a quick view of their storage

area will show hundreds of repair books.

These books contain the names, addresses,

and phone numbers of every repair they

have done in the past 20 years.

The opportunity to sell to

customers already in the store

is sorely neglected by far too

many retailers.

This is gold and needs to be treated as such;

a database is invaluable for sales and a

marketable commodity when it comes

time to sell the business.

Encouraging sales: They offer a chance to

show other products to customers already

in the store.

Ensure all staff are trained to show products

to customers who have come in to drop off

or collect a repair.

A simple product introduction, for example,

“Look what’s just arrived. Don’t you just love it?”

is a positive step in the right direction.

Boosting profit: Repairs represent profitable

sales without the need to offer any discounting.

The beauty of repairs is that they’re almost

immune to competition.

Consumers will happily shop around before

buying a diamond ring; however, are far less

likely to shop around when resizing a ring.

Even more extensive repairs can be immune

to price shopping by customers, often even the

same customers who will argue a product item

down to the last $10.

Bringing strong margins: Profitable margins go

hand in hand with low-discount pricing policies.

Repairs also offer retailers some of the highestmargin

opportunities in the store, making them a

great way to boost overall business profitability.

Keeping staff busy: Repairs can act as wage

absorbers. Staff can have downtime, and

there is only so much product to clean.

Repairs can offer an effective way of covering

wage costs thanks to their ability to keep staff

occupied in profitable endeavours.

Cleaning products does provide an intangible

benefit; however, it doesn’t often lead to sales.

Taking in repairs opens up selling opportunities

for otherwise unoccupied staff.

Get together with fellow retailers and compare

your repair statistics. How many repair customers

do you each have per year?

Every customer often represents two visits: the

first to drop off an item and the second to pick it up.

How are you getting your products in front of

these customers each time they enter the store?

Also, compare repair markups. How do they

compare? As stated previously, consumers

generally don’t shop around and rarely ask

for discounts in this area.

A tiny 10 per cent markup increase can add $450

to the bottom line for every $10,000 in repairs.

Assess current rates against those offered by

other jewellers to see if your repairs division

can be more profitable. Concentrate on making

repairs a focus over the next six months.

DAVID BROWN is the co-founder and

business mentor of Retail Edge Consultants.

Learn more: retailedgeconsultants.com

28 | December 2024



December 2024 | 29

SALES STRATEGY

The formula to boost repeat sales

and retain loyal customers

Customer bases are more susceptible to being poached than ever.

RICHARD SHAPIRO argues that driving repeat business is still possible.

From the moment a consumer interacts with

a business to the time following the purchase,

there are eight crucial stages in every customer’s

journey when their loyalty is put to the test.

Retailers who recognise and respond to each

stage will generate vastly elevated levels of

customer loyalty.

So, without further ado, here are the eight

steps to guarantee repeat business.

Make customers feel welcome

Every customer is vulnerable. Whether they

approach a business in person, via a website,

or over the phone, they all need or want

something they can’t provide for themselves.

A business's role is to help those customers

feel they’ve come to a place where their

problems or desires will be addressed

in a helpful, friendly manner.

Give customers complete attention

People want to feel they have control, and one

of the best ways to achieve this is by giving

customers undivided attention. Staff who

listen to customers demonstrate that they

are important and respected by the business.

Customers who ask questions or voice concerns

always have an underlying motivation — they

could be excited, frustrated, or disappointed.

Primarily, they are seeking to be heard, and

staff who acknowledge this will more than

likely develop relationships with customers

quickly and effectively.

Answer more than just questions

Retailers who answer more than just the

customer’s questions offer valuable guidance

that the customer can’t get anywhere else.

When staff create personalised and customised

interactions, shoppers feel their situation is

unique, and this is another critical step in

the customer journey.

Know your stuff

Customers want someone to help them who

is knowledgeable about the merchandise or

service in question. Too often, this isn’t the

case, partly because of the high employee

turnover in retail.

The cost of employee turnover is not quantified

or discussed to the degree it should be.

It’s nice to be in business, but

staying in business is better.

It should be included in the ROI formula because

stores will have a much harder time building

relationships with customers when staff are

constantly changing.

This can lead to lost opportunities!

Never say no

All virtues provided to customers with the first

four essentials – hope, control, direction and

competence – go right out the window when

staff use the word ‘no’.

This also goes for variations like ‘can’t’ and

‘won’t’. All these words have the capacity to

destroy customer goodwill.

Before saying them, think about an alternative

reply like, “Let me check on that and get back

to you by the end of today”, or “I’ll check with

my manager. Maybe there is another business

that carries what you want.”

Invite customers to return

It’s human nature to be wanted. After two people

meet for the first time, the ultimate compliment

is when either party says to the other, “Let’s do

this again and let’s do it soon.”

Asking someone to get together again is motivating

and we are hot-wired to respond positively to

friendly requests.

When customers have an excellent transactional

experience and staff ask them to return, they will

do just that.

Show customers they matter

To develop true customer loyalty, the shopping

experience must be more than just a transactional

exchange. Gestures of acknowledgment are

critical to remind customers they are valuable.

Surprise customers in good ways

Make experiences memorable. While it might

be one of the more difficult goals to execute,

customers crave attention.

There are many ways for businesses to distinguish

themselves and show customers they are

important, even after the sale.

Surprises do not have to be high-ticket items;

magic can happen in simple ways. Customer

satisfaction is a minimal standard, as authentic

relationships are built around surprise and delight.

It’s nice to be in business, but staying in business

is better. The secret sauce is creating and building

long-term relationships in a brick, click or phone

culture that keeps customers returning forever.

Each customer experience should demonstrate

active listening skills that help customers to feel

in control. This is a necessary step in the journey

to sustain long-term business growth.

RICHARD SHAPIRO is founder of The Center

For Client Retention, offering research, training

and consulting services. Learn more: tcfcr.com

30 | December 2024

SALES STRATEGY

Look and learn from customers:

Embrace their pain points

A guaranteed path to business success is offering an effective solution to a real problem.

MICHAEL HINSHAW says businesses need an understanding of customer pain points.

It’s human nature to fall in love with your

own solutions.

However, it’s also one of the most common

pitfalls for business leaders, entrepreneurs

and those responsible for improving customer

experiences, so don’t do it.

Why? Because the implications of this mindset

are significant.

Remember New Coke? It’s probably the most

famous example of well-intentioned company

leaders betting on a solution to a problem

they didn’t fully understand.

Other examples include the Amazon Fire

phone, the Google+ social network and 3D TV.

These are perfect examples of falling in love

with a solution. It’s possible none of these

failures would have happened if the companies

had spent even a small amount of energy

and resources on understanding their

customers’ pain points.

Consumers want products and services that

improve their lives, so it follows that few

consumers will care about a solution when

it misses the mark, even if you’re trying to

solve the right problem.

Furthermore, even fewer consumers will care

if you’re solving a problem that doesn’t exist!

Don't jump to solutions

When it comes to addressing the issues at hand,

jumping to solutions is never a good idea.

How often have you seen companies – maybe

even yours – make ill-advised investments in

technology, systems, products or services that

make problems worse because they lack a

deep understanding of the problem being solved?

Rarely does a solution fail because it wasn’t built

as designed or intended. Rather, it fails because

it doesn’t solve the right customer pain point.

Once a company follows a hypothesis instead of

a fact-based solution, the ramifications amplify

across the product lifecycle, often altering the

customer experience.

Then, resources are needed to fix the solution,

which could have been avoided by understanding

the original problem.

In the world of design, this is akin to running

experiments that validate what you expect to

happen rather than revealing what is happening.

When it comes to addressing the

issues at hand, jumping to solutions

is never a good idea.

Consider what happens when you show a website

or user-interface prototype to a customer and

ask how they like it.

Usually, they’ll give honest and direct feedback:

“I don’t like the colour,” “The menu is confusing,”

or “Can you make the font bigger?”

What they can’t tell you is how well this solves

their problem. If you spend time with customers

to discover the problem and then test multiple

solutions, you’ll learn whether you’re solving the

right problem and which solutions are best.

In a corporate environment, the pressure to come

to the table with fully-formed solutions is high.

Initial solutions are arrived at without much

customer feedback.

By the time they reach an executive audience,

those solutions are under far more scrutiny

than the problems they’re trying to solve.

In other words, start with the problem.

Help customers do their jobs

Your customers have specific tasks they’re

trying to accomplish when they interact with

your products.

They desire dependable, predictable outcomes

that make it easier to achieve these tasks.

Any solution that doesn’t make it easier to do

this is no solution at all.

By observing and chatting with customers,

you can establish what job they’re trying to

complete and how your business is making

it hard for them to do so.

Understanding your customer’s goals and

pain points is what leads to developing and

building better solutions.

Understanding problems comes from

understanding customers; the right solutions

only result from solving the right problems.

Don’t seek solutions until you truly understand

what you’re solving.

Remember that you will need to test multiple

solutions to succeed. Don’t be afraid to fail fast

and often, and don’t fall in love with your solution.

Deeply empathise with your customers and what

they are trying to accomplish.

This empathy can – and should – lead to a love

for the problem they need you to solve.

When that occurs, you’ll develop solutions

that your customers will love. When you

improve your customers’ lives, that's when

the 'magic' happens.

Your solution will help your customers succeed,

and when this happens, you will also succeed.

MICHAEL HINSHAW is the president of

McorpCX, which focuses on customer experience

management. Learn more: mcorpcx.com

December 2024 | 31

SALES STRATEGY

Unravelling the all-important clues:

What will customers want next?

We live in a time of rapidly changing consumer behaviour, and it can be difficult to keep up.

JEANNIE WALTERS provides strategies for businesses to adapt to the evolving retail landscape.

Human behaviour is notoriously difficult to predict;

sophisticated modelling and data analysis can help,

but these are typically based on past behaviour.

Past behaviour might be helpful for predicting

future success if all variables remain the same,

but what if the context, or the entire environment,

changes over time?

In a study by analytics firm Concentric, 99 per cent

of business leaders reported doing some kind

of forecasting, yet only 14 per cent stated they

were 'effective' at doing so.

It’s the secret everyone knows – predicting the

future is hard.

Many organisations and businesses are benefiting

from machine learning and artificial intelligence

tools to isolate data points that can help predict

the next actions of customers, as well as the

likelihood of desired outcomes.

But like any form of analysis, these methodologies

rely on good data – and many businesses are still

‘playing catch up’ on getting the inputs right.

So, what can a business leader do to look ahead

and predict future customer behaviour?

Searching for clues

The first step in predicting customer behaviour

is simple: know your customers and their goals.

Business owners and leaders are regularly told to

improve customer experience to increase sales;

however, with little instruction or information

on how to do so.

There is no data, no defined goal, and, in some

cases, no shared understanding of what

‘customer experience’ is!

Therefore, it’s important to start with the

foundations. Firstly, find out whatever you

can about your customers.

If you have data, such as purchasing history,

use it; if you don’t, collect whatever feedback

you can from social media and product reviews.

Next, consider your customers’ lives; don’t get

stuck in the "our customers only care about

our product’ fantasy!"

To look for clues about how customers may

behave in the future, it’s vital to understand

their present reality.

That means going beyond basic demographics

or job titles.

So, what can a business leader do

to look ahead and predict future

customer behaviour?

It's about learning exactly how people get their

information, the needs of their community,

and the other brands to which they are loyal.

What about their stage of life? Are they dealing

with school schedules or planning for retirement?

Remember the life they’ve led most recently;

the pandemic created a different daily routine

for most people.

Observing broader trends

Almost without exception, most business owners

and leaders tell me their industry is unique;

however, some trends apply across virtually

every industry.

For example, a significant customer experience

trend for the future across the market is a focus

on health and safety.

Business owners must look for the trends and

then plan around them.

Don’t automatically ignore something because

it doesn’t immediately apply to your industry –

eventually, it might!

Another trend is people relocating from cities to

suburbs and regional areas during the pandemic.

Remote work allowed this flexibility, and people

shifted their lives to accommodate more space

and desirable outdoor living.

What does that mean for your business? It could

affect store location, delivery expectations,

and product selection.

Too often business owners and leaders struggle

with predictions because they create a universe

in which the customer has one goal: to use

the company’s product.

That’s not how people work, and the more you can

truly pay attention to their overall environment,

the more successful you’ll be in finding and

acting on those customer clues.

Applying this knowledge to your business

Now that you have an idea of the current consumer

environment, what can you do with these insights?

Mapping the future customer’s journey: Who will

be the customer in one year or five? What are

their needs and expectations? How can you

adapt your customer journey accordingly?

Journey mapping is a valuable exercise where

a diagram illustrates how a customer interacts

with a business.

The journey starts when the customer identifies

a specific need and progresses through

researching product options to meet that

need. This may include visiting a bricks-andmortar

or online store, making their purchase,

using the product, seeking customer service

support from the business, and repeating

the purchase.

How customers discover and purchase from

your business in the future may be very

different from how they do so today. Mapping

allows you to identify the areas where you

should prioritise development and investment.

Fix the future ‘pain points’: One key element of

customer journey mapping is identifying ‘pain

points’ – the negative experiences that prevent

a shopper from purchasing.

32 | December 2024

These can include being unable to find the correct size, not finding

a suitable product within budget, or waiting too long for a response

from a business’s customer service staff.

Compare your current and future customer journey maps. Are there

any existing pain points that could worsen with time?

For example, more customers are now comfortable using their mobile

phones to get information while shopping in person, so a store’s

slow Wi-Fi connection could present a barrier to purchase.

Consider how customers use their devices in-store and develop

the environment to support that new behaviour.

Invite employee feedback: Employees have great ideas and often

see customer expectations changing in real time; they need a way

to communicate these observations and ideas with management.

Customer support staff often hear about frustrations caused by

comparisons to the competition, such as wait times.

For example, they may say, “Even my car mechanic has a mobile

update system now – why do I have to call and wait on hold?”

Businesses must be exposed to all types of feedback, yet staff may

be discouraged from reporting negative observations.

Keeping your finger on the pulse of change means looking ahead

and getting the support you need to act quickly.

Don’t ignore the future

Several years ago, IT firm Cisco released a report about what

healthcare providers and consumers wanted from the industry.

One of the findings that stood out was the idea that virtual doctor

visits – also known as telehealth – were perfectly acceptable

to many consumers.

The study found that while consumers still depend heavily on

in-person medical treatments, given a choice between virtual

access to care and human contact, three-quarters said access

to care was more important than physical contact with their provider.

Consumers surveyed in the study were overwhelmingly comfortable

using technology for clinician interaction.

I read this study in 2013 and thought, doesn’t this apply to everything?

Everyone lives more frenzied and complicated than ever, and while

technology gives us access to services, it keeps us tethered to

jobs and obligations like never before.

Therefore, convenience remains a top driver of customer behaviour

and loyalty. Healthcare is no different, so why not offer video doctor

visits for care that can be provided this way?

Yet many healthcare providers ignored this trend; think of how many

GPs were still unprepared for the surge in telehealth consultations

in 2020, when the COVID-19 pandemic began!

They were scrambling to set up basic video connections, and many still

required patients to call their offices to schedule those appointments.

Patients had been asking for that service for nearly a decade; however,

they had missed or dismissed the warning signs.

It was — and is — simpler and less expensive to continue doing what

has always been done until it becomes obsolete.

Inertia is a powerful force, and it is all too easy to let things happen

the way they always have. Leaders look ahead, consider the clues,

and, most importantly, act.

JEANNIE WALTERS is founder and CEO of Experience

Investigators. Learn more: experienceinvestigators.com

SALES STRATEGY

Personalised selling strategies for

different customer types

How do you address different audiences? Is your business fine-tuned for modern consumers?

BRI WILLIAMS explains how to customise your sales message for two types of shoppers.

There’s a wealth of research on how best to

frame messages to appeal to your audience.

For example, advertisements that are framed

positively work best for promotion-focused

people – in other words, people who seek

to maximise the probability of obtaining a

positive outcome.

This is true regardless of whether the product

was what academics and marketers would

term ‘hedonic’ – pleasurable things like a

massage or holiday – or ‘utilitarian’, referring

to useful products such as a calculator.

For these promotion-focused people, you can

talk about the benefits they’ll enjoy and what

they’ll gain. It’s more nuanced for the other

type of consumer, who is prevention-focused.

These people prefer to avoid negative

outcomes rather than seek positive ones.

If the product is hedonic, they respond more

favourably if the ad is negative – probably

because it assuages any guilt they may feel

for ‘indulging’. Meanwhile, for utilitarian

products, positive advertising works best.

In separate research, prevention-focused

consumers prefer products with utilitarian

attributes – for example, a laptop with

a long battery life – and promotion-focused

people prefer products with hedonic attributes,

such as a laptop with an appealing design.

This is all very well, but how do you know

what type of person you are dealing with?

Promotion or prevention?

If you are sending an email, having a meeting,

or conversing with a customer, how can you

determine whether to talk the benefits up in a

positive frame or talk about avoiding downsides?

The first thing we need to work out is whether

people are inherently prevention or promotionfocused.

Is it a stable character trait, or does

it depend on the context?

The body of research related to this is called

‘regulatory fit theory,’ a term first coined by

Tory Higgins in 1997. In short, people are either

geared toward accomplishment and aspiration

or safety and responsibilities.

Theories about regulatory fit fall into two camps.

First, there are those studying regulatory fit as

a ‘chronic condition’.

That may sound ominous, but it means a way

of seeing the world developed during infancy.

The second camp sees regulatory fit as a

malleable, temporary condition; context

changes how we respond. Here are some

characteristics to help identify someone’s type.

Promotion-focused people:

• Work and make decisions quickly

• Consider alternatives and are ‘brainstormers’

• Are open to new opportunities

• Have a rosy, optimistic outlook

• Plan for the best-case scenario

• Seek positive feedback

• Dejected when things go wrong

• Happy when things go right

Prevention-focused people:

• Work and make decisions deliberately

• Tend to be accurate

• Are stressed by short deadlines

• Stick to known ways of doing things

• Prepare for the worst

• Are uncomfortable with praise or optimism

• Feel worried/anxious when things go wrong

• Relieved when things go right

During your interactions with customers,

you can often pick up on these hints and

clues during the conversation.

Applying regulatory focus

Once you know a person’s regulatory focus,

you can address them in a way that maximises

their sense of compatibility.

They’ll be more likely to be persuaded by your

message if it ‘fits’ with their style.

When communicating with promotion-focused

people, be sure to compliment them, as they

respond well to praise.

Use optimistic terms and phrases, such as

‘growth’, ‘gain’, ‘opportunity’, ‘benefits’, ‘chance’,

and ‘innovation’. Prime them to think in a

promotion-focused way by getting them to

reflect or express their hopes and aspirations.

When communicating with prevention-focused

people, remember that they can be motivated by

a gentle critique – though nothing too personal.

Use terms and phrases related to security, such

as ‘protection’, ‘secure’, ‘avoid’, ‘risk’, ‘thorough’,

‘careful’, ‘planned’, and ‘accurate’.

Prime them to think in a prevention-focused way

by getting them to reflect or express their duties

and obligations.

You can likewise adapt messages about your

product according to whether your target

market is prevention- or promotion-oriented.

For example, if framing a luxury vehicle in a

promotion-focused way, the seller might

discuss its performance and design. When

framing it as prevention-focused, the seller might

focus on its fuel economy and safety standards.

Playing the odds

If all else fails, and in situations where you can’t

pre-determine what the regulatory focus of your

target audience is, I suggest playing the odds and

leading with the positive rather than negative.

A positive message will give you ‘coverage’

across all promotion-focused people and

some prevention-focused types.

From there, you can hedge your bets and

supplement a positive framing with some

negative messages.

BRI WILLIAMS is founder of People Patterns,

a specialist consultancy that applies behavioural

science to everyday business.

Learn more: briwilliams.com

34 | December 2024

SALES STRATEGY

Proven techniques to quickly

improve your up-selling skills

Up-selling involves challenging assumptions and helping customers recognise the value of every product.

BOB PHIBBS reveals how retailers can accomplish this through straightforward selling strategies.

Most customers aren’t cheap; they’ve adopted a

mindset that most products are of comparable

quality – a shirt is a shirt; a pair of jeans is a pair

of jeans; an umbrella is an umbrella.

That is until the shirt buttons break when fastened,

the jeans shrink after one wash, or the umbrella

falls apart in a heavy downpour.

After these unsatisfying experiences, customers

often turn to more expensive items in search of

better value and higher quality of manufacture.

Younger salespeople are predominantly pricedriven

shoppers who often have yet to develop

an appreciation for quality.

As a result, they feel upselling is just a way to

force customers to buy something more

expensive than they need.

To up-sell effectively, salespeople need to be

able to challenge these notions of price to help

customers understand that some products are

truly superior to others and that the distinction

between good enough, better and best does exist.

Salespeople guide customers to the best products

by showing that they are of higher quality, which

makes them more convenient, personal, and

sleek and offers a wide range of other benefits.

More than a brand name

Customers naturally gravitate toward less

expensive items because they view most

products as disposable. Why pay for a Rolex

when you can buy a Fossil?

They’ll both eventually need to be replaced,

so all you’re buying is the name, right? Wrong!

Price-driven shoppers hang onto this simple

misconception because they’ve never bought

the best so they don’t understand what the best

products offer. Rolex didn’t become synonymous

with high-end luxury timepieces by accident.

Rolex did it by providing watches that are of

superior quality to almost all other watches

on the market.

The quality of the product is what created the

name recognition, not the other way around. In

other words, people only pay for the Rolex name

now because of the quality of Rolex's products.

Overcoming sales misconceptions

The challenge is getting customers to

associate branded items with quality

instead of premium prices.

They’ll both eventually need to be

replaced, so all you’re buying is the

name, right? Wrong!

While this isn’t always easy, there are some

tried-and-true methods for overcoming it.

Salespeople can follow three selling tips when

up-selling to a luxury or premium brand customer.

1. Understand preconceptions

If a customer is looking for the cheapest item,

simply ask them why.

Get them talking about their experience with

similar items and try to get to the root of their

low-end buying habits.

You may find out that they’ve had bad experiences

or are misusing the items; you may find out

that they’ve never considered a higher-end

item and don’t understand the benefits.

Whatever you learn will help you guide the

customer to a higher-value purchase.

2. Establish hierarchy

Once a salesperson understands why a

customer may have always purchased

lower-end merchandise, they can help

them see the value of high-end products.

For example, considering a shirt or a watch,

the salesperson might say, “Cheap items

often have a rough finish that scratches the

skin, but premium items have no sharp edges,

so you’ll be more comfortable.”

The staff should explain that there are differences

between good, better, and best in comfort,

performance, and quality.

They should also show customers that luxury

brand names have earned their reputations by

providing superior products and that long-term

value often exceeds any increase in price.

3. Take the lead

If staff simply ask customers to look at premium

items, the most straightforward response for

customers to give is, “How much?” This is

quickly followed by “No” when price is revealed.

When this happens, everyone loses, so it’s

important to prepare customers first.

Explain that buying cheaper items may save

customers money; however, customers will

also lose out on value they never knew existed.

Take the initiative and add some enthusiasm

to get customers interested in high-end items.

Let them follow your lead and use enthusiasm

to create excitement.

Always stand on value

A luxury brand that has terrible quality won’t

remain a luxury brand for long, and it probably

won’t be available in the store anyway.

Premium brands command a premium because

they look better, work better and last longer

than their less-expensive counterparts.

That’s the value behind the brand name, and

it’s up to salespeople to ensure customers

understand that they get what they pay for.

BOB PHIBBS is the Retail Doctor from

the US, training businesses on how to successfully

compete in today's retail environment since 1994.

Learn more: retaildoc.com

December 2024 | 35

SALES STRATEGY

Retail jewellery sales debunked:

Eliminate the myths holding you back

The science of selling is full of misconceptions that can hinder success in retail.

DOUG FLEENER explores and debunks several common sales myths.

The adage is, “We achieve what we believe.”

Sometimes, this holds true; other times,

it’s less applicable. Here are a few examples

of sales beliefs that are more myth than fact.

Myth: Staff can't make sales goals on slow days

Granted, it may be challenging to make a sales

goal when fewer people are walking in the door;

however, slower traffic also allows the sales

team to spend more time with customers.

All it takes is one good customer to make the day.

Reality & Response: Set the sales team higher

goals for average daily sales on slower days.

Push them to use the additional time they

can spend with each customer to sell

higher-priced items.

It’s also important to determine what actions

are required to achieve these results.

Perhaps set higher expectations on calling

customers on slow days, as well as other

traffic-building actions.

Myth: Customers want to be left alone

It’s true that customers like to be left alone

by employees who don’t add value to their

shopping experiences until they are

acclimated to the store.

Still, if the store experience is better with an

employee than without one, it’s up to sales

staff to make that connection.

Reality & Response: Engaging customers is

one of the most undervalued skills in specialty

retail, especially in jewellery stores.

It needs to be practised daily and coached by

managers and store owners.

Focus on it for just one week and be amazed

by how quickly this can elevate everyone’s skills.

Of course, if the customer wants to shop without

the assistance of staff, that’s fine, too.

Myth: It's hard to find good help

It’s not a myth that hiring good people is

difficult; however, this is because most store

owners and managers aren't looking for

these people in the right places.

Often, storeowners and managers hire the best

candidate who applies for a job. Managers need

to go out and find and enlist great people.

Customers can’t buy an item if they

don’t know it exists.

In this sense, it’s a self-fulfilling prophecy that

finding good retail help is hard.

Reality & Response: Always actively recruit.

True, that’s easier said than done.

To make it more actionable, try inviting at least

one potential applicant to visit the store every

week and, if suitable, take the opportunity to

recruit them.

This should happen at the store because no one

likes it when businesses recruit people at their

places of current employment.

One way to do this is to look for good examples

of customer service.

When a barista or waitress provides excellent

service or when someone presents as interesting

and outgoing at a social event, tell these people

about the store and invite them to visit.

Managers will be amazed at how easy it is to

discover good people when they look for them.

Myth: Individual commissions negatively impact

the experience of customers

It’s not individual commission that’s the issue;

it’s the behaviours of storeowners and managers

who allow it to happen.

Many retailers pay individual commissions,

and their businesses deliver some of the best

customer experiences in retail.

Reality & Response: If owners think individual

commissions may benefit their businesses,

try testing this with two-week or month-long

contests that present awards to the employees

with the highest sales per hour.

Pay special attention to unacceptable behaviour

by more aggressive employees.

If that goes well, consider adopting a commission

model based on individual sales.

Myth: It's pushy to show product

Demonstrating the value that good salespeople

can bring to customers is an important part of

delivering a valuable in-store experience.

Staff should know to warmly welcome customers

with a smile, get out from behind the counter,

avoid using retail clichés like “How may I help you?”

and make every sales transaction personal.

However, do they know how to use the products

to enhance their sales?

Reality & Response: There are many myths about

showing products to customers, and it’s important

that these are dispelled.

Customers can’t buy an item if they don’t know

it exists. Sure, they can look around and see

some of the products but do they see all of them?

Can they quickly tell what is new and what is

from the previous season?

It’s unlikely. This is how staff add value and,

simultaneously, bust a barrier.

Indeed, staff shouldn’t ask customers if they

want to see a product because the natural

reaction here is to say no.

Instead, it’s better to ask, “Have you seen our

new XYZ?” This way, a yes or no answer still

gives a salesperson an opening to engage.

This might still trigger a response from the

customer of “I’m just looking,” which is a

clear sign that a customer wants space.

36 | December 2024

SALES STRATEGY

If this happens, the best response is, “Great, please let me

know when you have a question and want my assistance.”

This plants the seed that the shopper will need to engage

with the staff member at some time.

Take advantage of every opportunity to hand customers a

product whenever possible.

Especially in jewellery retail, research shows that a shopper’s

likelihood of purchase increases dramatically when staff

get them to hold or wear a product.

If a product can be picked up, proactively hand it to the

customer, and they will take it.

Retailers with glass showcases will want to proactively take

products out to develop rapport with customers while

reading the cues until they find a product that’s right for them.

Suppose a product is too big or valuable to be removed from

a showcase. In that case, staff can still invite the customer

to view it through the glass while also handing them a

representation of the product — this might be a brochure

showing a model wearing the item or the exclusive gift

packaging in which it is presented.

The sales team should aim for every customer to touch

or try at least one product in the store. Now, there are

probably a few readers who think this is a pushy store

experience, the kind that customers hate.

Reinforce with staff that they’re doing this to add value.

At a time when customers have been programmed to

receive poor service that doesn’t add value, this is why

salespeople must use products to break through the barrier.

Even if showing a product turns off one or two incredibly

picky customers, it’s better to engage and deliver a great

experience to 98 per cent than not engage and deliver

a great experience to anyone.

If staff are passionate about products and customers,

this approach will work way more often than it doesn’t.

It is essential while showing products that staff tell

customers what is being displayed. If a customer is

looking at a product but not touching it, pick it up

and hand it to them.

If that customer is holding a product, show something

similar. Comparing two products is a great way to engage

a customer and create product interest.

Discuss the product they’re viewing and include questions

that ensure it is the right product for the person.

To recap, retail has no shortage of misinformation about

what salespeople should and shouldn’t do. Dispelling some

of these myths will open staff to sales techniques that will

enhance the shopping experience for customers and

improve the store’s bottom line.

Australia’s Longest

Operating Watch Brand

ClassiqueWatches.com

DOUG FLEENER is an author, business coach,

keynote speaker, and consultant.

Learn more: dougfleener.com


December 2024 | 37

SALES STRATEGY

Understanding fuel and friction:

The psychology behind sales

Achieving ambitious sales targets involves more than offering new products or working harder.

TOM MARTIN discusses how retailers can boost sales by removing friction.

All of us - every person, organisation and sales

team - are surrounded by hidden forces that

make it more difficult to convince others to adopt

the new ideas necessary to close more sales.

So when your sales numbers aren’t meeting

expectations, what do you do?

Loran Nordgren, author of The Human Element,

believes that most companies add more ‘fuel’.

Staff are encouraged to sell harder, improve

or invest more in marketing, offer new and

improved products, and consider additional hiring.

What if you took a different approach? What if,

instead of adding fuel, you removed friction?

It’s an important question because answering

incorrectly wastes investment, time, and effort

and leads to failure.

Fuel in sales is anything that elevates or enhances

the appeal of an idea, product, or decision.

Typically this involves incentives, supportive

evidence, emotional appeals or demonstrating

the value of a new idea, product, or service

to end-users.

Friction, meanwhile, is anything that resists

change. It’s defined as any set of forces that

drag on innovation and change.

Retailer learns a lesson

In Nordgren’s book, he uses the example of

a hypothetical furniture retailer which sells

customisable one-of-a-kind furniture.

The problem is that the customers love using

the website to customise potential products

and use online design tools for hours at a time;

however, they don’t buy the finished product.

The retailer attempts to resolve the problem with

‘fuel’ by reducing prices and improving fabric

options, both of which don’t increase sales.

The retailer then engaged a research consultant

who discovered the real problem: customers

didn’t know what to do with their existing furniture

to make room for their customised product.

The retailer had added fuel to stimulate sales

when all that was required was to eliminate the

‘friction’ keeping the customer from purchasing.

The retailer offered an additional service of

removing existing furniture as part of the

delivery process, and sales took off!

You need five good experiences

in a relationship to outweigh

one bad one.

Forget the easy way

It’s easier and sexier to build a bigger rocket

instead of a lighter spaceship. The human mind

instinctively processes behaviour through the

lenses of motivation and intent.

The same principles are at play when people

make the mistake of adding more fuel rather

than eliminating friction.

If people aren’t buying what we’re selling,

we assume the lack of desire is driven by a

product’s lack of appeal. We instinctively

add more fuel in hopes of winning the sale.

Identifying friction can take a lot of time and

energy, which takes our attention away from

our customers.

The University of Chicago, for example, had a

smaller applicant pool than similar colleges

and universities.

The school had a reputation for being rigorous,

and, as it turns out, it wrongly believed its brand

was causing students to shy away from applying.

In truth, students weren’t afraid of applying

to a rigorous college; the issue was the ease

of the application process.

Several other colleges and universities had

joined a program that allowed students to

file a single application that was distributed

to all participating schools.

Once the University of Chicago joined that same

program, applications increased dramatically.

Simple techniques to consider

Next time you encounter a sales problem,

instead of trying to sell hard, consider making

it easier for people to buy what you’re selling

by fighting friction.

Make the action easier. Netflix automatically

plays the next episode of any series because

it knows this improves the chances that you’ll

keep watching.

Even the most minor changes to friction can

keep a customer engaged.

Make the customer feel as though they are the

author of the change. We are most influenced by

ideas that we believe we generate ourselves.

Guide your customers to the right purchase;

don’t tell them what to buy. Remove negativity bias.

Everyone knows that negative experiences carry

greater weight in comparison to positive ones.

You need five good experiences in a relationship

to outweigh one bad one. Think about how that

principle can be applied to your relationship

with customers.

The bottom line

Before you begin any sales process, consider your

audience's perspective. Uncover any sources

of friction and address them.

TOM MARTIN is an author, keynote

speaker, and the founder of Converse

Digital, a sales and marketing agency.

Learn more: conversedigital.com

38 | December 2024

SALES STRATEGY

Revamping our mental approach

to improve closing rates

'Quality over quantity' is timeless business wisdom; however, it doesn't tell the entire story.

DAVID BROCK delves into the straightforward math behind this important business principle.

I’ve long discussed the importance of win/loss

analysis in improving business performance.

To this day, I continue to be amazed at how little

we understand about what causes us to win and

lose in the world of business.

It’s important to understand why we win and

lose and how to maximise our performance

and productivity.

Let’s explore a straightforward example.

Assume three staff members have the same

quota of $500,000 in annual sales, and each

has the same average deal/sale size of $10,000.

Let’s also assume that they require the same

number of opportunities to find a qualified sale.

Let’s assume ten prospecting efforts produce

one qualified sale.

With a 20 per cent win rate, it takes Salesperson A

2,500 prospective opportunities to fulfil the quota.

Salesperson B, with a win rate of 30 per cent,

can achieve that task in 1,670 prospective

opportunities.

Our strongest performing hypothetical staff

member, Salesperson C, can achieve the

quota with 1,000 prospective opportunities

with a win rate of 50 per cent.

This is the kind of math all retailers should

perform; however, I have found very few

sales teams or managers who have spent

time thinking about what this means.

Ask the big questions

Sadly, the few managers and sales staff who

track this data tend to view it as a ‘law of nature’

and not something that can be improved.

In the many businesses I’ve encountered, too

few managers and sales staff are willing to

challenge themselves and ask important

questions about their practices.

• How do we increase our win rates?

• How do we increase our average sale sizes?

• How do we compress the sales cycle?

• How do we create greater yield from our

prospecting efforts?

• How do we improve the performance of

each person on the team effectively?

When these questions are proposed, the answer is

always the same: “Just do more!”

You may read this and think, “Well, Dave, you are

just showing that maths works; what’s your point?”

When these questions are

proposed, the answer is always

the same: “Just do more!”

Once we start considering these big questions

with the above example in mind, we must ask

what causes such a difference in the performance

of one salesperson compared to another.

What are the salespeople with 50 per cent win

rates doing differently than those with few wins?

Indeed, how can we get others to emulate the

achievements of our elite performers?

These are the right questions to ask.

Quality over quantity

Our simple example above treats everything

other than win rates as relatively equal, and we

know that reality is never that straightforward.

Sales staff with higher win rates tend to have

higher average deal/sales values. The elite

performers also tend to have higher yields

with their prospecting efforts.

It’s natural that more successful salespeople

are more focused on the right prospects

and will rarely be caught wasting time on

low-quality opportunities.

Because sales staff with higher win rates need

to chase fewer opportunities, they can invest

more time in the opportunities they select.

This practice dramatically improves customer

experience and, by extension, the propensity

to purchase.

Comparatively, those with poorer win rates fall

into the trap of chasing so many potential sales

they fail to invest the time needed to win at

the macro level.

This is what I like to call a ‘performance death

spiral’ because by reducing the time and energy

spent on each individual prospective customer,

failing salespeople chase much-needed wins

by contacting or dealing with more and more

prospects, falling into a vicious cycle of failure.

Over time, I’ve analysed businesses and seen

these trends repeat. Today, salespeople often

settle for single-digit sales performances.

The far too common focus on the volume of

contacts with prospective clients has had a

horrible impact on performance on average.

Many promote reducing the time spent on each

call and increasing the number of calls made

or the number of emails sent out.

This is rarely the right message!

Focus on what works

The key to driving performance for salespeople

is rarely increasing overall activity.

Improvement comes from producing more and

more from each individual sales opportunity.

Instead of doing more of what doesn’t work

faster, we must focus on what does.

We must discover what produces success

within these interactions and learn to

execute more effectively.

DAVID BROCK is CEO of Partners In

Excellence, a global consultancy focused on

helping organisations engage customers.

Learn more: partnersinexcellenceblog.com

December 2024 | 39

SALES STRATEGY

Fostering a motivated sales team

Many businesses continue to follow outdated sales practices that have become ineffective over time.

SUE BARRETT examines the advantages of embracing a more empathetic sales culture.

I want you to imagine a team of 10 salespeople,

each of whom has their own well-defined

sales responsibilities.

These ‘territories’ could be product-based or

services-based or perhaps defined by other

terms; it doesn’t matter.

Each member of the staff has sales targets.

They have access to sales support and

customer service.

This sales team, including sales support,

meets virtually and occasionally in person

every month to workshop their plans.

These meetings examine what’s working

and what’s not. They are focused on moving

forward, how to improve sales traction, and

how to deliver results.

It’s in these monthly meetings that the magic

happens, not just in sales and deals but also

in culture.

Each staff member is united around a common

purpose, and the business strategy is clear

and easy to understand. It is broken down

into individual territories.

They know what they are selling to whom and

why. This sales team culture has something

extra everyone abides by — the principle of

“leave no one behind.”

In retail, we all face challenges from time to time

— disinterested customers, sales struggles, or

perhaps personal circumstances that make it

difficult to complete a busy schedule.

If it emerges that a salesperson is facing

challenges, all the other staff and sales

support work with that member to help

them recover and get through that patch.

Whether it’s coaching, mentoring, taking over

the reins, or making calls on their behalf,

everyone is vested in getting that individual

and the team to deliver.

Sounds like an ideal work environment, doesn’t it?

Popularisation of unhealthy culture

By contrast, businesses that promote selling

as a highly competitive, aggressive operation

tend to run into surprising issues.

It’s easy to think of some business and salespeople

cliches popularised by films and television that

embody these kinds of work cultures.

Unfortunately, this type of culture

has been promoted for too long as

the ideal for a sales team.

• All the salespeople compete with each

other for the ‘top spot’, and the least successful

staff members by volume are culled.

• Managers encourage a cut-throat and

high-pressure, 'take-no-prisoners' culture

to drive their financial success.

• Customers are seen as targets, and

attempts to close a sale are referred

to as 'going in for the kill'.

• Customers are regarded as objects to be

possessed or trophies placed on a cabinet,

shown off and admired like stuffed animals

on a wall above a fireplace.

If you’re the kind of manager who promotes

any of the above behaviour or is still taking

inspiration from films such as Glengarry Glen

Ross, then you’ve found the right article.

A growing body of research suggests these

dog-eat-dog cultures are extremely harmful

to productivity, retention, and staff well-being.

Unfortunately, this type of culture has been

promoted for too long as the ideal for a sales team.

The costs associated with these toxic,

high-pressure cultures include:

• Blow out in health care expenditure due to

workplace stress. Long-term issues with

stress lead to higher chances of cardiovascular

disease and even death from heart attacks.

• Employee disengagement includes high

absenteeism, more errors, lower productivity,

lower profitability, lower job growth, and

lower sales performance.

• A lack of loyalty from staff members and,

by extension, customers who correctly perceive

an unhealthy work environment and choose

to spend their money elsewhere.

A report from the Harvard Business Review -

Proof Positive Work Cultures Are More Productive

- underlined the final point regarding loyalty.

“Although there’s an assumption that stress

and pressure push employees to perform more,

better, and faster, what cut-throat organisations

fail to recognise is the hidden costs incurred,”

the report reads.

“This research on positive organisational

psychology demonstrates that not only is a

cut-throat environment harmful to productivity

over time, but that a positive environment will

lead to dramatic benefits for employers,

employees, and the bottom line.”

Encouragement moving forward

The example shared at the beginning of this

article doesn’t need to be a fantasy – it can

become your reality.

The collegiate, collaborative, and caring

approach taken by businesses that value

their staff and encourage people to build

genuine customer relationships will have

the last laugh.

SUE BARRETT is the founder of the sales

advisory and education firm Barrett, and

education platform Sales Essentials.

Learn more: barrett.com.au

40 | December 2024

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DIGITAL DOLLARS

Understanding the evolving reality

of retail customer loyalty

How can a loyalty program benefit your jewellery business in 2025?

ANASTASIA LLOYD-WALLIS explores the landscape of loyalty programs.

There’s been a significant shift in the focus of

loyalty in the retail sector. Customers want to

create a genuine emotional connection with a

business.

They want to interact with brands, to be ‘part of

the tribe and part of the team’. In essence,

they’re becoming brand advocates.

What does this mean for you as a retailer?

How do you build that emotional connection

with your customers and encourage them to

be your loyal advocates?

Let’s start by looking at what loyalty means

to customers. What are they looking for?

What’s going to make them loyal to you

and your brand?

One of the obvious first steps is implementing

a loyalty program. Do you have a loyalty scheme

in place? What is your database? How do you

interact with customers regarding this?

Our Retail Doctor Group Insights Research

shows that loyalty schemes significantly

influence one in five customers.

This research found 92 per cent of women

and 86 per cent of men are members of

loyalty schemes.

So, we see this large proportion of people who

are members of retail programs and want to

interact with businesses personally.

However, the offer needs to be correct.

So, let’s take a closer look at those pesky

Millennials and Gen Zs because one of the

things that has been the ‘talk of the town’

regarding retail sentiment is that younger

consumers are less influenced by loyalty.

This sentiment is quite the contrast to what

we are seeing in our research.

We’re finding that younger demographics can

be more loyal, more vocal, and the most

prominent advocates of your business.

This is only true if the offer is correct and you

have the brand they want to connect with.

Our research shows that loyalty programs

influence three-quarters of consumers

aged between 25 and 34 in all sectors.

Loyalty schemes influence Gen Z and

Millennials more than any other segment!

But just how are they influenced?

Our research has found that

different personalities have very

different loyalty drivers.

The findings below will help you understand

why you must fine-tune your approach to

loyalty programs and younger customers.

Spending in different groups

First and foremost, loyalty schemes influence

customers to visit stores more often.

Research has found that 38 per cent of consumers

reported that loyalty programs influence them to

visit a particular store or retailer more frequently.

Almost one in three consumers spend more

every time they visit because they are a member

of that program.

It’s also been discovered that consumers aged

25-44 are significantly more likely to spend more

when they’re members of a retail loyalty scheme.

This demographic outperforms all others

regarding retail spending based on loyalty.

It’s evident that having the right offer and creating

an emotional connection through your loyalty

scheme can develop a significant return on

investment for you and your store.

A key question is who you aim for in your loyalty

scheme. What segment of consumers do you

want to interact with? And what does this all

mean for you as a retailer?

This is an integral part of your customer behaviour

journey and a key in your customer loyalty loop.

These four steps in the process will help you

revamp your customer loyalty scheme strategies:

• Review your existing loyalty scheme to

determine your unique demographic.

• Compare your demographic data to your target

customer profile. How do they match up?

• Determine ways to align your current loyalty

scheme demographics to your target customer.

Ask yourself the following question – what will

influence their purchase?

• Initiate loyalty scheme rewards that influence

repeat purchase behaviour and result in

word-of-mouth recommendations.

It’s not really about what you’re offering. It’s more

about why they want to interact with you.

Our Consumer Insights data below can help you

understand what your consumers like about

loyalty schemes.

The most important conclusion from this data is

that consumers seek various options. There is no

one-size-fits-all solution.

It’s been found that 50 per cent of consumers

are looking to redeem points, aiming to collect

points quickly, and are actively searching for

exclusive discounts.

Once again, who are you targeting with your

loyalty scheme, and what do they want?

This will differ depending on their personality

types and demographics. This is why loyalty

schemes should be as individualised as possible.

Our research has found that different personalities

have different loyalty drivers.

Below is a list of groups to consider when

assessing your customers.

Group one: These consumers want to be rewarded

with discounts, promotions, and exclusive offers.

42 | December 2024

DIGITAL DOLLARS

Group two: Performers looking for status tiers and VIP omni

products. These consumers expect to feel important.

Group three: Consumers seeking gamification, excitement, fun,

and competition. They expect your business to make shopping

exciting and engaging for them and will remain loyal if you do so.

Group four: Bored consumers searching for new and exciting

products. This group is excited by the launch of new products,

particularly when they’re available to them exclusively.

Group five: Consumers searching for open-minded pleasure.

They expect products and services to make their life easier

and more enjoyable.

Group six: Harmonisers looking for a business to relay to their

friends and family. They expect to be a part of a community with

family discounts, linked rewards, and club memberships.

This is Australia's largest segment, around one-third of all consumers.

Group seven: Traditionalists who are eager to feel pampered.

These consumers seek help with production decisions and expect

excellent personalised customer service. They should also be

offered a warranty and given any other appropriate guidance.

This is another significant segment of Australian retail consumers,

comprising around one-fifth of all shoppers.

So, considering loyalty scheme spending behaviour, we return to the

question of who our consumers are.

If you’ve previously read about consumer personalities, you’ll

understand just how much this aspect drives consumer behaviour.

How does personality influence loyalty?

We know 95 per cent of consumer decision-making happens in the

emotional brain. This is the limbic part of the brain.

The limbic system is the part of the brain involved in our behavioural

and emotional responses, especially concerning behaviours we

need for survival. These include feeding, reproduction, caring

for our young, and fight-or-flight responses.

We also know that emotional decision-making drives sales, but why?

Understanding why customers pick your brand over your competitors

is vital to your brand’s longevity. The rational brain is involved in

just five per cent of decision-making scenarios.

This involvement includes the 'how' and the 'what' of the purchase,

as well as the point collection, discounts, and other rewards in a

loyalty decision. However, the rational brain has very little say beyond

this, relying instead on the emotional brain to complete the decision.

Retailers need to understand the emotional motivations behind

purchasing decisions and behaviours, specifically the desire to

feel special, to be part of the community, and to be entertained.

What are your consumers driven by? By understanding this, you can

determine the type of loyalty scheme and its offerings. Until recently,

that driving influence was thought to be driven by demographic

segmentation. We consider our consumers through a demographic

lens in fictional retailing.

Now, it’s more important to think about the consumer’s driving

‘why’ through an emotional lens.

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ANASTASIA LLOYD-WALLIS is the head of consumer

insights at Retail Doctor Group in Australia.

Learn more: retaildoctor.com.au

DIGITAL DOLLARS

Mastering the marketing funnel

for online jewellery sales

How well do you understand your online sales strategy and could you benefit from automation?

ALEX FETANAT discusses organising your e-commerce strategy with the funnel model.

Most business owners are familiar with the

concept of the marketing funnel. This model

illustrates consumers’ ‘buying journey’ from

awareness to opinion forming, consideration,

preference, and finally, purchase.

Fewer consumers progress to each stage of

the funnel.

In e-commerce, the marketing funnel is often

called the ‘conversion funnel’ and has two

extra steps – traffic sources at the start of

the funnel and re-engagement at the end.

The marketing funnel is an efficient way to

structure your online sales strategy and

can help to identify areas for improvement.

Directing traffic

The basis of any great marketing funnel is

a great website. Put simply, your strategy

won’t lead to sales conversions if your

website is not designed to attract users

or rank highly in search engine results.

For this reason, traffic sources – the first

stage of the funnel – are largely based on

search engine optimisation (SEO) and

pay-per-click advertising.

There have been many articles on improving

your website’s SEO, so this one will focus on

the next stages – starting with connecting

your products to various shopping ‘feeds’.

This roughly correlates with the ‘awareness’

stage of the traditional marketing funnel.

Feeding awareness

Shopping feeds allow your website visitors to

browse your jewellery products on sites like

Facebook or Google’s Shopping tab. These

feeds then direct users to your website.

Another example is setting up an Instagram

Shop through your business account.

It is a particularly useful channel for jewellery

retailers as many people enjoy browsing

and brainstorming different ideas on the

app – especially engagement rings.

Similar principles apply to Pinterest.

Connecting your business to Google Shopping

and e-commerce-enabled social media apps

helps potential customers find and engage

with your brand. Once customers click

through to your website, they enter the

middle of the funnel, or ‘consideration’ stage.

Encouraging purchasing

Optimising your website for e-commerce

is critical at the consideration stage when

potential customers are weighing the

pros and cons of your product.

To help customers progress to the next

stage – preference – websites should

make purchasing as easy as possible,

with few distractions.

Shoppers must be able to find products

quickly, whether through direct linking

from a social media app, fast page load

times, or website navigation and search.

Once a potential customer has landed on

the product page, they are a single step

away from purchase.

Some of the most powerful tools to encourage

conversion at this point are positive, genuine

reviews and accurate, detailed product

descriptions and photos.

The actual purchase process — filling in

details and clicking ‘place order’ — is the

penultimate stage of the e-commerce funnel.

It goes without saying that this should be as

fast and simple as possible.

While the traditional marketing funnel

ends once a purchase has been made,

the e-commerce funnel continues to the

final step of re-engagement, which includes

techniques for recovering lost sales through

re-targeting and email marketing.

Automating the funnel

Of course, all of these steps sound like a

huge digital marketing undertaking on top

of your existing to-do list – but not to worry.

Much of the process can be automated to

increase both the volume of people entering

the funnel and moving through it, focusing

on the first stage (traffic sources) and final

stage (re-engagement).

Leverage paid search-engine advertising:

Google Ads and Google Shopping Campaigns

increase the number of people entering

your funnel.

Install a tracking pixel on your website:

A tracking pixel allows Google and Facebook

to show users the same products they were

viewing on shopping feeds on your website.

Additionally, the pixel also allows for

'dynamic re-targeting’ – that is, showing

ads for the products users were viewing

on your site when they visit other sites.

Use Facebook Business more efficiently:

Improve your sales conversion further by

re-targeting receptive potential customers.

Once you have generated an audience on

Facebook, create a Lookalike Audience

that matches the buying patterns of the

users on your re-targeting list.

Set up automated email campaigns:

Encourage visitors browsing your website

for the first time to sign up for your email

list and use apps and services to create

targeted campaigns.

Of course, all of these tips take time to

implement; however, once completed,

you can use them repeatedly to increase

the effectiveness of your funnel.

ALEX FETANAT is founder and CEO of the

GemFind Network, a US-based digital

marketing firm for the jewellery industry.

Learn more: gemfind.com

44 | December 2024

DIGITAL DOLLARS

Why asking for online reviews

is crucial for your business

Consumers are placing more value on online reviews than ever before.

SHEP HYKEN shares why it's crucial to actively seek reviews for your business.

Getting customers to review their experience

with your business is powerful.

Before they make a purchase, go to a restaurant,

stay at a hotel, and more, many customers do

online research, which leads them to reviews.

These reviews help form their opinion of products

or services they want to buy — or even the

business they want to purchase it from.

How do you get reviews? Well, the easy way is

to ask for them! I was recently asked about

how to get good reviews, and I noted that

there are at least two requirements:

• The customer must be willing to leave a review

• Your employees must deliver the positive

experience you want your customers to

talk or write about

Customers who leave reviews fall into two

categories. The first is those prone to leave

the review without being asked. The second

is those who are willing to do so if you ask.

Either way, if they are willing, you should make

sure the review they write about you is good.

The only way to make that happen is to give them

what they need, which is a good experience.

A few years back, I wrote about a hotel with a sign

that read, “Please leave a review on Trip Advisor.”

Then, I received terrible service. As I was checking

out, I picked up the sign and showed it to the front

desk clerk, asking, “Do you really want me to

leave a review?”

Here is the point. If you want your customers to

leave a good review, everyone in your business

must understand that they are all part of what

will be graded.

Everyone must do their job to ensure the customer

has an experience you want them to write about.

Hold them accountable and responsible for

ensuring the experience is worthy of a good review.

Even employees who don’t work on the front line

have a place in the customer experience they

must understand.

In a ‘behind-the-scenes’ supporting role, they

take care of someone doing something that

directly impacts the customer’s experience

— even if they never see the customer.

You want customers to want to come back.

You want them to talk positively about you.

How do you get reviews? Well, the

easy way is to ask for them!

And, of course, you want a good review, whether

the customer will publish it or not.

Make sure all your staff understand the goal,

then empower them to go out and achieve it.

If you won’t ask, who will?

I once wrote an article and created a video on

‘Doing More Than Expected’ — even when it is

not included in your job description.

I used the example of a restaurant server who

ran outside during a storm to move the outdoor

furniture blowing across the patio to a safer,

more secure spot.

He returned to the restaurant, drenched from the

rain, to applause from the guests. I jokingly asked

him, “Was moving patio furniture included in your

job description?” He said, “I just do what it takes.”

That’s a great attitude to have. First, you must be

the kind of person who innately knows you should

do something right, even if it isn’t expected.

Second, you must be empowered to make and

act on those choices.

I’m reminded of an employee who fixed things

around the office. If he saw something that

wasn’t right, he fixed it.

For example, we changed a frame with a

motivational quote every week. One week later,

the quote and picture frame were crooked.

I noticed it, and while it bothered me a bit, it

wasn’t worth saying anything about it. By the

end of the day, it was fixed.

Stepping up as an instinct

I knew who did it, but I still asked loud enough

for others to hear, “Who fixed the weekly quote?”

Of course, the answer was the guy who fixed

everything around the office. I thanked him

and asked him why he handles tasks like this.

He said, “If I don’t do it, who will?”

I love those seven words. “If I don’t do it, who will?”

is right up there with “I just do what it takes.”

These are the mindsets of people who go the

extra mile; by the way, it’s not an extra mile.

Often, it’s just a tiny bit more effort, if any.

It’s just doing it because, “If they don’t, who will?”

When someone comes to work for you, you

hope they are good at whatever role and

responsibility they have.

If all they do is that role and don’t care to do

anything else, such as fixing a crooked piece

of art in a frame, you would still be happy with

their work.

But what if another employee did the same and,

in addition, was willing to fix the symbolic piece

of art in a frame, even without being asked?

Who would you rather have working for you?

Your answer is most likely the second option.

That employee is the type of staff member who

will do whatever they can to care for their

internal and external customers.

Why? Because they do what it takes and know,

“If I don’t do it, who will?”

SHEP HYKEN is a best-selling author

who works with companies to build loyal

relationships with customers and employees.

Learn more: hyken.com

December 2024 | 45

DIGITAL DOLLARS

Small changes lead to significant savings

Many businesses skip routine maintenance, opting for expensive major overhauls every few years.

GRAHAM JONES explains that making minor, consistent adjustments leads to savings in the long run.

I recently arranged for some tradesmen to paint

our garden. It hadn’t been done for several years,

so it took them a long time to remove the grime

before they could paint.

The preparation time was the longest part of

the job.

It soon became clear that the excessive time it

took to prepare the fence for painting could have

been saved if we’d had it painted every year.

While the painters were slapping paint on the

fence, I conducted a one-day consultancy

session for a client in the Netherlands.

Before the day began, I was concerned about

how I would fill the time they had booked because,

before the global pandemic, I had visited them

at their lovely offices in Amsterdam.

We had discussed their online options, and

when I returned to the UK and checked their

internet activity a few weeks later, it was clear

they had made significant changes following

my consultancy.

They had increased their Twitter following from

around 25,000 to almost 600,000, which shows

that they were doing a brilliant job.

The right approach

I approached our new session with trepidation.

I was worried that they would think they were

paying for nothing.

They had worked hard following my advice,

which was successful for them.

After analysing everything, I could only find

a few tweaks they needed to improve their

current approach.

In the end, I need not have been concerned.

We spent the day discussing many elements

of their digital operations and activity.

We tweaked something here and made a minor

alteration there, and before I knew it, our time

was up. I asked if the day had been helpful.

They said it was tremendously valuable and

would like to book another session in a year

to check that they were still on track.

I made summary notes outlining the ideas we

had produced. There were only half a dozen

critical tasks and a handful of smaller items,

which didn’t seem much for a day’s work.

Yet, the client was thrilled with what was delivered!

Regular checks and actions mean

that there will never be a massive

task in the future.

I looked out the office window into the garden and

saw my shiny new fence. I realised that my client

behaved in a way I hadn’t done with my fence.

Rather than waiting several years to see if their

online performance was up to scratch, they

were reviewing every year.

That meant the time it would take to deal with

changes would be much less than if they had

waited several years to consider their actions.

Unlike my garden fence, which had been left

to deteriorate, they ensured that their online

presence only needed a quick ‘touching-up’

every year.

Don’t fall behind

Sometime later, I received a request from a

potential client to review their website.

The company was thinking about a redesign

and wanted to provide some information to

web design companies.

The email told me that they hadn’t done anything

to their website for almost seven years, and they

had decided it was time for a refresh.

At this moment, I had a profound realisation.

I looked at their website and realised it resembled

my neglected fence. Much work was needed

to prepare their website so the designers could

do anything fruitful.

When you don’t reconsider your social media

strategy every year, you also leave it to wither,

requiring significant investment at a later date.

And if you do not look after your digital footprint

annually, addressing the necessary changes in

one colossal effort after several years takes

more time and energy than is required.

My clients in the Netherlands had the right idea.

Regular checks and actions mean that there

will never be a massive task in the future.

There is a tendency in business to make significant

changes every few years rather than progressive

alterations over shorter periods.

If you are a ‘big change’ business, then you are

like my garden fence. Leaving it unpainted for

so long has created much more work and a

higher cost than if it had been tended to yearly.

Ignoring reviews of your online activity for long

periods also means you create more work for

yourself and raise your costs.

GRAHAM JONES studies online behaviour

and consumer psychology to help businesses

improve website success.

Learn more: grahamjones.co.uk

46 | December 2024

DIGITAL PRESENCE

Understanding the importance of

email marketing in sales generation

Looking for a new strategy to improve sales at your jewellery store? ALEX FETANAT outlines

the value of email marketing campaigns.

Email marketing is crucial in generating sales for

your jewellery store.

It allows you to reach out directly to your target

audience and engage with them personally.

By sending well-crafted emails, you can capture

the attention of potential customers and entice

them to make a purchase, visit your store, or

schedule an appointment.

With the rise of social media and other digital

marketing channels, some may argue that email

marketing is no longer effective.

However, studies have shown that email remains

one of the most effective ways to generate sales.

According to a report by DMA, for every $1 spent

on email marketing, the average return on

investment is $42.

This highlights the immense potential of

email marketing in driving revenue for your

jewellery store.

That leaves us with an important question. How

do we craft compelling email campaigns for

maximum impact?

To maximise the impact of your email marketing

campaigns, you must create compelling emails

that grab your recipients' attention.

In this regard, it’s important to start by

understanding your target audience and their

preferences. This will help you tailor your emails to

their specific needs and interests.

When crafting your emails, make sure you focus

on creating engaging and persuasive content.

Use attention-grabbing subject lines, compelling

visuals, and concise yet informative copy.

Incorporate storytelling techniques to connect

with your audience emotionally and showcase the

unique value proposition of your jewellery store.

Furthermore, consider utilising various types of

emails, such as promotional emails, newsletters,

and personalised recommendations.

By diversifying your email campaigns, you can

cater to different segments of your audience and

increase the chances of conversion.

Personalisation & Segmentation

Personalisation and segmentation are powerful

strategies that can significantly improve the

effectiveness of your email marketing efforts.

By personalising your emails based on the

Incorporate storytelling techniques

to connect with your audience

emotionally and showcase the

unique value proposition of your

jewellery store.

recipient's preferences, past purchases,

or browsing history, you can create a more

personalised and tailored experience for

each individual.

Segmentation involves dividing your email list into

specific groups based on demographics, interests,

or behaviours.

This allows you to send targeted emails to

different segments, increasing the relevance and

engagement of your messages.

For example, you can send a special discount offer

to customers who have previously purchased

jewellery from your store, rewarding them for their

loyalty to your business.

By utilising personalisation and segmentation, you

can deliver highly relevant and targeted emails

that resonate with your audience, leading to higher

open rates, click-through rates, and, ultimately,

more sales and appointments.

Optimisation

Optimising your email content is essential for

achieving higher conversion rates.

Start by ensuring that your emails are mobilefriendly,

as a significant portion of emails are now

being opened on mobile devices.

Use a responsive design and test your emails on

different devices. This is important for ensuring a

seamless user experience.

In addition, optimise your email copy and callto-action

(CTA) buttons. Make your copy concise,

persuasive, and action-oriented.

Clearly state the benefits of your products

or services and provide a clear next step for

the recipient to take. Using eye-catching and

strategically placed CTAs will encourage clicks and

conversions among your customers.

Furthermore, consider implementing A/B testing

to experiment with different elements of your

emails, such as subject lines, visuals, and CTAs.

This will help you identify what resonates best

with your audience and optimise your email

content accordingly.

Measuring success

Measuring the success of your email marketing

campaigns is crucial for continuous improvement

and further optimisation.

Monitor key metrics such as open rates, clickthrough

rates, conversion rates, and revenue

generated from email campaigns. This will provide

insights into the effectiveness of your strategies

and help you identify areas for improvement.

Based on the data and analytics, adjust your email

marketing strategies accordingly.

Don’t be afraid to experiment with different

approaches, such as changing the frequency

of emails, modifying the content, or targeting

different segments.

Continuously monitor the results and make datadriven

decisions to optimise your campaigns for

maximum impact.

Good luck!

ALEX FETANAT is founder and CEO of

the GemFind Network, a US-based digital

marketing firm for the jewellery industry.

Visit: gemfind.com

December 2024 | 47

DIGITAL DOLLARS

Harnessing the power of digital

marketing to increase store visits

While they may often shop online, omnishoppers account for a large portion of consumer groups.

LAURA DAWSON explains how this can be converted to in-store visits.

Think back to the last time you bought a product

in-store.

Did you search online and research it first? I bet

you did - and that makes you an ‘omnishopper’!

An omnishopper is someone who uses more than

one retail channel when shopping.

For example, they may research online and buy

in-store, buy online and collect in-store, or

research in-store and buy online.

Bricks-and-mortar stores should be harnessing

the power of digital marketing to increase

in-store visits.

Whether your website is a fun place to browse

your range or an educational site with in-depth

information about your products, it is integral

for conversation and conversion.

Here are some tips on increasing website traffic

and using the resulting website data to activate

in-store sales.

Data is important. To understand buyer behaviour,

you need the following metrics: look at what

users bought or browsed, the devices they

used to access the site, the times they visited,

how they arrived on your page, and where

they went next.

Drive traffic to your website

To generate traffic, you must have a compelling

and attractive site encouraging people to do

business with you. The site must be active,

updated with high-quality content, and use

search engine optimisation (SEO).

This means you have done keyword research

and included these keywords on your page.

You've also ensured you’re listed on Google

Business and any other industry-relevant

directories, have active reviews and listings

on social media, and use Google and

Facebook for online advertising.

Once your users are on your site, capturing their

data with an email sign-up form is helpful.

Encourage sign-ups with a special discount or

offer, like a five per cent discount in your online

store or a gift with a purchase.

If your email sign-up form is complicated to use

or requires too many steps, users will not bother.

Keep the process as simple and straightforward

as possible.

Break down your user data and use

it to power your sales.

Your email list will form part of your digital

marketing efforts, so make it effortless for

them to click through and provide information.

How to use data

Data is vital because it allows you to shape

your actions based on your users’ behaviour.

You can follow users wherever they go on the

web and tailor blogs, content, and campaigns

using user data and conversions.

Let’s say you have looked at your data and

found that shoppers aged between 25 and 34.

You also learn that these shoppers are

generally browsing your site from their

mobile phones between 6 pm and 8 pm.

This is very valuable information and it should

be used to shape your approach to marketing.

Perhaps these shoppers came to your website

via an organic search term and looked at the

home page and product page before clicking

through to a blog article.

You would use this information to make sure

your advertising exists between 6 pm and 8 pm.

You would also ensure that mobile users were

getting the ads and that you wrote more

content similar to the blog they’re reading.

Include this new content on your site and a

strong call to action to shop in-store for

a special promotion.

It’s just common sense. Break down your

user data and use it to power your sales.

Content to mail out

Once you have a great database of email contacts,

what do you send to get them off the couch and

into your store?

One idea is to host a theme day or special event,

such as an in-store flash sale, to encourage

in-store shopping. Special in-store discounts

are also effective.

You need to create a sense of urgency and so

consider sending an in-store coupon and allow

72 hours to redeem the discount.

You could also offer giveaways or upgrades

exclusively to in-store shoppers to incentivise

them to come in.

You want to do just enough to deliver more

value and create engagement, but be careful

to keep your promotions sporadic enough to

ensure that people don’t come to expect

deals like this all the time.

The methods discussed here are just some

ways you can use your website to drive visitors

to your store. The ideas are limitless, so go

wild and use your imagination.

To achieve maximum success, you must consider

your online channels — your website and social

media platforms — as in-store promotional

tools and internet shopping destinations.

That’s the real secret of omnichannel retailing.

LAURA DAWSON is a digital marketer

specialising in search engine optimisation.

48 | December 2024

DIGITAL DOLLARS

Creating a customer loyalty

program that drives success

Loyalty programs provide numerous benefits for businesses. It's a chance not to be missed.

SIMON DELL shares expert advice on strategies to keep customers coming back.

There are few things more valuable to a business

than loyal customers, but how do you attract

those shoppers and keep them coming back?

Naturally, delivering great service and products

is one way – but a loyalty program is even better.

Offering loyalty benefits is a great way to say

'thank you' to returning shoppers, as well

as attract new ones – and there are other

benefits for businesses, too.

Forging a connection

Today, customers want to connect emotionally

with brands, which is why you may have noticed

that many businesses prioritise open and

honest communication with shoppers.

The business tells its story, hoping customers will

identify with them and support them accordingly.

Loyalty programs provide a platform for that longlasting

connection; it is not just about ‘freebies’,

discounts and rewards, but also communicating

and connecting with customers in a positive way.

Harnessing technology

Traditionally, a loyalty program may have been

confined to email communication or even the

classic ‘snail mail’!

Now, businesses can provide an omnichannel

experience for their customers.

When setting up a loyalty program, these are

some of the ever-expanding points of interaction

at which you can provide benefits for and

communicate with customers:

Apps: Send alerts, discounts, or offers to

customers through your business’ app;

alternatively, an app can offer a fun and

convenient way to interact.

Social media: Social media is now a necessity

for loyalty programs. It is not only convenient

but also gives customers a chance to share and

promote your business to like-minded shoppers.

Email: We all hate spam, but when your customers

are engaged enough to willingly seek email offers

and communication, take the opportunity!

Email is a great way to announce sales, introduce

new products, educate customers, or offer

exclusive discounts.

Text messages: Text messaging is a relatively new

advertising technique; however, it’s very effective.

Naturally, delivering great service

and products is one way – but a

loyalty program is even better.

Use texts to inform your loyal customers about

special offers and limited-time opportunities,

but be careful not to appear as spam or a scam!

This omni-channel approach lets you show

customers they are valued and makes them

feel included. It also keeps your business

top-of-mind, allowing you to take advantage

of opportunities to secure a sale at any time

of the day.

Understanding what customers want

Delivering value is one of the key components

of any loyalty program. When creating your

loyalty program, research what your customers

respond to – whether it be exclusive sales,

birthday discounts, or by earning points.

Either in-store or online, you can also reward

customers with a special gift at the point of

purchase.

This shows genuine appreciation and asks

nothing of the customer in return.

Disguising the ‘sell’

Loyalty programs are, of course, designed to

increase customer loyalty and keep people

shopping with you.

The end goal is generating more sales and

profits – but it should never appear that way.

Building customer loyalty is about making

genuine connections and showing appreciation

for continued business.

You should offer special deals and benefits to

loyalty program customers, but only if it

delivers real value to them.

An example of this is tier-based loyalty programs.

This system can work well psychologically, as

customers will want to maintain their current

tier – or, if they are just shy of the next tier,

spend a little more to reach that threshold.

However, the system can fail if reaching the

next tier does not deliver a tangible benefit.

Similarly, according to research by Experian,

consumers respond better to promotions

that feel special and personal.

For example, birthday-based rewards emails

have a far higher transaction rate and generate

more revenue than standard promotional emails.

Creating meaningful interactions

Encouraging customers to be loyal to your

business is a long and ever-changing process.

All customers value different things, so don’t be

afraid to interact openly and honestly with them.

Ask what they want, give them a say in new

products or ideas, make your interactions

meaningful, and people will take an interest.

The rewards of a loyalty program are a bonus and

a way for you to thank them for their contribution.

SIMON DELL is co-founder and CEO of Cemoh,

a Brisbane-based firm that provides marketing

staff on demand. He specialises in digital

marketing and brand management.

Learn more: cemoh.com

December 2024 | 49

DIGITAL DOLLARS

Designing an effective content

marketing strategy for your business

If you don’t plot your strategy in advance, you’re setting yourself up for failure.

GARRY GRANT encourages careful planning of your content marketing strategy.

Content marketing strategies can be invaluable

to jewellery retailers. The goal is to address the

needs and interests of consumers, build authority,

and foster relationships through blogs, videos,

social media, and other content forms.

Your content marketing strategy isn’t to be

confused with your content strategy or content

plan. You’ll often find these terms used

interchangeably when the three are separate

and necessary assets for any marketing plan.

Your content marketing strategy is why you’re

creating content, the audience you’re helping,

and how you’ll help them in ways your competition

cannot. Typically, this involves using content

marketing to build their audience so they can

either lower costs, earn more revenue,

or reach better customers.

Your content strategy is broader in scope.

It digs into the creation and publication of

valuable and usable content.

You’ll determine the titles and types of content

and where you’ll publish them. Some will be

posted on your website, while others will go

to different sites where your audience will

likely browse.

Your content plan is the tactical document

outlining how you’ll execute your content

strategy and who will handle all the tasks.

Your content marketing strategy must come

before you build your content plan. It is the

marketing plan for your content, so it needs

to include key topic areas you’ll cover, the

content assets you’ll create, when and how

you’ll share your content, and any specific

calls to action to include.

With that said, let’s focus on what to include

in your content marketing strategy.

Why content marketing?

Content marketing generates more than three

times the leads for your business as outbound

marketing; however, it costs 62 per cent less.

Not only this, but a content marketing strategy

can also affect other marketing activities

you’re already using.

For instance, an ongoing content strategy can

help you build more organic search traffic,

increasing the chance your company will

appear in the search results for users in

your target demographics.

Having a content strategy in place can give you

content to fuel social media syndication efforts.

You’ll have updates to share on social media

and content you can add to your all-important

email marketing campaigns.

You can use your best material for a landing

page to increase conversions for a paid

advertising campaign.

Content marketing isn’t limited to just blog posts.

You can use it with many assets, including white

papers, video, audio, infographics, etc.

Think about your content marketing goals.

Do you want to increase your customer base

as a whole or boost the average order value?

Improve the quality of your customer base?

Reduce marketing costs? What unique value

are you aiming to provide with your content?

Consider your business model and opportunities

and obstacles you may encounter as you

execute the plan.

Buyer personas: Discuss the specifics of the

audiences for whom you’re creating content.

You’ll detail who they are, what they need, and

what their content engagement cycle may look like.

It’s also a good idea to map out the content you

can deliver throughout their buyer journey so you

can help move them closer to their goals.

Brand story: Consider the messages you want

to share and how your copy differs from that of

the competition.

Remember to note speculations about how you

believe the landscape will evolve after sharing

the messaging with your audience.

Distribution channels: Outline the platforms

you’ll use to tell your brand story.

Outline your goals, objectives, criteria, and

processes for each one.

Then, consider how you’ll connect them to

maintain a seamless customer experience

and cohesive brand conversation.

If you do not know where to start, consider

the channels your target audience uses to

connect with the brands they love — even if

they are your competition.

If you struggle to find the time to develop a

complete content marketing strategy, a

one-page plan can simplify the process.

This plan includes a laserfocus on the goals

your company aims to accomplish within the

next year and how you measure progress

toward those objectives.

It should also address what the content

marketing will do during the next year and the

metrics you’ll measure to determine

how successful the content marketing is.

GARRY GRANT is a veteran expert in search

engine optimisation and the digital marketing

industry. He is CEO of consultancy SEO Inc.

Learn more: seoinc.com

50 | December 2024

Unwrap the New Year: A Perfect Match for Retailers

DIGITAL PRESENCE

Use your data to boost

loyalty and sales

Retailers in search of ways to boost loyalty and encourage repeat shopping need only look to

their existing data for answers. Effective customer loyalty strategies can lead to extra sales.

BRYAN PEARSON reports.

According to a 2015 study from loyalty and

customer engagement firm Colloquy, the average

US household enrols in 29 loyalty programs but

participates in just 12 of these.

Perhaps this is because there are too many loyalty

programs or perhaps consumers perceive that the

rewards aren’t worth all the extra effort.

Whichever the reason, it’s hard for retailers to build

loyalty if their customers aren’t even interested in

their loyalty programs. The time has come for a

loyalty revamp. Here are five expert secrets that

can be used to drive loyalty and bump up business.

Let customers drive

When it comes to developing or revamping a loyalty

program, retailers shouldn’t overlook their most

valuable information resource – their customers.

Chip Bell, senior partner of customer-experience

consultancy the Chip Bell Group, says retailers

rarely ask their customers what motivates their

loyalty because they assume they already know.

“Customers are constantly changing; today’s fad

is tomorrow’s antique,” Bell says. “Start a loyalty

program by asking customers [what they would

like to see in loyalty programs]. Look at the theme

of frequent customer complaints as a path to the

opposite end of the spectrum; it can reveal what

matters most.”

Start personalising

Once the foundation of a good loyalty program is

poured, it’s time to use the data but knowing how

to put it to good use is one of the challenges of

loyalty marketing.

Retailers have a wealth of data on their shoppers

but they often don’t know how to interpret it.

This makes implementing a targeted rewards

program difficult.

According to Debjyoti Paul, assistant vice president

of digital business at Mindtree, an IT-services

consultancy based in India and New Jersey,

“The first step is to clean up the loyalty data to

uniquely identify each shopper and form a basic

profile [for each customer] that is trustworthy.”

Once this is done, profiles can be expanded with

personalised data. As a customer profile swells

with information, retailers can then customise

offers to match unique preferences.

Take a breath on breadth

Product assortment is a large factor in luring

shoppers back in store. Inventory is often derived

jewelleryfair.com.au/mjexpo

CASE STUDY

Trend Spotting Triumph

Gemma & Oliver's Jewellery Emporium

exemplifies trend spotting success. Known

for bespoke engagement rings, they adeptly

navigated shifting consumer tastes.

Gemma's Strategy:

Analysed POS data, identifying a trend for

ethically sourced gemstones.

Set a 25% sales increase target, adjusting

marketing when needed.

Oliver's Approach:

from loyalty insights but striking the balance

between too much and too little is arduous. Totalstore

optimisation helps retailers assess the

necessary breadth and depth of various categories.

“Consider the yoghurt category,” explains Graeme

McVie, vice president of business development at

retail analytics firm Precima.

“How many flavours of yoghurt are required

versus how many sizes versus how many brands?

Now contrast this with the spices category where

breadth is required but not depth – there are lots

of different spices but not many types of oregano,

for example.”

This strategy enables retailers to align the

depth and breadth of each category with the

needs of shoppers. Then they can ensure the

correct amount of shelf space is allocated to

each category.

Cutting product can cut profits

FEBRUARY 1 – 3, 2025

Inventory is directly linked to loyalty and retailers

should be careful before deleting slow products.

Advanced analytics and loyalty data can unearth

hidden value in items that may be slow sellers,

according to McVie. “Retailers often rank and yank

when evaluating their assortment; that is, they

rank all items in their category by sales and de-list

the bottom performers,” McVie continues.

Melbourne Exhibition Centre, South Wharf

Implemented a robust data management

system for accurate insights.

Formed a diverse team to counteract

biases in trend analysis.

Integrated sales team feedback to expand

their ethical collection.

Their teamwork and strategic approach

solidified their market position, showcasing

effective trend spotting in jewellery retail.

Instead, he believes retailers should consider

an item’s true value and customer importance

when making decisions. An item’s true value is

calculated by taking the total sales and subtracting

the sales of any substitute items, which are items

that shoppers would buy if the original item was

no longer available. Then add to this figure the

sales of other items purchased solely because they

complement the original item.

This true value shows retailers that the removal of

an item can cause flow-on losses. When stores fail

to offer alternatives, customers are likely to take

their entire baskets to another retailer.

Don’t forget the boomers

Run in

conjunction with

Retailers are right to target Millennials,

particularly through mobile communications;

however, if those retailers fail to offer the same

opportunities to Baby Boomers, they could

miss significant opportunities. More than nine

in ten boomers (93 per cent) feel overlooked

and inadequately rewarded, according to ICLP

research. Consequently, they are less loyal.

These five loyalty tips may not be secrets, but

they do offer insights into how to generate loyalty.

Retailers looking to boost their return visits should

use some of the above.

BRYAN PEARSON is president and Organised CEO by

of LoyaltyOne, and has more than 20

years' experience in developing customer

relationship. Visit: loyalty.com

December 2024 | 51

Sapphire Dreams was founded from a deep admiration for the natural

beauty of Australian sapphires, celebrating exceptional craftsmanship and

contemporary jewellery designs. Ethically sourced from Australian landscapes,

our sapphires showcase an extraordinary range of colours—from deep ocean

blues to unique parti-coloured stones—captured in each Sapphire Dreams creation.


52 | December 2024

SapphireDreams.com.au

Jeweller - December 2024

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