The current economic climate presents unique challenges for the jewellery industry. With discretionary spending often the first cut, it's easy to feel the pressure to slash marketing budgets.
History has shown that businesses and brands that maintain or even increase marketing spending during downturns emerge stronger afterward.
An interesting study from Harvard University revealed that companies that maintain their marketing efforts and increase them during recessionary periods come out on top, during the downturn and boom that follows.
Moreover, companies that lowered advertising spending during a recession experienced sales decreases of 20-30 per cent over the next three years.
It may be time to ask yourself, "Can my business afford to spend three years playing catch-up with competitors who maintained their marketing during the downturn?”
It’s not easy to remain consistent and adapt your marketing strategy during these challenging times.
That’s why, over the past few months, we have been researching with industry experts on how to use effective marketing tactics during a downturn.
This isn't a time for panic! It's a chance to refine your strategy, deepen the connections with your customers, and outshine the competition.
If you’re a traditional jewellery retailer, consider the following strategies.
Building long-term relationships with existing customers: This may include personalised experiences, loyalty programs and exclusive offers.
Leverage the power of in-store experiences: Create a welcoming atmosphere, offer personalised consultations, and showcase your story.
Harness the potential of digital marketing: Utilise email marketing, social media, and advertising to reach a wider audience.
Collaborate: Partner with complementary businesses, such as spas and boutiques, to cross-promote and reach customers.
Emphasise the emotional value of jewellery: Focus your messaging on the enduring joy and significance of owning a special piece.
If you’re a bench jeweller, you might consider the following strategies.
Build a strong online presence: Showcase your unique designs and craftsmanship through high-quality photography and videography on platforms such as Instagram and TikTok.
Engage the audience: Share your creative process, interact with followers, and build a community around your business.
Explore direct-to-consumer sales channels: Utilise online platforms such as Etsy, your own website, and craft and lifestyle fairs to reach customers directly.
Partner with stores to showcase your work and reach a new audience.
Offer unique services: To cater to modern individual preferences, consider offering custom design consultations and bespoke jewellery creations.
Don’t be afraid to reimagine your budget. Allocate a significant portion to proven performers such as email marketing and social media campaigns.
Explore cost-effective strategies such as leveraging influencer marketing, user-generated content, and strategic partnerships to maximise your reach without breaking the bank.
Consider ‘recession-proof’ investments, such as building long-term relationships with customers through exclusive loyalty programs and personalised experiences.
Reinforce the value of your business. Emphasise ethical sourcing, sustainable practices, and the emotional value of your jewellery.
Humanise your brand by sharing the stories behind your designs, introducing your talented bench jewellers, and showcasing the craftsmanship that sets your pieces apart.
Engage with the community around your business by hosting virtual events, conducting surveys, and actively listening to customer feedback to understand their evolving needs and preferences.
Capitalise on shifting consumer behaviour and target the ‘treat yourself’ moment. Focus your messaging on jewellery's enduring value and emotional significance as a source of joy and self-expression.
To enhance the customer journey, explore experiential marketing, such as exclusive online consultations, virtual jewellery try-on experiences, and personalised engraving services.
Embrace storytelling by crafting compelling narratives. Weave stories around each piece, highlighting its history, craftsmanship, and emotional resonance.
Leverage visual storytelling and utilise high-quality photography and videography to showcase the beauty and artistry of your jewellery. Share customer stories and feature real-life testimonials and user-generated content to build social proof and inspire others.
Tailor your messaging and craft messages that resonate with each customer segment and address their specific needs.
Good luck!
Implementing these strategies can help your business weather the economic storm and emerge stronger, with a more loyal customer base and a more resilient business.
Remember, this isn't just about surviving; it's about thriving.
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