Customers control the success of any business but understanding them is a never-ending challenge as no two shoppers are alike. Motivation, style and expectations can differ greatly from one customer to another, while evolving trends in the market also prompt the need for constant flexibility.
Small businesses must continually reassess and revaluate their target market to determine these ever-changing needs. By uncovering what customers want, a store can better understand ways to manage and promote its product.
Many retail jewellers know how to cater to a target market but not how to embrace change. They aim for markets that worked well in the past but forget that those markets shift and alter.
One prime example is Pandora. In the beginning, many jewellers rejected it simply because it seemed suited to the lower end of the market; however, Pandora has proved to be a huge success, dramatically boosting the sales of many of its stockists. One of our fellow Showcase Jewellers members is a country retailer who averaged a turnover of $250,000 a year. Since introducing Pandora, he now turns over $50,000 a month!
Those retailers who decided not to adapt have missed out. This is how resistance to market change and irresponsiveness to customer desires can be bad.
If customers want a certain product or category, it is crucial that your stock caters for them. It is inevitable that a buyer who purchases on personal style and instinct - rather then according to market trend - increases the risk of slow-selling or dead stock.
If customers want white gold or platinum, you must move with them irrespective of the initial escalation in inventory costs. If you have three customers asking for one particular item, get your staff to write it down so you know what to purchase next.
Whenever a person leaves without buying, we have our staff write down why they think they lost the sale. Many times, it's because we don't have the item they're seeking. At the end of the week, we summarise these papers and a trend often emerges of what the customer wants.
The relationship you have with your customer is just as important as the products they buy. If you have the right attitude and the right knowledge, customers are more likely to return.
Sales are often linked to the attitude of the salesperson. It's amazing how many salespeople in the industry are poorly educated.
Unemployment is low so it is difficult to obtain knowledgeable staff so choosing motivated, passionate candidates and training them yourself is the key.
With the ever-growing use of the internet as a research tool, customers are a lot more educated than they once were; ultimately, the people representing the trade must be more highly skilled than ever before in order to gain a customers confidence.
Focusing on those who are professional and have a passion for the industry is a sure way to improve not only the sales of the business, but also its customer relationships and service levels.
Strengthening customer relations is vital. Customers remember the experience of the sale and will return if the experience was positive. And remember, customers don't have to choose you. In the face of rising gold prices (and subsequent jewellery prices) jewellery has become a luxury.
People are prepared to travel further to a jeweller whom they believe will give better service, better choice and better value.
By providing only the highest quality service and constantly undertaking research and review, all retail jewellers can unlock rapid growth in their store.
Name: Michael Sobbi
Business: Linda and Co. Designer Jewellers
Position: Director
Qualifications: Accountant, Jeweller, scholarship in business marketing
Years in industry: 17, Third Generation Jeweller