By Ellen Fruchtman, President

On page four of the February 2010 issue of National Jeweler you might have read a letter to the editor titled “A call to action for the jewelry industry” written by Tod Michel, Vice President of Sales and Marketing for Leslie’s.  It was a very well written article from a man who is obviously as frustrated as I am. If you didn’t have the pleasure of reading it, feel free to go online or simply riffle through the pile on your desk to try and find the issue.  If that’s still too much trouble, please allow me to summarize:

When is this industry going to get its collaborative *@#! together?

Okay.  You deserve a little more insight. Mr. Michel addresses the need for the many industry organizations (DPS, JA, World Gold Council etc.) to speak as one voice and g-d forbid, create a marketing and public relations campaign collectively to appeal to today’s consumer. Tod, say it isn’t so?  Are you meaning to tell me that the right hand doesn’t know what the left hand is doing?  Are you telling me that there is virtually no synergy? I just don’t believe it!

While consumers worry about the state of the economy; whether or not they will have a job tomorrow; and the state of their own well-being, are you telling me that we don’t have a plan or a message that will resonate?  We have a knot that speaks of forging our love. What more do we need? You say we should have a voice online utilizing Social Networks like Facebook and Twitter. That makes sense Tod, but this is an industry where there are still brick and mortar stores that don’t even have a Web site.  And if they do, it’s underfunded, and underserved, making it underwhelming. Designers are asking jewelers to spend their advertising dollars tagging their magazine print ads. After all, do we not believe in how powerful the Internet really is?  Do most of our top name designers not have big, beautiful Web sites?  Then why are we not simply putting our site address in the ad to find a jeweler near you? Tod, I’m afraid this is simply too much to ask.

You see Tod, everyone has their own personal agenda.  And, I understand. You want to sell more product for Leslie’s. The DPS wants to sell more diamonds. The World Gold Council wants everyone to buy more gold. NCDIA wants everyone to purchase colored diamonds. But, I agree. There’s something to be said for collectively creating a message that will be profitable for all.  We all want the jewelry category to grow. I‘m right with you, Tod. I’d love to be a part of it. But, right now, I’m afraid I’ve got to go. I have to try to find more clients. In my own little way, I’m trying to show the industry the path to marketing greatness. And, I have many mouths to feed, including my own.

By Karin Green, Account Coordinator/Social Media Specialist

The marketing world is quickly evolving.  With the economic shift, the buzz around social media, and ever-emerging technology, it’s quite possible to get lost in the flurry.  When was the last time you calibrated your Customer Relationship Marketing (CRM) strategy to adapt to the changing marketplace?  Regain your customer focus with our Tuesday Tips & Tricks CRM mini-series.

Part One

The number of choices consumers are faced with has grown exponentially over the past few years.  This shift is neither definitively positive nor negative, but it does pose new challenges for any business competing in the marketplace.  It’s important to understand how these changes affect consumers when developing a relationship marketing strategy.

The Positives

The increase in choices has several positive implications.  First, many customers are overwhelmed with options and, as a result, stick with what they know.  For companies that have established relationships with their customers, this may enable them to maintain customer loyalty even in the face of increasing alternatives.  Another positive implication is consumers’ increasing expectations of greater variety and specialized products.  This opens up numerous opportunities for companies to develop new products in order to be able to meet some of these particular prospects.  Finally, the opportunity for branding is greater than ever.  Modern advertising strategies do not always have the goal of presenting useful information; instead, the focus is on establishing brand images through creative marketing strategies.  Marketers have a huge opportunity to lure customers with impressions rather than practical information.  Many consumers are able to be fooled by branding rather than basing their decision on constructive information, and with the increased number of choices available consumers are even more susceptible to making errors in their purchasing decisions.

…and the Negatives

Negative implications also arise.  It’s important to be cautious of overwhelming consumers with information in relationship marketing strategies.  Research shows that providing customers with too many options can actually discourage a purchase altogether.  Marketers must find the balance between providing variety and crossing the line to selection overload.  Next, companies must be conscious of consumer reviews of their products.  Many potential customers will conduct research prior to making a purchase decision, and it is important for marketers to make sure that their products’ reviews are available alongside their competitors’.  However, no matter how positive 99% of a company’s reviews may be, all it can take to undo their image in a consumer’s mind is hearing one negative personal account from a friend, peer, co-worker, etc.  It is inevitable that a certain percentage of experiences will not live up to a customer’s expectations.  It is nearly impossible for marketers to win in a consumer’s mind when the consumer encounters one of these personal negative experiences, no matter how successful the majority of consumer reviews are. Finally, consumers who take their time to evaluate products and make educated purchase decisions can be converted to making decisions quickly, focusing on the time it takes to make a decision rather than knowing all of the facts or how products compare to one another.  For companies, this means that no matter how well-developed a relationship strategy may be, consumers could be indifferent because of information overload.

What it All Means for Business

As a result of the changing marketplace, marketers must now delve deeper into their customers’ psychographics to understand how they will react to relationship marketing strategies.  Before implementing a strategy, it’s important to fully understand the target markets and how increased choices affect those markets specifically. Overall, it is important to find the equilibrium between developing a relationship with customers and inundating them with information that could prove detrimental to the strategy.

In part two we’ll examine the science of consumer decision-making, stay tuned!

Building a Perfect Relationship Between Your Business and a Nonprofit Organization

Part One

By Angie Ash, Senior Account Executive

As a fine jewelry store owner, it is likely that you have donated a piece or two of jewelry to be raffled or auctioned off at a fundraising event. While that’s a nice gesture, and one that’s certainly appreciated by the organization that requested it, some statistics released by a Cone Cause Evolution study in October of 2008 should open your eyes to the reasons why adopting a culture of philanthropy is just plain good for your business.

• 85% of Americans say they have a more positive image of a product or company when it supports a cause they care about.

• 85% feel it is acceptable for companies to involve a cause in their marketing.

• 38% have bought a product associated with a cause in the last 12 months.

Consumers also consider the following factors to be important when deciding to support a company’s cause efforts:

• 84% want to select their own cause.

• 83% say personal relevance is key.

• 80% believe the specific nonprofit associated with a campaign matters.

• 65% find emotional incentives for involvement, such as it making them feel good or alleviating guilt, important.

In a nutshell, consumers want to feel a connection to the issue and the nonprofit organization while fulfilling their personal needs. It’s important to not only let your customers know that you are giving back to your local community, but why. It is far more powerful for a customer to see you at a fundraising event, volunteering after hours, or even serving on a Board than donating a piece of jewelry. When you relay your own passion and commitment to a cause, the connection is conveyed back to your customers in ways other than merely across the counter. Consumers, more than ever, are not only asking companies “What do you stand for?” but also “What do you do?”.

Want to know more about connecting with a nonprofit? Email suits@fruchtman.com and check back next week for part two of this series. We’ll examine the tactics that your store can employ to determine the causes that mean the most to your customers.

Angie Ash is the Director of Strategic Development for RELEV8, Fruchtman Marketing’s Nonprofit Marketing Solutions division and President Elect of the Northwest Ohio Affiliate of Susan G. Komen for the Cure. Looking for an expert to comment on an article or speak on the topic of not-for-profit marketing? Email angie@fruchtman.com.

You can catch Fruchtman Marketing at the JCK Show in Las Vegas on June 4, 2010. Megan Meinerding, VP Client Services, will be presenting  ”Managing Social Media.”

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