2021 RECERTIFICATION ABSTRACT BOOKLET

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2021 RECERTIFICATION

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3 | 2021 INFORMATIONAL ABSTRACTS

TABLE OF CONTENTS

Appraising

Appraiser vs. Advocate: Know the Difference 4USPAP & Advanced Appraisal Report Writing 6Authentication vs. Identification 9Safeguarding of Client Data 11Appraisal Self Defense 13 Business Management

The Loyalty Loop: The Small Things That Add Up to Big Business 15Protect Your Jewelry Business from Cybercrime 18The Bionic Consumer 21No One Noticed but the Bottom Line 23Business Transition and Succession Planning 25 Diversity & Inclusion

7 ways retailers should work to create a more inclusive shopping experience in their stores, according to the head of diversity and inclusion at Unilever 27

Gemology

A Comparison of Diamonds and Colored Stones: Geographic Origin to Geology and More 29Diamond Ages: Are Diamonds Forever? 30History of Engagement Rings 31Melee Diamond Analysis 32Fascinating World of Pearls and Shells 33The Microworld of Gemstones 34Geology 101 for Gemologists: The Natural Processes that Form Colored Gemstones 35A Symphony of Light – Selling Light Performance with the AGS Ideal® 36Diamond Plots – The Importance and Uses of Accurate Plotting 38Today’s Challenges of Valuing Colored Gemstones 41

Legal & Compliance

Three Reasons Jewelry Businesses Should Address Racial Discrimination Now 43Pandemic Marketing: The Law Still Applies! 45

Marketing

Leveraging Funnel-Specific Audience Targeting Tactics with Facebook/Instagram Ads 46Omnichannel Realities: Merging Online, Offline & Every Touchpoint In Between 49Social Media Trends and Developments 51Evergreen and Omnichannel Approaches in 2021 53 Sales

How to Sell More Jewelry 55Non-Verbals in Customer Communication 57How Salespeople can Harness Social Content to Increase Sales 60Become A Master at Virtual Customer Visits 64


APPRAISER VS. ADVOCATE: KNOW THE DIFFERENCE

Laura Stanley, CGA Instructor

APPRAISALS

It is important for American Gem Society (AGS) members who write appraisals to observe the AGS Minimum Appraisal and Report Guidelines as outlined in the Membership Manual. Included in this is the importance of knowing the difference between appraiser and advocate.

In the AGS Membership Manual, you will find many guidelines for being a professional jeweler and AGS member. Today, we are looking at how two of these standards relate to writing appraisals. Keep in mind, any titled document you produce in writing has the result of being considered an appraisal by consumers and the law. Title it appropriately, but always keep in mind that when you sign a report, appraisal, description, or receipt, it is a legal document.

AGS Minimum Appraisal and Report Guidelines: Standards for Appraisals Professional Practices, item “y”

Avoid suppression or minimizing of any facts, data, or opinions that, if fully stated, might affect the accomplishment of a client’s objective in the writing of a report, or in giving exposition of it before third parties, or in giving testimony in a court action. The appraiser should avoid adding any irrelevant data or unwarranted favorable opinions or place an improper emphasis on any relevant facts for the purpose of aiding a client in accomplishing the clients’ objective. If one suppresses facts or adds irrelevant opinions or data, one becomes an advocate. Advocacy is described as an action that affects adversely the establishment and maintenance of trust and confidence in the results of professional appraisal practice Professionally, advocacy is declared an unethical practice.

Reports, item “v”

If one is employed as an advocate (counselor/advisor) it is prohibited to use the word “appraisal,” or any of its synonyms in the report, and the exact advocacy relationship must be disclosed prominently in the report. This does not preclude taking on the role of an appraiser after that.

The importance of being impartial when appraising cannot be overstated. The ways you might slip into advocacy are:

• Embellishing quality or condition

• Omitting remarks on poor quality or condition

• Referencing inaccurate lab reports without correct information

• Skipping trademark details

• Omitting manufacturing details, when known

• Overemphasizing rarity

• Assuming you know how easy or difficult a piece may be to sell and factoring that in to the appraisal

• Omitting provenance when known

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In some instances, it is perfectly acceptable to be an advocate for your client and their jewelry. You are capable and encouraged to do so when needed. This is critical if you have a financial interest in the items. It must be disclosed in your report writing.

In The Practical Guide to Jewelry Appraising, by Cos Altobelli, ECGA, reminds us that every opinion is important. Make choices that produce the right type of report and reflect ethical behavior on your part. If any of your documents end up in court, this can better protect you.

One motivation for limiting manufacturer and trademark information is the assumption you will be the jeweler to make the replacement if a loss occurs. You can’t know or guarantee this, so it is important for your client’s future needs to spell-out every detail you can.

Also, if you sold an item for substantially less than the value, make a note of why. It will save everyone a lot of time in case the appraisal, item, or ownership is disputed in the future. The information will be right there in print.

The “Professional Practice Standards” section gives great detail and insight into ethical and professional practices for all AGS members. Although it is easy to read the standards once and never refer to them again, it is in your best interest of thorough professionalism to review on a regular basis, especially because they can change with the times. Granted, some minutiae won’t come in handy every day, but keeping the standards top-of-mind is important.

For all members, but especially CGAs who produce appraisals reflecting the quality and training of AGS, it is also recommended you review the Report Standards regularly. We all get into a groove and it’s easy to forget details that don’t come up every day. They are

always subject to change and it is incumbent upon you, the appraiser, to know what is current.

Key Takeaways

• Know your assignment in order to know your function.

• When you appraise, be objective and strictly accurate.

• Stay up to date with new information and standards.

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USPAP & ADVANCED APPRAISAL REPORT WRITING

Mona Miller, FGA/ICGA, Pacific Gem Lab

Have you ever had a client come to you and want an appraisal report beyond simple insurance coverage? This assignment will be determined by your client, Intended Use, Intended Users, and Purpose of the Assignment. All of these aspects determine your level of detail and amount of research in the diverse markets that exist, which you’ll need to create competent and credible assignment results.

One of the first rules that should apply to the appraiser, prior to accepting the assignment, is the “Competency Rule.” This is broken down in two parts.

BEING COMPETENT

An appraiser must determine, prior to agreeing to perform an assignment, that he or she can perform the assignment competently. Competency requires:

1. the ability to properly identify the problem to be addressed;

2. the knowledge and experience to complete the assignment competently; and

3. recognition of, and compliance with, laws and regulations that apply to the appraiser or to the assignment.

ACQUIRING COMPETENCY

If an appraiser determines he or she is not competent prior to agreeing to perform an assignment, the appraiser must:

1. disclose the lack of knowledge and/or experience to the client before agreeing to perform the assignment;

2. take all steps necessary or appropriate to complete the assignment competently; and

3. describe, in the report, the lack of knowledge and/or experience and the steps taken to complete the assignment competently.

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There are many different types of advanced assignments that are needed and requested by the client. These may include:

• Donation – Gift

• Tax Settlements

• Criminal/Litigation

• Federal Government – Federal & State Tax

• Dissolution – Bankruptcy

• Inheritance – Equitable Distribution

• Estate – Living Trusts

• Financial Settlements

With all of the different types of assignments, you must be aware of the current Federal and State laws and definitions that will apply to your report’s purpose.

Definition of Fair Market Value:

The price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts. (Treasury Regulation §1.170A-1(c)(2))

This definition is hypothetical and not a consummated sale. However, there is one conceptual exception for estate and gift taxes, the IRS implies that one should prove the item can be bought at that value. And for charitable donations, the IRS infers that one should prove that you can sell the item for that value.

Regardless, you must consider the condition of the jewelry under appraisement when selecting the relevant market. The condition of estate jewelry or previously-owned jewelry sold to the public in the secondary markets by jewelers and dealers has always been improved prior to sale to increase price and stability. Such improvements may include repairs, polishing metal and gemstones, laboratory reports, replacing missing or damaged stones, or repair of a watch movement. Pieces in worn or damaged condition are seldom sold to the public at this dealer/jeweler market level without repairs or improvements.

When you are doing extensive research, you will be looking in the different jewelry markets from retail, eCommerce, auction, wholesale, pawnshops, and estate sales. After you identify the market, you need to investigate the market level: high, medium, low retail, eCommerce, auction high end to local, secondary markets such as estate shops, eBay, estate/garage sales, etc. There are many different levels that you may need to research.

In most cases, you will be exploring the Market Value, which is a type of value, stated as an opinion, that presumes the transfer of property (right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal (USPAP). The most probable price that a property should bring on a competitive and open market under all conditions is requisite to a fair sale, the buyer and seller each acting prudently and knowledgeable, and assuming the price is not affected by undue stimulus. Implicit in the definition of Market Value is the consummation of a sale as of a specified date and the passing of property from seller and buyer. Whereby;

• Buyer and seller are typically motivated

• Both parties are well informed & acting in their own best interests

• A reasonable time is allowed in the marketplace

• Payment in U.S. cash or financial arrangements (transactions disclosed)

• The price represents the normal average

APPRAISING


There is also a concept called the “Broad Evidence Rule.” Simply put, you have to examine the item from every different direction. It is considered and implemented in many states, in which actual cash value is being replaced through case law and state legislation. Different states subscribe to different rules. You must be aware of the rules in which the state the assignment is based. In California, Actual Cash Value and Fair Market Value are cited as the same. (Jefferson Insurance Company of New York v. Superior Court of Alameda County, 1970 475P.2d 880). In Pennsylvania, the law gives actual cash value the meaning of replacement cost (Judge v. Celina Mut. Ins. Co. 1982 449 A.2d 58).

Here are a few reference points under www.irs.gov:

Estate Tax – IRS Pub 706 – Form 8971

Donations – IRS Pub 526 – Form 8283

Gift Tax – IRS Pub 709

Casualty Loss – IRS Pub 547

Charitable Contribution – IRS Pub 561

Bankruptcy – IRS Pub 908 – Form 1040

Appraising for Federal Tax returns can have serious consequences for the appraiser. Penalties for substantial and gross valuation misstatements that result in reducing the amount of taxes owed can be levied against both the tax payer and the appraiser. The appraiser can be further prohibited from practicing before the IRS by the Office of Professional Responsibility.

Writing the Report

Now you have to write a story—your appraisal is a story. You have the beginning, which is the cover or transmittal letter. You have the middle of the appraisal: the scope of work and the item description and detail. Lastly, you have the conclusion of the story, which is your opinion of value.

Do not appraise to a higher consciousness because you think you are going to court. Give it the same due diligence, moral, and ethical business practice.

Regardless of what type of assignment and report you write, an appraiser must perform every appraisal as if you will be defending it in the court of law.

Key Takeaways

• As an appraiser, you must always be independent, impartial, and objective.

• The appraiser is responsible for understanding the assignment and determining the correct Type of Value for each specific assignment.

• As an appraiser, you can never be bias or an advocate.

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AUTHENTICATION VS. IDENTIFICATION

Joel Hassler, ICGA and CGA Instructor, Von Hasle Jewelry Advisers

These are two terms that often get confused or used interchangeably. While related, they are different, and a competent appraiser should know the difference. Let us start with some simple definitions.

Authentication: is the process of reviewing evidence, achieved by examining value elements (i.e., factors), resulting in proof. It is a qualitative, scholarly opinion. Identification: is a process that involves first-hand examination of personal property. This involves examining the intrinsic characteristics of the item that is being appraised. Identification is a quantitative, scientific process.

Identification is a part of the authentication process. It is usually one of the first steps. When describing the items, your goal is to prepare a description thoroughly and accurately enough that someone without specialized education in a given field can identify it and not confuse it with other property. Consider this statement from the IRS:

Your goal is not to list every detail of an item but rather all the value elements needed to compare other items to determine a value properly. You will often see this in diamond plots on grading reports, something to the effect of “Not all inclusions are plotted.” The amount of detail required will vary from piece-to-piece, but would include things like:

• Metal purity and weight

• Dimensions

• Copyright/trademarks

• Gemstone qualities

A good rule of thumb is that the higher the value, the more detail you will need to compare items properly. Color and clarity might be sufficient when determining the value of .20ct round brilliant, but obviously, a 4ct would require a lot more to compare it against others properly. The range of value would be too great if, for example, you did not describe the polish, symmetry, or fluorescence. Sadly, we see a lack of detailed descriptions all too often on poorly prepared appraisals and even in poorly detailed sales receipts.

Authentication is still an opinion, but it is an opinion involving extrinsic elements. In reality, appraisers rarely authenticate the items being appraised.

A jewelry appraiser will most commonly come across authentication situations dealing with copyright/trademarks found on pieces of jewelry. By simply identifying and noting a mark of a particular designer does not automatically make it authentic. Unless you have followed proper authentication steps, it is best to state that an item “bears a trademark attributed to…” as opposed to “the ring was made by…” when reporting the details of the item.

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“A description of the property in sufficient detail for a person who is not generally familiar with the type of property to ascertain that the property that was appraised is the property that was contributed.”


A client may offer additional information with the piece, such as previous appraisals, laboratory grading reports, or sales receipts. They can sometimes help determine authentication, but it will still be up to the appraiser to determine the information’s validity. An unmarked ring with a handwritten note from grandma about a trip with her father to New York City where the ring was purchased from Tiffany’s will probably not help determine authenticity like a receipt from Tiffany’s describing the item in sufficient detail would be.

Another example often encountered by jewelry appraisers is that of a high-end watch. If you are only going off the readily apparent identity of the item, it is hard to authenticate the watch as genuine. An appraiser with the capability to remove the back of the watch and inspect the movement will better be able to authenticate it. Even with that capability, if the appraiser does not have the requisite knowledge, he or she might still only be able to indicate if the movement has particular markings. They still might not be able to authenticate properly. Further steps might be needed to properly authentic the item. This is particularly important if authenticity means the value would change significantly.

It is important to have proper statements in your appraisal reports to explain the level of identification or authentication that you are competent to perform. This might change from assignment-to-assignment and should be explained as such.

As with any opinion, expert or otherwise, they can change. The opinion is only as good as the research and experience of the appraiser. Its possible additional information may be uncovered that would prove or disprove the opinion. In the initial appraisal of Grandma’s ring, you were unable to determine the authenticity of the piece with the information provided and valued it appropriately. But years later, when cleaning out a safe deposit box, a receipt and business card are found tucked inside a Tiffany’s box that matches the description of the ring. You would be able to change your original findings and value conclusions based on this additional information.

Only you can make the determination of your competence to properly execute an appraisal assignment. If the assignment requires authentication, are you properly trained to do it? Will you need to employ the services of others, such as a laboratory or a service center? You should have conversations with your client upfront about the potential importance of authentication. If, after discussing with your client, the decision is made to limit the identification or authentication of the items, it is crucial that you adequately disclose those limitations in your report.

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SAFEGUARDING OF CLIENT DATA

Joel Hassler, ICGA and CGA Instructor, Von Hasle Jewelry Advisers

While the Gramm-Leach-Bliley Act of 1999 dealt primarily with the consolidation and merging of financial institutions, it did carry some provisions and rules that apply to appraisers. Specifically, it requires financial institutions to explain their information-sharing practices to their customers and to safeguard nonpublic information.

“What does that have to do with appraisers? We are not financial institutions!” Quite the opposite, according to the Code of Federal Regulations, [§ 4(k)(4)(F); 12 C.F.R. § 225.28] real estate and personal property appraisers are specifically listed and considered to be such.

What is considered “nonpublic information?” Nonpublic information (NPI) is defined as: “personally identifiable financial information” that a financial institution collects about an individual in connection with providing a financial product or service, unless that information is otherwise “publicly available.”

The amount and type of NPI you come across will vary from assignment to assignment. It might include name, address, social security or tax ID number, or information about their personal property.

Because of the nature of the industry, professional jewelers have usually had good confidentiality practices. While a retail jeweler is not specifically listed as a financial institution, it is more important (and legally important) that jewelers acting as appraisers follow these rules to ensure compliance.

Again, we look to the Code of Federal Regulations for what the standards are.

Title 16 314.3 Standards for safeguarding customer information.

a. Information security program. You shall develop, implement, and maintain a comprehensive information security program that is written in one or more readily accessible parts and contains administrative, technical, and physical safeguards that are appropriate to your size and complexity, the nature and scope of your activities, and the sensitivity of any customer information at issue. Such safeguards shall include the elements set forth in §314.4 and shall be reasonably designed to achieve the objectives of this part, as set forth in paragraph (b) of this section.

b. Objectives. The objectives of section 501(b) of the Act, and of this part, are to:

1. Ensure the security and confidentiality of customer information;

2. Protect against any anticipated threats or hazards to the security or integrity of such information; and

3. Protect against unauthorized access to or use of such information that could result in substantial harm or inconvenience to any customer.

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314.4 Elements.

In order to develop, implement, and maintain your information security program, you shall:

a. Designate an employee or employees to coordinate your information security program.

b. Identify reasonably foreseeable internal and external risks to the security, confidentiality, and integrity of customer information that could result in the unauthorized disclosure, misuse, alteration, destruction, or other compromises of such information, and assess the sufficiency of any safeguards in place to control these risks. At a minimum, such a risk assessment should include consideration of risks in each relevant area of your operations, including:

1. Employee training and management;

2. Information systems, including network and software design, as well as information processing, storage, transmission and disposal; and

3. Detecting, preventing, and responding to attacks, intrusions, or other systems failures.

c. Design and implement information safeguards to control the risks you identify through risk assessment, and regularly test or otherwise monitor effectiveness of the safeguards’ key controls, systems, and procedures.

d. Oversee service providers, by:

1. Taking reasonable steps to select and retain service providers that are capable of maintaining appropriate safeguards for the customer information at issue; and

2. Requiring your service providers by contract to implement and maintain such safeguards.

e. Evaluate and adjust your information security program in light of the results of the testing and monitoring required by the paragraph (c) of this section; any material changes to your operations or business arrangements; or any other circumstances that you know or have reason to know may have a material impact on your information security program. There are other segments of the Gramm-Leach-Bliley Act and the Code of Federal Regulations not included here that might be relevant to your existing business practices. Appraisers need to read and understand the requirements and implement programs and policies that work within their stores or appraisal practices. Using boilerplate disclaimers or polices “copy and pasted” from other sources is not recommended. Your statements and policies should reflect your business and the steps you have put in place.

Key Takeaways

• Even though most in the industry are not labeled as financial institutions, all jewelers must ensure they are acting as appraisers and staying compliant with these set guidelines

• Each assignment will have different types and amounts of NPI, and jewelers must adjust accordingly while explaining their information-sharing practices to their customers.

• It is crucial that your business develops, implements, and maintains a comprehensive information security program that is written in one or more readily accessible ways, and contains safeguards that are appropriate to your business size and complexity.

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APPRAISAL SELF DEFENSE

William D. Hoefer, Jr., www.AppraiserUnderOath.com

Appraisal theory education is the most powerful tool which you can use to change your appraisal practice. In the push and shove world of appraising, a valuator needs to have a backup. The best option when you are unsure of which value to report is the broad evidence rule.1

In the Beginning…

A lot of appraisers will say that to learn advanced methodologies is a waste of time. Why? Because they only do insurance appraisals. Well, this advanced technique was court invented for use in insurance casualty loss situations.2 It came about because, for a single item, there can exist multiple markets that equally or near equally sell the item. Which one does an appraiser rely on for researching market activity? Or what if there is more than one way to determine the cost of reproduction? The court stated, “. . . The Broad Evidence Rule permits the consideration of all evidence logically related to the formation of an accurate estimate of the value of the destroyed or damaged property, for the purpose of ascertaining the ‘actual cash value’ at the time of the loss. In applying this rule it is not necessary to abandon consideration of either market or reproduction values, but they must be viewed merely as guides and not the sole determinative in arriving at ‘actual cash value.’” 3

Here are the Gears

You have researched two markets that have adequate activity, but you cannot decide which market is the prevailing one. Which one do you select for your value conclusion? Is this a dilemma? No. Report a value conclusion for both markets and then provide an explanation of which one you believe is the prevailing market. Let the insurer, insured, arbitrator, umpire, or trier of fact decide the final value to be applied.

Need a real-world example? Your client has a diamond with a not-so-recognized laboratory report. Do you just ignore the report since it may not be reliable or rely on it for the value conclusion? Why not just report both possibilities? One conclusion is based on the laboratory report and the other one is based on your quality determination. Let the client and insurer haggle out the result!

Broad evidence can involve multiple markets, physical variables, value conclusions, etc. For example, in a full casualty loss in some states, one may report acquisition cost, fair market value, cost of replacement, cost of reproduction, cost of reconstruction, value to the owner, and value in use. Whew!

Expand your Horizons

A lender wants to loan money to a business selling gemstones. If the borrower defaults, how will the lender sell the items to recoup their money? Two factors dictate which markets are to be researched, namely, how much time does the lender have to wait for their money, and do they have access to certain markets . The less time they want to wait, then the less they will get. Thus, the proper market might be quick or orderly liquidation if they want an instant or near-instant sale. However, if the lender has adequate time, the goods will achieve better monetary returns. Also, will they want someone to broker the inventory who has access to the trade or sell directly to the public, perhaps through an auction? Each choice will result in a different value outcome. If the lender is not sure or does not want to stipulate a specific valuation avenue, then broad evidence applies.

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Generally, in calculating damages in property loss cases,5 one may determine value before and after damage occurs. Another approach is to determine the cost of restoration with materials of like kind and quality. You will find the two values are different. Why not just report both and let the court figure it out? That is what broad evidence is all about!

If there are dissenting opinions, then apply the broad evidence rule. The diamond grading laboratory instance above is one example. If there are hypothetical variables, then use broad evidence. You are appraising a diamond that was lost and not available for authentication. Was it natural or synthetic? Apply the broad evidence rule and report both possibilities.

After All

You will discover that the broad evidence rule will lessen your liability exposure. It will also enhance your professional appearance with your clientele.

Key Takeaways

• Let your appraisal client and the intended third party relying on the appraisal decide which value conclusion fits their needs.

• Since an appraisal is to report all information, why make the decision of which value, marketplace activity, or quality calls to report?

• Just take the legal arena’s suggestion and report it all.

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1 More commonly called broad evidence.

2 Actual cash value policies which pay in a full casualty loss the value at the time of the loss.

3 187 A. 2d 326.

4 Wholesale for example is not an option for the public.

5 Not insurance scenarios.

6 Called compensatory damages.


THE LOYALTY LOOP: THE SMALL THINGS THAT ADD UP TO BIG BUSINESS

Andrew M. Davis, Monumental Shift

I don’t need to tell you that consumer behavior has changed a lot in the last decade, let alone the last century. So why is it that the marketing and sales model hasn’t evolved in the previous 123 years?

Yes. The Marketing and Sales Funnel was invented in 1898 by St. Elmo Lewis.

The funnel relies solely on our ability to raise awareness for our brand: not enough customers coming through your doors? That’s okay. Buy some ads. Raise awareness. Social media and the internet have changed the way we buy. Perhaps there’s a better model for a more modern consumer?

It turns out some of the most successful businesses in the world aren’t filling their funnel with low-quality leads. Instead, they’re leveraging the customers, clients, and prospects they’ve got to acquire more of the customers they want. They focus on crafting a Loyalty Loop Experience.

BUSINESS MANAGEMENT


A Loyalty Loop experience is simply a series of encounters that leave a positive impression. Imagine attaching an emoji to every micro-moment in their customer’s experience with the brand. That appointment confirmation to shop for an engagement ring might get a from their client! The selection of rings your jeweler pre-selected before the client walked in the door might get a from your customer. Or, that follow-up phone call a few days after their engagement might leave your customer with a or a .

It’s these emotional micro-encounters that allow companies like Tulsa Renew, Domino’s Pizza, and Rent The Runway to sell their products and services at higher margins. According to research from PWC, 86% of buyers are willing to pay more for a great customer experience. But how do you create a great customer experience?

It turns out there are six key Loyalty Loop drivers. Six things the best businesses in the world do to create micro-moments that have a massive impact.

1. Answer The Trigger Question: There are a minimal number of questions that pop into your customer’s minds every time they begin their buying journey with you. These questions are called Trigger Questions. It might be a pricing question or a simple educational question. Often, they don’t ask it, but it is there in the back of their mind. Loyalty Loop brands answer the trigger question as fast as possible, putting their prospect’s mind at ease and earning trust quickly.

2. Remove the Friction: Just because everyone in the industry does things this way or that way doesn’t mean it’s the right way. Removing even one form field or one small hurdle from the consumer’s experience can make your experience feel better than everyone else’s. Find the minor friction points in your (and the industry’s) customer experience and remove them.

3. Scale Camaraderie: We live in a world where one can go online and buy anything from anyone. We don’t need to know the store owner or meet the sales associates. Ironically, massive brands like Domino’s pizza have used technology like their Pizza Tracker to build mutual trust and respect between you (the customer) and the people behind the brand. “Brandy has just put your pizza in the oven.” The app tells you. They’re scaling camaraderie. We live in a world where people power the brand. Share your team with the clients and customers you serve.

4. Raising Anticipation: While we’re ordering pizza, the Domino’s Order Tracker itself is a perfect example of turning a task into an experience. The act of tracking your pizza’s progress raises anticipation for the product’s arrival in your life. When your pizza does arrive, you are more excited about the pizza than the moment you ordered it. The order tracker raises anticipation for the next step in the process. What are you doing to raise anticipation for the next step in your experience?

5. Maximize The Honeymoon Phase: One of the keys to getting more referrals and reviews more often is knowing when to ask for them. At Rent The Runway, they’ve realized that the best time to ask for a review and a referral isn’t when the gown arrives. It’s after they’ve worn it to a significant event, like a wedding reception or holiday party. Because only after they’ve received a ton of compliments from their fellow guests are they confident in the way they look. The result: are a ton of glowing reviews and gushing referrals. At Rent The Runway, they call this phenomenon the Afterparty Glow Moment. What’s your afterparty glow moment?

6. Re-Inspire: The most successful brands in the world don’t end their experience with a request for a review or referral. Instead, they challenge themselves to send the very same customer on a new journey they never expected. They create the next Moment of Inspiration: an instant in time that introduces a new trigger question. If timed right and sparked by your interactions, you’re sending your customer back to Loyalty Loop driver number one. (Answer the trigger question.)

BUSINESS MANAGEMENT


And suddenly, you’re starting a new loop with an old customer. On and on it goes, like a slinky, this is the Loyalty Loop in action. The six simple things that add up to big business.

Key Takeaways

• In 1898, St. Elmo Lewis invented The Marketing Funnel. It’s time we rethink the way we market and sell to a modern consumer.

• A Loyalty Loop is a series of encounters that leave an impression.

• There are six simple Loyalty Loop drivers any business can use to craft an experience that increases margins and drives revenue.

• The six Loyalty Loop Drivers are: Answer the trigger question, remove friction, scale camaraderie, raise anticipation, maximize the honeymoon phase, and reinspire the next loop.

BUSINESS MANAGEMENT


PROTECT YOUR JEWELRY BUSINESS FROM CYBERCRIME

Larry Spicer, Jewelers Mutual Group

As we have seen during the COVID-19 pandemic, many small businesses are turning to e-commerce as an additional way to reach their customer base and make sales. These digital e-commerce platforms provide convenience for the consumer as well as efficient and seamless payment processes.

As e-commerce technology continues to evolve and become more sophisticated, criminals are developing tactics to target your assets without ever stepping foot inside your business.

Common types of cybercrime:

• Identity theft using phishing techniques via email, text, or phone call.

• Setting up fake accounts that mimic those of a company’s suppliers, and then asking for payment to that account.

• Taking over a store’s mailing system to obtain private information from its customers.

The best way for you to protect your business and customers is to be aware of your vulnerabilities and implement steps to strengthen your security.

Even if you do not sell inventory online, any computer connected to the internet can become a target, a source of attempted crime. This is even more relevant if you have a broadband connection using either a cable or DSL connection that is always on.

Other security tips include:

• Add security and anti-virus/anti-malware software to any computer connected to the internet. Depending on how you use the internet, increase the levels of intrusion protection and detection including firewalls making certain to change the product default passwords.

• Keep your systems current with applicable vendor security patches and update anti-virus/anti-malware software weekly or even daily.

• Take extreme caution when opening and downloading email attachments unless you know exactly what it is and that it’s from a reliable source.

• Take extreme caution when clicking on links in emails unless you know it is from a reliable source. Email phishing is the most common way computers are compromised.

• Protect access to inventory records or financial records stored on computers to prevent disgruntled or former employees from stealing, altering or destroying important business data.

• Protect data that is stored—restrict access, use security software to encrypt data, and do not retain data for longer than necessary. Protect both the primary source and any backups.

BUSINESS MANAGEMENT


• Use access protection methods, such as strong passwords or passphrases, to prevent access to unauthorized persons. Multi-factor authentication is recommended when connecting to systems remotely.

• Back up and save computer data regularly. Test the back-ups often and store the back-ups at a site away from your business location. Encrypting backups is recommended.

Security tips for taking payment cards

Payment card processing can be overwhelming and expensive, and is sometimes referred to as a necessary evil for small businesses.

When making sales by payment card transaction, there are a few considerations to keep in mind. The first is the type of payment card being used—a chipped Europay, Mastercard and Visa (EMV) or non-chipped (magnetic stripe) card. Chipped cards are much harder for criminals to duplicate making the unchipped version more of a target. This means there is a higher risk when conducting sales with unchipped cards.

It’s a good idea to create a committed practice around payment card acceptance that’s written into your store policy. Here are a few best practices that could be written into the policy.

Payment card transaction best practices

• Follow the rules set out in the merchant account agreement for accepting payment by way of payment cards. If you don’t, and a sale is determined to be fraudulent, there is a slim chance of recovering the loss, even if you have insurance that covers this type of loss.

• Match the signature to the name on the payment card. Take the extra time to read it closely, don’t just check to see if there is a signature.

• Check the payment card for a signature on the back. If it doesn’t have one, get the client to produce another form of ID with their name and signature on it, then have them sign the payment card so you can compare. Check the other ID to make sure the name matches the signature on the payment card as well.

• Verify that the signatures compare if you have after-sales programs, such as free cleaning and servicing for a year, that involve a client signature to sign up.

• Accepting payment cards over the phone. Require the following pieces of information for every card payment you take over the phone:

• Complete card number

• Expiration date

• Security code/CVV code

• Billing ZIP code (match the billing and shipping zip codes while on the phone, if they are different, ask the customer why they don’t match)

• On the signature line of the receipt, write “phone order” and file the paper receipt. When shipping the order, purchase tracking for the shipment so you have a paper trail. This will make it more difficult for a customer to claim their goods were not received or it was fraudulent.

• Know your customer. Good sales practice is to have a rapport with a client and obtain their name and remember it. This happens at the front end of a potential sale before a payment card is presented. When/if a payment card is presented, verify the name they provided matches the name on the payment card.

• For added security, you can also protect your business with a cyber liability insurance policy. This covers the loss of money incurred due to financial fraud, as well as liability claims where there is a duty to defend lawsuits or regulatory penalties are incurred.

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Key Takeaways

• Three common types of cybercrime:

1. Identity theft using phishing techniques via email, text, or phone call.

2. Setting up fake accounts that mimic those of a company’s suppliers, and then asking for payment to that account.

3. Taking over a store’s mailing system to obtain private information from its customers.

• Be aware of your cyber vulnerabilities and implement steps to strengthen your security.

• Create a committed practice around payment card acceptance that’s written into your store policy.

BUSINESS MANAGEMENT


THE BIONIC CONSUMER

Zontee Hou, Media Volery

Think about how your customer makes decisions today. She’s not only coming into your store or going to your website. In fact, she’s often starting with a Google search or scrolling through her Instagram feed for inspiration. Every 60 seconds there are 4.4 million Google searches conducted and 350 million tweets sent, according to Smart Insights. The digital ecosystem in which our customers operate every day has trained them to go to the internet first to learn as much as they can about every topic.

According to research by Forrester, a consumer-based research company, the average person consumes 11.4 pieces of content before making a purchase decision. This bionic consumer has the power of the internet at their fingertips, and they’re not afraid to harness it.

While consumers have more resources than ever, they want more reassurance than ever. Brands that help customers wade through the complicated decisions, while also providing validation and guidance are the ones that customers will come back to and recommend to others. Are you making it simple for customers to do their research online with your brand? Are you providing the same consistent experience when they enter your store?

Simplify customers’ navigation. If your brand is focused on engagement jewelry or antique jewelry, this should immediately be clear to customers wherever they find you. On your website, this means that your navigation and home page “hero image” (the largest, eye-level banner area of your home page) should have options specifically for people shopping for those categories. On your social media, it means that your Instagram “Highlights” (the perpetual Stories-format posts at the top of your profile page) and your Pinterest boards should specifically address common questions and showcase products related to your key areas. In-store, this means having signage to guide them to those categories quickly–the bionic consumer wants to serve themselves first before having to interact with a salesperson.

Anticipate the needs and questions of your customers. Content marketing or creating and promoting resources that help your customers to address their needs and questions is a great way to support the bionic consumer. Not only are these assets, such as blog posts, ebooks, infographics, and videos, great for search engine optimization (SEO) which helps customers find your brand online and on social channels, but they are extremely valuable to building trust when your customer explores your website, gets an email from you with these resources, or is in-store and scans a QR code or grabs a booklet that provides the kinds of answers they are looking for.

Highlight social proof when possible. Have you ever gone to a busy restaurant row in a new neighborhood and window-shopped the restaurants? You tend to be more interested in those restaurants with lots of customers and skip those that are entirely empty. You’re looking for social proof. Social proof is a concept from behavioral economics: when we have limited other information, we tend to go with the herd and trust actions and brands that others are engaging with too.

BUSINESS MANAGEMENT

Example above: Long’s “The Rookie’s Guide to Buying an Engagement Ring”


On your website, this may mean collecting reviews on product pages, using testimonials throughout your content, and showcasing customers’ social media photos within a footer or sidebar. In social media, social proof includes reposting customers’ photos and also highlighting their testimonials as quote graphics. In-store, subtle signage to indicate “bestsellers” and “fan favorites” can help to drive this message home. In past years, celebrity endorsements were particularly coveted by brands, but nowadays, even the average person can be a persuasive voice in social media if the story is compelling enough.

Ask your customers—they want to tell you. Year-over-year, customers expect more personalization from their digital and brand experiences. To customize your website experience to your customer, it’s as simple as having different landing pages for different use-case scenarios. Create pages specifically for gift-shoppers, engagement shoppers, and “treat yourself” shoppers. Let them navigate to those pages.

Or leverage quizzes to help customers sort through their options and send them lists of products specific to their answers (this type of email can easily be automated in most email marketing tools). You can even ask your customers to join informal advisory boards (essentially an opt-in email list where you send polls, questions, and sneak peeks) so they can vote on new colorways or packaging, new messaging, and get first looks at new products. People who are invited to co-create with brands are more loyal and more engaged because they know the brand values their opinions.

You should be bionic too. With all of the marketing created through these online/offline digital means, your customers are leaving their footprints in the digital sand. Be sure that you are A/B testing your marketing (testing multiple versions of copy or graphics to see which one performs most strongly), connecting these metrics to business results (Do you see a lift in sales when a new guide comes out? Do people click on product pages from your blog?) and using social listening (tools to aggregate social media conversations) and surveys to see what resonates with your customers.

Key Takeaways

• Your customers have the power of the internet at their disposal anytime and anywhere.

• To help them buy, reassure them that the decisions they’re making are the right ones for their needs through social proof, guidance, and transparency.

• Customers need a lot of information before they buy—the average person consumes 11.4 pieces of content before their purchase, according to Forrester—make sure you are giving your customers many different touchpoints to engage with.

• The right content isn’t a given; testing, measuring, and listening to customer feedback is essential to iterating your marketing to get it right.

BUSINESS MANAGEMENT


NO ONE NOTICED BUT THE BOTTOM LINE

Abe Sherman, Buyers Intelligence Group (BIG)

I asked the jeweler how her business increased gross profits by 5% over the past year. “We did two things; we increased our markup slightly in specific categories and price points, and we clamped-down on discounting.” And then she said, “And no one noticed but the bottom line.” That line was just too good not to share!

Improving your bottom line is a challenge for many retailers. We tend to follow the same patterns of pricing behavior over time (years and even generations) and therefore, markup and discounting wind up becoming a part of our culture. Instead, retailers should develop a net profit strategy. We have an advantage in this area since we analyze dozens of retailers’ financial statements through our Plexus groups and compare every line item of the Income Statement from Sales, Cost of Goods, Gross Profit, and Expenses. When compared side-by-side, it becomes immediately apparent which companies are driven by top-line sales, compared with those who work to improve their bottom line. Improving one’s bottom line is not about increasing sales, as you will read below.

Is it easy to improve one’s bottom line? No, it is not always easy. But it is infinitely easier when you understand how to read your financial statements and which levers to move (up or down) in order to get the results you want. If your net profit is less than 5%, you definitely have some work to do. If you are netting between 5—10% of sales, you are pretty average, but moving your net profit up by one or two points per year is obtainable. The most profitable retailers we work with will regularly put more than 15% of Total Sales to the bottom line (and for our purposes, we encourage you to remove depreciation from your numbers to see where you stand).

Unfortunately, accountants like to do things with financial statements, such as depreciate inventory for tax purposes, that mask what is actually happening in the business. Therefore, it also masks what needs to be improved. Do you have a markup problem or a discounting problem? These are the questions that start a net profit discussion. We recommend you do two to three years of both your “Income Statement” and your “Balance Sheet” to see the changes from year to year. If your financial reports are well-designed, each segment of your business should be analyzed. Breaking “Income” into several categories is a good practice. For example:

• Showcase Sales

• Special Orders

• Custom Repairs

Total Sales

The reason it is important to see each area of your income in this way, is so you can understand if you need to improve your gross profit in your Custom Sales, as an example, rather than your Showcase Sales. If you only have one-line item called Sales, you won’t be able to see this. For expenses, we go much deeper since there are so many expense categories to review and manage. Expenses can be thought of in two general areas, Labor & Operating Expenses. Labor is straight forward and includes:

• Sales Salaries and Hourly Wages

• Sales Commissions and Bonuses

• Dedicated Marketing Staff Salaries and Wages

• Administrative Salaries and Bonuses

• Employee Health Insurance

• Other Employee Costs Excluding Health Insurance

• Unallocated Payroll

Total Labor Costs

Operating Expenses also includes just a few broad categories:

• Selling Expenses

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• Occupancy Expenses

• General and Administrative Expenses

Total Operating Expenses

If you are among those jewelers who are very comfortable with your financial statements, you should understand each of these revenue areas and every line item of expenses. Managing your company to improve your bottom line requires regular analysis of all of your numbers and in a format that makes sense to you so you can understand which levers to move up or down. We recommend you work with your accountant at least quarterly (although monthly is even better), analyzing your financials until you can see your numbers with your eyes closed.

And when you decide to move your gross profit up a few points and cut your expenses by a few points, I promise that no one will notice but your bottom line.

Key Takeaways

• Your financial statements should explain how each segment of your business is performing.

• It is vital for you to understand both your Income Statement (Profit & Loss Statement) as well as your Balance Sheet

• Work with your accountant every month (at least quarterly) to review your statements.

BUSINESS MANAGEMENT


BUSINESS TRANSITION AND SUCCESSION PLANNING

William Boyajian, Bill Boyajian and Associates

In real estate the most important consideration is location. In family businesses, it’s business transition and succession. It is inevitable that owners will leave their business one way or another. They can leave it with pride if they create a transition plan that makes sense for them and for their successor. Or they can leave it in defeat if they fail to plan properly or abstain from their responsibility.

As e-commerce technology continues to evolve and become more sophisticated, criminals are developing tactics to target your assets without ever stepping foot inside your business.

The Ultimate Business Challenge. For most family-business owners, determining the best exit strategy, transition opportunity, or succession plan is the ultimate business challenge and the final test of their stewardship. Unfortunately, trudging through the process of business transition and succession planning is a grind that most business owners would prefer not to take. Many avoid it, and the result often becomes decisions made by lawyers, accountants, and sometimes the government.

Why Must Plans Be Made? There are two key reasons why planning is critical. First, there is the financial aspect. Owners work hard to build a business over several decades, so realization of the financial reward for doing so is important. Logic tells us that plans must be made in order to ensure an owner’s post-retirement security and ultimately minimize estate taxes. Owners have a number of business transition options, but maximizing the financial return on investment under the most favorable terms and conditions is a high priority.

The second reason planning is critical is the personal impact of transitioning the business. As practical as it is to want to retire comfortably, concerns about leaving the business, who to leave it to, how that affects family relationships, and how it impacts owners emotionally are all vital considerations. Letting go of a business that owners have spent a lifetime building—and into which they have invested a considerable amount of self-esteem—is often a very troubling experience, even if the goal is to leave the business to a son or daughter. And if closing down the business is the alternative chosen, the emotions surrounding such finality in a company that may have existed for generations are even more painful.

Why Don’t Owners Plan? Well, it’s not because they think they’ll live forever. Most simply find it hard to think about the inevitable. It’s the same reason wills and estate plans don’t get done when they should. No one likes to think about death or disability, or about making strategic decisions about children or heirs, or about becoming marginalized or expendable when human nature tells us how important we are to the business. Let’s face it, letting go of a powerful, prestigious, and fulfilling position for a seemingly uncertain future isn’t particularly inviting. That is unless an owner has something to look forward to, such as travel, hobbies, relief from the daily grind, and a flexible schedule that should be the envy of most any retirement-aged person. But many business owners find it easier to ignore the strategic planning they should do in favor of living with the unknown. In the process, they make everyone around them nervous because the person who should be paving the way to the future refuses to act. Dodging the issue protects the owner from facing reality and making the tough decisions that are necessary for proper succession. It never works and owners are only kidding themselves. They certainly aren’t kidding family members and employees who need to know what the future will hold. Unfortunately, avoiding succession planning doesn’t mean it will never happen. It only means that it will happen under someone else’s watch, and this should scare owners more than tackling a succession plan.

BUSINESS MANAGEMENT


BUSINESS MANAGEMENT

Key Elements of a Good Succession Plan:

• Good, Shared Values. Parents need to have developed good values in their children long before even considering transitioning the business to them.

• Estate & Financial Planning. Parents must have the proper estate and retirement planning in place for a successful transition

• Development of a Successor. The nurturing and development of a successor are vital to orchestrating a good business transition.

• Emotional and Strategic Support by the Outgoing Owner. The retirees need to lead the process and must have the right attitude as they do so.

Smooth Succession. With the right planning, a smooth succession becomes the logical outcome. It happens rather naturally because the elements that need to be in place by the outgoing generation are well-handled: thoughtfully, professionally, and unemotionally. These owners see their role as being good stewards of the business. They have their best interests and those of future shareholders in mind. Effective succession is the ultimate mark of leadership by controlling owners and becomes their greatest legacy.

Key Takeaways:

• For most family-business owners, determining the best exit strategy, transition opportunity, or succession plan is the ultimate business challenge and the final test of an owner’s stewardship.

• Two important reasons for planning for business transition involve the financial and personal aspects of leaving the business.

• Owners often don’t plan for succession effectively because it is hard work and forces important decisions that owners find difficult to make.

• It is the owner’s responsibility to plan for transition and a good succession plan happens rather naturally when the owner handles it thoughtfully, professionally, and unemotionally.


7 WAYS RETAILERS SHOULD WORK TO CREATE A MORE INCLUSIVE SHOPPING EXPERIENCE IN THEIR STORES, ACCORDING TO THE HEAD OF DIVERSITY AND INCLUSION AT UNILEVER.

Mita Malick

The following is an excerpt from the above-titled article in Insider Inc, July 10, 2020, businessinsider.com. Source: Mita Malick, head of diversity and inclusion at Unilever; Accessed 30 March 2021.___________________________________________________________________________________________________________

Excerpt from article:

From my experience as a diversity and inclusion leader, and more importantly as a valued customer, it’s your job to begin to dismantle structural racism that exists in your stores and is experienced by people of color. Here are seven ways you can create a more inclusive shopping experience for me, and countless other Brown and Black People:

1. Hire staff that represents your multicultural customers*

Black, Latinx, and Asian Americans make up 40% of the US population, and together create a combined spending power of $3.2 trillion— something that retailers can no longer ignore.

Diversity of thought doesn’t happen without diversity of representation. Hire staff that represents and can serve this multicultural base. They will come up with new ways to serve your customers and bring innovative thinking to your store. Show you value your staff by focusing on equal pay and benefits, and set targets to ensure diverse representation at managerial and supervisory levels.

2. Have a clear shoplifting policy focused on behavior, not race

Shoplifting can cost the retail industry billions of dollars a year. Retailers need policies to counter shoplifting and policies must be laser-focused on behavior, and not on race. Ensure suspicious behavior is defined, so it does not become synonymous with suspicious people, who could be someone who “looks” or “acts different” because of the color of their skin, their hair, or an accent.

Suspicious behavior can include individuals entering and exiting a store repeatedly without making a purchase, watching the cashier or sales associates, or canvassing the store for security cameras and alarms.

Ensure security guards, who might not be employees of the retailer, also understand the policy. Don’t just write a clearly articulated and well-defined policy and post it—spend the time to educate your staff on all the fine details.

3. Focus on rolling out mandatory training, followed-up with surprise audits

Start with an audit of where the company is on its inclusion journey and assess the needs of your staff. Be specific about your goals to get the most out of trainings and workshops. If you don’t have a Head of Diversity, Equity, and Inclusion, it’s time to hire one.

Be clear on what it means to be an anti-racist organization and support anti-racism. Remember the definition of “unconscious biases,” as defined by UC San Francisco, is “social stereotypes about certain groups of people that individuals form outside their own conscious awareness.”

Unconscious bias can be triggered in a store environment when the stress levels are high and individuals are multi-tasking. At the same time, let’s not use “unconscious bias” to hide or cover racists remarks or acts. Learning to be anti-racist means to own the conscious bias we have when it comes to Brown and Black communities.

Don’t shy away from delving into mistakes from other retailers—including Anthropologie, Zara, Moschino, and Versace, to name a few—as you build your training. Allow space for staff to practice and learn by role-playing scenarios that may come up in-store. This is a good time to also role-play situations that involve your shoplifting policy.

Remember, one-time training isn’t enough. Develop a multi-year plan with multiple touchpoints, and ways to embed continuous learning. Conduct periodic surprise store audits to identify gaps in training, ensure compliance, and terminate non-compliant employees. Ensure these audits are tied to managers’ and supervisors’ compensation.

DIVERSITY & INCLUSION

https://www.businessinsider.com/7-ways-retailers-should-create-a-more-inclusive-shopping-experience-2020-7

https://www.nielsen.com/us/en/insights/podcast/2018/the-database-meeting-todays-multicultural-consumers/

https://www.nielsen.com/us/en/insights/podcast/2018/the-database-meeting-todays-multicultural-consumers/

https://diversity.ucsf.edu/resources/unconscious-bias#:~:text=Unconscious%20biases%20are%20social%20stereotypes,outside%20their%20own%20conscious%20awareness.&text=Unconscious%20bias%20is%20far%20more,activate%20unconscious%20attitudes%20and%20beliefs

https://www.buzzfeednews.com/article/venessawong/anthropologie-employees-allege-racial-profiling-in-stores

https://www.vox.com/the-goods/2019/1/16/18185696/moschino-code-word-serena-black-shoppers-racism


DIVERSITY & INCLUSION

4. Implement a zero-tolerance policy and reinforce it

Create and implement a zero-tolerance policy that provides managers clear guidelines, including behaviors that are not tolerated: racist language, harassment, threats, inappropriate internet use, violent behavior, and other misconduct. This provides managers a framework in place to rely on and reinforce the policy, for both employees and customers.

5. Launch a supplier diversity program to ensure diverse on-shelf representation

Black consumers wield $1.3 trillion in buying power each year. According to Nielsen, they are “conscious shoppers,” and seek to support brands that feature Black talent as well as Black-owned businesses.

Launch a supplier diversity program to source diverse suppliers and vendors, particularly from your local community. This is an opportunity to bring innovation and differentiated products and services to your store, and a critical step to ensure diversity of representation exists in your business.

6. Improve diverse representation in-store images

For example, use plus-size mannequins [or models] gender-neutral clothing, and images of dark-skinned models. Whether it’s displays, posters, ads in circulars and flyers, social media posts and websites, these touchpoints in the customer journey matters. In-store representation matters to create an inclusive shopping experience.

7. Address customer feedback immediately, and tie it to manager compensation

Take customer complaints very seriously. Document them as they are received; both in-store, online, and in your social channels, and promptly forward complaints to store management. Meet customer complaints with sincere apologies that include actions you will take to improve moving forward.

Review themes of complaints on a quarterly basis, both at a store level, and a macro level. Ensure this feedback is tied to store managers’ and district managers’ compensation. Consider spot bonuses for a decrease in customer complaints coupled with an effort to address issues with staff. Consider a decrease in pay and then termination for complaints that are consistently dismissed or ignored.

To read the full article, visit “7 ways retailers should work to create a more inclusive shopping experience in their stores, according to the head of diversity and inclusion at Unilever.”

https://www.nielsen.com/us/en/insights/report/2019/its-in-the-bag-black-consumer-path-to-purchase/





A COMPARISON OF DIAMONDS AND COLORED STONES: GEOGRAPHIC ORIGIN TO GEOLOGY AND MORE

Dr. Karen Smit and Dr. Aaron Palke, Gemological Institute of America

Diamonds and colored stones are often considered to exist in entirely different realms in the gem and jewelry industry. This might partly be due to the fact that they are mined and brought to market so differently. Diamonds are primarily mined in large, industrial-scale operations, while colored stones such as rubies, sapphires and emeralds are typically produced by smaller-scale, often artisanal, operations. Their quality is also assessed very differently. Nonetheless, both diamonds and colored stones have helped scientists unlock secrets about Earth’s geology.

Please be advised this abstract is a summary of the content found in its related webinar. To learn more, please view the webinar in it’s entirety by visiting the link below.

Webinar link: www.youtube.com/watch?v=23ZBrNmo-Jo

Abstract:

To determine the age of any rock or mineral, scientists utilize radiogenic isotopes, where a parent isotope decays to a daughter The world of gemstones is often neatly divided into three categories—diamonds, colored stones, and pearls. From a geological perspective these distinctions are somewhat arbitrary, especially for diamonds and colored stones. At the end of the day, these gems are all rare and aesthetically pleasing minerals derived from unique geological environments occurring sporadically throughout earth’s history. However, the distinction between diamonds and colored stones persists. In part this is due to differences in the way these gems are mined and brought to the market. The nature of diamond deposits allows them to be mined at an industrial scale whereas colored stone deposits are more often produced by smaller scale, artisanal mining operations.

There are some notable differences between diamonds and colored stones from a mineralogical and geological perspective as well. Diamonds formed deep within the earth in the mantle, which extends from about 60-660 km below the surface. They are brought up from these great depths in volcanic events in formations called kimberlites. The geological conditions of diamond formation tend to be fairly similar from one geographic locale to another leading to broad similarities in the properties of diamonds from various diamond mines. In addition, diamond’s simple crystal structure and chemical formula do not easily incorporate impurity trace elements that might otherwise help distinguish diamonds from different deposits.

Colored stones, on the other hand, largely form in the uppermost layer of the earth called the crust, where there is a greater diversity in geological environments. Most colored stones, like rubies, sapphires, emeralds, and Paraíba tourmaline, tend to have more complex crystal structures and chemical formulae than diamond. This makes it easier to incorporate trace elements that can provide unique chemical fingerprints from one geographic locale to another. Taken together with differences in inclusion characteristics from different deposits, this allows a colored stone’s geographic origin to be independently verified in many cases.

GEMOLOGY

Thank you to GIA for graciously providing the following for inclusion in the American

Gem Society’s Annual Recertification Exam

http://www.youtube.com/watch?v=23ZBrNmo-Jo


DIAMOND AGES: ARE DIAMONDS FOREVER?

Dr. Karen Smit and Dr. Steven Shirey, Gemological Institute of America

Older than the dinosaurs and almost as old as Earth itself, diamonds are windows into the mysteries of our planet’s continuing geologic evolution. How old are the oldest diamonds and are diamonds still forming now? How are diamonds dated and why doesn’t carbon dating work on them? GIA Research Scientist, Dr. Karen Smit, and Senior Staff Scientist, Dr. Steven Shirey, of the Carnegie Institution for Science’s Earth and Planets Lab explore diamond dating and what diamonds teach us about Earth.


Webinar link: www.youtube.com/watch?v=YSDksrpvA9A

Abstract: To determine the age of any rock or mineral, scientists utilize radiogenic isotopes, where a parent isotope decays to a daughter isotope at a known rate (or half-life). The most common isotopic systems that are used to date rocks and minerals are U-Pb, Rb-Sr, Sm-Nd and Re-Os.

Many people think that you can determine an age from a diamond directly. That is actually not the case at all. This is because diamonds are so pure and contain mostly carbon. The diamond lattice contains no radiogenic elements in high enough abundances that can be used for dating. After carbon, the next most abundant element in diamond is nitrogen, and on average, natural diamonds contain only 200–500 parts per million (ppm) N.

The only way for geologists to date diamonds is to break out the mineral inclusions trapped inside and measure the amount of radiogenic isotopes contained in them. Since the late 1990s, the most common method is to measure the amount of Re and Os isotopes in sulfide inclusions. Another method is breaking out garnet and clinopyroxene inclusions and measuring the amount of Sm-Nd and Rb-Sr isotopes. Ages cannot be determined for diamonds that do not contain any mineral inclusions. Among members of the gem trade, mineral trapped within diamonds are not normally considered a desirable feature. However, these rare mineral inclusions are extremely valuable scientifically as they are the only direct samples that geologists have to study Earth at depth; and inclusions in some diamonds have been documented to originate from more than 660 km depths.

The oldest diamonds that have been dated come from Ekati and Diavik in northern Canada. The diamonds that form in peridotite rocks have been dated to form 3.52 billion years ago. These mines also have younger diamonds that formed in eclogite rocks—these diamonds formed around 1.9 billion years ago. Most localities worldwide have diamonds that are a range of ages, meaning that they formed in several distinct events between millions and billions of years ago. Diamonds that are known to come from “super-deep”—between 200 and 700 km—have not yet been dated. These include rare Type IIb blue diamonds and the CLIPPIR suite of diamonds. This is an important target for the diamond geology community.

Diamond Destruction

Diamonds are the hardest naturally occurring mineral, but even though they are extraordinarily hard they can still be destroyed. Diamonds break along cleavage planes that lie along the (111) crystallographic planes. This can occur in natural settings, such as during kimberlite eruption, or in an alluvial setting when they may be tumbled with other diamonds in a turbulent river. During mining, diamonds could be broken during blasting, or during ore processing in the plant. An often-overlooked setting for diamond destruction is in the Earth’s mantle—diamonds crystallize from carbon-bearing fluids, but under different conditions, these same fluids may slowly dissolve diamonds. One of the hallmark features of diamond dissolution is trigons on the surface of a rough diamond.

GEMOLOGY



http://www.youtube.com/watch?v=YSDksrpvA9A


HISTORY OF ENGAGEMENT RINGS

Kate Waterman, GG, Gemological Institute of America

Rings have been used as symbols of love throughout history, so it is no wonder that they became part of the tradition of proposing marriage. When did the history of engagement rings start, why are engagement rings placed on the “ring” finger, and how have their styles evolved through the centuries? Tune in as GIA gemology instructor, Kate Waterman, takes us on a journey through the history of one of the most meaningful and popular types of jewelry in the world.


Webinar link: www.youtube.com/watch?v=xMAcJ4JGBwY

Abstract:

There is quite possibly no piece of jewelry that holds more sentimental significance than the engagement ring. We can follow its long history back over two thousand years to Ancient Rome, where the tradition is documented to have first taken hold.

For centuries, the engagement ring represented a contract of marriage, or “present consent,” as opposed to love and romance. Eventually, the token came to be viewed as a visual representation of a couple’s vows, particularly in the eyes of the Christian church and the tradition of wearing it on the left third finger was established on the claim that a “vein of love” ran straight from there to the heart. What once was a humble iron band, evolved through the ages with the incorporation of symbolic design elements and gemstones. Whether it was engraved words of poetry, utilized symbolic motifs, or incorporated the “secret language of gemstones,” engagement rings were used to tell a love story, particularly among the wealthy European aristocrats.

The ages of ruling royalty can be defined by the details found embedded into the jewelry designs, beginning with the bold but refined Georgian period of the 1700s. With the Victorian period came an emergence of the middle-class and the South African diamond discovery changed the future of engagement rings. The Edwardian period focused on ornate elements that flaunted affluence, while Art Nouveau celebrated all things organic. Art Deco was a reflection of WWI ending and embraced a bold spirit, which carried into the Retro era and encapsulated the effects of WWII.

Nothing changed the tradition of jewelry designs more than the introduction of diamonds as a necessary element. In the 1940s, De Beers claimed that “A Diamond is Forever,” and solidified it as the gemstone of choice for engagement rings. Over the last 100 years we can see distinct trends, both new and a re-imagining of past eras, define decade after decade. Modern-day couples are still turning to the historic engagement ring as a symbol of their love, but fewer rules seem to be in place to dictate what they look like.

GEMOLOGY



http://www.youtube.com/watch?v=xMAcJ4JGBwY


MELEE DIAMOND ANALYSIS

Dr. Mike Breeding, Gemological Institute of America

Melee diamonds are the most prevalent stones in the market, and an integral part of the jewelry industry. They represent a new identification challenge owing to their very small size. With the emergence of laboratory-grown diamonds in larger quantities, the ability to efficiently and accurately separate melee-sized natural stones from laboratory-grown diamonds has become critical. Join GIA Senior Research Scientist, Dr. Mike Breeding, as he explores the world of melee diamond analysis and the unique challenges of these small stones.

Please be advised this abstract is a summary of the content found in its related webinar. To learn more, please view the webinar in it’s entirety by visiting the link below. Webinar link: www.youtube.com/watch?v=hgF9Ma2ULVU

Abstract: Among gem diamonds in the jewelry market, melee-sized stones are by far the most prevalent. These tiny faceted diamonds are an integral part of the jewelry industry because they provide the glitz and sparkle of diamond at a price point significantly lower than larger stones, while allowing the beauty to be spread out across jewelry or used to create patterns around larger stones. Melee diamonds comprise all faceted diamonds up to 0.20 ct (according to GIA) and they are usually cut as round shapes (either single or brilliant cut). Being so small, melee is often described by the diameter of the stone instead of the carat weight. For example, a 0.03 ct round melee stone measures 2 mm in diameter.

Melee diamond (yellow or brown color) has been grown in laboratories since the 1950s for use in industrial abrasive applications involving cutting, grinding, and drilling. However, in 2017, the diamond industry witnessed the production of large quantities of near-colorless, melee-sized laboratory-grown gem-quality diamond (produced by the HPHT growth method) coming from China. As much as 200,000 carats per month were reported. New technological developments allowed for growth of individual near-colorless crystals (2-3 mm) using tiny industrial diamonds as seed crystals in both cube {100} and octahedral {111} orientations. In the past, most melee diamonds were considered to be natural and were rarely scrutinized or sent to a gem laboratory for analysis. With the introduction of significant production of laboratory-grown melee in the last few years (mostly HPHT-grown, but some CVD-grown as well), these tiny stones now represent a new and formidable identification challenge due to both their very small sizes and massive quantities.

Many of the same characteristics used to identify larger laboratory-grown diamonds are present in melee stones (inclusions, graining, strain birefringence, phosphorescence, fluorescent growth patterns), but the tiny sizes make visual observations difficult using a loupe or standard gemological microscope. As a result, many desktop-sized screening devices have appeared in the market aimed at separating natural and laboratory-grown melee efficiently. Most of these instruments focus on the phosphorescence properties of laboratory-grown diamonds to identify them. A few others utilize the fact that near-colorless laboratory-grown diamonds are always type IIa to make separations. A couple of devices available, including GIA’s iD100, detect natural fluorescence features to identify directly if a diamond is natural or not. The Natural Diamond Council has conducted tests on most of the available screening instruments, known as Project Assure, to help the trade better understand their capabilities. These results are available to anyone at www.naturaldiamonds.com/council/assure-diamond-verification/. A thorough understanding of the screening tools available and laboratory-grown diamonds themselves is critical for anyone in the gem industry to successfully navigate the modern challenges of melee diamonds.

GEMOLOGY



http://www.youtube.com/watch?v=hgF9Ma2ULVU

http://www.naturaldiamonds.com/council/assure-diamond-verification/


FASCINATING WORLD OF PEARLS AND SHELLS

Nick Sturman, Gemological Institute of America

Do all bivalves, including oysters, clams, and mussels, produce pearls? Which pearl types are the most popular and where are they found? Travel with us as we dive into the world of these rare organic treasures.


Webinar link: www.youtube.com/watch?v=djB4RZ80p50

Abstract:

Although there are thousands of colorful shells in the oceans, lakes, and rivers on our planet, only a limited number actually produce pearls on a regular basis. Prior to the early 20th Century, the pearls found in the mollusks that created these colorful shells were natural, since the art of culturing pearls using shell bead nuclei hadn’t been commercially developed into the industry we witness today. While this means that the majority of pearls encountered in the market today are cultured, either with a nucleus or without one, natural pearls are still found from time to time. The natural pearls can be produced by a whole range of nacreous and non-nacreous mollusks, with some of the most historically notable producers being Pinctada radiata and Pinctada maxima for the nacreous examples, and Lobatus gigas (Queen conch) and species of Melo for the non-nacreous examples. Most of today’s cultured pearls are produced by Pinctada species mollusks, or various freshwater Unionidae family mollusks.

The colors of the pearls found are usually seen to mirror the interiors of the mollusks in which they are found too. The beautiful “golden” hues of the pearls from the gold-lipped Pinctada maxima species, the magnificent range of gray to black pearls from the black-lipped Pinctada margaritifera species, and the mesmerizing pink hues of conch pearls are all testament to this fact. Yet, as with many factors in nature, there are exceptions to the rule and sometimes a pearl’s color does not match that of its host’s shell. When dealing with nature and genetics, such occurrences sometimes arise and it is not always straightforward to explain why they take place. However, it provides additional diversity in an already fascinating world, and mollusks and their pearls are certainly among the most incredible examples of beauty and diversity that exist in nature.

GEMOLOGY



http://www.youtube.com/watch?v=djB4RZ80p50


THE MICROWORLD OF GEMSTONES

Nathan Renfro, Gemological Institute of America

The microscope is one of the most powerful instruments for analyzing gems. The inclusions contained within a gem as well as the features found on the surface can reveal a story about that gem. This microscopic exploration is the beginning to uncovering the secrets hidden within the gemological microcosm.


Webinar link: www.youtube.com/watch?v=ICwDSlzkXaw

Abstract:

Until recently, film was the preferred medium used for capturing images through the microscope, primarily due to resolution limitations of digital-format cameras. The image quality that can now be achieved by digital cameras is equal, and in many ways superior, to the quality offered by film. Digital photomicrography allows gemologists the opportunity to instantly see the resultant images, which can then be adjusted with image-refining software so that they represent their subject as realistically as possible. Widespread implementation of smartphones with high resolutions cameras have made digital photomicrography much more accessible than it was historically by minimizing the cost associated with film photography.

Photomicrographs are images of magnified subjects and can now be recorded in high detail with the modern camera technology of today. Photomicrography, or the act of recording images of magnified subjects, is important in gemology in order to record specific unique features in gemstones that can serve as a “fingerprint” or specific identifying characteristic of a particular stone. Photomicrography can also be used to communicate specific observations to peers. As gemology is largely an observational science, the ability to record those observations can be significant for the gemologist to support conclusions made about a gemstone.

Photomicrography is also a tremendously rewarding aspect of gemology. It appeals to all types of practitioners, from scientists to artists and everyone in between. With technological developments in the last decade, digital-format photography has spurred the development of a wide range of tools to enhance images in ways never before possible. Image processing programs such as Adobe Photoshop and Adobe Lightroom allow the photomicrographer to resolve maximum detail and produce images that look as close as possible to the natural subjects they represent. Focus stacking software such as Helicon Focus allows the photomicrographer to combine a series of images taken at slightly different focal depths into one image with a greater depth of focus that is beyond the limitations of what the optics of the microscope can produce.

Digital photomicrography is an enjoyable aspect of gemology that can produce some really spectacular images. The bright colors and geometric forms often observed in gems are perfect subjects to photograph and can be appreciated as natural examples of art, even on a microscopic scale.

GEMOLOGY



http://www.youtube.com/watch?v=ICwDSlzkXaw


GEOLOGY 101 FOR GEMOLOGISTS: THE NATURAL PROCESSES THAT FORM COLORED GEMSTONES

Wim Vertriest, Gemological Institute of America

What makes a gemstone rare and why are some gems rarer than others? The answer lies in gemstone geology. Some gems, such as emerald, require extraordinary geologic circumstances to form. Not only do different rock types need to meet under the right conditions and crystallize, but certain rare elements often also need to be part of the mixture for the crystal to be the right color. Wim Vertriest, supervisor of field gemology, covers the chemistry of Earth’s crust and the geologic criteria for forming rubies, sapphires, and some of the world’s most valuable gems.


Webinar link: www.youtube.com/watch?v=mDIRqF_02DE

Abstract:

Geology of colored gemstones is one of the most exciting but least explored branches of gemology. Understanding the processes that are behind the natural formation of these gems will only enhance our appreciation of these fine stones.

One of the main challenges in studying the geology of gemstones is that many are mined from secondary deposits. Erosion and weathering have released gems like ruby and sapphire from their original host rock and concentrated them in rivers. This makes the mining process a lot easier but also completely destroys any link with the original formation rocks that might help us understand their geological formation. Some gemstones, like emerald, are mined from primary deposits i.e., directly from their formation rock. For stones mined from primary deposits, we have a much better understanding of the geological conditions under which they formed.

Corundum (ruby and sapphire) is a simple mineral consisting of two extremely common elements in the Earth’s crust: aluminum and oxygen. Then why don’t we find corundum scattered all across the globe? The right chemical elements have to be available, which is often the limiting factor. Aluminum will often be incorporated in silicon-rich minerals like feldspar and amphibole, leaving no aluminum to form corundum. Mineral formation also requires the right pressures and temperatures to form.

The case of emerald is a bit different since it incorporates an incredibly rare element in its mineral structure: beryllium. Luckily, this element tends to concentrate in a certain rock type that we call pegmatite. The presence of beryllium alone is not sufficient to create emeralds, you also need chromium to create the green color in beryl. Chromium is almost never available in pegmatites, so most of the emeralds are formed where pegmatites intrude into rocks where the chromophore is present. The reaction zone is where the green emeralds form.

While there are many complexities and more processes that can form these gems, the ones outlined in this webinar provide an introduction to some of the most important gemstones like Colombian emeralds, Burmese rubies, and Zambian emeralds.

GEMOLOGY



http://www.youtube.com/watch?v=mDIRqF_02DE


A SYMPHONY OF LIGHT—SELLING LIGHT PERFORMANCE WITH THE AGS IDEAL®

Jason Quick, RJ, and Wade Abel, CG, AGS Laboratories

The American Gem Society® (AGS) Light Performance cut grade system, along with the ASET® tool, is a powerful technology that provides insight and understanding into the optical phenomena that make diamonds beautiful. When utilized by master designers, these technologies provide an ideal tool for pushing the boundaries of what’s possible with light performance.

One of the foundational ideas of the AGS Cut grade system is that the best cut diamonds should appear beautiful across the widest possible range of lighting environments. Some illumination environments, like spotlighting, present the best viewing conditions to observe fire, while other lighting environments, like diffused lighting, provide the ideal environments for observing brilliance.

The main point is that regardless of the lighting environment, the best cut diamonds will exhibit a mixture of the attributes that consumers appreciate most with diamonds: brightness, fire, and scintillation. The art and science of diamond design are all about building on this principle to create new and innovative designs enabling diamonds to play with light in new and exciting ways.

From a scientific and engineering perspective, it’s all about the geometry and proportions of the diamond, the mathematical relationship between the diamond’s geometrical form, and the laws of physics governing how the myriad of facets reflect and refract light through the sculpture. Every aspect of the diamond design, including the design’s unique facet arrangement and proportions, plays a critical role in the diamond’s unique patterning of brilliance, fire, and sparkle—its light performance.

What’s cool and relevant about light performance is how relatable it is to jewelry buyers. Compare light performance, for example, to color or clarity. When wearing a beautiful diamond at a dinner party, do you hear comments like, “Wow, is that a VVS2, G color you’re rocking—love the pinpoints!?” or, “Hey, check out the feathers in this new diamond ring—aren’t they gorgeous?” These are examples of comments that have never been uttered in the history of social gatherings. Instead, you would expect things like, “Wow, you’re blinding me with that big rock!” or, “Is that a princess cut on your finger—can’t believe how much it sparkles!?” So along with carat weight, Cut is the most relatable of the 4Cs, but also the least understood. This means that mastering an understanding of light performance and becoming fluent in ways to communicate excitement around it is a powerful and effective way to connect with jewelry buyers.

How do you create excitement with light performance? Here’s a tip. Don’t start with the math. Instead, start with the product itself. If you’re selling an AGS Ideal® diamond, the beauty of the diamond is its biggest selling feature, so show it off. Listen carefully to the comments being made, and when appropriate, provide supplemental information or insights to help the prospective buyer further appreciate what they’re seeing.

GEMOLOGY


You’re not selling engineering specs. You’re selling eye candy. Light performance is fun! Who doesn’t want a face full of sparkle every time their cherished diamond catches the light? And who doesn’t want to give the gift that can dazzle from across the room? The key is creating an experience for the customer where the diamond is the star of the show. So don’t start with the technical, but rather create excitement by playing tour guide for the light show and fireworks. However, be ready with some simple quips and analogies that can help the buyer make connections to their passions. For example, commenting that math is the secret sauce of sparkle or that diamonds are engineered to perform is music to the ears for those who love numbers. But don’t limit yourself to the dry and technical when there’s so many other ways to guide buyers through the experience. Be creative and make it your own.

Think of a polished diamond as a many-faceted sculpture of light, because that’s what it is. A sculpture, where every facet has a purpose, a function, contributing to the whole. And this purpose? To serve as both a window and mirror to the world, capturing and reflecting its light in order to help us see our own.

When we gaze into a diamond, appreciating the play of light emanating from its facets, what we’re really seeing is an artistic expression, a symphony of light where every note originates not from within the sculpture, but from the surrounding environment.

Therefore, a diamond’s music is ever-changing, never appearing the same way twice, a unique and special kind of performance art, whose compositions capture our imaginations and delight our senses.

From this perspective, like all works of art, the true value of a diamond is the joy and wonder it brings its owner. Diamond designers are both sculptors and composers, who through their skill and artistic vision, create an art form worthy of our deepest and most cherished emotions.

GEMOLOGY

“Sparkles from an engagement ring are visualized by a collimated supercontinuum laser. Small rainbow beams shoot away from the stone—proof that the dispersive design of the diamond is doing its job.” - Benjamin Cromey, University of Arizona, USA

Photo Credit, Benjamin Cromey


DIAMOND PLOTS – THE IMPORTANCE AND USES OF ACCURATE PLOTTING

Wade Abel, CG, AGS Laboratories

Do you remember the days before GPS? When a map was required to get from point A to point B? I remember the map book I kept in my car. I would use it to look up how to get somewhere new. Having a guide to help provide that information was essential!

The diamond plot is like a map, a guide to the information about the features of a diamond. Plots are primarily used for two purposes. First, to be able to identify the diamond. Second, to illustrate a guide to what is being observed in the diamond, which provides information to justify the clarity grade assigned, as well as its finish condition (polish and symmetry).

At AGS Laboratories, all diamonds submitted for grading need to be identified. If a diamond does not receive a plot, an inscription is required. Most of the time, however, a plot is created even if the diamond gets an inscription.

AGS Laboratories uses line drawings of all facet arrangements submitted to the Lab for plotting and grading.. If there is not a facet arrangement line drawing for the submitted fancy shape in the system, the grading team will create the line drawing for that arrangement and add it to our database. AGS Laboratories currently has over 3,400 different facet arrangements in the database representing multiple shape outlines. In addition, TurboPlot, the AGS Laboratories’ proprietary plotting software, allows graders to plot the shapes of the characteristics freehand. This allows for an accurate representation of the shape, size, and location of the characteristics for future identification.

Even without this extensive shape database, or the proprietary plotting software, plots can be created to help communicate the identification of the diamond and what contributes to the diamond’s grade. Plots can be useful as identification for repairs, or identification and grade justification for appraisals.

Here is a brief review of some plotting guidelines and tips:

1. Ensure the diamond is cleaned before plotting to reduce the possibility of misrepresenting a bit of dust for an inclusion or blemish.

2. Plot the diamond while looking at it under magnification. Never plot from memory.

3. Plots should be drawn on facet diagrams that closely represent the shape and style of the diamond.

4. When drawing the plot, it is important to use relative size, shape, and location of the characteristics. This allows the viewer to be able to identify the diamond more easily and visualize what contributes to the diamond’s grade.

5. When plotting, count the sections of the diamond using the crown bezel and pavilion main facets. This will help to orient the diamond for the correct placement of the plotted symbols (see illustration below). Choose an inclusion or other characteristic to designate your “#1” section. This helps re-orient the diamond if needed.

6. If an inclusion reflects and appears as multiple inclusions, plot only the single inclusion at the location that best represents the position of the actual inclusion.

GEMOLOGY


7. Only plot what is needed to be able to positively identify the diamond and justify the grade. This will help feature the grade setting characteristics and keep the plot from becoming too cluttered. Comments can be used if needed for non-grade setting or identifying characteristics.

8. Most characteristics are plotted on the crown diagram. Only plot characteristics on the pavilion diagram should they break the surface on the pavilion, or are only visible from the pavilion view.

9. Don’t forget the key to symbols! Like the legend on a map, the key helps the viewer understand what was observed and plotted. The key should be listed in order of impact on the clarity grade.

Three colors are used when plotting: red, green, and black. When plotting by hand, using ballpoint pens of these colors will make the plot easier to understand and the diamond easier to identify.

• Red is used for most clarity characteristics.

• Green is used for polish characteristics.

• Black represents symmetry issues, extra facets, or settings for diamonds set in jewelry. Extra facets should always be plotted. They should be drawn where the grader observes them on the diamond.

GEMOLOGY

The corresponding crown bezels and pavilion mains on the plot are demonstrated here. It is as if you were to fold the paper or flip the diamond vertically to find the

corresponding sections. Use this concept to ensure the correct placement of the symbols on the plot.

Sample plot of clarity characteristics with key to symbols


When representing metalwork, such as a setting, a dashed line is used to represent the outline of the setting. See the diagram below for examples of the symbols used.

Occasionally, there are characteristics that use both green and red in the symbol. Examples are Cavity, Indented Natural, Knot, or Laser Drill Hole. These demonstrate areas where the surface of the diamond is disrupted by a characteristic that penetrates into the diamond.

Comments can be used to further describe the diamond’s characteristics; for example, “Additional clouds not shown” can be used if there are multiple clouds, at least one cloud is represented on the plot, and there are enough plotted to identify the diamond and visually explain the grade. This type of comment can be used for clouds, pinpoints, or twinning wisps.

Think of a plot as the guide to the diamond—a map that provides so much information in one simple tool. After all, they say a picture is worth a thousand words

Key Takeaways

• Plots should be created on facet diagrams that closely represent the shape and style of the diamond being plotted.

• The importance of a diamond plot is to provide identification for the diamond as well as an explanation for the assigned grade based on the plotted characteristics.

• It is important to understand how to orient the diamond for appropriate plotting for future identification of the diamond using plotted symbols drawn to the relative size, shape, and location of the characteristics.

• Don’t forget the Key to Symbols!

Symbols used to represent characteristics on a plot. Most of these symbols are drawn to represent the actual shape of the feature.

GEMOLOGY


TODAY’S CHALLENGES OF VALUING COLORED GEMSTONES

Richard B. Drucker, GG (GIA), FGA (Hon), Gemworld International, Publisher of GemGuide

Today, jewelers and appraisers are faced with greater challenges to identify, understand, and value colored gemstones. Few major gems today are bought and sold without a report from a laboratory. The first question you must ask is whether the laboratory is reputable for determination of the information you are relying on.

One issue of concern when valuing is understanding the limitations of origin. While the value is reliant on the report, origin reporting is often not a guarantee of absolute certainty. Origin reports are based on scientific evidence and the tools and information available to the laboratories are of the highest technology. Still, many gems will have overlapping features from different origins and then it is up to the laboratory to make the educated call. Unfortunately, no laboratory can assess the degree of confidence so it is possible that multiple origin reports can exist on the same gem. Speaking only about ruby origin, today there are at least 20 sources of ruby compared to a handful in the 1980s, so questions of ruby origin are certainly more challenging. Suppose you are the seller and the customer wants a Burma ruby. Relying on the report of one of the major global laboratories, you make the sale and the Burma report has added to the value and your selling price. The customer decides based on advice of another to get a second opinion post-sale and sends the stone to another laboratory of equal stature in the industry and that lab determines the ruby to be East African. While I would argue as I have often done in past seminars, that the beauty of the stone has not changed—now, the paper has changed the value. Are you prepared as the jeweler to offer a refund or a partial refund? Be careful of making guarantees as the laboratory itself is not giving you a guarantee either.

Treatments are another area of greater challenge today. Speaking only of corundum, in the early days our biggest concern was heat and then there was diffusion, but early methods of diffusion were easy to recognize with immersion. Today, we are concerned with heat (both low heat and high heat), heat with residues, glass infilling, beryllium diffusion, and even oiling (once thought to be only an emerald issue). Some of these treatments are easy to detect and others pose challenges even to a major laboratory. While diffusion was easy to identify, beryllium diffusion may only be recognized by a laboratory.

Looking at just the heat issue, be aware that labs use different codes to describe heat, including heat-only or heat with residue, which is a process of extreme temperatures that result in a glass residue from the compound used to protect the stone from high heat. This was originally identified with ruby from Mong Hsu, Burma a few decades ago. For example, GIA uses NTE for no thermal enhancement, TE for heat without residues, and then a series of TE with numbers: TE 1/2 (minor residue), TE 3/4 (moderate residue), and TE5 (significant residue). Another lab, GRS, uses a series of codes starting with H for heat with no residues but with four additional codes H(a), H(b), H(c), and H(d) based on the amount of residue. However, the H(d) category is for composite ruby which in my opinion should not be grouped into the same category with heat. (Glass residue is not the same as glass composite where the material is actually part glass and part ruby. It is not residue. Even GIA refers to these as a manufactured product.) H(Be) stands for beryllium and PHT stands for pressure with heat, a newer process that not all labs are recognizing at this time. That alone raises the question as a buyer, seller, or appraiser. If the PHT designation is found, what is the value difference, if any? And what if this is not identified at first but later identified by a lab? There are no concrete answers to these questions.

Yet another issue for valuation is the nomenclature for color. I have addressed this many times before with laboratory (and dealer) use of color names such as pigeon’s blood, royal blue, and so many more. I will not expand on this again other than to say that the labs that use these terms may have strict guidelines for the ranges of colors but we as an industry, do not have access to those color ranges and the price differential can be hundreds of percent different even when the same color name is used.

GEMOLOGY


Finally, there is one more subjective rating system to be aware of and that is the new Gübelin laboratory 100-point wine rating system adopted to colored gemstones. Laboratories are crucial to our industry for scientific determination of gemstones. However, there is a trend for some labs to venture into subjective areas and this makes things more challenging as an industry for valuation.

Key Takeaways

• Few major gems today are sold without a laboratory report but the first question to ask is whether the laboratory is reputable for the report offered.

• Laboratories report treatments differently and often with codes that can be confusing to the jeweler and certainly to the consumer. It is important to keep up on treatments and lab terminology.

• Color nomenclature is not standard and new grading systems for colored gems make this even more subjective. Gems should be sold for their attributes, not based on subjective nomenclature that can greatly vary in perceived quality and thus, great price variance.

GEMOLOGY


THREE REASONS JEWELRY BUSINESSES SHOULD ADDRESS RACIAL DISCRIMINATION NOW

Miya Owens, Associate Counsel, Jewelers Vigilance Committee

The year 2020 brought with it, among other things, an increased focus on racial discrimination. Navigating conversations around this topic can be difficult for many businesses, but these conversations are necessary to maintain compliance with the law and address current and historical events. Below, we have provided three reasons to address racial discrimination in your businesses now:

1. Educating your team on key federal laws and the penalties for non-compliance is always a great way to reduce the likelihood of legal compliance issues in the future.

Treating someone unfavorably because that person is of a certain race or has certain characteristics associated with race, such as a particular hair texture, skin color/complexion, or certain facial features, is prohibited by federal, state, and city laws. The same prohibition on mistreatment applies to discrimination against someone associated with or married to a person of a certain color or race. The law prohibits, among other things, discrimination in all aspects of employment, including hiring, assignments, promotions, layoffs, and more. As the Equal Employment Opportunity Commission (EEOC) notes at www.eeoc.gov/racecolor-discrimination, discrimination can occur even when the victim and person who inflicted the discrimination are of the same race or color. Discrimination can be both overt and subtle, as explained at www.ohrc.on.ca/en/examples-racial-discrimination-fact-sheet. For example, a policy/practice that negatively impacts employees of a certain race may be considered discriminatory.

In 2019 alone, the EEOC received 33,937 filed charges of race-based discrimination and 2,698 alleging color discrimination. EEOC discrimination suits often garner settlements upwards of $100k, and both ongoing litigations and settlements are posted on the agency’s website at www.eeoc.gov/ongoing-litigation-and-settlements.

2. Anti-discrimination training and policies can be simple and lend to an improved work environment and more ethical and legally compliant business practices.

Even small businesses should hold regular non-discrimination training for employees. Several state and federal agencies provide sample training, tips, and other resources online that businesses can use for free. Importantly, an understanding of racial discrimination and training help prevent illegal practices in the workplace. Businesses should also consider speaking to their suppliers and business partners to learn more about their vendors’ belief systems and values and proceed accordingly.

3. These conversations are timely, and failure to address the topic of racism affirmatively may result in negative and costly public relations for the business and impair employee and customer confidence.

While our nation is no stranger to racial injustice, the conversations around this topic have been reinvigorated by current events. With the prevalence of social media, many companies that have failed to take a stand on the issue of racism and/or failed to address the topic appropriately, have been subjected to negative media attention and disappointment from employees and customers.

Now is a critical time for businesses to reassess company policies and procedures around racial discrimination, with a focus on conscious and unconscious biases and microaggressions. Jewelers Vigilance Committee (JVC) recommends any business that does not have a strong anti-discrimination policy and procedure should seek the advice of an attorney to draft the necessary language and procedure plan for compliance with federal, state, and local laws. JVC members will soon be able to connect with law firms on our Law Firm Finder for advice on drafting anti-discrimination policies, procedures, and training. In addition to consulting an attorney, businesses should consider engaging a consultant who specializes in the topic of anti-racism for assistance with anti-discrimination policies, procedures, and training for their employees.

LEGAL & COMPLIANCE

https://www.ftc.gov/site-information/no-fear-act/protections-against-discrimination

https://www.shrm.org/resourcesandtools/legal-and-compliance/state-and-local-updates/pages/state-employment-discrimination-laws.aspx

http://www.eeoc.gov/racecolor-discrimination

https://www.eeoc.gov/employers/small-business

https://sloanreview.mit.edu/article/organizations-cannot-afford-to-stay-silent-on-racial-injustice/

https://sloanreview.mit.edu/article/organizations-cannot-afford-to-stay-silent-on-racial-injustice/


LEGAL & COMPLIANCE

Key Takeaways

• Businesses should educate their teams on key federal laws and the penalties for non-compliance. This is a great way to reduce the likelihood of legal compliance issues in the future.

• Anti-discrimination training and policies can be simple and lead to an improved work environment and more ethical and legally compliant business practices.

• These conversations are timely, and failure to address the topic of racism affirmatively may result in negative and costly public relations for a business and may also impair employee and customer confidence.


PANDEMIC MARKETING: THE LAW STILL APPLIES!

Miya Owens, Associate Counsel, Jewelers Vigilance Committee

With many jewelry businesses forced to close their in-person operations around the country, many of you may have ramped up your digital marketing efforts with the goal of retaining existing customers and drawing in new customers to your websites. But, before you go full speed ahead with new digital marketing, you should keep in mind that the federal CAN-SPAM Act establishes the following key requirements (and more) for commercial messages:

1. Don’t use false or misleading subjects or headers – these items must be accurate and identify the business that initiated the message.

2. Explicitly identify the message as an advertisement – you must clearly and conspicuously disclose that your message is an advertisement.

3. You must include a valid physical postal address – this can be your current street address, a P.O. box, or a private mailbox you have reserved for commercial mail.

4. You must provide opt-out information – this information must clearly and conspicuously explain to the recipient how to opt-out of getting an email from you in the future. It must provide an easy-to-use mechanism for this request (e.g., an email to send requests; a button that automatically notifies your company).

5. Your company must promptly honor opt-out requests – 10 business days is your maximum deadline for honoring a consumer’s opt-out request. Once a consumer requests an opt-out from your business, you also can’t sell or transfer that consumer’s email address, even in the form of a mailing list.

Please familiarize yourselves with the remaining requirements of the CAN-SPAM Act by visiting the Federal Trade Commission website (https://www.ftc.gov/tips-advice/business-center/guidance/can-spam-act-compliance-guide-business) And, don’t forget: state, international, and other federal laws may also place additional restrictions and requirements on your business’s marketing, use of consumer information, and other activities. Stay tuned for more on this topic.

Key Takeaways

• Email marketing must adhere to the federal CAN-SPAM Act rules.

• Your company must promptly honor opt-out requests.

• You must include a valid physical address in your email marketing.

LEGAL & COMPLIANCE

https://www.ftc.gov/tips-advice/business-center/guidance/can-spam-act-compliance-guide-business


LEVERAGING FUNNEL-SPECIFIC AUDIENCE TARGETING TACTICS WITH FACEBOOK/INSTAGRAM ADS

Akvile DeFazio, AKvertise

As Facebook’s algorithm continues to evolve into a more sophisticated version of its former self, targeting options and their performance have also changed. Understanding the customer journey through the funnel and how it relates to Facebook’s advertising campaigns and the audiences you target are crucial for success.

By properly pairing campaign objectives with your various audiences in relation to where they reside in the funnel, your campaigns will result in more favorable returns, help reach the right people, increase the efficiency of your budget, and better accomplish your goals.

AUDIENCE TYPES With 2.8 billion global users and 1.85 billion daily users, there is no doubt that your audience is on Facebook and Instagram. Leveraging ads across the two sister platforms is lucrative and effective, regardless of the vertical you are in and what your business goals may be. Within the platform, there are two types of audiences available for use: native and custom audiences.

Native audiences are available within Facebook where you can select from a variety of:

• Interests

• Behaviors

• Job titles

• Employers

• Fields of education

• Life events, finances, education, and other demographics

Custom audiences, on the other hand, use your sources. There are endless possibilities you can create as they best relate to your business. Using the Facebook website tracking Pixel or SDK if you have an app, you can create audiences such as:

• Website visitors

• Landing page visitors

• Cart abandoners

• Top 5% of visitors by time spent on site

• App-based events

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In addition, you can upload email lists of your:

• Newsletter subscribers

• Leads

• Customers

• Other segmented audience lists

You can also create lists of people that have previously engaged with your brand by targeting people who engaged with your pages, posts, or ads and entice them to come back to complete an action.

Lookalike audiences are another effective way to reach new audiences that are like your other high-value audiences, such as people that are like your existing customers. In order to create a lookalike, you will need to have at least 100 contacts in your uploaded email list, so Facebook has enough data to find people like those in the original list. The more people in your original audience, the better your data set will be to find higher-value people similar to them.

FUNNELS & CAMPAIGN OBJECTIVES

Currently, there are 11 campaign objectives to choose from, based on where in the funnel your users reside and what your goals are. The top of the funnel is wider and meant to drive brand awareness to larger, broader, cold audiences in prospecting campaigns. As we move down to the middle consideration stage, audiences get warmer and become more narrow, ultimately leading the most interested users to the bottom of the funnel towards conversion campaigns to make a purchase.

The top of the funnel correlates with prospecting campaigns and the bottom correlates with retargeting campaigns as they recapture people higher up in the funnel that have not yet converted.

FUNNEL-SPECIFIC AUDIENCE TARGETING

Prospecting campaigns perform well when using native audiences or lookalike custom audiences to target people that may be interested in your business offerings.

Retargeting campaigns often see success when utilizing a variety of upper-funnel custom audiences such as targeting people that previously visited your website or particular landing page and did not yet convert or reaching back out with new messaging to unconverted leads, email subscribers, cart abandoners, people that engaged with your social accounts, posts, or ads, or viewed a higher percentage of your video ads over the last x-number of days. Launch a variety of these to strengthen your retargeting strategy with messaging that speaks directly to where they are in the funnel, along with a stronger call to action to increase your chances of conversion or purchase.

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To start, allocate about 75% of your advertising budget to prospecting campaigns and the remaining 25% to retargeting.

Key takeaways

• Native audiences use platform sources whereas custom audiences utilize your sources.

• Awareness and Consideration campaign objectives tend to perform better for prospecting campaigns and Conversion campaigns tend to perform best for retargeting campaigns.

• Tailor your ad copy and creatives to your various audiences throughout the funnel.

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OMNICHANNEL REALITIES: MERGING ONLINE, OFFLINE & EVERY TOUCHPOINT IN BETWEEN

Nicole Leinbach Reyhle, RetailMinded.com

Retail has historically changed over time, yet COVID-19 disrupted commerce unlike any other time in history. With both brick-and-mortar merchants and online sellers alike experiencing rapid change due to this unexpected, global pandemic, it became clear that customers had new expectations of how they wanted—and needed—to shop. As a result, merchants had to adjust. After all, transformation happens by choice and chance. And in the case of COVID-19, it was clear both choice and chance would play a role in the future success of retailers. Keeping this in mind, the savviest of retailers embraced omnichannel opportunities to help them stay connected to customers, boost selling opportunities, and even strengthen overall store operations.

When we look at what omnichannel truly represents, it reflects on connectivity between customers and retailers at every twist and turn consumers make along their purchase journey. Whether it’s being inspired on a competitor’s website to want beautiful new earrings or commenting on a social media post about a new jewelry trend or strolling by a local boutique that captures their attention, there are countless ways in which customers first become engaged with a brand. It’s every action step that follows that ultimately will lead a consumer to one store versus another, and over time it’s loyalty among existing consumers that will influence long-term success. Having clarity among consumers as they navigate their shopping decisions is possible in 2021—even without ever having gained a transaction from some of these customers. Likewise, it’s possible to merge online and offline shopping experiences in order for retailers to capture full clarity into their customers’ shopping behavior.

Finally, merchants must be proactive in order to be profitable. If COVID-19 taught us anything, it’s that action is key. Combined with the efforts above, this will position jewelry retailers to successfully navigate commerce as it continues to evolve.

In summary, the following should be identified as key priorities to embrace in 2021 and beyond:

• Customer connectivity cannot be achieved in a singular shopping experience. Staying connected to consumers at the various touchpoints in which they engage is essential in maintaining brand awareness, customer engagement, and overall consumer satisfaction. This includes both online and offline, even if merchants do not have an online website.

• Selling to customers should include multiple touchpoints in which consumers can make transactions. The reality is not all customers prefer to shop the same, and COVID-19 reinforced the need to offer various ways in which transactions can happen. From in-store to branded websites to external marketplaces to social media selling and more, embracing multiple avenues of selling is important to stay competitive in the future of commerce. Additionally, welcoming multiple payment options beyond traditional credit cards and cash is critical as we move ahead into the future of commerce.

• Merging online and offline experiences through technology is a key consideration to gain long-term retail success. It’s through these strategic efforts that will allow merchants to gain stronger clarity among their customers, their competitors, and the overall commerce landscape. Technology is the critical piece to this puzzle to truly optimize omnichannel success.

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Key Takeaways:

• The opportunity to overlap technologies so that they each gain and learn from each other is essential when trying to boost omnichannel efforts.

• When looking to welcome new technologies, always review what integrated technologies they welcome into their platform to help streamline your store connectivity and clarity.

• Consider how each of these can be reviewed with a core concentration on maximizing customer connectivity across all touchpoints in which your target audience engages.

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SOCIAL MEDIA TRENDS AND DEVELOPMENTS

Donna Jolly, RJ, American gem society

Change is the only constant; it’s especially true for social media. Understanding trends and how to best utilize them can help your business build a stronger presence online. You can also connect with your audience in a more timely and relevant way, helping you turn casual customers into brand advocates.

While trends don’t dictate what you post, they can help guide you. In this abstract, we’ll explore key changes in social media that can inform your marketing strategy in the year ahead. Here’s a snapshot of some trends and developments that are important to know.

The Rise of Social Audio

Listen…do you hear that? It’s the next wave of social media coming to you through your headphones. The social audio field includes podcasts and apps. In the U.S., 32% of the population listen to a podcast at least once a month and 22% listen to podcasts weekly. Compared to video, where the average attention span is eight seconds for viewers, podcast listeners tune in for an average of 30–34 min. The standout app is Clubhouse, which you can currently access by invite only. Think Podcasts meets LinkedIn…but for audio only.

Companies are betting heavily that voice-dominated social media will be a major player, and their spending reflects that confidence. If the investment trend continues as predicted, the voice economy will be a trillion-dollar market by 2025.

Social networks are taking notice. Facebook is releasing an audio chat product, taking direct aim at Clubhouse. Brands are yet to get very involved, but social media experts agree, the potential is huge. Get to know this medium now, as it can guide your strategy as this area grows.

Once Clubhouse launches to the public, you and members of your team can connect with consumers by participating in chat rooms or leading your own rooms that establish your expertise in gemology and jewelry and help build trust as a professional.

Embracing DEI in Social Media

The rise and awareness of social activism have spotlighted a lack of diversity throughout social media—and that is thankfully changing and will continue to do so. Companies recognize that Diversity, Equity, and Inclusion (DEI) are an overdue conversation in their own social media.

Does your social media reflect the diversity of your potential audience? Gen Z is 25% of the U.S. population and 48% diverse. Generation Alpha is shaping up to be even more diverse. The average dress size of a woman in the U.S. is now between 16 and 18. Over 40% of women are the sole or primary income producers in their households. Take a look at your social media wall. Can you add more diversity? Ask your vendors for product shots that highlight more diverse models. Include photos of your friends, family, your team, and customers who are reflective of a more diverse community, whether it is LGBTQ+, people of color, people with disabilities, and people of varying age groups, shapes, and sizes.

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Instagram Has its Own Trends

Instagram is so huge and popular it has its own trends. Being a visual platform, the aesthetics (format, design, and elements) of content can help drive engagement.

InstaTrend #1: Reel Aesthetics

Thanks to Instagram Reels’ advanced editing tools, it’s easy to create professional-looking videos with text overlays and special effects. Reels can be filmed with any filter from Instagram’s library—from grainy film effects to shooting stars. You can add a custom cover image before you hit publish.

Some may be hesitant to try Reels, as it can look complicated—with just a little practice, though, it’s easy. However, here are some simple ideas for Reels: Have someone on your team model jewelry and pick a song from “trending songs.” Showcase a piece of jewelry to your audience and use the stickers feature to liven up the piece with a simple sentiment: “beautiful,” or even just a fluttering heart.

For inspiration, search #Reels on Instagram. Then head over to YouTube, where you’ll find a variety of tutorials by searching “Reels tutorials.”

InstaTrend #2: Visual Brand Storytelling

Your brand’s Instagram profile is as important as your website. Visual storytelling is one of the best ways to build a large and engaged following on Instagram, and it helps them understand your brand. Take a look at your profile image, Instagram Stories, Highlight Covers, and the most popular 12 posts. Do they work together and provide your audience with a clear, consistent view of your brand?

If not, ask yourself, what do you want your brand story to be? Fun and energetic? Modern and minimalist? Warm and personal? The photos you chose craft your story and differentiate you from the competition. Anyone can take a photo of jewelry in a jewelry case. Only you can add your brand’s personality to that photo. Focus on making your brand come alive through the images you take of your jewelry.

InstaTrend #3: Video in Stories

Over 500 million users interact with Instagram Stories daily. The use of video in Stories will increase as they tend to outperform photos. Stories with videos also have a higher tap-forward rate. An estimated 51% of brands are already using videos in Stories. It’s just one more tool that Instagram offers you to communicate with your audience. When planning your stories, think about taking an organized approach; this can help inform your strategy. Think about the message you want to convey in your Stories, and how it can help you sell a piece of jewelry, or drive customers to your business.

Final Trend: The Team

Social media is social. It’s about people. Individual members of your team can amplify your business’s brand voice. It can be in small and simple ways, for example, sharing your posts in their stories on Facebook or Instagram, or posting photos in the store of a team member wearing jewelry. Or maybe they can share that your business is having a special event or other promotion. It helps establish you and your team as vibrant members of the community who not only sell beautiful jewelry, but who are ready to connect with you on social media.

Key Takeaways

• Social audio is the next wave of social media. Mainstream social media sites like Facebook are taking notice and planning their own alternative. Learn about it now so you can plan your strategy for the future.

• In 2020, the lack of diversity in social media came to light and brands took notice. Gen Z is 25% of the U.S. population and 48% diverse. Generation Alpha is shaping up to be even more diverse. If brands want to attract this audience, their social media should be reflective of the demographic.

• Instagram offers a variety of ways you can share the story of your brand, from Reels to Stories to posts. To stand out from the competition on Instagram, pay attention to your image aesthetics and take advantage of Instagram’s easy editing tools.

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EVERGREEN AND OMNICHANNEL APPROACHES IN 2021

Evelyn Stetzer & Cody Giles, THE SMITHEE GROUP

Topic: Evergreen and Omnichannel Approaches in 2021

Purpose: A couple of years ago, succeeding in digital marketing meant picking a single platform and the lowest cost of entry to start small. The problem with that in 2021 is the opportunity cost of not being fully present in the digital space is way too high based on consumer insights and platform capabilities.

Main Argument: Today’s digital marketing and advertising tools give you two key advantages: Evergreen (always on) and true Omnichannel.

1. Evergreen: When you fully integrate digital marketing, social media, and online advertising into your business, you have the opportunity to create another avenue for sales and an always-on brand experience. Social and digital advertising provide an Evergreen opportunity to put your brand in front of the consumer whenever they are online and in the most convenient way possible. It is like having an additional sales expert that is always working and perfectly adapting to each potential customer in real-time.

2. Omnichannel: In addition to the evergreen advantage, having a fully-active social and digital strategy provides a true omnichannel approach to customer experience. The days of single-channel and single-source customer journeys are over. Customers discover and search across multiple platforms and media sources. Your marketing and advertising efforts can no longer be solely driven by last-click attribution. Instead, focus on diversifying your first-click opportunities. This multi-touch perspective means making sure that no matter which path a potential customer chooses to begin their journey, you have a presence, and it leads them through a strategic and engaging pathway to your brand, your site, your store, and your checkout. This is the time to expand your thinking and strategy in the digital world and capitalize on the power of digital and engage the next generation of jewelry customers.

Evidence of the next generation of jewelry customers:

1. The Online Draw: Social media is no longer just attractional, it’s transactional. New app developments are catering to this user behavior as recent beta tests replace the “Like” button with a shopping bag and users are taken to a product-driven Explore Page where scrolling can in one click become a purchase. Understanding Instagram as a digital storefront will change the way businesses interact with the platform by ensuring there is a wide range of products and price ranges available for users to discover while using Instagram.

2. Online Buying Power: In 2020 alone, $861 billion was spent on e-commerce in the U.S. This data can correlate to the aforementioned app development of Facebook (who also owns Instagram). One of these tools to promote shopping is product tagging, where products from a catalog sourced to a business’s website can be featured and tagged in photos on Facebook and Instagram. This ease of access leads consumers directly to a Facebook shop—an in-app storefront where payment is user-friendly and easier than transferring to another site, yet the purchase connects directly to your website.

3. Online Search: 97% of people learn more about a local company online than anywhere else and 88% of searches for local businesses on a mobile device either call or visit that business within 24 hours. When someone does a search looking for

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“Jewelry Stores Near Me,” Google scans through its index to find the best results for that user’s question. What makes local SEO so unique is the Google Search algorithm uses a proximity factor, which takes your location into account when searching for a local keyword such as “near me.” By optimizing your site to include correct contact information, the rate of discovery of that local business increases.

Key Takeaways

• A robust digital marketing strategy thinks about the habits of the modern customer and meets them with a “digital salesperson” at every possible juncture.

• If a customer has high intent and is searching for a local jewelry store online, they should find exactly what they’re looking for in your curated Google Ad that competes right at the top of their page.

• If a customer is browsing hashtags or an Explore Page, they should find a variety of products tagged by your store that catch their eye.

• If a customer is ready to check out, there should be so few steps to checking out that they feel confident to work with your business in a digital way.

• Prioritize your organic social presence and your SEO efforts to meet the consumer appetite and ensure you stand apart from your competitors.


HOW TO SELL MORE JEWELRY

Bob Phibbs, The Retail Doctor, SalesRX Online Retail Sales Training

You want fries with that? This is probably the most derided add-on question ever asked.

And at the time, the most valuable.

Yet most salespeople are thrilled when someone agrees to buy one thing and can’t imagine someone would want something other than what they asked for.

But let’s return to french fries… Just by everyone asking every customer the same question, McDonalds increased their sales dramatically.

The best salespeople understand they should get more from the customers they have before trying to attract new ones.

Why? Because a customer who says yes once is much more likely to say yes again. Provided you know what you’re doing.

Using suggestive selling is a great way to increase your per-ticket sales and help generate more revenue.

Nowadays, you can’t get much traction by asking “Anything else?” because you trip the customer’s autonomic response lever to immediately answer, “No,” before they even consider what else they could purchase.

Once you’ve connected on a personal level to a customer looking to purchase a fine watch, for example, you’ve taken price out of the equation and made that transaction a purely emotional decision.

The right sales training will make these techniques a natural extension of your approach to customer service.

But make no mistake, suggestive selling isn’t a natural ability.

That’s because most untrained salespeople feel relief that their selling job is over when they hear someone say, “I’ll take it.”

But the fact of the matter is the selling part of the job is just the beginning. After all, when someone comes in and says, “I want a pair of earrings,” you are little more than an order picker or direction giver. And even if they came in and said, “I need a new pair of earrings and a watchband,” you are still just fulfilling what the customer came in and asked for.

But when you show interest in the shopper in the first few minutes and get their trust, they can easily sell the add-on watch strap and maybe even a gift for someone else.

This is important, especially post-pandemic, because your profit still comes from the second item a customer buys.

Here Are Three Ways to Perfect Suggestive Selling:

1. It’s Always About the Customer. To make them the center of attention, you need to be able to customize product suggestions to the individual customer...at that unique moment. Tastes and needs can change over time, so don’t make general assumptions about what add-on is right for every customer.

To make this work, you need to constantly work on your communication and rapport-building skills. Customers will give you all the information you need to make the right suggestion at the right time—as long as they trust you.

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Let that sit for a minute.

That means there is a great deal of responsibility riding on how well you can get an oftentimes complete stranger to trust you. Maintaining rapport and using the right questions at the right time will guide you to the perfect suggestion most every time.

2. Keep Suggestions Relevant. There can be a tendency to use the same add-on features and benefits for every customer. This doesn’t work well in a luxury store. Remember, luxury customers want the entire experience (including the product) to be about them: unique, special, bespoke.

Coupled with robust product knowledge, proper sales training will allow you to show every nuance of the products and how those products complement each other. If all you know is general talking points about a product, then it’s hard for you to relate those products to new clients with different interests. Since jewelry buyers start online with all the information before they even arrive at your store, you are often left with the option of having nothing relevant to say. Role-playing is essential to swiftly respond to each customer as an individual, not a generic prospect.

3. Keep the Focus on Value. If the conversation stays focused on price, it’s nearly impossible to suggest useful add-ons. As long as the customer is focused on cost—because you keep mentioning price before they even try it on—the customer can’t see value.

Well-trained salespeople know how to steer the conversation toward the overall value of the add-on product separate from its cost, even if it costs as much as the original item. They also know adding jewelry to a dress doesn’t create jewelry and a dress—it creates an ensemble. A luxury watch with engraving doesn’t make an etched watch—it makes a personalized timepiece. Limit talking about price so the jewelry can create desire in the customer. That means the goal is not turning the tag over and announcing the cost, but getting the item on the customer.

In all things luxury, the focus must be on creating exceptional and personalized experiences for the customers. These suggestive selling tips are the natural outgrowth of that philosophy. It puts the customer at the center of attention.

The right retail sales approach can help you achieve your sales goals.

Key Takeaways

• Sell more jewelry by suggestively adding on to every sale.

• Each customer must receive bespoke service which requires you to swiftly be able to keep the focus on what they are telling you.

• The ability to pivot conversations and converse with customers based on what you hear requires role play.

• Limit talk about price so the jewelry can create desire in the customer.

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NON-VERBALS IN CUSTOMER COMMUNICATION

Peter Smith, Hearts On Fire/Memoire (CTFNA)

If there was any doubt about customers’ desire to visit jewelry stores, it ought to have been put to rest with the sales results of 2020.

Many stores recovered almost all of their losses from shut-downs and/or reduced capacity and, while online shopping served as an important avenue for many, the lure of visiting physical stores was evident throughout the year.

As Simon Sinek wrote in Leaders Eat Last, “As much as we want to stand out and consider ourselves individuals, at our core, we are herd animals that are biologically designed to find comfort when we feel like we belong to a group. Our brains are wired to release oxytocin when in the presence of our tribe and cortisol, the chemical that produces the feeling of anxiety, when we feel vulnerable and alone.”

Shopping served as an antidote to the isolation that many experienced in a quarantined world and the ability of jewelry stores to create a safe and socially-distanced environment proved attractive to consumers.

There is a ritual-like quality to shopping that appeals to a deeper part of our psyche and harkens back to our evolutionary core when we sought safety in the company of other humans and tribes. Those instincts, a million years in the making, are triggered even more in stressful or anxious circumstances. In less certain times, we resort to the familiar and jewelry stores provided that in a way that wasn’t possible online.

As Scott Galloway wrote in The Four, “When luxury works, the act of spending itself is part of the experience.” Our brain releases a dopamine rush that provides a good feeling and distracts from whatever is causing our anxiety.

So, you may ask, what is the role of sales professionals when customers do visit stores, and what has changed since the onset of COVID-19?

The answer is, not much.

Beyond the requisite safety protocols, customers will continue to buy from businesses and salespeople that engage them on an emotional level.

Dr. A. K. Pradeep wrote in The Buying Brain: Secrets for Selling to the Subconscious Mind, “The human brain is emotional at its very core. While women process messaging with more emotion than men, both genders must be engaged emotionally for a message to be remembered and acted upon.”

Emotional engagement is not a soft skill to be consigned to the back-burner of “great” product presentations that are filled with details, facts, and information not requested, and oftentimes counter-productive.

Our brain weighs two to three pounds, but it consumes about twenty percent of our body’s energy. The harder it has to work to keep up, the greater the likelihood that it will shut down and the customer will end up leaving the store empty-handed and frustrated. Information dumping is more likely to harm a shared human experience than to inspire purchasing behavior.

Emotional engagement starts by understanding the core of communication itself. Albert Mehrabian, in an oft-cited UCLA study, found that words account for seven percent of what we communicate. Our tone of voice represents thirty-eight percent, and, remarkably, our physiology accounts for fifty-five percent of the messages received by our customers.

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In other words, it’s not about the words.

What your non-verbals say is the most important message and it starts long before you have decided what you will say to a customer. Alexander Todorov at Princeton University wrote a white paper on bias, and he concluded that we make decisions about someone within one-tenth of one second. As soon as that bias is registered, we instinctively follow the positive or negative path as far as it takes us.

If the customer’s immediate reaction is negative, it can be difficult to recover from that, even when there is no cognitive rationalization for the negative bias. If, on the other hand, the bias is positive, you will have a distinct advantage to build upon.

How will you know if the customer’s bias is positive or negative? It doesn’t matter. What matters is that you control and influence what happens next by how you manage your non-verbals.

Here are four specific areas that you can focus on:

Open Body Language

Open body language means that you are within the customer’s line of sight, that you are relaxed and yet controlled (not slouched, standing with your arms folded, or with your hands in your pockets), and that your torso is facing the customer, with your arms in a comfortable position, and with your palms up or to the side.

As Amy Cuddy wrote in Presence, “When our body language is confident and open, other people respond in kind, unconsciously reinforcing not only their perceptions of us but also our perception of others.”

The Power of Smiling

One of the takeaways from the pandemic was that we came to understand the importance of smiling, even while wearing masks.

When we authentically smile, dopamine, the happy hormone, releases and serves to not only improve our mood, but also communicates warmth and sincerity to the person we are engaged with.

The combination of the narrowing of the eyes that the smile induces, coupled with dilated pupils, has a compelling effect on your customer, even with your mouth behind a mask. In a non-mask environment, show those pearly whites too.

Use Your Hands

Showing your hands is deeply rooted in our evolutionary core. And, like much of our evolutionary wiring, the effects of showing our hands is as important as it ever was. These days, of course, we are not typically looking to see if there is a weapon being concealed that could put us in danger, but our brains still react as though that was the case.

In a study of TED Talks, it was discovered that the most popular speakers used their hands much more than the least popular speakers. The least popular speakers made an average of 272 hand gestures per talk, while the most popular speakers, as measured by views, made an average of 465 hand gestures.

People who speak with expressive hands are perceived as more relatable and more empathic.

The Eyes Have it

Making eye contact is much more than demonstrating civility, it is actually chemical. When we make eye contact with a customer, it produces oxytocin, which helps build trust.

Sanjida O’Connell wrote in Mindreading, “When someone stares directly into your eyes, your heart rate increases, as does the electri-cal activity in your brain.”

While eye contact is a powerful connector, be warned that breaking eye contact has a very damaging effect on a shared experience. Psychologists have reported that distracted listening has a more detrimental effect than even a hostile exchange. So, be present and watch for those dilated pupils.

The visual sense dominates all other senses. It takes only 13 milliseconds to process an image, but ten times more than that to pro-cess a word.

What we say matters, just not as much as we thought it did.

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Key Takeaways

• Research on communication discovered that words account for only 7% of what is communicated. This places a huge emphasis on non-verbals when engaging with customers.

• Research on the effects of bias determined that people make judgments when they meet others in one-tenth of one second. This underscores the need for open and welcoming body language even before we formulate any words.

• People are herd animals at their core and find comfort in the ritual-like act of shopping in physical stores.


HOW SALESPEOPLE CAN HARNESS SOCIAL CONTENT TO INCREASE SALES

Laryssa Wirstiuk, Joy Joya

Today’s consumers demand a more personalized and intimate shopping experience, especially for big-ticket items like jewelry that represent an emotional or milestone purchase. According to Retail Customer Experience, a web portal devoted to helping retailers differentiate on experience, 83% of global consumers say they will shop online the same or more, even as retailers open back up from restrictions.

According to data from Google, consumers are “40% more likely to spend more than planned when they identify the shopping experience to be highly personalized.”

Social content across a number of different platforms like Instagram and Facebook can help you as a salesperson connect on a more personal level with customers and provide the tailored experience they crave. Social content can also appeal to customers at every step of the customer journey, from awareness to interest and consideration through purchase.

In this segment, Laryssa Wirstiuk explains how salespeople can effectively leverage the power of social content to provide a more personalized and intimate experience, ultimately increasing their sales and boosting customer loyalty.

You’ll gain actionable and scalable tips that you can start applying to your sales strategy today.

Changes in Consumer Behavior

Consumer demands and expectations have changed due to COVID-19.

COVID + Complete Disruption

“83% of global consumers say they will shop online the same or more even as retailers open back up from restrictions.” - Retail Customer Experience

Customer Expectations

Consumers are expecting jewelry businesses to accommodate them and their needs. They want a more personalized experience on digital platforms to potentially make up for the lack of in-store interaction or to substitute for the full in-store experience.

Acquisition to Retention

Some jewelry businesses that already had strong e-commerce channels in place pre-COVID actually gained new customers during the pandemic. But now they’re looking for ways to retain all those new customers moving forward.

“Social selling adds value all the way through the buyer’s journey—it’s a multi-touch process if your strategy is set up correctly.” – Jack Kosakowski

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What is Social Content?

Social content is any type of content that’s distributed through a social media platform, with the purpose of being discovered, shared, and exchanged.

Which Social Content is Right for Your Business?

• Know your customers—knowing your target customers’ demographics is one thing, but understanding your customers’ habits and how they may impact your approach is another thing.

• Where do they spend their time?

• What do they like to consume?

Understand Your Typical Customer Journey

You will learn what the needs are at each stage of the funnel.

Social Listening

“Social listening refers to analyzing the conversations and trends happening not just around your brand, but around your industry as a whole, and using those insights to make better marketing decisions.” - Sprout Social

You must listen to your customers’ needs and requests. Go to those platforms where your customers spend the most time and do some casual observation.

• Check out your competitors’ profile and ask yourself, “How are they speaking to customers, and how are customers resounding? What praise and/or complaints do customers have?”

• On your own current social platforms, take the time to encourage engagement.

• Ask open-ended questions in your captions.

• Take advantage of Instagram Story Polls.

• Respond to all comments and feedback in a thoughtful way.

• Keep a log: What is some common feedback? What do customers want to see more of, etc.?

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THE THREE STEPS OF THE FUNNEL

1. Awareness

2. Consideration/Interest

3. Purchase


Remember that social media is not a billboard or soap box.

Social media algorithms reward accounts that are being social, actively engaging with their followers and either other users on Instagram—other businesses, influencers, target customers, etc.

Consider how different types of content can appeal to users at different stages of the customer journey that you’ve identified. Let’s use the example of Instagram. Instagram is a highly-visual platform that typically drives a lot of website traffic for jewelry businesses.

Prospects with all different needs will visit your profile.

• Maybe they’re finding out about you for the first time.

• Maybe they’re checking out your Instagram profile after learning about you through a friend.

• Maybe they’re trying to see the product on a real person before clicking “purchase.”

Instagram Content for Top of Funnel/Awareness

Someone in the awareness stage is just learning about your business for the first time.

They may have found you through a hashtag, an Instagram recommendation, or maybe because you were tagged on someone else’s posts. Regardless, they know nothing about you. This person is going to want to focus on creating and sharing engaging and fun Instagram Stories that give information about the business/brand and what sets it apart from competitors. Stories should be less about the hard sell and more about capturing and maintaining someone’s attention. Give them a taste of what it’s like to be part of your inner circle.

Instagram Content for Middle of Funnel/Interest and Consideration

At this stage, the prospect is already aware of you. Maybe they found your website through Google or you were recommended by a friend. This person wants to get to know you a little better.

This is a good opportunity to build trust with the prospect. You can do this through user-generated content and also sharing other social proof. For example, you can encourage your customers to send you photos/videos of them wearing your jewelry and then repost this content on your feed or in Stories.

You can create text graphics with customer testimonials or feedback. Showing your product and business in a real-life way will keep customers’ attention. Educational content is great, like styling tips, ring sizing guides, chain length sizing guides, etc.

Instagram Content for Bottom of Funnel/Purchase/Action

Customers at this stage are pretty sure they want to purchase from you, but they may need a little push. They’ve done all their research, and they’re ready to make a decision.

At this stage, you need to show that you’re accessible and that you’re interested in answering customer questions. Stay on top of responding to your comments and DMs. You’ll also want to consider tagging your products for Instagram shopping, so customers can see prices and then check out where they need to checkout.

• Detailed specs about products/deep dive into product info

• Product demo videos

• Instagram Live trunk shows/virtual selling events

• Promo codes/limited-time offers/discounts

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Social Media Advertising

This would also be considered Bottom of Funnel.

You can deliver a more personalized experience by leveraging Facebook/Instagram paid advertising, which are powered by the Facebook Pixel.

If you do happen to go the advertising route, then you can deliver social content that’s relevant to the individual customer’s experience. Dynamic product retargeting ads will show a user a product or products that she had viewed on her site. Then, you can serve her an exclusive discount code or other incentive.

Social Content = Customer Service

• Be proactive

• Reconsider how you’re currently handling customer service—how can you think outside the box and expand for digital platforms?

• ALWAYS respond

• Get all your customer service team members on the same page about tone/language

Key Takeaways

• You must know your customer and take into consideration how their needs and the world have changed, even if your customer has stayed the same.

• You must understand a typical sales funnel and then understand how your customers move through the funnel, so you can create content that’s relevant to them at every step of the journey.

• Use content as an opportunity to listen and gain information.

• Personalize the content when it’s possible.

• Remember that social content can also be intimately tied to your customer service strategy.

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BECOME A MASTER AT VIRTUAL CUSTOMER VISITS

James DeGroot, Jewelry Store Training Institute

Pandemics, weather, and personal circumstances are all barriers to your customers walking through your door. In this day and age, it’s vital for us to embrace technology to stay in touch as well as provide our customers with the products they desire. In order for you to be a credible jewelry sales professional, you should have the ability to get face-to-face with a customer in a quality manner.

The Setting: Video conferencing is done so often that we tend to forget about our surroundings and just treat it as a regular, face-to-face conversation. But video conferencing requires us to be thinking like a movie director. Choose a setting where you can speak privately but still looks appealing. Avoid plain walls as a background and, when possible, separate yourself from the background up to a few feet if you can. Also, check the room for noise and echo. Some rooms can be very difficult for audio because of the room noise. Furniture, bookcases, and anything that can disrupt the bouncing of audio off of flat walls will help with your room’s echo. Make sure that your background looks professional and stylized. Green screen backgrounds and background replacement software can appear cheap to a customer. It’s best to have a good-looking, real background.

The Camera: Use a webcam that has at least 1080p HD resolution. You also want that camera to be positioned so that you are looking straight ahead just as you would look at a customer face-to-face. Avoid a laptop webcam position where it’s sitting on the desk, and they are looking up at you. Take a lens cloth to your lens from time to time. Often webcams can look like appear as if we’re looking through a dream sequence in a movie, and that’s because oils from our skin are on the camera. Keep a clean lens.

Audio: Make sure your volume is not turned up so loud that the customer gets audio slap back from the speakers in your room. Try to keep the volume as low as possible but still hear the customer. Webcam microphones can have good quality but it’s good to do a few test runs with people other locations just to make sure that your audio doesn’t sound like an old AM radio. You may want to invest in a USB shotgun mic to connect to the computer to avoid poor quality and room noise.

Lighting: Avoid just lighting yourself with an overhead can light. This can cause dark shadows in your eyes and below your face and just looks unappealing. Invest in an LED ring light that has a soft lens on it so that you get a nice soft, even look to your face and your setting. It’s also important to match the color temperature of the lights in your room. If you have Diamond lights, those are daylight at 5200K, or cool. You also may have warm lighting at 3200K. A good ring light will allow you to adjust the color temperature.

Jewelry Camera: Zoom allows you to switch between cameras. You can be talking to the customer and then switch the camera to your jewelry turntable or lightbox. You want the ability to switch between cameras so that you can show the customer the jewelry close up. Jewelry lightboxes are great because their cameras have a much higher zoom capability than a webcam. This is far better than holding a piece of jewelry up to your webcam, which cannot focus on getting a good tight closeup.

Software: It’s important to get familiar with each method, whether you’re using Google meet, Facebook chat, Zoom, or any other video interface. Become an expert in whatever system you use so that you can easily get a customer up and running as quickly and seamlessly as possible.

Other Hints: Stability is key. If you have to use a mobile device, hold it steady, or better yet, get a simple tripod holder so that you can set it on the top of a jewelry case and talk with a customer at their level. Background noise can also be annoying for you, your customer, and the people in the room. Try to do your video conferencing in a quiet area where you don’t disturb others, and they don’t disturb you. Also, be sure everything is clean and presentable, especially on your jewelry lightbox. This is a very tight shot and can show everything. Be sure your tweezers, your fingers (fingernails), and anything else you may show on this camera are pristine.

Your goal is to be an expert at virtual presentations.

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Key Takeaways:

• First impressions are important even when speaking to clients virtually.

• We need to think like a movie director. Your goal is to be an expert at virtual presentations.

• Our presentation should represent our in-store experience as closely as possible.


American Gem Society © 2021

Documents

2021 RECERTIFICATION ABSTRACT BOOKLET