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“Adapting the traditional jewellery store for the modern age customer - Digital enhancements and market trends that will help grow your business”.
Presented by Glyn Powditch
Jewellers Ark and Dream Agility Investor
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Who is Dream Agility?
• Digital Technologists who seamlessly cross technology and marke?ng
• We build websites, mobile websites, and applica?ons from our single source pla0orm for the benefit of marketers not IT guys.
• Built jewellersark.co.uk (web & mobile sites) and manage all online marke?ng.
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Who is JewellersArk.co.uk?
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Who is JewellersArk.co.uk?
• Formed by a number of independent High Street Jewellers from all across England with Dream Agility in Dec ‘12.
• Offers consumers highly compe??ve prices BUT with high quality independent service
• Customers can order online from home or whilst in our members stores.
• Customers can order offline in member stores.
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Off to a great start…
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What we’ll be covering….
• What are the new market trends and how is the modern age customer different from even one year ago?
• Digital Enhancements • How do we adapt the tradi?onal jewellery store to deal with these trends and changes and grow your business?
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Thanks to Google, consumers have more price and ‘word of mouth’ knowledge than ever before.
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Pricing & Showrooming • ‘Showrooming’: customers researching in-‐store, then finding the cheapest price online and ordering there.
• What % of customers are now ‘showrooming’ in 2013?
• To make sales you MUST convince customer the price is right or they’ll ‘showroom’.
• Ac2on -‐ Review best selling brands prices online
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High Street Jewellers – providing a free service for no sales – scary stuff!
• High Street Jewellers carry all the costs – rent & rates, security, insurance, staff, stock-‐holding, etc.
• High Street Jewellers are not paid for their advice nor exper?se by the showroomer – nor Amazon
• And then the consumer buys the item from a faceless online portal to be delivered to their home.
• Who Owns The Future? – Jaron Lanier
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So what else does the modern consumer value (low prices aside)?
• You, and your compe?tors, reputa?on with other customers (that 99% of the ?me they do not know and never will).
• And they are brutally discimina?ng, even if your online reputa?on is non-‐existent, god forbid low rated.
• Glyn, what are you talking about?
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Online Reviews • Trip Advisor Channel 4? Gordon Ramsey? • A 1 star increase in Yelp Review Ra?ngs for
independent restaurants = 5-‐9% increased revenue (Luca 2010).
• What if you have no stars and your compe??on has 5 stars? Do the maths.
• Bolton (2011) – 70% of Ebay users leave reviews – consumers like leaving reviews!
• Even when you don’t have a website, you have an online reputa?on unless nobody is talking about you
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Google Maps & Reviews
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Review Sites & Star Ra?ngs
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Review Sites & Star Ra?ngs
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What about Facebook and Twiler for reviews?
• Facebook is star?ng to offer reviews on Facebook pages. • However its not as important – Dr Robin Dunbar’s 180
Rule is the reason. & Facebook’s Google Block. • Twiler – smaller just don’t upset a celebrity or opinion
leader. • Twiler – twee?ng to yourself isn’t much fun and a waste
of ?me. • Google is a more valued company than Facebook for
good reason.
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Social as most people think of it doesn’t shin products – its a myth, but we ‘like’….
• Nigel O’Hara offers £1 off 1st purchase IF you Facebook ‘Like’ him
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16000+likes driving CRM. Then send follow up FB promo?onal offers direct to users
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Summary of the modern customer • In the last year, more knowledge about price than ever before.
• Can access prices due to Google PLAs and mobile phones faster than ever before.
• Have no issues picking your brains and going online.
• Relentlessly read and leave reviews. • The higher your Google review ra?ng, the more money you make.
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Reviews, where do I begin? • 20% of Google searches have ‘local intent’ (Google 2012).
• This is essen?ally where the bread and buler of High St marke?ng – Yellow Pages and Classifieds in Local Press has essen?ally been replaced by Google Maps.
• Therefore focus ini?ally on appearing for local searches in your area.
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Start with Google Maps and get listed -‐ You don’t even need a website, but it helps.
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Then turn showroomers into reviews
When selling a branded item, and the close is not coming, don’t let them show room: • Have an iPad instore, show the price online vs. your price & price match if required.
• Close the deal. • Then get them to leave you a Google Map Review on your iPad saying how you match online prices and gave great advice.
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If you don’t have a TRANSACTIONAL website……….
• “of 47 watch and jewellery brands examined by L2 in the Digital IQ index last October, less than 50 per cent are ecommerce enabled. Paton (2013)
• Luxury brands with transacJonal websites register nearly +50% YoY growth vs. those without, and see more than 1.5 Jmes as many Google searches as brands who have yet to sell online.
• Jewellers Ark now provide members with the exact same Dream Agility website they use.
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With Online Prices driving margins down what else can independents do?
• Join buying groups – Jewellers Ark has formed its own which invites applica?ons. This enables independent jewellers to compete by obtaining lower supplier prices.
• Analyse your customers behaviour like you are Amazon…….
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Do you know what your customers are looking at on your website?
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How about in your physical store?
• Michael Hoare (2013) stated that independent jewellers have failed to adopt “less is more” in window displays.
• Where do I begin? Get some KPI’s. • Euclid uses WiFi to track customers smartphone movements in and around your store providing measures for foovall, visit dura?on, dwell ?me, etc.
• Boingo and a host of other wi-‐fi start ups alrac?ng major investment from Silicon Valley
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How about in your physical store?
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Conclusion • Over the next 12 months, brand prices will con?nue to fall driven by the web & mobile.
• Online Price & Reputa?on increasingly malers to in-‐store foovall and sales.
• High Street Jewellers must change their approach to thrive, not just survive.
• In-‐store Wi-‐Fi technology will roll-‐out in many stores.
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Recommenda?ons
• Brands – get a transac?onal website!!!!! • High St Jewellers -‐ Get listed on Google maps even if you don’t have a website
-‐ Join buying groups. -‐ Know the online as well as high street prices. -‐ Get an iPad for in-‐store use.
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Recommenda?ons
-‐ Turn more volume at lower prices -‐ Make a sale then get an online review -‐ Monitor your online reputa?on and presence. -‐ If you don’t have one, take ac?on now. -‐ Explore new WiFi technologies that are rolling out in the USA as we speak.
-‐ Plan to do something – doing nothing is not an op?on
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Benefits of Joining Jewellers Ark -‐ More Orders -‐ Bulk-‐buying discounts -‐ Foovall into store to collect orders -‐ Access to new suppliers and brands not previously available to you
-‐ Commission on sales placed via the Jewellers Ark
-‐ A free lis?ng on the Jewellers Ark website