Adapting the traditional jewellery store for the modern age customer - Digital enhancements and market trends that will help grow your business

www.dreamagility.com Copyright Dream Agility 2013

“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


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.


Who is JewellersArk.co.uk?


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.


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?


Thanks to Google, consumers have more price and ‘word of mouth’ knowledge than ever before.


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


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


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?


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


Google Maps & Reviews


Review Sites & Star Ra?ngs


Review Sites & Star Ra?ngs


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.


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


16000+likes driving CRM. Then send follow up FB promo?onal offers direct to users


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.


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.


Start with Google Maps and get listed -‐ You don’t even need a website, but it helps.


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.


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.


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…….


Do you know what your customers are looking at on your website?


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


How about in your physical store?


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.


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.


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


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

Technology

Adapting the traditional jewellery store for the modern age customer - Digital enhancements and market trends that will help grow your business