Guide | How Jewelry Retailers can Connect with Millennial Shoppers
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Jewelry retailers must adapt to the evolving preferences of millennials, who constitute a significant consumer demographic that values personal expression, experiences, and technology over traditional purchasing paradigms. This generation prioritizes unique, customizable products and relies heavily on social media for brand engagement and decision-making, necessitating a strong online presence and storytelling in marketing approaches. Effective clienteling, personalized outreach, and an engaging in-store experience are crucial strategies for retailers to build lasting relationships with millennial shoppers.
![04 | How Millennials Are Changing the Face of Jewelry Shopping
In-Store Experience
Although there has been a lot of hype about con-
sumers gravitating towards online shopping lately,
in-store shopping still plays an important role in the
shopping experience, especially in the jewelry indus-
try where pieces are examined up-close meticulously.
Physical stores present great opportunities for build-
ing relationships with Millennials and they respond
extremely well to personal contact at the brick-and-
mortar level.
Millennials have shorter attention spans and a great
belief in innovation. Retailers can start breaking con-
ventional shopping barriers and making the jewelry
retail experience enjoyable, fun and interactive.
“We are seeing retailers mimic the benefits of online
shopping. What they need now is inventory manage-
ment [and] the ability to have ratings, reviews, and
input. The experience has to feel online-ish to these
consumers, otherwise they will treat retailers as just a
showroom. I just read about a clothing store that has
hangers that tabulate Facebook likes for the product
on the hanger. That is the kind of thing retailers need
to do. That looks super-relevant, it values technology,
it shows people you are trying something new.” Says
Dr. Kit Yarrow, a San Francisco psychology professor
and coauthor of Gen BuY: How Tweens, Teens, and
Twenty-Somethings Are Revolutionizing Retail.
Copyright 2015 Raymark Xpert Business Systems, Inc. All rights reserved.
The Tech-savy Millennial
Internet
98%
use the internet
regularly
More than
50%
of the time, they
research products
75%
of the time, they
compare prices on their
Mobile device
however, they purchase
via mobile less than
5%
of the time, preferring
tablets and computers
Social media
7 in 10
use social media
in the last year,
with more than 50%
Facebook users
of those,
<25%
engage with brands
or
retailers on Facebook
yet, this number
rises to
34%
Under the age of 50
2x
Twice as many women
Were likely to engage
Brands via social
channels
50%
Nearly half of
Millennial and Gen X
consumers “like” brands
on social media
Luxury institute, October 2010, DMA 2011](https://image.slidesharecdn.com/guide-howjewelryretailerscanconnectwithmillennialshoppers-150910185036-lva1-app6892/85/Guide-How-Jewelry-Retailers-can-Connect-with-Millennial-Shoppers-5-320.jpg)
Guide | How Jewelry Retailers can Connect with Millennial Shoppers
- 1. How Jewelry Retailers Can Connect with Millennial Shoppers
- 2. 01 | How Millennials Are Changing the Face of Jewelry Shopping Copyright 2015 Raymark Xpert Business Systems, Inc. All rights reserved. You can’t sell jewelry to Millennials the same way that it was sold to Baby Boomers. “More than half a century ago, DeBeers hit a home run by convincing the returning WWII veterans eager to settle down and get married to mark the milestone of their engagement with a diamond. The ‘Diamonds Are Forever’ tagline worked well for that generation, which in turn gave birth to the gigantic Baby Boomer generation. And it worked equally well for the Boomers in the 70s and 80s, but the signs are that it isn’t working so well for the babies of the Baby Boomers - the Millennials,” says Pam Danziger, president of Unity Marketing. “Millennials just aren’t buying the traditional jewelry marketing paradigm that worked for previous genera- tions. They need messages that are relevant to their life- styles and a generation that is delaying, even foregoing marriage, in growing numbers doesn’t necessarily care about researching the 4Cs or spending three month’s sal- ary on a chunk of pressurized charcoal.” Danziger notes.
- 3. 02 | How Millennials Are Changing the Face of Jewelry Shopping Millennials, born between 1980 and 2000, are an extremely powerful consumer group and the larg- est in the world. In the US alone, there are 80 million Millennials making up 25% of the total population. They will represent more than $2.5 trillion in spend- ing by 2020. Most importantly, they are born into a digital era, and are spoiled with technology; having an infinite amount of information at their fingertips at all times via smart phones, tablets or watches. They’re also very difficult to target. They are not successful savers, being very frivolous. They’re very much about consumption. They’re very fashion-savy, technologically-savvy and the most educated generation to date. They love creating, experiencing and are very gener- ous by giving back because they want to change the world. They’re very much keeping up with the Joneses, but not by collecting things and products like their Boomer parents. Instead, Millennials value collecting photos, friends and experiences. By 2020, Millennials are projected to be 50% of the workforce, and by 2025 this number is expected to reach 75%. Who are the Millennials? Copyright 2015 Raymark Xpert Business Systems, Inc. All rights reserved.
- 4. 03 | How Millennials Are Changing the Face of Jewelry Shopping Millennial Views on Luxury Luxury brands matter to Millennials. They carefully consider brand reputation, as well as their friends and families’ experiences with the brand. However, they are not brand loyal. If a brand disappoints them, they will go elsewhere. 72% of Millennials say luxury is about quality, according to Jamie Gutfreund, chief marketing officer for Noise/ The Intelligence Group. After being hit with a recession and high student loans, many are content just pinning their favorite luxury item on Pinterest to show others their style rather than making the final purchase. For retailers, telling a story that Millennials can con- nect with emotionally is imperative. Millennials want something that is unique or customized specifically for them, making them autonomously fashionable. Research elucidates that some of the Millennials’ values are choice, personal expression and meaning, so a brand that can replicate that resonates well with them. Copyright 2015 Raymark Xpert Business Systems, Inc. All rights reserved. Millennials are on various social media channels such as Twitter, Pinterest, Facebook, Instagram, Yelp, Snapchat and YouTube. Having a strong brand image and online presence is key to reaching them. Jewelry retailers should take advantage of using the internet to reach them by updating their websites frequently and being active on their social media pages; espe- cially on Pinterest and Instagram, which are all about visuals and aesthetics. Millennials almost always research products prior to making a purchase. Online research and price comparison play an integral part in their purchasing decisions. Millennials browse a lot: they shop any- where and anytime, and they interact with brands, sometimes on a daily basis. Social media channels are also a place for Millennials to act as ultimate brand ambassadors and rely on brands to express themselves and to make a state- ment. If they love something, they will share it across different platforms. They will post photos of the item, blog about it, talk about it through e-mail. They are also influenced by their friends’ posts on products and stores. Conversely, if Millennials are unsatisfied with the customer service that they receive in a store or the tawdry quality of a jewelry piece, they will not be afraid to voice their opinion publicly. They are very authentic in what they communicate to their friends and social networks. Once a tweet is posted, it will remain online permanently. Millennials’ communication methods should be a key consideration: it is important that jewelry retail- ers and suppliers targeting this demographic have a strong online presence. Word-of-mouth advertising plays a key role in advertising your jewelry brand. The Impact of Social Media Photo credit: katieblench on flickr
- 5. 04 | How Millennials Are Changing the Face of Jewelry Shopping In-Store Experience Although there has been a lot of hype about con- sumers gravitating towards online shopping lately, in-store shopping still plays an important role in the shopping experience, especially in the jewelry indus- try where pieces are examined up-close meticulously. Physical stores present great opportunities for build- ing relationships with Millennials and they respond extremely well to personal contact at the brick-and- mortar level. Millennials have shorter attention spans and a great belief in innovation. Retailers can start breaking con- ventional shopping barriers and making the jewelry retail experience enjoyable, fun and interactive. “We are seeing retailers mimic the benefits of online shopping. What they need now is inventory manage- ment [and] the ability to have ratings, reviews, and input. The experience has to feel online-ish to these consumers, otherwise they will treat retailers as just a showroom. I just read about a clothing store that has hangers that tabulate Facebook likes for the product on the hanger. That is the kind of thing retailers need to do. That looks super-relevant, it values technology, it shows people you are trying something new.” Says Dr. Kit Yarrow, a San Francisco psychology professor and coauthor of Gen BuY: How Tweens, Teens, and Twenty-Somethings Are Revolutionizing Retail. Copyright 2015 Raymark Xpert Business Systems, Inc. All rights reserved. The Tech-savy Millennial Internet 98% use the internet regularly More than 50% of the time, they research products 75% of the time, they compare prices on their Mobile device however, they purchase via mobile less than 5% of the time, preferring tablets and computers Social media 7 in 10 use social media in the last year, with more than 50% Facebook users of those, <25% engage with brands or retailers on Facebook yet, this number rises to 34% Under the age of 50 2x Twice as many women Were likely to engage Brands via social channels 50% Nearly half of Millennial and Gen X consumers “like” brands on social media Luxury institute, October 2010, DMA 2011
- 6. 05 | How Millennials Are Changing the Face of Jewelry Shopping Building a relationship is important and it’s also easy with this demographic group. They can be reached via various channels, including online, in-store or through their mobile phone. It’s very powerful to combine brick-and-mortar with an e-commerce web- site. Millennials like when you pay attention to what they have to say. They appreciate when they know that they have contributed to the future of the brands that they believe in – whether creatively, financially or strategically. Millennials don’t mind sharing their data with companies and feel good about knowing that they will be better understood and that the brand experience will be tailored through the information they provide. Clienteling Tools Clienteling makes the shopping experience feel more like a collaboration than a confrontation. With clienteling, associates are proactively creating and managing relationships with Millennials so that they are more likely to think about, visit, and buy from your store when a need arises. If you are not using a clienteling system; you should. Buying jewelry is such a personal experience. Because jewelry purchases are often so emotional, it’s critical that associates can make a personal connection with customers. It’s the store associates who make the first connection and who will follow-up with clients on a regular basis, with the right clienteling tools. It’s also those associates who have the power to bring customers back in the stores time and time again. With clienteling, store associates need to know three things about their Millennial client: what jewelry they would like to be contacted about (e.g., a particular collection or a specific piece), the best times to con- tact them (e.g., when inventory first arrives or prior to a special event or holidays), and how they would like to be contacted (e.g., via e-mail, by phone). To ac- quire this information, they’ll need to ask appropriate open-ended questions throughout their interactions, and not at the end of a sale when they’re on their way out. They’ll need a good system for storing what they learn so you can easily add information and retrieve it throughout the year. Access to clienteling tools on mobile devices in the store makes it pos- sible to gather and use this data without leaving the customer’s side. Customer Relationship Management A CRM system allows retailers to rank Millennial shoppers by their “purchase potential” based on multiple criteria such as size and frequency of past purchases, affluence, and interest in a particular collection. It’s important to track how often the 20% of customers who likely accounted for 80% of the re- tailer’s sales have been contacted, and exactly when you plan to contact them in the future. Contacts don’t always have to be about sales. Part of building au- thentic relationships is reaching out to acquaintances on special occasions, such as an anniversary, simply to congratulate them. The true value of jewelry comes from the conversa- tion the brand has with the customer. Today’s jewelry brands must learn to speak in a way that Millenni- als will connect with in a way that is meaningful and relevant to their lifestyles. Copyright 2015 Raymark Xpert Business Systems, Inc. All rights reserved. How do you reach them? Repairs Millennials like transparency and they enjoy accessing information in real-time. They want to know the status of a jewelry repair at every step of the process. For optimal use, the repairs module should be integrated in the POS system to handle the sale and repair at time of purchase and to automatically prompt associates to reach out to customers when products are ready for pickup.
- 7. 06 | How Millennials Are Changing the Face of Jewelry Shopping Celebrations and Occasions Weddings are such joyous occasions, filled with love and prom- ise. They’re also an important reason to acquire new jewelry. The bridal ecosystem extends beyond simply engagement rings and wedding bands: brides and grooms are purchasing gifts for their wedding party and day-of surprises for each other. Aside from rings, fashion jewelry for the ladies and cufflinks and watches for the gents are often-desired items for wedding parties. How can clienteling ensure that a jewelry retailer controls the largest slice of this pie? When key events such as the wedding date are recorded digitally, tasks can be created to remind associates to reach out when the big day approaches, or annually for a friendly anniversary reminder. Weddings are not the only important date that can be recorded in a clienteling solution: the arrival of a new baby, birthdays, graduations and holidays are all great occasions to commemorate with new jewelry. What’s more, the perfect gift can always be proposed when clienteling is used to record objects of desire in wishlists. Getting to Know You Most customers have clear preferences regarding their personal style, sych as favorite metals, stones and designers. Pierced ears or not? Metal allergies? Ring size? There are so many elements that associates need to track in order to propose relevant and appropriate items. Clienteling is the key, not only to track prefer- ences and personal data, but also to query against it at any given moment. Who was that customer looking for a semi-eternity band in rose gold last week? If the information was jotted down on a mobile device in the cus- tomer profile, it can be easily retrieved any time. Clienteling solu- tions can also be used to record free-form notes about clients. For a visual snapshot of a customer’s style, a digital jewelry box with an image gallery of the items she has previously purchased can be another great tool for evaluating personal style and pro- posing the ideal complementary items. Appointment Selling Selecting a piece of jewelry that will become an everyday adorn- ment or a family heirloom can be time-consuming. It’s so im- portant that customers do not feel rushed to make such an important decision and investment. Using clienteling software to set appointments provides wins for both the retailer and the customer; the retailer has an opportunity to steer appointments toward quieter times in the store, and the customer benefits from scheduled one-on-one time with their preferred associate. Another benefit is that the associate has the opportunity to plan ahead, reviewing the customer profile and pulling items they anticipate the customer will like based on their past purchases and preferences. Reaching Out The best associates don’t stop selling just because the customer has physically left the store. Outreach tasks performed by associ- ates have been found to result in much higher conversion rates than traditional mass marketing tactics, since the communication is highly personalized. With clienteling, reminders to perform outreach tasks can be automated based on triggers. Some great examples include outreach for birthdays and anniversaries or sending a thank you note after a significant purchase. Workflows can also be employed for multi-step tasks, for in- stance, to follow up two days, then two weeks and finally two months after a prospect first browses for an engagement ring. Once he makes the big purchase, that workflow can be com- pleted and a new one started to reach out in five weeks about wedding bands. Aside from selling opportunities, clienteling can be used to automatically alert associates to service reminders, for instance, annual inspections, regular cleanings or repairs available for pickup. A Template for Success Outreach communications don’t need to be a lot of work. Wheth- er it’s a formal e-mail or a quick SMS, digital clienteling templates facilitate and expedite the task for the associate while ensuring that corporate branding and tone are respected. It’s the best of both worlds: marketing can design a campaign with carefully crafted and controlled messaging, but the associates can also add in a personal touch that will really make the message impact- ful. Inviting customers to a jewelry truck show or other in-store special event? Telescripts can ensure that associates know all the details before picking up the phone. Copyright 2015 Raymark Xpert Business Systems, Inc. All rights reserved. HOW JEWELRY RETAILERS CAN USE CLIENTELING TO REACH MILLENNIALS
- 8. 07 | How Millennials Are Changing the Face of Jewelry Shopping Copyright 2015 Raymark Xpert Business Systems, Inc. All rights reserved. Point of Sale • Sale of serialized products • Layaways and house accounts • Custom orders and custom product creation • Non-merchandise sales (service, repair) • Printing of certificates, special receipts for jewelry • Returns with/without receipt • Change sales associate by line item for split commissions • Signature capture on iPad • Gift receipts and e-mail receipts Merchandising & Operations • Repair management, including processing and tracking • Jewelry-specific product definition with type of metal, stone, design, and other attributes. • Associate warranty information, certificates and multiple product images • Track inventory by serial number at every stage of the product lifecycle • Consignment management with reporting and financial invoice • Commission definition with configurable rules Clienteling • Virtual jewelry box with images and transaction history • Promotions, loyalty • Notes and preferences (metal color, stones, collections and more) • Outreach tasks (call, letter, e-mail, other) with templates and workflow automation • Wish lists • Events (birthdays, anniversaries, etc.) • Statistics • Client lists (queries) • Prospecting tools • Added security for high profile clients Raymark End-to-End Solutions for Jewelry Retail “The Luxury Jewelers Resource Group unanimously selected Raymark’s end-to-end suite of solutions for point-of-sale (including mobile), clienteling, merchandising, replenishment, open-to-buy planning, purchasing, repairs, reporting and analytics. The solution was selected for its ability to cater to the jewelry vertical as well as to LJRG’s specific niche requirements. The holistic, real-time solution provides each LJRG member with a 360 degree view of its customers and business operations across all channels. Thanks to the truly integrated omni-channel retailing solution, LJRG members will improve organizational efficiency by automating processes related to key areas such as customer orders and repairs, access to centralized data, and the capacity to manage and track inventory across stores and e-commerce.” Tim Claire, Chief Operating Officer for London Jewelers to RIS News
- 9. Raymark 5460 Côte de Liesse Montréal, Québec Canada H4P 1A5 T: 1-800-346-7296 F: 1-514-737-0014 E: [email protected] W: www.raymark.com For 25 years, Raymark has been empowering retail with leading-edge enterprise software solutions that help the world’s most prestigious international retailers optimize stock turns, build customer loyalty, and increase sales. Raymark develops and markets the ultimate suite of flex- ible and interconnected applications deployed in a centralized environ- ment and offers professional turnkey solutions including implementa- tion, training and customer support. www.raymark.com