FOR IMMEDIATE RELEASE
Contact: Patricia Pencheff
Fruchtman Marketing
(419) 539-2770, ext. 215
[email protected]
NEENAH, WI. Wednesday, January 25, 2017
With the holiday season in the rear view mirror, January is the perfect time for retail jewelers to reach out to customers and say, “Thank you.” A hand written thank you note is such a simple gesture – yet it powerfully reinforces the relationship between the retailer and the customer, and helps encourage that customer’s business in the future.
Why is courting existing customers so important? Growing business with existing customers is less costly and more profitable. Consider this (Crothers):
- It costs 7 times more to acquire a new customer than retain an existing one (Source: Bain & Company)
- A 5% increase in customer retention can increase profits by 25% (Source: Bain & Company)
- The probability of selling to an existing customer is 60–70%. The probability of selling to a new prospect is 5-20%. (Source: Marketing Metrics)
So a thank you note to a customer is not just good manners, it’s good business.
Should the thank you note include an offer? Only if it’s substantial. In fact, research shows that a thank you note by itself can be more effective than a note of thanks that includes a “token” offer. Receiving an acknowledgment with a smaller-than-expected financial benefit can lead consumers to feel less appreciated than receiving no financial benefit (Liu, Lamberton, Haws).
The thank you note is part of a larger continuum of touchpoints that keep a customer engaged and feeling valued and appreciated. From a customer’s perspective, the sale is only one part of the brand journey. Good customer service after the sale is key to securing their return and goodwill. According to a 2013 Engagement and Jewelry Study conducted by The Knot, only 18% of all jewelers follow-up with a physical thank you card or email and only 49% conduct any sort of follow-up with the bride after the sale.
What are some other ways retailers can connect with their customers? One highly effective strategy for retailers is asking customers for feedback. It can be as simple as sending a Valentine’s email that shares your appreciation for your customer, thanks the individual for being a customer, and asks for feedback that will help the retailer improve the customer’s retail experience in the upcoming year.
Another way to reach out to customers is to provide counsel, information or other added value that positions the retailer as an expert, partner and support system. For example, January and February are ideal times for a retail jeweler to remind customers to have their recent jewelry purchases and gifts appraised and insured.
"Chances are customers were so busy shopping, spending time with family and celebrating over the holiday that they simply forgot to have their jewelry gift professionally appraised and properly insured", explains David Sexton, Vice President of Loss Prevention at Jewelers Mutual Insurance. "When a jeweler reaches out to support a customer, reminding them how important it is to protect their investment, the customer feels they are valued by the retailer."
The opportunity is immense (Burke). For example, 58% of customers are willing to spend more on companies that provide excellent customer service (Source: American Express); 50% use a company more frequently after a positive customer experience (Source: NewVoice); and 86% are willing to pay up to 25% more for a better customer experience (Source: RightNow). Not only that, every time a retailer connects with a customer – at every touch point – that retailer creates top-of-mind awareness and strengthens the relationship.
The bottom line? The idea that customer service is the "new marketing" is not a trite turn of phrase – it’s the reality (Ciotti). Post-sale customer support is part of the total service experience. And customer service is a major driver in consumer decision-making.
Learn how to extend your service. For more information about jewelry insurance for your customers and Jewelers Mutual programs for jewelers, visit JewelersMutual.com, or contact a Jewelers Mutual sales manager at 800-558-6411, ext. 2118 or [email protected]
ABOUT JEWELERS MUTUAL INSURANCE COMPANY
Jewelers Mutual Insurance Company, the only insurer dedicated solely to serving the jewelry industry in the United States and Canada, was founded in 1913 by a group of Wisconsin jewelers to meet their unique insurance needs. Today, Jewelers Mutual remains the trusted insurance advisor and loss-prevention expert for jewelry businesses including retailers large and small, wholesalers, manufacturers, custom designers and appraisers. Consumers also put their trust in Jewelers Mutual to protect their personal jewelry and the special moments it represents. The company's strong financial position is reflected in its 30 consecutive ratings of "A+ Superior" from A.M. Best Company. To learn more, visit http://www.jewelersmutual.com.
Ciotti, Gregory., (January 8, 2013). The 3 Psychological Triggers that Matter To Happy Customers. Retrieved from https://blog.bufferapp.com/customer-service-happy-customers-good-business.
Crothers, Kelly., (February 19, 2015). Increasing Customer Lifetime Value. Retrieved from https://impact.cisco.com.
Burke, Collin., (April 22, 2015). 100 Customer Service Statistics You Need To Know. Retrieved from https://insightsquared.com.
Liu, Peggy., Lamberton, Cait., Haws, Kelly., (May 2015). Should Firms Use Small Financial Benefits to Express Appreciation to Consumers? Understanding and Avoiding Trivialization Effects. Journal of Marketing.
Facebook
Twitter