Best Marketing Practices

A National Jeweler White Paper
North American
Fine Jewelry Retailing
Research Series:
Marketing
Best Practices
Sponsored by
OV E RV I E W 2
TABLE OF CONTENTS
Jewelers share their marketing
QUESTIONS AND ANSWERS:
A closer look at the survey’s 20 main questions challenges, goals and best practices
p.4 1. What is your total marketing spend as
percentage of revenue?
p.5 2. What is the change in your marketing spend as
a percentage of revenue compared to last year?
p.6 3. What kind of print advertising do you run?
p.7 4. How many in-store marketing events do you NATIONAL JEWELER’S exclusive market- • Building brand recognition is the
host per year? ing practices survey posed a series of most important marketing goal for jew-
p.8 5. Which of the following types of events do questions to jewelers about how they elers (44 percent), followed by driving
you hold?
run their marketing programs in order traffic to their stores (29 percent).
p.9 6. What percentage of your marketing budget is
paid for out of suppliers’ co-op funding? to help elucidate the business chal- Reflecting these two main goals, virtu-
p.10 7. What types of market research do you lenges, goals and best practices of the ally equal numbers of jewelers expect
engage in? industry at large. immediate results (34 percent) and
p.11 8. What is the primary goal of your market On each page of the survey results, long-term results (35 percent) from
research?
you’ll find one of 20 questions. Each their marketing efforts.
p.12 9. Do you collect customer data/information?
question has been cross-tabulated by • Jewelers with higher revenues and
p.13 10. If you collect customer data, in which of the
following ways do you use it? key demographics and briefly summa- wider core markets spend more on adver-
p.14 11. Which of the following methods do you use rized to provide further insight into the tising and hold more in-store events. Print
to contact customers? results. But first, here are some of the advertising, especially in newspapers,
p.15 12. Do you buy mailing lists to solicit new survey’s main findings, culled from the remains an important marketing resource
customers?
responses of the
p.16 13. Within what period of time do you expect to
204 participating
see a return on a specific marketing investment?
p.17 14. What is the most important objective of your
jewelers:
marketing? • Most jewelers
p.18 15. What is your biggest marketing execution (89 percent) spend
challenge? less than 10 percent
p.19 16. Who manages your marketing budget? of their yearly rev-
p.20 17. Who is responsible for developing your enue on marketing.
marketing creative?
In general, as core
p.21 18. Do you work with an outside consultant/
agency for any of the following? market size and per-
p.22 SPONSOR QUESTION: 19. How would you rate store revenue go up,
in-store financing programs as a marketing/ so does marketing
sales tool?
spend.
p.23 SPONSOR QUESTION: 20. Are special, limited-time
financing offers effective for increasing sales? • Year-over-year,
jewelers are cau-
APPENDIX: tiously re-evaluating
The top four responses to four open-ended questions their marketing budgets. More than one- (61 percent of jewelers run these ads),
p.24 A. What is the share of your marketing budget by third plan to spend no more this year than and single-vendor trunk shows are most
each of the following media? they did last year, and 21 percent plan to common (37 percent of jewelers hold this
B. What is your marketing spend by quarter as a spend even less. type of in-store event).
percent of the total?
• Devising a master plan is the • Better product development is the
C. How do you measure/validate your marketing
program’s return on investment? biggest marketing execution challenge main reason jewelers say they conduct
D. What is driving change, if any, in your approach for jewelers (28 percent), followed market research (42 percent), and most
to marketing? closely by developing the creative jewelers prefer doing so by talking
(26 percent) and choosing media and informally with customers (59 per-
placement for their marketing materials cent), rather than sending surveys or
—By Melissa Shepherd (26 percent). using focus groups.
OV E RV I E W 3
Type Size of core market

Independent retailers: 82 percent Core market diameter
Less than 1 mile: 2 percent

Jewelry Chains: 2 percent
1-3 miles: 6 percent
Department Stores: 1 percent 3-5 miles: 13 percent
5-10 miles: 23 percent
Other: 15 percent
Greater than 10 miles: 53 percent
I sell strictly online: 3 percent
Region
Northeast: 25 percent
South: 32 percent Annual per-store sales

Midwest: 22 percent
Less than $250,00: 25 percent
West: 21 percent
$250,000-$499,999: 19 percent
Location $500,000-$749,999: 17 percent
$750,000-$999,999: 9 percent
Urban: 37 percent
$1,000,000 to
10 percent
Suburban: 50 percent $1,499,999:
$1,500,000 or more: 20 percent

Rural: 13 percent
ABOUT THIS SURVEY: Geographically, responses also fell into three locations—urban, suburban or
NATIONAL JEWELER conducted this survey via e-mail in October 2006 in rural—and into five core market sizes—less than one mile, one to three miles,
conjunction with Zoomerang.com, an online market research service owned three to five miles, five to 10 miles, and greater than 10 miles in diameter.
and operated by MarketTools Inc. of Mill Valley, Calif. Responding to the Other respondents reported selling strictly online.
survey were 204 readers. The survey also grouped respondents by annual per-store sales: less than
Roughly 82 percent of the survey respondents were independent retail $250,000; $250,000-$499,999; $500,000-$749,999; $750,000-
jewelers; 2 percent represented jewelry chains; 1 percent represented $999,999; $1 million to $1,499,999; and $1.5 million or more.
department stores; and the remaining 15 percent included designers, online
retailers, pawn shops, repair shops and similar businesses. Finally, NATIONAL JEWELER cross-tabulated the survey questions by region, by
location, by size of core market and by annual per-store sales to achieve
Grouped geographically, responses fell into four U.S. regions: more in-depth results on marketing practices.
Northeast> CT, ME, MA, NH, NJ, NY, PA, RI, VT
South> AL, AR, DC, DE, FL, GA, KY, LA, MD, MS, NC, SC, OK, TN, TX, VA, WV
Midwest> IA, IL, IN, KS, MI, MN, MO, NE, ND, OH, SD, WI
West> AK, AZ, CA, CO, HI, ID, MT, NV, NM, OR, UT, WA, WY
N AT I O N A L J E W E L E R E X C L U S I V E S U RV E Y: M A R K E T I N G P R A C T I C E S 4
THE VAST majority of jewel-

ers surveyed report spending
What is your total marketing spend as
less than 10 percent of their
annual revenue on marketing,
1percentage of revenue?
with a near majority (49 Less than 1%: 9 percent

percent) spending between
3 percent and 7 percent. 18 percent
1-3%:
Core market size and per- 3-5%: 22 percent
store revenue are generally
proportionate to marketing 27 percent
5-7%:
spend. Seventy-five percent 7-10%: 13 percent
of jewelers whose markets
cover less than a mile in 9 percent
10-15%:
diameter report a marketing Other: 2 percent
spend of less than 1 percent
of revenue. Meanwhile, By U.S. region
jewelers with larger core
markets are most likely to
Region Less than 1% 1-3% 3-5% 5-7% 7-10% 10-15% Other
Northeast 11.8% 23.5% 9.8% 31.4% 9.8% 11.8% 2%
spend 3 percent to 10
South 4.5% 16.7% 24.2% 31.8% 16.7% 3% 3%
percent. Likewise, jewelers

Midwest 11.4% 15.9% 27.3% 20.5% 13.6% 9.1% 2.3%
West 9.3% 14% 27.9% 20.9% 11.6% 14% 2.3%
with higher per-store By location

revenue tend to spend more
on marketing, with those
Location Less than 1% 1-3% 3-5% 5-7% 7-10% 10-15% Other
Urban 6.7% 21.3% 26.7% 26.7% 8% 8% 2.7%
seeing $750,000-plus in sales

Suburban 9.8% 12.7% 20.6% 25.5% 17.6% 10.8% 2.9%
putting 5 percent to 7
Rural 11.1% 25.9% 14.8% 33.3% 11.1% 3.7% 0%
percent of their revenue

By size of core market
into marketing.
Core market size Less than 1% 1-3% 3-5% 5-7% 7-10% 10-15% Other
Less than a mile in diameter 75% 25% 0% 0% 0% 0% 0%
1-3 miles in diameter 25% 8.3% 25% 25% 0% 16.7% 0%
3-5 miles in diameter 0% 25.9% 29.6% 14.8% 11.1% 11.1% 7.4%
5-10 miles in diameter 4.3% 17.4% 21.7% 28.3% 15.2% 10.9% 2.2%
Greater than 10 miles in diameter 9.2% 17.4% 20.2% 30.3% 14.7% 6.4% 1.8%
I sell strictly online 0% 0% 33.3% 33.3% 16.7% 16.7% 0%
By annual per-store sales

Sales Less than 1% 1-3% 3-5% 5-7% 7-10% 10-15% Other
Less than $250,000 18% 22% 18% 16% 14% 6% 6%
$250,000-$499,999 5.3% 18.4% 23.7% 34.2% 7.9% 10.5% 0%
$500,000-$749,999 11.4% 17.1% 31.4% 17.1% 14.3% 8.6% 0%
$750,000-$999,999 5.3% 10.5% 15.8% 42.1% 10.5% 10.5% 5.3%
$1,000,000-$1,499,999 0% 19% 19% 38.1% 9.5% 14.3% 0%
$1,500,000 or more 4.9% 14.6% 22% 29.3% 19.5% 7.3% 2.4%
*Totals may not add up to 100 percent due to rounding.
of jewelers spend 10 percent or

89% less of their revenue on marketing.
MORE THAN one-third of

survey respondents say they What is the change in your marketing spend as a
will spend no more on their
marketing programs this year
2 percentage of revenue compared to last year?
than they did last year, and
most of those who are
Same spend as last year: 34 percent
adjusting their spend will do Slightly less than last year: 21 percent
so cautiously (27 percent plan
to spend slightly more and Significantly less than last year: 7 percent
21 percent plan to spend
slightly less).
Slightly more than last year: 27 percent
The trend of cautious Significantly more than last year: 9 percent
spending adjustments appears
across all regions and loca- Other: 2 percent
tions, with jewelers in the
Northeast and in urban areas By U.S. region
most inclined to stick to last
year’s budget.
Region Same spend Slightly less Significantly Slightly Significantly Other
as last year than last year less than more than more than
Among those who do plan

last year last year last year
to spend significantly more

Northeast 43.1% 11.8% 15.7% 17.6% 9.8% 2%
South 31.8% 15.2% 6.1% 33.3% 12.1% 1.5%
on marketing this year, about

Midwest 29.5% 36.4% 4.5% 25% 2.3% 2.3%
11 percent are in rural areas

West 32.6% 23.3% 2.3% 30.2% 9.3% 2.3%
and about 27 percent have

By location
per-store sales of $1 million Location Same spend Slightly less Significantly Slightly Significantly Other
or more.
Urban 37.3% 13.3% 8% 32% 8% 1.3%
Suburban 31.4% 22.5% 5.9% 28.4% 8.8% 2.9%
Rural 37% 33.3% 11.1% 7.4% 11.1% 0%

Core market size Same spend Slightly less Significantly Slightly Significantly Other
Less than a mile
in diameter 75% 25% 0% 0% 0% 0%
1-3 miles in diameter 58.3% 8.3% 0% 25% 8.3% 0%
3-5 miles in diameter 29.6% 18.5% 11.1% 25.9% 7.4% 7.4%
5-10 miles in diameter 32.6% 17.4% 4.3% 30.4% 13% 2.2%
Greater than 10
miles in diameter 33.9% 23.9% 9.2% 23.9% 8.3% 0.9%
I sell strictly online 0% 16.7% 0% 83.3% 0% 0%

Sales Same spend Slightly less Significantly Slightly Significantly Other
Less than $250,000 38% 20% 8% 18% 10% 6%
$250,000-$499,999 34.2% 23.7% 5.3% 31.6% 5.3% 0%
$500,000-$749,999 34.3% 22.9% 2.9% 34.3% 5.7% 0%
$750,000-$999,999 42.1% 10.5% 21.1% 15.8% 5.3% 5.3%
$1,000,000-$1,499,999 33.3% 14.3% 4.8% 33.3% 14.3% 0%
$1,500,000 or more 26.8% 24.4% 7.3% 29.3% 12.2% 0%
of jewelers plan to spend the

34% same amount on marketing this
year as they did the previous year.
NEWSPAPER DISPLAY is the

print advertising of choice
for 61 percent of jewelers
surveyed. Magazine ads are
3 What kind of print advertising do you run?
(Check all that apply.)
another important marketing

avenue, with local lifestyle
Newspaper display advertising: 61 percent
magazines leading the way. Newspaper insert advertising: 28 percent

Rural jewelers are more Local lifestyle magazine advertising: 35 percent
likely to run ads in a newspa-
per (81.5%) by some 20
Regional magazine advertising: 22 percent
percentage points than their National magazine advertising: 8 percent
urban and suburban counter- Bridal magazine advertising: 14 percent
parts, while bridal magazine
ads are significantly more
Other: 27 percent
frequent among urban and
suburban jewelers.
Smaller core markets rely
By U.S. region
most heavily on newspaper

Region Newspaper Newspaper Local lifestyle Regional National Bridal Other
ads, while the largest markets

display insert magazine magazine magazine magazine
advertising advertising advertising advertising advertising advertising
spread their print dollars most

Northeast 60.8% 29.4% 43.1% 25.5% 11.8% 19.6% 21.6%
evenly between newspapers

South 63.6% 21.2% 37.9% 22.7% 7.6% 10.6% 25.8%
Midwest 56.8% 43.2% 27.3% 18.2% 4.5% 9.1% 31.8%
and magazines.Those with the

West 60.5% 23.3% 30.2% 20.9% 9.3% 16.3% 30.2%
highest revenue, $1.5 million

By location
or more per store, invest Location Newspaper Newspaper Local lifestyle Regional National Bridal Other
more in print advertising,
across the board.

Urban 52% 24% 28% 21.3% 12% 13.3% 36%
Suburban 61.8% 26.5% 40.2% 23.5% 4.9% 16.7% 23.5%
Rural 81.5% 48.1% 37% 18.5% 11.1% 3.7% 14.8%

Core market size Newspaper Newspaper Local lifestyle Regional National Bridal Other
Less than a mile
in diameter 50% 0% 25% 50% 0% 0% 25%
1-3 miles in diameter 58.3% 25% 25% 25% 0% 0% 16.7%
3-5 miles in diameter 77.8% 33.3% 37% 3.7% 0% 14.8% 22.2%
5-10 miles in diameter 78.3% 41.3% 41.3% 17.4% 2.2% 10.9% 15.2%
Greater than 10 miles
in diameter 53.2% 23.9% 35.8% 28.4% 13.8% 17.4% 32.1%
I sell strictly online 0% 16.7% 0% 0% 16.7% 0% 66.7%

Sales Newspaper Newspaper Local lifestyle Regional National Bridal Other
Less than $250,000 46% 20% 32% 20% 10% 4% 40%
$250,000-$499,999 81.6% 31.6% 34.2% 10.5% 2.6% 2.6% 18.4%
$500,000-$749,999 60% 34.3% 34.3% 20% 5.7% 2.9% 22.9%
$750,000-$999,999 52.6% 26.3% 52.6% 36.8% 0% 21.1% 21.1%
$1,000,000-$1,499,999 47.6% 33.3% 23.8% 23.8% 4.8% 9.5% 33.3%
$1,500,000 or more 70.7% 29.3% 39% 29.3% 19.5% 43.9% 22%
*Totals add up to more than 100 percent since multiple responses were permitted.
of jewelers use newspaper

61% display advertising.
HOSTING IN-STORE events

is a common marketing best
How many in-store marketing events do you
practice among survey
respondents, with more than
4 host per year?
two-thirds reporting they

hold at least one each year None: 33 percent
and 41 percent reporting
they hold 2 to 5 such events. 1: 17 percent
Per-store sales are a
primary factor in how many 2-5: 41 percent
events jewelers host through-
out the year; 46 percent of
5-10: 5 percent
jewelers with less than
$250,000 in annual sales don’t
More than 10: 4 percent
host any in-store events, while
more than 12 percent of By U.S. region
jewelers in the $1.5 million-
plus range average more than
Region None 1 2-5 5-10 More than 10
Northeast 37.3% 15.7% 39.2% 3.9% 3.9%
10 in-store events. Similarly,

South 36.4% 16.7% 40.9% 3% 3%
those with a wider core

Midwest 29.5% 13.6% 47.7% 6.8% 2.3%
West 27.9% 23.3% 34.9% 7% 7%
market are more likely to

host multiple events during
By location
the course of a year.

Location None 1 2-5 5-10 More than 10
Urban 37.3% 17.3% 32% 5.3% 8%
Suburban 28.4% 17.6% 46.1% 5.9% 2%
Rural 40.7% 14.8% 44.4% 0% 0%

Core market size None 1 2-5 5-10 More than 10
Less than a mile in diameter 25% 25% 25% 25% 0%
1-3 miles in diameter 41.7% 25% 25% 8.3% 0%
3-5 miles in diameter 37% 18.5% 44.4% 0% 0%
5-10 miles in diameter 28.3% 15.2% 52.2% 4.3% 0%
Greater than 10 miles in diameter 32.1% 17.4% 38.5% 4.6% 7.3%
I sell strictly online 66.7% 0% 16.7% 16.7% 0%

Sales None 1 2-5 5-10 More than 10
Less than $250,000 46% 12% 32% 4% 6%
$250,000-$499,999 31.6% 15.8% 52.6% 0% 0%
$500,000-$749,999 40% 20% 31.4% 8.6% 0%
$750,000-$999,999 21.1% 31.6% 42.1% 5.3% 0%
$1,000,000-$1,499,999 28.6% 28.6% 42.9% 0% 0%
$1,500,000 or more 22% 9.8% 46.3% 9.8% 12.2%
of jewelers hold at least one

67% in-store event each year.
SINGLE-VENDOR trunk
shows are the most popular Which of the following types of events do you hold?
type of event among jewelers
surveyed (37 percent), and
5 (Check all that apply.)
the majority (51 percent) also Single-vendor trunk shows: 37 percent
favor special after-hour events
as a way to draw in customers.
Product-themed shows with product 21 percent
from multiple vendors:
Jewelers in the South most
Cross-promotional events partnering 17 percent
often hold trunk shows and

with other retail marketers:
Special after-hours price-off events: 22 percent
cross-promotional events
(nearly 44 percent and 23
Special after-hours themed events: 29 percent
percent, respectively), while

Other: 36 percent
Western jewelers put more By U.S. region

emphasis on multiple-vendor
events (more than 30 percent).
Region Single-vendor Product-themed Cross-promotional Special after-hours Special after-hours Other
trunk shows shows with product events partnering price-off events themed events
After-hours events, as well

from multiple vendors with other retail
marketers
as other event types not listed,

Northeast 33.3% 25.5% 15.7% 21.6% 23.5% 31.4%
are important to marketing

South 43.9% 13.6% 16.7% 22.7% 25.8% 33.3%
Midwest 34.1% 18.2% 22.7% 25% 38.6% 38.6%
plans across the categories,

West 34.9% 30.2% 14% 18.6% 32.6% 44.2%
perhaps signaling jewelers’

By location
overall desire to reward best Location Single-vendor Product-themed Cross-promotional Special after-hours Special after-hours Other
customers and differentiate

their events from the pack.
marketers
Urban 38.7% 17.3% 16% 24% 25.3% 38.7%
Suburban 38.2% 27.5% 17.6% 17.6% 31.4% 36.3%
Rural 29.6% 7.4% 18.5% 33.3% 33.3% 29.6%
Core market Single-vendor Product-themed Cross-promotional Special after-hours Special after-hours Other
size trunk shows shows with product events partnering price-off events themed events
marketers
Less than a
mile in diameter 25.% 25.% 0% 0% 25% 25%
1-3 miles
in diameter 16.7% 0% 0% 33.3% 25% 41.7%
3-5 miles
in diameter 37.% 22.2% 0% 25.9% 18.5% 40.7%
5-10 miles
in diameter 43.5% 21.7% 17.4% 19.6% 23.9% 32.6%
Greater than
10 miles
in diameter 38.5% 22% 23.9% 22% 35.8% 34.9%
I sell strictly
online 16.7% 33.3% 16.7% 16.7% 16.7% 66.7%

Sales Single-vendor Product-themed Cross-promotional Special after-hours Special after-hours Other
marketers
Less than $250,000 24% 12% 18% 22% 30% 46%
$250,000-$499,999 39.5% 21.1% 21.1% 34.2% 26.3% 26.3%
$500,000-$749,999 37.1% 20% 8.6% 20% 22.9% 40%
$750,000-$999,999 52.6% 21.1% 26.3% 10.5% 21.1% 26.3%
$1,000,000-$1,499,999 38.1% 19% 4.8% 23.8% 33.3% 33.3%
$1,500,000 or more 43.9% 34.1% 22% 17.1% 39% 36.6%
of jewelers hold single-

37% vendor trunk shows.
MOST JEWELERS surveyed

go it alone when it comes to
marketing, with 55 percent
opting not to use supplier
6 outWhatofpercentage of your marketing budget is paid for
suppliers’ co-op funding?
co-op funds.
Rural jewelers are least 55 percent
likely to factor supplier dollars
None:
into their marketing plans Less than 10% 32 percent

(nearly 67 percent). Suburban
jewelers are most likely, 10-25%: 9 percent
although 43 percent of
suburbanites draw less than
25-50%: 3 percent
10 percent of their marketing More than 50%: 1 percent

budget from suppliers.
Online jewelers over-
whelmingly choose not to By U.S. region
partner with suppliers on
marketing (83 percent), and
Region None Less than 10% 10-25% 25-50% More than 50%
Northeast 60.8% 29.4% 5.9% 3.9% 0%
both online and traditional

South 47% 36.4% 12.1% 3% 1.5%
jewelers, regardless of core

Midwest 54.5% 34.1% 9.1% 2.3% 0%
West 62.8% 27.9% 7% 2.3% 0%
market size or annual

per-store sales, report that
By location
supplier funds make up a

Location None Less than 10% 10-25% 25-50% More than 50%
modest portion of their

Urban 62.7% 18.7% 10.7% 6.7% 1.3%
Suburban 47.1% 43.1% 8.8% 1% 0%
marketing budgets.
Rural 66.7% 29.6% 3.7% 0% 0%

Core market size None Less than 10% 10-25% 25-50% More than 50%
1-3 miles in diameter 75% 25% 0% 0% 0%
5-10 miles in diameter 45.7% 41.3% 13% 0% 0%
Greater than 10
miles in diameter 58.7% 26.6% 10.1% 3.7% 0.9%
I sell strictly online 83.3% 16.7% 0% 0% 0%

Sales None Less than 10% 10-25% 25-50% More than 50%
Less than $250,000 78% 18% 4% 0% 0%
$250,000-$499,999 47.4% 42.1% 10.5% 0% 0%
$500,000-$749,999 60% 37.1% 2.9% 0% 0%
$750,000-$999,999 52.6% 36.8% 10.5% 0% 0%
$1,000,000-$1,499,999 47.6% 38.1% 0% 14.3% 0%
$1,500,000 or more 36.6% 31.7% 22% 7.3% 2.4%
of jewelers don’t use supplier

55% co-op funds to market their stores.
ALTHOUGH 30 percent of
survey respondents say they
What types of market research do you engage in?
don’t engage in market
research, those who do
7 (Check all that apply.)
prefer talking directly to

customers (59 percent) over Surveys (mail, e-mail or phone): 28 percent
more formal approaches like
surveys and focus groups. Focus groups: 11 percent
This is particularly true of
rural jewelers, nearly 90
Informal discussions with customers: 59 percent
percent of whom use informal We don’t do market research: 30 percent
discussions with customers
for market research. Other: 6 percent
Jewelers with both small
and large core markets use
surveys more often than focus By U.S. region
groups, but both methods lag
well behind face-to-face talks
Region Surveys (mail, Focus Informal discussions We don’t do Other
e-mail, phone) groups with customers market research
with customers as
Northeast 31.4% 9.8% 58.8% 31.4% 3.9%
marketing best practices.

South 28.8% 12.1% 60.6% 31.8% 4.5%
Midwest 22.7% 6.8% 61.4% 31.8% 2.3%
West 27.9% 16.3% 53.5% 25.6% 16.3%
By location
Location Surveys (mail, Focus Informal discussions We don’t do Other
Urban 25.3% 9.3% 54.7% 36% 6.7%
Suburban 29.4% 12.7% 53.9% 31.4% 6.9%
Rural 29.6% 11.1% 88.9% 11.1% 3.7%
Core market size Surveys (mail, Focus Informal discussions We don’t do Other
Less than a mile
in diameter 25% 25% 50% 50% 0%
1-3 miles in diameter 33.3% 16.7% 50% 41.7% 0%
3-5 miles in diameter 14.8% 3.7% 55.6% 33.3% 11.1%
in diameter 27.5% 14.7% 56.9% 32.1% 7.3%
I sell strictly online 50% 16.7% 16.7% 16.7% 0%
By annual per-store sale
Sales Surveys (mail, Focus Informal discussions We don’t do Other

Less than $250,000 22% 8% 54% 32% 14%
$250,000-$499,999 26.3% 7.9% 60.5% 31.6% 0%
$500,000-$749,999 40% 17.1% 60% 28.6% 5.7%
$750,000-$999,999 5.3% 5.3% 68.4% 26.3% 5.3%
$1,000,000-$1,499,999 33.3% 9.5% 57.1% 33.3% 0%
$1,500,000 or more 34.1% 17.1% 58.5% 29.3% 7.3%
of jewelers conduct market research

59% through informal discussions with
customers.
GEOGRAPHY, MARKET size

and annual per-store sales
seem to have little impact on
the value surveyed jewelers
8 What is the primary goal
of your market research?
place on market research to
develop their merchandise,
who as a group cite better
Aiding in product/merchandise 42 percent
product development as the
development:
main reason they conduct Providing insights for pricing: 9 percent
market research (42 percent).
Rural jewelers did place
Helping determine
10 percent
more stock in market
product life cycle:
research as a way to provide We don’t do market research: 30 percent
pricing insight and to
determine product life cycles, Other: 9 percent
citing these two goals as their
primary ones 18.5 percent
and 14.8 percent of the time, By U.S. region
respectively.
By annual per-store sales,
Region Aiding in product/ Providing insights Helping determine We don’t do Other
merchandise development for pricing product life cycle market research
jewelers in the $1 million to

Northeast 43.1% 7.8% 11.8% 29.4% 7.8%
$1.5 million range most often

South 40.9 4.5% 13.6% 31.8% 9.1%
Midwest 36.4% 15.9% 9.1 27.3% 11.4%
set product development as

West 46.5% 11.6% 2.3% 30.2% 9.3%
their main goal of research, at

57.1 percent of respondents.
By location
Location Aiding in product/ Providing insights Helping determine We don’t do Other
Urban 38.7% 6.7% 5.3% 33.3% 16%
Suburban 43.1% 8.8% 11.8% 29.4% 6.9%
Rural 44.4% 18.5% 14.8% 22.2% 0%

Core market Aiding in product/ Providing insights Helping determine We don’t do Other
size merchandise development for pricing product life cycle market research
Less than a mile
in diameter 25% 0% 0% 75% 0%
3-5 miles in diameter 37% 3.7% 7.4% 37% 14.8%
5-10 miles in diameter 50% 8.7 10.9% 23.9% 6.5%
in diameter 40.4% 11% 10.1% 28.4% 10.1%
I sell strictly online 33.3% 16.7% 16.7% 16.7% 16.7%

Sales Aiding in product/ Providing insights Helping determine We don’t do Other
Less than $250,000 40% 16% 4% 36% 4%
$250,000-$499,999 36.8% 10.5% 15.8% 31.6% 5.3%
$500,000-$749,999 40% 11.4% 11.4% 28.6% 8.6%
$750,000-$999,999 36.8% 10.5% 21.1% 21.1% 10.5%
$1,000,000-$1,499,999 57.1% 4.8% 4.8% 28.6% 4.8%
$1,500,000 or more 43.9% 0% 7.3% 26.8% 22%
of jewelers say aiding product

42% development is the primary
goal of their market research.
NINETY PERCENT of jewel-

ers who participated in the Do you collect customer data/information?
survey say they collect
customer information.
9
By region, virtually all jewel-
ers in the Midwest collect this
data (97.7 percent), while the
Northeast lags behind a bit at Yes: 90 percent
just over 78 percent.
Jewelers with higher annual
per-store sales may be more
No: 10 percent
likely to collect customer
data. Surveyed jewelers who
report sales in the $750,000
to $1.5 million-plus range
collect such data at a rate of
By U.S. region
better than 90 percent, while

Region Yes No
those with lower per-store

Northeast 78.4% 21.6%
South 92.4% 7.6%
sales hover in the mid to high

Midwest 97.7% 2.3%
80th percentile.
West 90.7% 9.3%
By location
Location Yes No
Urban 89.3% 10.7%
Suburban 91.2% 8.8%
Rural 85.2% 14.8%

Core market size Yes No
Less than a mile in diameter 100% 0%
1-3 miles in diameter 83.3% 16.7%
3-5 miles in diameter 100% 0%
Greater than 10 miles in diameter 88.1% 11.9%
I sell strictly online 83.3% 16.7%

Sales Yes No
Less than $250,000 86% 14%
$250,000-$499,999 89.5% 10.5%
$500,000-$749,999 85.7% 14.3%
$750,000-$999,999 94.7% 4.8%
$1,000,000-$1,499,999 95.2% 5.3%
$1,500,000 or more 92.7 7.3%
of jewelers collect
90% customer information.
survey respondents says they If you collect customer data, in which of the
use customer data simply to
maintain general contact
10 following ways do you use it? (Check all that apply.)
with their customers, a good
portion also dig deeper for
To segment our customers for
specific sales/marketing efforts: 48 percent
more specific information 48 percent
on customers.
To determine our best customers:
Building relationships with

To contact our
61 percent
customers seems to be a
customers individually:
major consideration, as 61
To maintain general contact
71 percent
percent of jewelers use the
with all customers:
data they collect to contact

We don’t collect customer data: 10 percent
their customers individually. Other: 2 percent
Creating segmented market-
ing strategies and determining
By U.S. region
best customers also are Region To segment our To determine To contact our To maintain We don’t collect Other
valued uses of customer data

customers for our best customers general contact customer data
among all jewelers, despite

specific sales/ customers individually with all customers
marketing efforts
demographic differences.
Northeast 43.1% 47.1% 52.9% 62.7% 19.6% 3.9%
South 53% 50% 65.2% 69.7% 7.6% 1.5%
Midwest 40.9% 43.2% 61.4% 72.7% 2.3% 6.8%
West 51.2% 48.8% 62.8% 81.4% 9.3% 0%
By location
Location To segment our To determine To contact our To maintain We don't collect Other
marketing efforts
Urban 46.7% 45.3% 64% 70.7% 10.7% 2.7%
Suburban 50% 52% 60.8% 75.5% 6.9% 3.9%
Rural 40.7% 37% 51.9% 55.6% 18.5% 0%

Core market To segment our To determine To contact our To maintain We don't collect Other
. size customers for our best customers general contact customer data
marketing efforts
Less than a mile
in diameter 50% 25% 75% 75% 0% 0%
1-3 miles in diameter 33.3% 25% 25% 75% 16.7% 8.3%
3-5 miles in diameter 44.4% 40.7% 63% 88.9% 0% 0%
5-10 miles in diameter 41.3% 45.7% 58.7% 63% 10.9% 6.5%
in diameter 52.3% 53.2% 65.1% 70.6% 11% 1.8%
I sell strictly online 50% 50% 50% 50% 16.7% 0%

Sales To segment our To determine To contact our To maintain We don't collect Other
marketing efforts
Less than $250,000 34% 40% 56% 72% 12% 4%
$250,000-$499,999 47.4% 39.5% 57.9% 68.4% 10.5% 2.6%
$500,000-$749,999 51.4% 34.3% 54.3% 65.7% 14.3% 2.9%
$750,000-$999,999 57.9% 57.9% 78.9% 73.7% 5.3% 10.5%
$1,000,000-$1,499,999 42.9% 61.9% 71.4% 76.2% 4.8% 0%
$1,500,000 or more 58.5% 63.4% 61% 73.2% 7.3% 0%
of jewelers collect data to determine

48% who are their best customers.
THE VAST MAJORITY of

jewelers surveyed use Which of the following methods do you use to
multiple means of keeping
in contact with their
11 contact customers? (Check all that apply.)
customers, relying most
heavily on individual mailings Bulk mailing: 44 percent
(75 percent) and telephone
calls (59 percent).
Individual mailing: 75 percent
Individual mailings are
especially important among
Telephone: 59 percent
jewelers in the South (80.3
percent) and West (79.1
E-mail: 51 percent
percent);Western jewelers Other: 6 percent

also make the most phone calls
to customers (74.4 percent).
E-mail is used frequently by
By U.S. region
all jewelers but most often Region Bulk mailing Individual mailing Telephone E-mail Other
by suburban jewelers (57.8

Northeast 45.1% 72.5% 56.9% 52.9% 3.9%
percent), who seem to con-

South 45.5% 80.3% 57.6% 50% 4.5%
Midwest 47.7% 65.9% 47.7% 43.2% 4.5%
tact customers more often in

West 34.9% 79.1% 74.4% 55.8% 11.6%
general than jewelers in urban By location

and rural areas. Not surpris-
ingly, online jewelers are most
Location Bulk mailing Individual mailing Telephone E-mail Other
Urban 44% 77.3% 54.7% 40% 5.3%
likely to e-mail customers

Suburban 45.1% 76.5% 61.8% 57.8% 6.9%
(100 percent), but also report

Rural 37% 63% 59.3% 51.9% 3.7%
using a good amount of bulk By size of core market

and individual mailings as well
as phone contact.
Core market size Bulk mailing Individual mailing Telephone E-mail Other
Greater than 10 miles in diameter 44% 77.1% 63.3% 60.6% 5.5%
I sell strictly online 50% 66.7% 50% 100% 0%

Sales Bulk mailing Individual mailing Telephone E-mail Other
Less than $250,000 24% 70% 60% 58% 6%
$250,000-$499,999 39.5% 73.7% 52.6% 39.5% 2.6%
$500,000-$749,999 48.6% 77.1% 62.9% 54.3% 2.9%
$750,000-$999,999 52.6% 89.5% 63.2% 47.4% 5.3%
$1,000,000-$1,499,999 42.9% 81% 57.1% 47.6% 9.5%
$1,500,000 or more 63.4% 70.7% 58.5% 51.2% 9.8%
of jewelers e-mail
51% their customers.
ONLY 14 PERCENT of sur-

vey respondents say they buy Do you buy mailing lists to solicit
mailing lists to solicit new
customers, with jewelers in
12 new customers?
the North most likely to use
this practice (17.6 percent)
and those in the South most
likely not to (89.2 percent). Yes: 14 percent
Suburban and rural jewelers
buy mailing lists somewhat
more often than their urban
No: 86 percent
counterparts.
The widest margin between
those who do and don’t buy
mailing lists follows annual
per-store sales; more than 34
By U.S. region
percent of jewelers with sales Region Yes No
in excess of $1.5 million buy

Northeast 17.6% 82.4%
such lists, more than double

South 10.8% 89.2%
Midwest 11.6% 88.4%
the percentage of the next

West 16.7% 83.3%
most frequent mailing list By location

purchasers, jewelers in the
$750,000 to $999,000 per-
Location Yes No
Urban 9.6% 90.4%
store sales bracket.

Suburban 16.8% 83.2%
Rural 14.8% 85.2%

Core market size Yes No
Less than a mile in diameter 0% 100%
Greater than 10 miles in diameter 12.1% 87.9%
I sell strictly online 0% 100%

Sales Yes No
Less than $250,000 6% 94%
$250,000-$499,999 5.4% 94.6%
$500,000-$749,999 11.8% 88.2%
$750,000-$999,999 15.8% 84.2%
$1,000,000-$1,499,999 10% 90%
$1,500,000 or more 34.1% 65.9%
of jewelers with sales of

34% $1.5 million or more buy mailing
lists to solicit new customers.
SURVEY RESPONDENTS
present a mixed bag when it
Within what period of time do you expect to see
comes to the time frame in
which they expect to see a
13 a return on a specific marketing investment?
return on their marketing
investments.While 35 percent 1-3 weeks: 34 percent
expect results over the long
term in the form of brand-
1-2 months: 17 percent
building, another 34 percent
seek almost instant results (1
2-5 months: 10 percent
to 3 weeks) and 27 percent Over the long-term through
think in terms of a few
35 percent
brand building:
months—perhaps as a reflec- Other: 4 percent
tion of short-term advertising.
Suburban and rural jewelers
place slightly more emphasis
By U.S. region
on fast returns than urban Region 1-3 weeks 1-2 months 2-5 months Over the long-term Other
jewelers, as do Southern and

through brand building
Midwestern jewelers com-

Northeast 27.5% 17.6% 9.8% 41.2% 3.9%
South 39.4% 12.1% 12.1% 30.3% 6.1%
pared to those in the

Midwest 38.6% 15.9% 9.1% 34.1% 2.3%
Northeast and West.

West 27.9% 23.3% 7% 37.2% 4.7%
By annual per-store sales,

jewelers in the highest
By location
bracket, $1.5 million-plus,

Location 1-3 weeks 1-2 months 2-5 months Over the long-term Other
place the most importance

Urban 29.3% 18.7% 10.7% 38.7 2.7%
on a long-term marketing
Suburban 36.3% 12.7% 9.8% 34.3% 6.9%
investment to bolster their

Rural 37% 25.9% 7.4% 29.6% 0%
brand (61 percent).

Core market size 1-3 weeks 1-2 months 2-5 months Over the long-term Other
1-3 miles in diameter 50% 16.7% 8.3% 25% 0%
I sell strictly online 16.7% 33.3% 0% 50% 0%

Sales 1-3 weeks 1-2 months 2-5 months Over the long-term Other
*Totals may
Less than not add up to 100 percent
$250,000 28% due to rounding.14% 8% 42% 8%
$250,000-$499,999 44.7% 21.1% 13.2% 18.4% 2.6%
$500,000-$749,999 42.9% 22.9% 5.7% 22.9% 5.7%
$750,000-$999,999 57.9% 15.8% 5.3% 15.8% 5.3%
$1,000,000-$1,499,999 28.6% 9.5% 23.8% 38.1% 0%
$1,500,000 or more 14.6% 14.6% 7.3% 61% 2.4%
of jewelers expect long-term

35% brand-building as a result of
their marketing investments.
BUILDING BRAND recogni-

tion is the primary goal of
What is the most important objective
marketing among surveyed
jewelers (44 percent), who
14 of your marketing?
also cite driving store traffic 26 percent
and gaining ground on the
Drive store traffic generally
competition as important
Drive traffic for a specific event 3 percent
objectives, across all demo-

Create interest in specific products 5 percent
Build/reinforce your store’s recognition
graphic lines.
within the market 44 percent
Jewelers with smaller core

Strengthen your position vs. competition 15 percent
within the market
markets are more concerned Drive your business in times when the
with driving store traffic than
overall market is down 3 percent
those whose market reach

Other 5 percent
extends beyond 5 miles.
Meanwhile, online jewelers
(33.3 percent) and jewelers By U.S. region
with annual per-store sales in
excess of $1.5 million (24.4
Region Drive store Drive traffic for Create interest Build/reinforce your Strengthen Drive your business Other
traffic generally a specific event in specific product store’s recognition your position when the market
percent) both put more focus

within the market vs. competition is down
on strengthening their posi-

Northeast 25.5% 2% 5.9% 49% 9.8% 0% 7.8%
South 27.3% 3% 3% 39.4% 16.7% 4.5% 6.1%
tions versus the competition.

Midwest 27.3% 2.3% 2.3% 43.2% 15.9% 4.5% 4.5%
West 23.3% 4.7% 9.3% 46.5% 16.3% 0% 0%
By location
Location Drive store Drive traffic for Create interest Build/reinforce your Strengthen Drive your business Other
Urban 22.7% 2.7% 5.3% 48% 16% 1.3% 4%
Suburban 28.4% 3.9% 4.9% 39.2% 12.7% 3.9% 6.9%
Rural 25.9% 0% 3.7% 51.9% 18.5% 0% 0%

Core market Drive store Drive traffic for Create interest Build/reinforce your Strengthen Drive your business Other
size traffic generally a specific event in specific product store’s recognition your position when the market
Less than a mile
in diameter 25% 0% 0% 75% 0% 0% 0%
1-3 miles in diameter 41.7% 0% 0% 41.7% 8.3% 8.3% 0%
3-5 miles in diameter 44.4% 11.1% 3.7% 18.5% 18.5% 0% 3.7%
5-10 miles in diameter 19.6% 0% 4.3% 63% 8.7% 2.2% 2.2%
Greater than 10
miles in diameter 22.9% 2.8% 6.4% 43.1% 16.5% 1.8% 6.4%
I sell strictly online 16.7% 0% 0% 16.7% 33.3% 16.7% 16.7%

*Totals may not add
Sales Driveupstore
to 100Drive
percent
traffic due
for toCreate
rounding.
interest Build/reinforce your Strengthen Drive your business Other
Less than $250,000 28% 0% 4% 40% 14% 6% 8%
$250,000-$499,999 23.7% 13.2% 5.3% 47.4% 7.9% 0% 2.6%
$500,000-$749,999 40% 0% 2.9% 40% 14.3% 0% 2.9%
$750,000-$999,999 15.8% 0% 10.5% 52.6% 10.5% 0% 10.5%
$1,000,000-$1,499,999 33.3% 0% 0% 42.9% 14.3% 9.5% 0%
$1,500,000 or more 14.6% 2.4% 7.3% 46.3% 24.4% 0% 4.9%
of jewelers say building store

44% recognition is the most important
goal of marketing.
SURVEY RESPONDENTS
give almost equal weight to
What is your biggest marketing execution challenge?
three marketing challenges:
coming up with an overarching
15
plan, developing effective
materials to support it, and
Devising a master plan 28 percent
placing the materials in the Determining total spend 10 percent

right media outlets.This
three-way split is perhaps an
Developing the creative 26 percent
indication of the complexity Choosing media and placement 26 percent

jewelers find in executing
their marketing strategies.
Other 10 percent
On the other hand, jewelers

across the board don’t report By U.S. region
major difficulty in determining Devising a Determining Developing Choosing media
total marketing spend.
Region Other
master plan total spend the creative and placement
Jewelers in the Northeast

Northeast 13.7% 9.8% 35.3 29.4% 11.8%
put less than half the signifi-

South 34.8% 13.6% 19.7% 24.2% 7.6%
Midwest 36.4% 6.8% 18.2% 29.5% 9.1%
cance on devising a master

West 27.9% 7% 32.6% 20.9% 11.6%
plan that jewelers in other

By location
regions do, but are more apt Location Devising a Determining Developing Choosing media Other
to cite developing the creative

as their primary challenge

Urban 28% 8% 32% 24% 8%
Suburban 29.4% 11.8% 22.5% 24.5% 11.8%
(35.3 percent). Rural jewelers

Rural 25.9% 7.4% 22.2% 37% 7.4%
find the most difficulty in

choosing media and place- By size of core market
ment for their marketing
materials (37 percent).
Core market size Devising a Determining Developing Choosing media Other
Less than a mile in diameter 0% 0% 25% 50% 25.%
1-3 miles in diameter 16.7% 16.7% 41.7% 25% 0%
in diameter 29.4% 9.2% 24.8% 22.9% 13.8%
I sell strictly online 16.7% 0% 33.3% 50% 0%

Sales Devising a Determining Developing Choosing media Other
Less than $250,000 32% 14% 16% 20% 18.%
$250,000-$499,999 28.9% 10.5% 21.1% 36.8% 2.6%
$500,000-$749,999 17.1% 11.4% 31.4% 28.6% 11.4%
$750,000-$999,999
*Totals 21.1%percent due to rounding.
may not add up to 100 5.3% 47.4% 15.8% 10.5%
$1,000,000-$1,499,999 42.9% 0% 14.3% 33.3% 9.5%
$1,500,000 or more 29.3% 9.8% 34.1% 22% 4.9%
of jewelers say devising a master

28% plan is their biggest marketing
execution challenge.
BY A WIDE margin of survey

respondents, owners are the
Who manages your marketing budget?
primary managers of their
stores’ marketing budgets.
16
Geographically, owners in
the Northeast (88.2 percent)
Owner 77 percent
and in rural locations (92.6

Other family member
7 percent
percent) are most likely to
Designated staff marketing
coordinator/director
run the budget, while jewelers
10 percent
in the Midwest (13.6 percent)

Other non-family member
employee 1 percent
and suburban locations (12.7 Other
percent) are more likely to
5 percent
hand over that responsibility

to a designated marketing By U.S. region
staff member. Owner Other family Designated staff marketing Other non-family
Perhaps reflecting their
Region Other
member coordinator/director member employee
larger staff size, 24.4 percent

Northeast 88.2% 5.9% 3.9% 0% 2%
of jewelers with annual per-

South 74.2% 4.5% 10.6% 1.5% 9.1%
Midwest 72.7% 9.1% 13.6% 0% 4.5%
store sales of $1.5 million-plus

West 72.1% 9.3% 11.6% 2.3% 4.7%
have a marketing coordinator

By location
or director manage the mar- Location Owner Other family Designated staff marketing Other non-family Other
keting budget, compared to 2

percent of jewelers with sales

Urban 82.7% 2.7% 8% 1.3% 5.3%
Suburban 68.6% 10.8% 12.7% 1% 6.9%
of less than $250,000.

Rural 92.6% 3.7% 3.7% 0% 0%

Core market size Owner Other family Designated staff marketing Other non-family Other
Less than a mile in diameter 75% 0% 25.% 0% 0%
1-3 miles in diameter 91.7% 0% 0% 8.3% 0%
3-5 miles in diameter 77.8% 11.1% 3.7% 0% 7.4%
5-10 miles in diameter 78.3% 10.9% 8.7% 0% 2.2%
in diameter 75.2% 5.5% 11% 0.9% 7.3%
I sell strictly online 66.7% 0% 33.3% 0% 0%

Sales Owner Other family Designated staff marketing Other non-family Other
Less than $250,000 92% 2% 2% 2% 2%
$250,000-$499,999 86.8% 7.9% 5.3% 0% 0%
$500,000-$749,999 74.3% 11.4% 5.7% 2.9% 5.7%
$750,000-$999,999
*Totals 84.2%percent due 0%
may not add up to 100 to rounding. 10.5% 0% 5.3%
$1,000,000-$1,499,999 76.2% 0% 14.3% 0% 9.5%
$1,500,000 or more 48.8% 14.6% 24.4% 0% 12.2%
of jewelry store owners manage

77% their marketing budgets.
AS WITH MARKETING
budget, the majority of
Who is responsible for developing
jewelers surveyed cite the
store owner as the person
17 your marketing creative?
in charge of creative (61 Owner 61 percent
percent), with other staff Other family member 9 percent
members trailing far behind. Designated staff marketing
Outside consultants are coordinator/director 10 percent
only favored by jewelers in Other non-family member
the top sales bracket of $1.5
1 percent
employee
million-plus per store, while Outside consultant/agency 15 percent
those in the $749,999 and Other 3 percent
under range strongly favor
placing responsibility for By U.S. region
developing creative in the Owner Other family Designated Other non-family
hands of an owner or other
Region Outside Other
member marketing staff member employee consultant
family member.
Northeast 66.7% 2% 5.9% 2% 23.5% 0%
South 60.6% 7.6% 10.6% 1.5% 12.1% 7.6%
Midwest 54.5% 18.2% 13.6% 0% 11.4% 2.3%
West 62.8% 11.6% 11.6% 0% 11.6 2.3%
By location
Location Owner Other family Designated Other non-family Outside Other
Urban 68% 2.7% 8% 0% 18.7% 2.7%
Suburban 55.9% 11.8% 13.7% 1.% 12.7% 4.9%
Rural 63% 18.5% 3.7% 3.7% 11.1% 0%

Core market size Owner Other family Designated Other non-family Outside Other
Less than a mile in diameter 50% 0% 50% 0% 0% 0%
1-3 miles in diameter 91.7% 0% 0% 0% 8.3% 0%
3-5 miles in diameter 63% 14.8% 3.7% 3.7% 11.1% 3.7%
5-10 miles in diameter 58.7% 15.2% 10.9% 2.2% 8.7% 4.3%
in diameter 60.6% 6.4% 10.1% 0% 19.3% 3.7%
I sell strictly online 33.3% 16.7% 33.3% 0% 16.7% 0%

Sales Owner Other family Designated Other non-family Outside Other
Less than $250,000 84% 8% 2% 0% 4% 2%
$250,000-$499,999 73.7% 13.2% 2.6% 2.6% 2.6% 5.3%
$500,000-$749,999 54.3% 17.1% 11.4% 0% 14.3% 2.9%
$750,000-$999,999
*Totals 57.9%percent due 0%
may not add up to 100 to rounding. 15.8% 0% 21.1% 5.3%
$1,000,000-$1,499,999 57.1% 0% 19% 4.8% 14.3% 4.8%
$1,500,000 or more 31.7% 9.8% 19.5% 0% 36.6% 2.4%
of jewelers use an outside consultant

15% to develop their marketing materials.
respondents report that they
Do you work with an outside consultant/agency for
don’t work with an outside
consultant or agency on
18 any of the following? (Check all that apply.)
their marketing strategies, Developing a master
those who do say developing
15 percent
marketing plan
the creative is the main Developing the creative 29 percent
reason (29 percent).
This trend is seen across
Placement 19 percent
the demographics; however,
We do not work with an outside
60 percent
notably, jewelers with a core
marketing consultant/agency
market size of less than

Other 5 percent
10 miles or with lower annual
per-store sales volume are By U.S. region
significantly less likely to use Developing a master Developing Placement We do not work with
outside marketing help.Also,
Region Outside
marketing plan the creative an outside marketing
suburban jewelers are most

consultant/agency
likely to consult an agency

Northeast 17.6% 29.4% 25.5% 58.8% 3.9%
South 18.2% 24.2% 16.7% 62.1% 7.6%
about marketing placement

Midwest 9.1% 34.1% 18.2% 59.1% 4.5%
(22.5 percent).
West 11.6% 32.6% 14% 58.1% 4.7%
By location
Location Developing a master Developing Placement We do not work with Outside
consultant/agency
Urban 16% 30.7% 14.7% 62.7% 4%
Suburban 15.7% 31.4% 22.5% 54.9% 6.9%
Rural 7.4% 18.5% 14.8% 70.4% 3.7%
Core market size Developing a master Developing Placement We do not work with Outside
consultant/agency
1-3 miles in diameter 8.3% 25% 8.3% 75% 0%
5-10 miles in diameter 13% 28.3% 15.2% 58.7% 6.5%
in diameter 19.3% 34.9% 22% 55% 6.4%
I sell strictly online 16.7% 33.3% 33.3% 50% 0%

Sales Developing a master Developing Placement We do not work with Outside
consultant/agency
Less than $250,000 6% 10% 4% 82% 6%
$250,000-$499,999 5.3% 23.7% 13.2% 68.4% 2.6%
may not add up to 100 11.4%
$500,000-$749,999
*Totals 28.6%
percent due to rounding. 20% 62.9% 2.9%
$750,000-$999,999 21.1% 36.8% 21.1% 47.6% 5.3%
$1,000,000-$1,499,999 14.3% 38.1% 19% 47.6% 14.3%
$1,500,000 or more 34.1% 51.2% 39% 34.1% 4.9%
of jewelers develop their

60% marketing strategies in-house.
A NEAR MAJORITY of QUESTION FROM OUR SPONSOR

survey respondents (47 per-
cent) rate in-store financing How would you rate in-store financing programs as a
programs to be an effective
marketing and sales tool, but
19 marketing/sales tool?
the degree to which they do
varies.Twenty-eight percent
Essential or very important 19 percent
call such programs some- Somewhat important 28 percent
what important, and roughly
equal numbers of jewelers
Not very important 17 percent
say they are either essential/ Unnecessary 7 percent
very important or not very
important.Almost a third
We don’t utilize them 30 percent
don’t use financing as a
sales tool, perhaps signaling
a growth potential for these
By U.S. region
programs. Region Essential or very Somewhat Not very Unnecessary Do not
Meanwhile, suburban
important important important utilize
jewelers (24.5 percent) and

Northeast 14.6% 29.2% 14.6% 4.2% 37.5%
South 25.8% 19.4% 17.7% 9.7% 27.4%
jewelers with core markets of

Midwest 11.9% 45.2% 16.7% 4.8% 21.4%
five miles in diameter or less

West 22% 19.5% 17.1% 7.3% 34.1%
have the most confidence in

in-store financing programs,
By location
most often rating them as Location Essential or very Somewhat Not very Unnecessary Do not
essential or very important.

Urban 11.6% 20.3% 17.4% 13% 37.7%
Suburban 24.5% 30.6% 13.3% 3.1% 28.6%
Rural 19.2% 34.6% 26.9% 3.8% 15.4%

Core market size Essential or very Somewhat Not very Unnecessary Do not
Less than a mile in diameter 33.3% 0% 33.3% 0% 33.3%
1-3 miles in diameter 30% 20% 30% 10% 10.%
5-10 miles in diameter 14.3% 47.6% 19.% 4.8% 14.3%
in diameter 18.9% 22.6% 15.1% 7.5% 35.8%
I sell strictly online 0% 33.3% 16.7% 0% 50%

Sales Essential or very Somewhat Not very Unnecessary Do not
Less than $250,000 18% 22% 14% 8% 38%
$250,000-$499,999 12.1% 39.4% 24.2% 6.1% 18.2%
$500,000-$749,999 29.4% 17.6% 11.8% 5.9% 35.3%
$750,000-$999,999 11.1% 16.7% 16.7% 11.1% 44.4%
$1,000,000-$1,499,999 25% 30% 15% 0% 30%
$1,500,000 or more 18.4% 36.8% 18.4% 7.9% 18.4%
of jewelers say in-store

47% financing programs can be
an important sales tool.
SURVEY RESPONDENTS QUESTION FROM OUR SPONSOR

seem generally unsure about
the effectiveness of limited- Are special, limited-time financing offers effective for
time financing offers to
increase sales in their stores,
20 increasing sales?
although 29 percent deem
them somewhat effective.
Very effective 9 percent
Jewelers in the South are Somewhat effective 29 percent
most likely to find these offers
to be very effective (14.5
Somewhat ineffective 6 percent
percent), while jewelers in the Ineffective 10 percent
Midwest most often rate
them as somewhat effective
Does not apply 46 percent
(40.5 percent).
Conversely, jewelers who
report sales of $499,999 or
By U.S. region
less are most likely to rate

Region Very effective Somewhat Somewhat Ineffective Does not
limited-time financing offers

effective ineffective apply
Northeast 6.3% 27.1% 8.3% 10.4% 47.9%
as ineffective as a tool for

South 14.5% 22.6% 6.5% 9.7% 46.8%
increasing sales.
Midwest 4.8% 40.5% 4.8% 9.5% 40.5%
West 7.3% 26.8% 4.9% 12.2% 48.8%
By location
Location Very effective Somewhat Somewhat Ineffective Does not
Urban 5.8% 20.3% 2.9% 14.5% 56.5%
Suburban 11.2% 32.7% 9.2% 9.2% 37.8%
Rural 7.7% 34.6% 3.8% 3.8% 50%

Core market size Very effective Somewhat Somewhat Ineffective Does not
Less than a mile in diameter 0% 33.3% 0% 0% 66.7%
1-3 miles in diameter 20% 20% 0% 20% 40%
I sell strictly online 0% 16.7% 0% 0% 83.3%

Sales Very effective Somewhat Somewhat Ineffective Does not
Less than $250,000 10% 28% 0% 12% 50%
may not add up to 100 9.1%
$250,000-$499,999
*Totals 36.4%
percent due to rounding. 6.1% 24.2% 24.2%
$500,000-$749,999 5.9% 23.5% 5.9% 5.9% 58.8%
$750,000-$999,999 5.6% 16.7% 11.1% 5.6% 61.1%
$1,000,000-$1,499,999 15% 20% 15% 5% 45%
$1,500,000 or more 7.9% 36.8% 7.9% 5.3% 42.1%
of jewelers say limited-time financing

38% offers can help increase sales.
Appendix A.What is the share of your marketing

budget by each of the following media?
B.What is your marketing spend by
quarter as a percent of the total?
IN ADDITION to answering (Should total 100%) (Should total 100%)
the 20 multiple-choice
questions of the marketing PRINT JAN.-MARCH
best practices survey, the 1. 10% (22 respondents) 1. 20% (50 respondents)
204 participating jewelers 2. 0% (18 respondents) 2. 25% (40 respondents)
each answered the open- 3. 20% (15 respondents) 3. 10% (28 respondents)
ended questions (A-D) at 4. 30% (12 respondents) 4. 15% (21 respondents)
right.We’ve compiled their
answers to come up with
RADIO APRIL-JUNE
the four most frequent
1. 0% (118 respondents) 1. 20% (48 respondents)
responses to each question.
4. 30% (7 respondents)
JULY-SEPT.
TV/CABLE 1. 20% (47 respondents)
3. 40% (5 respondents) OCT.-DEC.
DIRECT
3. 20% (11 respondents) C.How do you measure/validate
4. 40% (10 respondents) your marketing program’s return
on investment?
OUTDOOR
1. 0% (150 respondents) 1. Customer feedback
2. 10% (11 respondents) 2. Change/increase in sales volume
3. 20% (5 respondents) 3. Change/increase in store traffic
4. 15% (4 respondents) 4. Tracking promotion-specific merchandise
4. 0.1% (4 respondents) OTHER RESPONSES: year-end sales figures,
accelerated business growth, computer reports,
WEB/E-MAIL coupon return, gut feel, don’t measure it
3. 5% (12 respondents) D.What is driving change, if any, in your
4. 15% (7 respondents) approach to marketing?
LIVE EVENTS 1. Changing customer base/changing market

1. 0% (116 respondents) 2. Budget constraints/concerns about the overall
2. 10% (21 respondents) economy
3. 5% (13 respondents) 3. Competition/need to differentiate
4. 15% (7 respondents) 4. Desire to grow/reach new customers
OTHER RESPONSES: Charity auctions, sponsorships, OTHER RESPONSES: fashion trends, new product,
fundraisers, gifts to special visitors, platinum rewards, shift toward “value” shopping, e-mail/Internet,
word of mouth, 100 percent face-to-face event marketing, outdoor marketing, no change

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A National Jeweler White Paper

Type Size of core market

Less than 1 mile: 2 percent

South: 32 percent Annual per-store sales

$1,500,000 or more: 20 percent

THE VAST majority of jewel-

with a near majority (49 Less than 1%: 9 percent

percent. Likewise, jewelers

with higher per-store By location

seeing $750,000-plus in sales

percent of their revenue

By annual per-store sales

of jewelers spend 10 percent or

MORE THAN one-third of

Among those who do plan

to spend significantly more

on marketing this year, about

11 percent are in rural areas

and about 27 percent have

By size of core market

By annual per-store sales

of jewelers plan to spend the

NEWSPAPER DISPLAY is the

another important marketing

magazines leading the way. Newspaper insert advertising: 28 percent

most heavily on newspaper

ads, while the largest markets

spread their print dollars most

evenly between newspapers

and magazines.Those with the

highest revenue, $1.5 million

across the board.

By size of core market

By annual per-store sales

of jewelers use newspaper

HOSTING IN-STORE events

two-thirds reporting they

10 in-store events. Similarly,

those with a wider core

market are more likely to

the course of a year.

By size of core market

By annual per-store sales

of jewelers hold at least one

often hold trunk shows and

percent, respectively), while

Western jewelers put more By U.S. region

After-hours events, as well

as other event types not listed,

are important to marketing

plans across the categories,

perhaps signaling jewelers’

customers and differentiate

By annual per-store sales

of jewelers hold single-

MOST JEWELERS surveyed

into their marketing plans Less than 10% 32 percent

10 percent of their marketing More than 50%: 1 percent

both online and traditional

jewelers, regardless of core

market size or annual

supplier funds make up a

modest portion of their