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Transcript of Best Marketing Practices
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8/8/2019 Best Marketing Practices
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North AmericanFine Jewelry RetailingResearch Series:
MarketingBest Practices
A National JewelerWhite Paper
Sponsored by
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TABLE OF CONTENTS
QUESTIONS AND ANSWERS:A closer look at the surveys 20 main questions
p.4 1. What is your total marketing spend aspercentage of revenue?
p.5 2. What is the change in your marketing spend asa 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 youhost per year?
p.8 5. Which of the following types of events doyou hold?
p.9 6. What percentage of your marketing budget ispaid for out of suppliers co-op funding?
p.10 7. What types of market research do youengage in?
p.11 8. What is the primary goal of your marketresearch?
p.12 9. Do you collect customer data/information?
p.13 10. If you collect customer data, in which of thefollowing ways do you use it?
p.14 11. Which of the following methods do you useto contact customers?
p.15 12. Do you buy mailing lists to solicit newcustomers?
p.16 13. Within what period of time do you expect tosee a return on a specific marketing investment?
p.17 14. What is the most important objective of yourmarketing?
p.18 15. What is your biggest marketing executionchallenge?
p.19 16. Who manages your marketing budget?
p.20 17. Who is responsible for developing yourmarketing creative?
p.21 18. Do you work with an outside consultant/agency for any of the following?
p.22 SPONSOR QUESTION: 19. How would you ratein-store financing programs as a marketing/sales tool?
p.23 SPONSOR QUESTION: 20.Are special, limited-timefinancing offers effective for increasing sales?
APPENDIX:The top four responses to four open-ended questions
p.24 A. What is the share of your marketing budget byeach of the following media?
B. What is your marketing spend by quarter as apercent of the total?
C. How do you measure/validate your marketingprograms return on investment?
D.What is driving change, if any, in your approachto marketing?
By Melissa Shepherd
NATIONAL JEWELERS exclusive market-ing practices survey posed a series ofquestions to jewelers about how theyrun their marketing programs in order
to help elucidate the business chal-lenges, goals and best practices of theindustry at large.
On each page of the survey results,youll find one of 20 questions. Eachquestion has been cross-tabulated bykey demographics and briefly summa-rized to provide further insight into theresults. But first, here are some of thesurveys main findings, culled from theresponses of the204 participating
jewelers: Most jewelers(89 percent) spendless than 10 percentof their yearly rev-enue on marketing.In general, as coremarket size and per-store revenue go up,so does marketingspend. Year-over-year,
jewelers are cau-
tiously re-evaluatingtheir marketing budgets. More than one-third plan to spend no more this year thanthey did last year, and 21 percent plan tospend even less. Devising a master plan is the
biggest marketing execution challengefor jewelers (28 percent), followedclosely by developing the creative(26 percent) and choosing media andplacement for their marketing materials(26 percent).
Building brand recognition is themost important marketing goal for jewelers (44 percent), followed by drivingtraffic to their stores (29 percent)
Reflecting these two main goals, virtually equal numbers of jewelers expecimmediate results (34 percent) andlong-term results (35 percent) fromtheir marketing efforts. Jewelers with higher revenues an
wider core markets spend more on advertising and hold more in-store events. Prinadvertising, especially in newspapersremains an important marketing resource
(61 percent of jewelers run these ads)and single-vendor trunk shows are moscommon (37 percent of jewelers hold thitype of in-store event). Better product development is the
main reason jewelers say they conducmarket research (42 percent), and mosjewelers prefer doing so by talkinginformally with customers (59 percent), rather than sending surveys orusing focus groups.
Jewelers share their marketingchallenges, goals and best practices
OVER VI EW 2
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ABOUT THIS SURVEY:
NATIONALJEWELER conducted this survey via e-mail in October 2006 in
conjunction with Zoomerang.com, an online market research service owned
and operated by MarketTools Inc. of Mill Valley, Calif. Responding to the
survey were 204 readers.Roughly 82 percent of the survey respondents were independent retail
jewelers; 2 percent represented jewelry chains; 1 percent represented
department stores; and the remaining 15 percent included designers, online
retailers, pawn shops, repair shops and similar businesses.
Grouped geographically, responses fell into four U.S. regions:
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
Geographically, responses also fell into three locationsurban, suburban or
ruraland into five core market sizesless than one mile, one to three miles,
three to five miles, five to 10 miles, and greater than 10 miles in diameter.
Other respondents reported selling strictly online.
The survey also grouped respondents by annual per-store sales: less than$250,000; $250,000-$499,999; $500,000-$749,999; $750,000-
$999,999; $1 million to $1,499,999; and $1.5 million or more.
Finally, NATIONALJEWELER cross-tabulated the survey questions by region, by
location, by size of core market and by annual per-store sales to achieve
more in-depth results on marketing practices.
Region
Northeast:
South:
Midwest:
West:
25 percent
32 percent
22 percent
21 percent
Size of core market
Less than 1 mile:
1-3 miles:
3-5 miles:
5-10 miles:
Greater than 10 miles:
I sell strictly online:
2 percent
6 percent
13 percent
23 percent
53 percent
3 percent
Location
Annual per-store sales
Less than $250,00:
$250,000-$499,999:
$500,000-$749,999:
$750,000-$999,999:
$1,000,000 to
$1,499,999:
$1,500,000 or more:
25 percent
19 percent
17 percent
9 percent
10 percent
20 percent
Type
Independent retailers:
Jewelry Chains:
Department Stores:
Other:
82 percent
2 percent
1 percent
15 percent
Urban:
Suburban:
Rural:
37 percent
50 percent
13 percent
Core market diameter
OVER VI EW 3
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1What is your total marketing spend aspercentage of revenue?
By location
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%
Suburban 9.8% 12.7% 20.6% 25.5% 17.6% 10.8% 2.9%
Rural 11.1% 25.9% 14.8% 33.3% 11.1% 3.7% 0%
By U.S. region
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%
South 4.5% 16.7% 24.2% 31.8% 16.7% 3% 3%
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%
Less than 1%:
1-3%:
3-5%:
5-7%:
7-10%:
10-15%:
Other:
By size of core market
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%
9 percent
18 percent
22 percent
27 percent
13 percent
9 percent
2 percent
N A T I O N A L J E W E L E R E X C L U S I V E S U R V E Y : M A R K E T I N G P R A C T I C E S
THE VAST majority of jewel-
ers surveyed report spending
less than 10 percent of their
annual revenue on marketing,with a near majority (49
percent) spending between
3 percent and 7 percent.
Core market size and per-
store revenue are generally
proportionate to marketing
spend. Seventy-five percent
of jewelers whose markets
cover less than a mile in
diameter report a marketing
spend of less than 1 percent
of revenue.Meanwhile,
jewelers with larger core
markets are most likely to
spend 3 percent to 10
percent. Likewise, jewelers
with higher per-store
revenue tend to spend more
on marketing, with those
seeing $750,000-plus in sales
putting 5 percent to 7
percent of their revenue
into marketing.
89%of jewelers spend 10 percent orless of their revenue on marketing.
*Totals may not add up to 100 percent due to rounding.
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N A T I O N A L J E W E L E R E X C L U S I V E S U R V E Y : M A R K E T I N G P R A C T I C E S
MORE THAN one-third of
survey respondents say they
will spend no more on their
marketing programs this yearthan they did last year, and
most of those who are
adjusting their spend will do
so cautiously (27 percent plan
to spend slightly more and
21 percent plan to spend
slightly less).
The trend of cautious
spending adjustments appears
across all regions and loca-
tions,with jewelers in the
Northeast and in urban areas
most inclined to stick to last
years budget.
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
per-store sales of $1 million
or more.
34%of jewelers plan to spend thesame amount on marketing thisyear as they did the previous year.
2 What is the change in your marketing spend as apercentage of revenue compared to last year?
By location
Location Same spend Slightly less Significantly Slightly Significantly Other as last year than last year less than more than more than
last year last year last year
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%
By U.S. region
Region Same spend Slightly less Significantly Slightly Significantly Other as last year than last year less than more than more than
last year last year last year
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%
Midwest 29.5% 36.4% 4.5% 25% 2.3% 2.3%
West 32.6% 23.3% 2.3% 30.2% 9.3% 2.3%
Same spend as last year:
Slightly less than last year:
Significantly less than last year:
Slightly more than last year:
Significantly more than last year:
Other:
By size of core market
Core market size Same spend Slightly less Significantly Slightly Significantly Other as last year than last year less than more than more than
last year last year last year
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%
By annual per-store sales
Sales Same spend Slightly less Significantly Slightly Significantly Other as last year than last year less than more than more than
last year last year last year
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%
34 percent
21 percent
7 percent
27 percent
9 percent
2 percent
*Totals may not add up to 100 percent due to rounding.
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N A T I O N A L J E W E L E R E X C L U S I V E S U R V E Y : M A R K E T I N G P R A C T I C E S
NEWSPAPER DISPLAY is the
print advertising of choice
for 61 percent of jewelers
surveyed. Magazine ads areanother important marketing
avenue, with local lifestyle
magazines leading the way.
Rural jewelers are more
likely to run ads in a newspa-
per (81.5%) by some 20
percentage points than their
urban and suburban counter-
parts, while bridal magazine
ads are significantly more
frequent among urban and
suburban jewelers.
Smaller core markets rely
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
or more per store, invest
more in print advertising,
across the board.
61%of jewelers use newspaperdisplay advertising.
3What kind of print advertising do you run?(Check all that apply.)
By location
Location Newspaper Newspaper Local lifestyle Regional National Bridal Otherdisplay insert magazine magazine magazine magazine
advertising advertising advertising advertising advertising advertising
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%
By U.S. region
Region Newspaper Newspaper Local lifestyle Regional National Bridal Other display insert magazine magazine magazine magazine
adverti si ng advertising adver tising adver tising advertising adver ti si ng
Northeast 60.8% 29.4% 43.1% 25.5% 11.8% 19.6% 21.6%
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%
West 60.5% 23.3% 30.2% 20.9% 9.3% 16.3% 30.2%
Newspaper display advertising:
Newspaper insert advertising:
Local lifestyle magazine advertising:
Regional magazine advertising:
National magazine advertising:
Bridal magazine advertising:
Other:
By size of core market
Core market size Newspaper Newspaper Local lifestyle Regional National Bridal Otherdisplay insert magazine magazine magazine magazine
adver tising advert is ing adver tising adver tising advert is ing adver tising
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%
By annual per-store sales
Sales Newspaper Newspaper Local l ifesty le Regional Nati onal Bridal Other display insert magazine magazine magazine magazine
adver tising adver tising adver tising advert is ing adver tising adver tising
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%
61 percent
28 percent
35 percent
22 percent
8 percent
14 percent
27 percent
*Totals add up to more than 100 percent since multiple responses were permitted.
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N A T I O N A L J E W E L E R E X C L U S I V E S U R V E Y : M A R K E T I N G P R A C T I C E S
HOSTING IN-STORE events
is a common marketing best
practice among survey
respondents, with more thantwo-thirds reporting they
hold at least one each year
and 41 percent reporting
they hold 2 to 5 such events.
Per-store sales are a
primary factor in how many
events jewelers host through-
out the year; 46 percent of
jewelers with less than
$250,000 in annual sales dont
host any in-store events,while
more than 12 percent of
jewelers in the $1.5 million-
plus range average more than
10 in-store events. Similarly,
those with a wider core
market are more likely to
host multiple events during
the course of a year.
67%of jewelers hold at least onein-store event each year.
4 How many in-store marketing events do youhost per year?
By location
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%
By U.S. region
Region None 1 2-5 5-10 More than 10
Northeast 37.3% 15.7% 39.2% 3.9% 3.9%
South 36.4% 16.7% 40.9% 3% 3%
Midwest 29.5% 13.6% 47.7% 6.8% 2.3%
West 27.9% 23.3% 34.9% 7% 7%
None:
1:
2-5:
5-10:
More than 10:
By size of core market
Core market size None 1 2-5 5-10 More than 10Less 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%
By annual per-store sales
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%
33 percent
17 percent
41 percent
5 percent
4 percent
*Totals may not add up to 100 percent due to rounding.
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N A T I O N A L J E W E L E R E X C L U S I V E S U R V E Y : M A R K E T I N G P R A C T I C E S
SINGLE-VENDOR trunk
shows are the most popular
type of event among jewelers
surveyed (37 percent),andthe majority (51 percent) also
favor special after-hour events
as a way to draw in customers.
Jewelers in the South most
often hold trunk shows and
cross-promotional events
(nearly 44 percent and 23
percent, respectively), while
Western jewelers put more
emphasis on multiple-vendor
events (more than 30 percent).
After-hours events,as well
as other event types not listed,
are important to marketing
plans across the categories,
perhaps signaling jewelers
overall desire to reward best
customers and differentiate
their events from the pack.
37%of jewelers hold single-vendor trunk shows.
5 Which of the following types of events do you hold?(Check all that apply.)Single-vendor trunk shows:
Product-themed shows with productfrom multiple vendors:
Cross-promotional events partneringwith other retail marketers:
Special after-hours price-off events:
Special after-hours themed events:
Other:
37 percent
21 percent
17 percent
22 percent
29 percent
36 percent
*Totals add up to more than 100 percent since multiple responses were permitted.
By U.S. region
Region S ingle-vendor P roduct -themed Cross -promotional Special a fter -hours Special a fter -hours Other trunk shows shows with product events partnering price-off events themed events
from multiple vendors with other retailmarketers
Northeast 33.3% 25.5% 15.7% 21.6% 23.5% 31.4%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%
West 34.9% 30.2% 14% 18.6% 32.6% 44.2%
By location
Location S ingle- vendor Produc t- themed Cross -promotional Special a fter -hours Special a fter -hours Other trunk shows shows with product events partnering price-off events themed events
from multiple vendors with other retailmarketers
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%
By size of core market
Core market Single-vendor Product-themed Cross-promotional Special after-hours Special after-hours Others ize t runk shows shows w ith product events partner ing price-off events themed events
from multiple vendors with other retailmarketers
Less than amile in diameter 25.% 25.% 0% 0% 25% 25%
1-3 milesin diameter 16.7% 0% 0% 33.3% 25% 41.7%3-5 milesin diameter 37.% 22.2% 0% 25.9% 18.5% 40.7%5-10 milesin diameter 43.5% 21.7% 17.4% 19.6% 23.9% 32.6%Greater than10 milesin diameter 38.5% 22% 23.9% 22% 35.8% 34.9%I sell strictlyonline 16.7% 33.3% 16.7% 16.7% 16.7% 66.7%
By annual per-store sales
Sales Single-vendor Produc t- themed Cross -promotional Special a fter -hours Special a fter -hours Other trunk shows shows with product events partnering price-off events themed events
from multiple vendors with other retailmarketers
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%
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N A T I O N A L J E W E L E R E X C L U S I V E S U R V E Y : M A R K E T I N G P R A C T I C E S
MOST JEWELERS surveyed
go it alone when it comes to
marketing, with 55 percent
opting not to use supplierco-op funds.
Rural jewelers are least
likely to factor supplier dollars
into their marketing plans
(nearly 67 percent). Suburban
jewelers are most likely,
although 43 percent of
suburbanites draw less than
10 percent of their marketing
budget from suppliers.
Online jewelers over-
whelmingly choose not to
partner with suppliers on
marketing (83 percent), and
both online and traditional
jewelers, regardless of core
market size or annual
per-store sales, report that
supplier funds make up a
modest portion of their
marketing budgets.
55%of jewelers dont use supplierco-op funds to market their stores.
6 What percentage of your marketing budget is paid forout of suppliers co-op funding?
By location
Location None Less than 10% 10-25% 25-50% More than 50%
Urban 62.7% 18.7% 10.7% 6.7% 1.3%
Suburban 47.1% 43.1% 8.8% 1% 0%
Rural 66.7% 29.6% 3.7% 0% 0%
By U.S. region
Region None Less than 10% 10-25% 25-50% More than 50%
Northeast 60.8% 29.4% 5.9% 3.9% 0%
South 47% 36.4% 12.1% 3% 1.5%
Midwest 54.5% 34.1% 9.1% 2.3% 0%
West 62.8% 27.9% 7% 2.3% 0%
None:
Less than 10%
10-25%:
25-50%:
More than 50%:
By size of core market
Core market size None Less than 10% 10-25% 25-50% More than 50%
Less than a mile in diameter 50% 25% 0% 25% 0%
1-3 miles in diameter 75% 25% 0% 0% 0%
3-5 miles in diameter 44.4% 48.1% 3.7% 3.7% 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%
By annual per-store sales
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%
*Totals may not add up to 100 percent due to rounding.
55 percent
32 percent
9 percent
3 percent
1 percent
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ALTHOUGH 30 percent of
survey respondents say they
dont engage in market
research, those who doprefer talking directly to
customers (59 percent) over
more formal approaches like
surveys and focus groups.
This is particularly true of
rural jewelers, nearly 90
percent of whom use informal
discussions with customers
for market research.
Jewelers with both small
and large core markets use
surveys more often than focus
groups, but both methods lag
well behind face-to-face talks
with customers as
marketing best practices.
59%of jewelers conduct market researchthrough informal discussions withcustomers.
7 What types of market research do you engage in?(Check all that apply.)
By U.S. region
Region Surveys (mail, Focus Informal discussions We dont do Other e-mail, phone) groups with customers market research
Northeast 31.4% 9.8% 58.8% 31.4% 3.9%
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%
Surveys (mail, e-mail or phone):
Focus groups:
Informal discussions with customers:
We dont do market research:
Other:
By location
Location Surveys (mail, Focus Informal discussions We dont do Other e-mail, phone) groups with customers market research
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%
By size of core market
Core market size Surveys (mail, Focus Informal discussions We dont do Other e-mail, phone) groups with customers market research
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%
5-10 miles in diameter 32.6% 4.3% 73.9% 21.7% 4.3%
Greater than 10 miles
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 dont do Other e-mail, phone) groups with customers market research
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%
28 percent
11 percent
59 percent
30 percent
6 percent
*Totals add up to more than 100 percent since multiple responses were permitted.
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GEOGRAPHY, MARKET size
and annual per-store sales
seem to have little impact on
the value surveyed jewelersplace on market research to
develop their merchandise,
who as a group cite better
product development as the
main reason they conduct
market research (42 percent).
Rural jewelers did place
more stock in market
research as a way to provide
pricing insight and to
determine product life cycles,
citing these two goals as their
primary ones 18.5 percent
and 14.8 percent of the time,
respectively.
By annual per-store sales,
jewelers in the $1 million to
$1.5 million range most often
set product development as
their main goal of research,at
57.1 percent of respondents.
42%of jewelers say aiding productdevelopment is the primarygoal of their market research.
8What is the primary goalof your market research?
Aiding in product/merchandisedevelopment:
Providing insights for pricing:
Helping determineproduct life cycle:
We dont do market research:
Other:
42 percent
9 percent
10 percent
30 percent
9 percent
By U.S. region
Region Aiding in product/ Providing insights Helping determine We dont do Othermerchandise development for pricing product life cycle market research
Northeast 43.1% 7.8% 11.8% 29.4% 7.8%
South 40.9 4.5% 13.6% 31.8% 9.1%
Midwest 36.4% 15.9% 9.1 27.3% 11.4%
West 46.5% 11.6% 2.3% 30.2% 9.3%
By location
Location Aiding in product/ Providing insights Helping determine We dont do Othermerchandise development for pricing product life cycle market research
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%
By size of core market
Core market Aiding in product/ Providing insights Helping determine We dont do Othersize merchandise development for pricing product life cycle market research
Less than a mile
in diameter 25% 0% 0% 75% 0%
1-3 miles in diameter 41.7% 8.3% 8.3% 41.7% 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%
Greater than 10 miles
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%
By annual per-store sale
Sales Aiding in product/ Providing insights Helping determine We dont do Othermerchandise development for pricing product life cycle market research
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%
*Totals may not add up to 100 percent due to rounding.
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N A T I O N A L J E W E L E R E X C L U S I V E S U R V E Y : M A R K E T I N G P R A C T I C E S
NINETY PERCENT of jewel-
ers who participated in the
survey say they collect
customer information.By region,virtually all jewel-
ers in the Midwest collect this
data (97.7 percent),while the
Northeast lags behind a bit at
just over 78 percent.
Jewelers with higher annual
per-store sales may be more
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
better than 90 percent,while
those with lower per-store
sales hover in the mid to high
80th percentile.
90%of jewelers collectcustomer information.
9 Do you collect customer data/information?
Yes:
No:
By U.S. region
Region Yes NoNortheast 78.4% 21.6%
South 92.4% 7.6%
Midwest 97.7% 2.3%
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%
By size of core market
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%
5-10 miles in diameter 89.1% 10.9%
Greater than 10 miles in diameter 88.1% 11.9%
I sell strictly online 83.3% 16.7%
By annual per-store sales
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%
90 percent
10 percent
*Totals may not add up to 100 percent due to rounding.
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N A T I O N A L J E W E L E R E X C L U S I V E S U R V E Y : M A R K E T I N G P R A C T I C E S
ALTHOUGH 71 percent of
survey respondents says they
use customer data simply to
maintain general contactwith their customers, a good
portion also dig deeper for
more specific information
on customers.
Building relationships with
customers seems to be a
major consideration, as 61
percent of jewelers use the
data they collect to contact
their customers individually.
Creating segmented market-
ing strategies and determining
best customers also are
valued uses of customer data
among all jewelers,despite
demographic differences.
48%of jewelers collect data to determinewho are their best customers.
10 If you collect customer data, in which of thefollowing ways do you use it? (Check all that apply.)To segment our customers for
specific sales/marketing efforts:
To determine our best customers:
To contact ourcustomers individually:
To maintain general contactwith all customers:
We dont collect customer data:
Other:
48 percent
48 percent
61 percent
71 percent
10 percent
2 percent
By U.S. region
Region To segment our To determine To contact our To maintain We dont collect Othercustomers for our best customers general contact customer data
specific sales/ customers individually with all customers
marketing effortsNortheast 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 Othercustomers for our best customers general contact customer data
specific sales/ customers individually with all customers
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%
By size of core market
Core market To segment our To determine To contact our To maintain We don't collect Othersize customers for our best customers general contact customer data
specific sales/ customers individually with all customers
marketing effortsLess 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%
Greater than 10 miles
in diameter 52.3% 53.2% 65.1% 70.6% 11% 1.8%
I sell strictly online 50% 50% 50% 50% 16.7% 0%
By annual per-store sale
Sales To segment our To determine To contact our To maintain We don't collect Othercustomers for our best customers general contact customer data
specific sales/ customers individually with all customers
marketing effortsLess 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%
*Totals add up to more than 100 percent since multiple responses were permitted.
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N A T I O N A L J E W E L E R E X C L U S I V E S U R V E Y : M A R K E T I N G P R A C T I C E S
THE VAST MAJORITY of
jewelers surveyed use
multiple means of keeping
in contact with theircustomers, relying most
heavily on individual mailings
(75 percent) and telephone
calls (59 percent).
Individual mailings are
especially important among
jewelers in the South (80.3
percent) and West (79.1
percent);Western jewelers
also make the most phone calls
to customers (74.4 percent).
E-mail is used frequently by
all jewelers but most often
by suburban jewelers (57.8
percent),who seem to con-
tact customers more often in
general than jewelers in urban
and rural areas. Not surpris-
ingly, online jewelers are most
likely to e-mail customers
(100 percent), but also report
using a good amount of bulk
and individual mailings as well
as phone contact.
51%of jewelers e-mailtheir customers.
11 Which of the following methods do you use tocontact customers? (Check all that apply.)Bulk mailing:
Individual mailing:
Telephone:
E-mail:
Other:
By U.S. region
Region Bulk mailing Individual mailing Telephone E-mail Other Northeast 45.1% 72.5% 56.9% 52.9% 3.9%
South 45.5% 80.3% 57.6% 50% 4.5%
Midwest 47.7% 65.9% 47.7% 43.2% 4.5%
West 34.9% 79.1% 74.4% 55.8% 11.6%
By location
Location Bulk mailing Individual mailing Telephone E-mail Other
Urban 44% 77.3% 54.7% 40% 5.3%
Suburban 45.1% 76.5% 61.8% 57.8% 6.9%
Rural 37% 63% 59.3% 51.9% 3.7%
By size of core market
Core market size Bulk mailing Individual mailing Telephone E-mail Other
Less than a mile in diameter 25% 25% 50% 25% 0%
1-3 miles in diameter 16.7% 83.3% 66.7% 41.7% 8.3%
3-5 miles in diameter 40.7% 74.1% 44.4% 33.3% 14.8%5-10 miles in diameter 52.2% 73.9% 56.5% 34.8% 2.2%
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%
By annual per-store sales
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%
44 percent
75 percent
59 percent
51 percent
6 percent
*Totals add up to more than 100 percent since multiple responses were permitted.
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ONLY 14 PERCENT of sur-
vey respondents say they buy
mailing lists to solicit new
customers,with jewelers inthe North most likely to use
this practice (17.6 percent)
and those in the South most
likely not to (89.2 percent).
Suburban and rural jewelers
buy mailing lists somewhat
more often than their urban
counterparts.
The widest margin between
those who do and dont buy
mailing lists follows annual
per-store sales;more than 34
percent of jewelers with sales
in excess of $1.5 million buy
such lists,more than double
the percentage of the next
most frequent mailing list
purchasers, jewelers in the
$750,000 to $999,000 per-
store sales bracket.
34%of jewelers with sales of$1.5 million or more buy mailinglists to solicit new customers.
12 Do you buy mailing lists to solicitnew customers?
Yes:
No:
By U.S. region
Region Yes No
Northeast 17.6% 82.4%
South 10.8% 89.2%
Midwest 11.6% 88.4%
West 16.7% 83.3%
By location
Location Yes No
Urban 9.6% 90.4%
Suburban 16.8% 83.2%
Rural 14.8% 85.2%
By size of core market
Core market size Yes No
Less than a mile in diameter 0% 100%
1-3 miles in diameter 16.7% 83.3%
3-5 miles in diameter 7.7% 92.3%5-10 miles in diameter 23.9% 76.1%
Greater than 10 miles in diameter 12.1% 87.9%
I sell strictly online 0% 100%
By annual per-store sales
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%
14 percent
86 percent
*Totals may not add up to 100 percent due to rounding.
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SURVEY RESPONDENTS
present a mixed bag when it
comes to the time frame in
which they expect to see areturn on their marketing
investments.While 35 percent
expect results over the long
term in the form of brand-
building,another 34 percent
seek almost instant results (1
to 3 weeks) and 27 percent
think in terms of a few
monthsperhaps as a reflec-
tion of short-term advertising.
Suburban and rural jewelers
place slightly more emphasis
on fast returns than urban
jewelers,as do Southern and
Midwestern jewelers com-
pared to those in the
Northeast and West.
By annual per-store sales,
jewelers in the highest
bracket,$1.5 million-plus,
place the most importance
on a long-term marketing
investment to bolster their
brand (61 percent).
35%of jewelers expect long-termbrand-building as a result oftheir marketing investments.
*Totals may not add up to 100 percent due to rounding.
13 Within what period of time do you expect to seea return on a specific marketing investment?1-3 weeks:
1-2 months:
2-5 months:
Over the long-term through
brand building:
Other:
By U.S. region
Region 1-3 weeks 1-2 months 2-5 months Over the long-term Otherthrough brand building
Northeast 27.5% 17.6% 9.8% 41.2% 3.9%
South 39.4% 12.1% 12.1% 30.3% 6.1%
Midwest 38.6% 15.9% 9.1% 34.1% 2.3%
West 27.9% 23.3% 7% 37.2% 4.7%
By location
Location 1-3 weeks 1-2 months 2-5 months Over the long-term Other
through brand buildingUrban 29.3% 18.7% 10.7% 38.7 2.7%
Suburban 36.3% 12.7% 9.8% 34.3% 6.9%
Rural 37% 25.9% 7.4% 29.6% 0%
By size of core market
Core market size 1-3 weeks 1-2 months 2-5 months Over the long-term Other
through brand building
Less than a mile in diameter 25% 0% 25% 50% 0%
1-3 miles in diameter 50% 16.7% 8.3% 25% 0%
3-5 miles in diameter 33.3% 25.9% 7.4% 29.6% 3.7%
5-10 miles in diameter 47.8% 10.9% 10.9% 26.1% 4.3%
Greater than 10 miles in diameter 27.5% 16.5% 10.1% 40.4% 5.5%
I sell strictly online 16.7% 33.3% 0% 50% 0%
By annual per-store sales
Sales 1-3 weeks 1-2 months 2-5 months Over the long-term Other
through brand buildingLess than $250,000 28% 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%
*Totals may not add up to 100 percent due to rounding.
34 percent
17 percent
10 percent
35 percent
4 percent
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BUILDING BRAND recogni-
tion is the primary goal of
marketing among surveyed
jewelers (44 percent), whoalso cite driving store traffic
and gaining ground on the
competition as important
objectives, across all demo-
graphic lines.
Jewelers with smaller core
markets are more concerned
with driving store traffic than
those whose market reach
extends beyond 5 miles.
Meanwhile,online jewelers
(33.3 percent) and jewelers
with annual per-store sales in
excess of $1.5 million (24.4
percent) both put more focus
on strengthening their posi-
tions versus the competition.
44%of jewelers say building storerecognition is the most importantgoal of marketing.
*Totals may not add up to 100 percent due to rounding.
14 What is the most important objectiveof your marketing?Drive store traffic generally
Drive traffic for a specific event
Create interest in specific products
Build/reinforce your stores recognitionwithin the market
Strengthen your position vs. competitionwithin the market
Drive your business in times when theoverall market is down
Other
By U.S. region
Region Drive store Drive traff ic for Create interest Build/reinforce your Strengthen Drive your business Other
traffic generally a specific event in specific product stores recognition your position when the market
within the market vs. c ompetition is down
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%
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 traff ic for Create interest Build/reinforce your Strengthen Drive your business Other
traffic generally a specific event in specific product stores recognition your position when the market
within the market vs. c ompetition is down
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%
By size of core market
Core market Drive store Drive traff ic for Create interest Build/reinforce your Strengthen Drive your business Other
s ize traff ic generallya specif ic event in specific product stores recognition your posit ion when the market
within the market vs.compet it ion is down
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%
By annual per-store sales
Sales Dri ve store Drive t raffic fo r Create in te rest Bui ld/rein force your S treng then Drive your business Other
traffic generally a specific event in specific product stores recognition your position when the market
within the marke t vs.competi tion is down
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%
*Totals may not add up to 100 percent due to rounding.
26 percent
3 percent
5 percent
44 percent
15 percent
3 percent
5 percent
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N A T I O N A L J E W E L E R E X C L U S I V E S U R V E Y : M A R K E T I N G P R A C T I C E S
SURVEY RESPONDENTS
give almost equal weight to
three marketing challenges:
coming up with an overarchingplan, developing effective
materials to support it, and
placing the materials in the
right media outlets.This
three-way split is perhaps an
indication of the complexity
jewelers find in executing
their marketing strategies.
On the other hand, jewelers
across the board dont report
major difficulty in determining
total marketing spend.
Jewelers in the Northeast
put less than half the signifi-
cance on devising a master
plan that jewelers in other
regions do, but are more apt
to cite developing the creative
as their primary challenge
(35.3 percent).Rural jewelers
find the most difficulty in
choosing media and place-
ment for their marketing
materials (37 percent).
28%of jewelers say devising a masterplan is their biggest marketingexecution challenge.
*Totals may not add up to 100 percent due to rounding.
15 What is your biggest marketing execution challenge?
Devising a master plan
Determining total spend
Developing the creative
Choosing media and placement
Other
By U.S. region
Region Devising a Determining Developing Choosing media Other
master plan total spend the creative and placementNortheast 13.7% 9.8% 35.3 29.4% 11.8%
South 34.8% 13.6% 19.7% 24.2% 7.6%
Midwest 36.4% 6.8% 18.2% 29.5% 9.1%
West 27.9% 7% 32.6% 20.9% 11.6%
By location
Location Devising a Determining Developing Choosing media Other
master plan total spend the creative and placement
Urban 28% 8% 32% 24% 8%
Suburban 29.4% 11.8% 22.5% 24.5% 11.8%
Rural 25.9% 7.4% 22.2% 37% 7.4%
By size of core market
Core market size Devising a Determining Developing Choosing media Other
master plan total spend the creative and placement
Less than a mile in diameter 0% 0% 25% 50% 25.%
1-3 miles in diameter 16.7% 16.7% 41.7% 25% 0%3-5 miles in diameter 51.9% 3.7% 14.8% 22.2% 7.4%
5-10 miles in diameter 19.6% 15.2% 30.4% 30.4% 4.3%
Greater than 10 miles
in diameter 29.4% 9.2% 24.8% 22.9% 13.8%
I sell strictly online 16.7% 0% 33.3% 50% 0%
By annual per-store sales
Sales Devising a Determining Developing Choosing media Other
master plan total spend the creative and placement
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 21.1% 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%
*Totals may not add up to 100 percent due to rounding.
28 percent
10 percent
26 percent
26 percent
10 percent
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BY A WIDE margin of survey
respondents, owners are the
primary managers of their
stores marketing budgets.Geographically, owners in
the Northeast (88.2 percent)
and in rural locations (92.6
percent) are most likely to
run the budget, while jewelers
in the Midwest (13.6 percent)
and suburban locations (12.7
percent) are more likely to
hand over that responsibility
to a designated marketing
staff member.
Perhaps reflecting their
larger staff size, 24.4 percent
of jewelers with annual per-
store sales of $1.5 million-plus
have a marketing coordinator
or director manage the mar-
keting budget, compared to 2
percent of jewelers with sales
of less than $250,000.
77%of jewelry store owners managetheir marketing budgets.
*Totals may not add up to 100 percent due to rounding.
16 Who manages your marketing budget?
Owner
Other family member
Designated staff marketingcoordinator/director
Other non-family memberemployee
Other
By U.S. region
Region Owner Other family Designated staff marketing Other non-family Other
member coordinator/director member employeeNortheast 88.2% 5.9% 3.9% 0% 2%
South 74.2% 4.5% 10.6% 1.5% 9.1%
Midwest 72.7% 9.1% 13.6% 0% 4.5%
West 72.1% 9.3% 11.6% 2.3% 4.7%
By location
Location Owner Other family Designated staff marketing Other non-family Other
member coordinator/director member employee
Urban 82.7% 2.7% 8% 1.3% 5.3%
Suburban 68.6% 10.8% 12.7% 1% 6.9%
Rural 92.6% 3.7% 3.7% 0% 0%
By size of core market
Core market size Owner Other family Designated staff marketing Other non-family Other
member coordinator/director member employee
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%
Greater than 10 miles
in diameter 75.2% 5.5% 11% 0.9% 7.3%
I sell strictly online 66.7% 0% 33.3% 0% 0%
By annual per-store sales
Sales Owner Other family Designated staff marketing Other non-family Other
member coordinator/director member employee
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 84.2% 0% 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%
*Totals may not add up to 100 percent due to rounding.
77 percent
7 percent
10 percent
1 percent
5 percent
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AS WITH MARKETING
budget, the majority of
jewelers surveyed cite the
store owner as the personin charge of creative (61
percent),with other staff
members trailing far behind.
Outside consultants are
only favored by jewelers in
the top sales bracket of $1.5
million-plus per store,while
those in the $749,999 and
under range strongly favor
placing responsibility for
developing creative in the
hands of an owner or other
family member.
15%of jewelers use an outside consultantto develop their marketing materials.
*Totals may not add up to 100 percent due to rounding.
17 Who is responsible for developingyour marketing creative?Owner
Other family member
Designated staff marketingcoordinator/director
Other non-family memberemployee
Outside consultant/agency
Other
By U.S. region
Region Owner Other family Designated Other non-family Outside Other
member marketing staff member employee consultantNortheast 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
member marketing staff member employee consultant
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%
By size of core market
Core market size Owner Other family Designated Other non-family Outside Other
member marketing staff member employee consultant
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%
Greater than 10 miles
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%
By annual per-store sales
Sales Owner Other family Designated Other non-family Outside Other
member marketing staff member employee consultant
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 57.9% 0% 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%
*Totals may not add up to 100 percent due to rounding.
61 percent
9 percent
10 percent
1 percent
15 percent
3 percent
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ALTHOUGH 60 percent of
respondents report that they
dont work with an outside
consultant or agency ontheir marketing strategies,
those who do say developing
the creative is the main
reason (29 percent).
This trend is seen across
the demographics; however,
notably, jewelers with a core
market size of less than
10 miles or with lower annual
per-store sales volume are
significantly less likely to use
outside marketing help.Also,
suburban jewelers are most
likely to consult an agency
about marketing placement
(22.5 percent).
60%of jewelers develop theirmarketing strategies in-house.
*Totals may not add up to 100 percent due to rounding.
18 Do you work with an outside consultant/agency forany of the following? (Check all that apply.)
By U.S. region
Region Developing a master Developing Placement We do not work with Outside
marketing plan the creative an outside marketing
consultant/agencyNortheast 17.6% 29.4% 25.5% 58.8% 3.9%
South 18.2% 24.2% 16.7% 62.1% 7.6%
Midwest 9.1% 34.1% 18.2% 59.1% 4.5%
West 11.6% 32.6% 14% 58.1% 4.7%
By location
Location Developing a master Developing Placement We do not work with Outside
marketing plan the creative an outside marketing
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%
By size of core market
Core market size Developing a master Developing Placement We do not work with Outside
marketing plan the creative an outside marketing
consultant/agency
Less than a mile in diameter 0% 0% 0% 100% 0%1-3 miles in diameter 8.3% 25% 8.3% 75% 0%
3-5 miles in diameter 3.7% 14.8% 14.8% 70.4% 3.7%
5-10 miles in diameter 13% 28.3% 15.2% 58.7% 6.5%
Greater than 10 miles
in diameter 19.3% 34.9% 22% 55% 6.4%
I sell strictly online 16.7% 33.3% 33.3% 50% 0%
By annual per-store sales
Sales Developing a master Developing Placement We do not work with Outside
marketing plan the creative an outside marketing
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%
$500,000-$749,999 11.4% 28.6% 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%
*Totals add up to more than 100 percent since multiple responses were permitted.
15 percent
29 percent
19 percent
60 percent
5 percent
Developing a mastermarketing plan
Developing the creative
Placement
We do not work with an outsidemarketing consultant/agency
Other
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A NEAR MAJORITY of
survey respondents (47 per-
cent) rate in-store financing
programs to be an effectivemarketing and sales tool, but
the degree to which they do
varies.Twenty-eight percent
call such programs some-
what important, and roughly
equal numbers of jewelers
say they are either essential/
very important or not very
important.Almost a third
dont use financing as a
sales tool, perhaps signaling
a growth potential for these
programs.
Meanwhile, suburban
jewelers (24.5 percent) and
jewelers with core markets of
five miles in diameter or less
have the most confidence in
in-store financing programs,
most often rating them as
essential or very important.
47%of jewelers say in-storefinancing programs can bean important sales tool.
*Totals may not add up to 100 percent due to rounding.
19How would you rate in-store financing programs as a
marketing/sales tool?
By U.S. region
Region Essential or ver y Somewhat Not ver y Unnecessar y Do notimportant important important utilize
Northeast 14.6% 29.2% 14.6% 4.2% 37.5%
South 25.8% 19.4% 17.7% 9.7% 27.4%
Midwest 11.9% 45.2% 16.7% 4.8% 21.4%
West 22% 19.5% 17.1% 7.3% 34.1%
By location
Location Essential or ver y Somewhat Not ver y Unnecessar y Do not
important important important utilizeUrban 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%
By size of core market
Core market size Essential or very Somewhat Not very Unnecessary Do notimportant important important utilize
Less than a mile in diameter 33.3% 0% 33.3% 0% 33.3%
1-3 miles in diameter 30% 20% 30% 10% 10.%
3-5 miles in diameter 26.9% 19.2% 11.5% 7.7% 34.6%
5-10 miles in diameter 14.3% 47.6% 19.% 4.8% 14.3%
Greater than 10 miles
in diameter 18.9% 22.6% 15.1% 7.5% 35.8%
I sell strictly online 0% 33.3% 16.7% 0% 50%
By annual per-store sales
Sales Essential or ver y Somewhat Not ver y Unnecessar y Do not
important important important utilize
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%
*Totals may not add up to 100 percent due to rounding.
19 percent
28 percent
17 percent
7 percent
30 percent
Essential or very important
Somewhat important
Not very important
Unnecessary
We dont utilize them
QUESTION FROM OUR SPONSOR
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SURVEY RESPONDENTS
seem generally unsure about
the effectiveness of limited-
time financing offers toincrease sales in their stores,
although 29 percent deem
them somewhat effective.
Jewelers in the South are
most likely to find these offers
to be very effective (14.5
percent),while jewelers in the
Midwest most often rate
them as somewhat effective
(40.5 percent).
Conversely, jewelers who
report sales of $499,999 or
less are most likely to rate
limited-time financing offers
as ineffective as a tool for
increasing sales.
38%of jewelers say limited-time financingoffers can help increase sales.
*Totals may not add up to 100 percent due to rounding.
20Are special, limited-time financing offers effective for
increasing sales?
By U.S. region
Region Very effect ive Somewhat Somewhat Ineffect ive Does noteffective ineffective apply
Northeast 6.3% 27.1% 8.3% 10.4% 47.9%
South 14.5% 22.6% 6.5% 9.7% 46.8%
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
effective ineffective apply
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%
By size of core market
Core market size Very effective Somewhat Somewhat Ineffective Does not
effective ineffective apply Less than a mile in diameter 0% 33.3% 0% 0% 66.7%
1-3 miles in diameter 20% 20% 0% 20% 40%
3-5 miles in diameter 7.7% 26.9% 15.4% 11.5% 38.5%
5-10 miles in diameter 2.4% 38.1% 7.1% 11.9% 40.5%
Greater than 10 miles in diameter 11.3% 26.4% 4.7% 9.4% 48.1%
I sell strictly online 0% 16.7% 0% 0% 83.3%
By annual per-store sales
Sales Ver y effective Somewhat Somewhat Ineffective Does not
effective ineffective apply
Less than $250,000 10% 28% 0% 12% 50%
$250,000-$499,999 9.1% 36.4% 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%
*Totals may not add up to 100 percent due to rounding.
9 percent
29 percent
6 percent
10 percent
46 percent
Very effective
Somewhat effective
Somewhat ineffective
Ineffective
Does not apply
QUESTION FROM OUR SPONSOR
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AppendixIN ADDITION to answering
the 20 multiple-choicequestions of the marketing
best practices survey, the
204 participating jewelers
each answered the open-
ended questions (A-D) at
right.Weve compiled their
answers to come up with
the four most frequent
responses to each question.
A.What is the share of your marketing
budget by each of the following media?
(Should total 100%)
PRINT
1. 10% (22 respondents)
2. 0% (18 respondents)
3. 20% (15 respondents)
4. 30% (12 respondents)
RADIO
1. 0% (118 respondents)
2. 10% (9 respondents)
2. 5% (9 respondents)
3. 20% (8 respondents)
4. 30% (7 respondents)
TV/CABLE
1. 0% (138 respondents)
2. 25% (6 respondents)
2. 20% (6 respondents)
3. 50% (5 respondents)
3. 40% (5 respondents)
4. 15% (4 respondents)
4. 10% (4 respondents)
DIRECT
1. 0% (71 respondents)
2. 10% (24 respondents)
3. 20% (11 respondents)4. 40% (10 respondents)
OUTDOOR
1. 0% (150 respondents)
2. 10% (11 respondents)
3. 20% (5 respondents)
4. 15% (4 respondents)
4. 5% (4 respondents)
4. 0.1% (4 respondents)
WEB/E-MAIL
1. 0% (118 respondents)
2. 10% (16 respondents)3. 5% (12 respondents)
4. 15% (7 respondents)
LIVE EVENTS
1. 0% (116 respondents)
2. 10% (21 respondents)
3. 5% (13 respondents)
4. 15% (7 respondents)
OTHER RESPONSES: Charity auctions, sponsorships,
B.What is your marketing spend by
quarter as a percent of the total?
(Should total 100%)
JAN.-MARCH
1. 20% (50 respondents)
2. 25% (40 respondents)
3. 10% (28 respondents)
4. 15% (21 respondents)
APRIL-JUNE
1. 20% (48 respondents)
2. 25% (40 respondents)
3. 10% (24 respondents)
4. 15% (20 respondents)
JULY-SEPT.1. 20% (47 respondents)
2. 25% (35 respondents)
3. 10% (34 respondents)
4. 15% (18 respondents)
OCT.-DEC.
1. 40% (42 respondents)
2. 50% (30 respondents)
3. 25% (23 respondents)
4. 30% (13 respondents)
C.How do you measure/validateyour marketing programs return
on investment?
1. Customer feedback
2. Change/increase in sales volume
3. Change/increase in store traffic
4. Tracking promotion-specific merchandise
OTHER RESPONSES:year-end sales figures,
accelerated business growth, computer reports,
coupon return, gut feel, dont measure it
D.What is driving change, if any, in your
approach to marketing?
1. Changing customer base/changing market
2. Budget constraints/concerns about the overall
economy
3. Competition/need to differentiate
4. Desire to grow/reach new customers
OTHER RESPONSES: fashion trends, new product,
24