By Brian Land

How can an independent jeweller hope to compete in a crowded marketplace dominated by power retailers and national chains?

The Business Development Bank of Canada (BDC) provides a simple definition of “competitive advantage.” It defines a competitive advantage as “anything that gives a company an edge over its competitors.” Traditionally, a retail business uses one or more of five attributes to differentiate itself from a competitor, such as product quality, convenience, price, style/selection, and service.

For example, a firm like Costco adopts better-than-average quality and low prices to attract consumers. This strategy appears to work despite low service levels, limited selections, and warehouse locations (more than 100) that are far from convenient for shoppers. Loblaws prides itself on presenting a wide product assortment, convenient locations (2400 stores), and competitive pricing, albeit in a primarily self-serve environment. Lululemon has over 700 stores worldwide (69 in Canada) and offers a high-quality product with exclusive styling and a modest level of service. Whole Foods and Harry Rosen both pursue a competitive advantage through the quality of their product and above-average levels of service when compared to others in their retail sectors.   

When you consider retail jewellery chains in Canada, the high-end chains are destination locations that offer quality products and unique styling within a well-defined brand and typically elevated levels of client care. The mid-market jewellery chains boast wide selections at competitive prices and locations in most major shopping centres across Canada. Before I share my solution on how you can gain an “edge” on your competitors, I want you to consider this question: When a shopper enters your store, what is the collective mindset of your team? Let me illustrate this point with a scenario in a different setting.

Turning strangers into guests, the power of connection

You are hosting a small dinner party, and a close friend sends you a text message informing you that they are delayed at work and will arrive 30 minutes late. Further, they reveal their plus one, whom you have not met, will arrive separately and likely on time. The doorbell rings, you open the door, and there is your friend’s plus one.”

What do you do? Step aside and let the person enter to explore your house independently until your friend arrives? Or perhaps you say, “The bar is in the family room; help yourself,” making an awkward situation even more uncomfortable.

The more likely scenario is that you introduce yourself with a big smile and a lilt in your voice, welcoming the guest into your home. If your guest did not immediately offer their name, you would ask for their name before leading them into the family room, where you would introduce them to the other guests and serve them a beverage. 

Have you ever wondered why serving staff in fine dining establishments always make a point of introducing themselves? A self-introduction tends to build rapport and establish a personal connection. Studies have also found this type of connection significantly increases tips and leads to customer retention.

Returning to the question of how you create a competitive advantage, you may already have guessed my solution is simple: Differentiating your store through service. Not just elevated service levels but superior, world-class, or over-the-top customer care that will lead to client development and future sales. Much like the upscale restaurant business, introducing yourself and going one step further by asking guests their names leads to a higher likelihood of closing a jewellery sale and turning the shopper into a returning client. 

The competitive edge, implementing a service-driven strategy

Earlier, I asked you to consider the collective mindset for your team, which I call “the agenda.” The agenda aims to differentiate your store from the competition (building a competitive moat) by providing a product solution for your guests that exceeds their expectations and promotes an ongoing relationship. The elements of the agenda are as follows:

1) Mentality: A guest in your home

As in a high-end dining establishment, introduce yourself and ask for your guest’s name. Personalize the interaction by using their name frequently throughout the sale. For example, “Hello! Welcome to Land Jewellers. My name is Brian, and you are?”

2) Focus on the recipient

Once you have established the purpose behind your guest’s visit—but before you present any products—ask the guest to tell you something about the recipient of the jewellery item they wish to purchase. Start with the recipient’s name and use it frequently during the interaction. Next, ask the guest something personal about the recipient, explaining that it will help you form a mental image of them, followed by questions about likes or dislikes, fashion sense, whether they prefer trendy or traditional, or anything else the guest feels might have a bearing on the final merchandise selection. Along with ensuring your customer leaves your store with the perfect gift, this action supports the agenda in differentiating your store from competitors. Also, when you allow the guest to talk about their beloved, you will notice a change in demeanour. For example, they might become more relaxed, and you may even see them smile as they reflect.

For example, consider, “Bruce, before I can help you select the perfect engagement ring for Mary, I need you to tell me about her. I would like to get to know her. First, perhaps you could tell me how you met Mary and then describe her tastes in fashion or jewellery?”

[Note: In your gift-shopping experience, how often has a salesperson actually asked you about the recipient? Probably not very often!]

3) The moment of truth

Generally, a shopper enters a jewellery store with a need or aspiration and little knowledge about the store’s products. During the interaction, the sales consultant seeks information about the guest’s needs, and the guest gains information about potential product solutions. Eventually, you reach “the moment of truth,” or the purchase decision. The guest is there to buy (satisfy the need), and the sales consultant is there to sell (fulfill the need). If you understand this relationship and understand that the consumer will seldom volunteer to purchase, then you intuitively know the reason why so many selling interactions end with “I’ll be back!”—and the shopper leaves the store without purchasing.

In my opinion, a sales transaction often breaks down for one of two reasons:

• The guest doesn’t buy for fear of making mistakes (lack of confidence). A hesitant guest often requires constant reassurance. To help encourage the customer, the sales consultant can call over the owner/manager and ask for their opinion. This ensures an authority/expert to compliment the guest on their choice while also allowing the manager to take over the sale or introduce a complementary product.
• The sales consultant does not ask the guest if they have made a decision—and so fails to cross the finishing line. Remember, the guest came into your store to address a need. Asking the guest if the product in front of them meets their expectations and if they have made a decision is often all you have to do to complete the sale. For example, “Bruce, the way that you keep returning to that one solitaire gives me the impression that you have made a decision. Will that be the one you will present to Mary?”

4) Reason to return

The last element of the agenda is to give the guest a reason to return. This would be a good topic for a team sales meeting,
i.e. what can we do to “spoil” any guest who enters our store and what techniques can we implement to encourage a return visit. Here are a few thoughts:

• Always introduce a related item during the sales transaction. For example, a diamond solitaire pendant is a beautiful gift but should always be presented with matching earrings. If the guest declines to purchase the earrings, follow up with an invitation to return during the holiday gift season. It is always a good practice to reinforce an open invitation for all future needs, wants or desires
• Consider the store atmosphere. Do you have appropriate music (e.g. light jazz), wrapped candies on the counter, free services (gift wrapping, ring cleaning and inspection, etc.), sparkling water, tea, coffee, etc.?
• Use a client database to facilitate in-store events, such as a closed-store product event or a friends and family night.
• Develop a “List of Services” card and provide it to every guest entering your store. Your list might include watch and jewellery repairs, custom design, appraisals, trade-ins, etc.
• Sell on credit. If you are not a Canadian Jewellers Association (CJA) member, join and take advantage of their deferred credit program. It’s a fabulous technique to reduce discounts and close sales—“Would you like to pay for that now or in
  six months?”

After explaining the reasons and methods for implementing the agenda in your store to your team, there are three critical elements for successful execution:

1) The expectation that the agenda applies to every guest, every time.

2) You must perfectly demonstrate the agenda in your guest interactions.

3) As W. Edward Demings famously said, “You can expect what you inspect.” To make this work, you must continuously monitor your team to ensure they follow the agenda and provide one-on-one training to address deficiencies.

In summary, the agenda recognizes the shopper as a guest and personalizes the interactions, asking for the sale, and giving the guest a reason to return!

Brian Carney Land is a retail jewellery consultant. Formerly the executive director of the Canadian Jewellers Association (CJA), Land has more than 40 years of experience in the industry and has held executive roles with Peoples Jewellers, Birks Jewellers, and Waterford Wedgwood Royal Doulton. Past clients include retail chains, independents, and supply-side businesses. Land is a past president of Jewellers Vigilance Canada (JVC) and the Canadian Jewellers 24 Karat Club, as well as a long-time member of the Georgian College Jewellery and Metal Arts Program. He can be reached at bland19@bell.net.