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JA New York’s educational seminars continued today with a presentation from Jim Ackerman, President, Ascend Marketing Inc. The workshop proposed a new approach to marketing for jewelry retail store owners: paying for results once they’ve been attained, instead of paying for advertising up front and hoping it works.

“If you always do what you’ve always done, you’ll always get what you’ve already got — same with marketing,” Jim Ackerman told a full seminar room.

He suggested using two strategies to get more customers and increase their frequency of purchases: referrals and guest host joint ventures.

Implementing a referral system has a number of advantages:

• No upfront cost

• Easier close of sale

• Faster close of sale

• Higher unit of sale

• Less competitive shopping

• Greater long term customer loyalty

• More likely to refer

Jim Ackerman explained that consistency and committal to a referral system is the key to reaping the full benefits of the system. There are 7 keys to a successful referral system:

• Incentive for the referring clients

• Incentive for the person referred

• Support materials like letters and certificates

• Scripts for salespeople and staff to make sure they will implement the system

• Training for salespeople and staff

• Tracking systems to reward referring clients

• Tracking systems to make sure the process is working

He even gave an example of what a successful referral system might look like: Send a letter to clients about the referral program along with certificates to hand out to friends, the client will put his or her name on the referral certificate and hand them out to friends. Once the referral comes in, either reward the referring client with store credit or with an external reward, for example, dinner and a movie for two. Send the reward with more referring certificates so the client can keep referring friends. The referred client would get a similar gift: either a store credit or external reward.

A guest host joint venture is essentially teaming up with a non-competing but complementary business, such as an appraiser or wedding service provider, to endorse each other and share client lists. By mentioning the endorsement from the partner company, the client gets some sort of deal.

Joint ventures have numerous advantages:

• Helps expand the market

• Possibility of free advertising

• Expand product with no additional expense

• Pay only for results

• Increase value to customers as you improve your image in their sight

Steps to create a successful joint venture system are:

• Approach joint venture partner with a clear idea of a system to implement

• Explain why mutually beneficial

• Negotiate promotional costs and commissions with the partnering business owner

• Reciprocate endorsements for products and services

• Write an agreement

• Be true to the agreement

Tomorrow the special breakfast presentation will feature keynote speaker Nicole Leinbach Reyhle, Founder and Publisher of Retail Minded, a publication committed to supporting independent retailers through news, education and support.

During her presentation, she will go over 10 points in connecting with consumers, engaging customers within your store environment and new ways to make your business more profitable.

There will also be a presentation on using social media to increase sales and two panel discussions on creating a “Yes” environment in your retail store and how to sell estate jewelry in a traditional retail store. For a schedule of JA New York’s educational seminars click here.