AGS Conclave 2018 – What I Learned

KATHY IRELAND:  THE POWER OF BRAND BUILDING – She’s a $350Million Brand, so I listened up.

The Focus of her Career has been to:

• Uprise and Disrupt. (Reminded me of the Blue Ocean Strategy.)
• Have Market Dominance
• Lower costs in unusual ways, outside of the traditional model
• Have Financial Security
• Gain Longevity through Wise Intentions

Ways she achieves these points of focus was by:

1. Differentiating Marketing from Advertising.
   1. Traffic awareness. Understand what is working.
   2. Social and Customer Education.
2. Schedule events for most apt time to buy.
   1. Designers need to give a marketing outline to loop in their retailers to sell and see partnership opportunities.
3. Create your own content.
4. Perfecting Inventory Management
   1. higher turnover
   2. having less on hand, so perfecting production runs and delivery times
   3. creating what sells
   4. Sustainable and Ethical
5. Where she chose to Invest. Her first line was partnering with a Sock company, which was the opposite of luxury modeling. But she believed that as an aging model, if her name helped socks sell, then she was worth something and could build from the bottom up. When she started her Home Goods company, they started with carpets. Foundation first and then up from there.
6. Service and community interaction.
   1. People. Offer. Process.
   2. Customer Assurance
   3. Customization
   4. Under Promise and Over Deliver 110{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b}
   5. Never lose the good people. They are rare!

Examples of disrupting an industry:

Let’s learn from the largest companies in their respective industries:

• Uber, owns no cars.
• AirBNB, owns no properties.
• Skype, owns no telco infrastructure.
• Alibaba, owns no inventory.

 

The Kathy Ireland brand almost went into bankruptcy- caused by one retailer. (just like Tracy Matthews story of Flourish and Thrive Academy!) Do not put all your bets on one horse, all your eggs in one basket, or all your men in one ship. However, you want to say it, don’t do it!

Consider licensing; that’s what she did to overcome the losses and to pay all of her debts off.

 

Book Recommendation: Gillian McGoul – Getting There.

MENTOR PANEL: Business Management with Denise Richards as Moderator, and Bill Boyajian, Cathy Calhoun and Doug Hucker as Speakers

Important Lessons Learned throughout their careers:

1. Spend quality time with family, friends and professional colleagues.
2. Develop Business
3. Patience. Take time to be thoughtful and make wise decisions.
4. Remember People’s Names
5. Take advantage of the social times at AGS Conclave.
6. Be Adaptable.

Their panel reminded me of this quote by Edward Whymper:

[quote ]Climb if you will, but remember that courage and strength are naught without prudence, and that a momentary negligence may destroy the happiness of a lifetime. Do nothing in haste, look well to each step, and from the beginning think what may be the end.[/quote]

They were all evangelists for the Dale Carnegie Public Speaking Class, as was Ellen Falcinelli of Buyers Intelligence Group, that I met at AGS too.

 

Cathy Calhoun’s Netflix Recommendation:  watch Amazing on the Inside

Keynote: Marie Osmond

This woman blew me away. Some mentioned the singing was hoaky, but I give her a standing ovation for giving it all she had even though it was a room full of about 200 seated professionals. She was dancing like no one was watching, and I found that was beautiful.

Her stories were another level entirely. Extremes of success and loss, supported by a kind and open heart. I had tears in my eyes at least three times. What a woman!

ONLINE REPUTATION – NICK MILLER

Podium – an app serving 2k jewelry stores! Stay relevant, interact with customers, ask for reviews easily, and integrates with The Edge.

Micro moments:  Identify your top mobile searches to know how customers find you?

Create a FAQ to answer without having to be asked.

Use thinkwithgoogle.com to get the “insights you want and the data you need.”

Be consistent across all Business Directories with Hours, main images, and descriptions.

Collecting more Reviews aids in:

• Awareness
• Consideration
• Discussion

Must Have: 4 star reviews on google

Google’s Considerations on Reviews:

• Recency
• Frequency
• Quality
• Quantity

Tip:  Send invite before customer leaves your store and set expectations. Once comfortable and making sale, let them know that their experience helps others decide to do business with us. Ask, “Would you be willing to submit a review for us on google? If so, we’ll text you a link to make it easy for you.”

 

STATE OF THE INDUSTRY, PERCEPTION AND REALITY – HAROLD DUPUY, VP OF ANALYTICS AT STULLER

Jewelry Industry

• 2.34{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} up over total retail
• 91 Billion
• 23,4662 Jewelry Stores 29{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b}
• 67,000 Other (Dept, eComm, other Clothing)
• 38{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} of Dollars approx. 1.5million per store
• 7.6{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} growth in the last 24 years

Jewelry Stores

• Online Ads and presence, and events are up
• ½ stores approx. $500k
• 2018 Strongest start in 14 years for Jan and Feb!
• 5.3{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} CAGR
• 11.2{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} overall Retail

Bridal

• 2.2 million marriages
• 800k Divorces = Repurposed jewelry opportunities!
• $10 Billion Sector; 1/3  – ½ volume of a jewelry store
• Fall goes down
• Local Independent Stores have 32{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} of this market
• 60{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} in stock as is only 15{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} custom huge growth for colored stones.

Retail Landscape

• Friend and Family Recommendations
• Custom
• Weak operations
• 22,000 Fewer Players, means Bigger claims to market share for those remaining.
• While Stores close, market grows.

Diamond Industry

• Myth:  Millenials are not interested in Diamonds.
  • Truth:  They are less interested, but are interested for different reasons.
  • Self Purchasers are 31{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} of non-bridal.
  • Fashion is bigger than bridal.
  • “Celebration of Individual” is the purpose 70{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} of non-bridal jewelry is bought.
  • 10 years from Affluence
  • Buying online

Market Forces

• Metal Markets – minimize error, weighted
• eCommerce – 9{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} of total sales other
• Brick and morter 91{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b}
• Must have online presence.
• Manufacturing – made in USA 16{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b}, 2102 Firms even out Spring and Xmas

Challenges

• Traffic – Service 60{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b}; Products 30{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b}
• Self Purchasing Women – Marketing to allocate to this segment.
  • 1/3 of diamond purhcases
  • 28{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} to treat themselves
  • 40{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} no occasion
• Jewelry store vs Other Sellers up 22 Billion!

Don’t use Repair as a Term, say “Service & Maintenance”

Adding in a 1 year warranty at $49 guarantees a 70{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} close and acts like insurance. Some will use and some won’t.

3 ways to change:

• Make a change
• Watch it change
• What change?

Colored Gem Grading and Pricing Workshop – Richard Drucker

This was interesting as it is the opposite of GIA’s color grading scale, but it was still easy to adapt to. I loved the lab-type setting of the class and on hands grading.

My biggest takeaway here, is if you deal with colored stones, get the GemGuide to give you a good base range of what you should be paying based on quality of each gemstone specimen and variety.

SALES INFLUENCE: FIND THE WHY IN HOW PEOPLE BUY –VICTOR ANTONIO

Secret Selling Sauce =E_m + E_o + E_mp

Empathize + Educate + Empower

Empathize

• Increase certainty by offsetting any anxiety. Anxiety = UNDERLYING FEARS!
• Show what they are losing out on. Highlight the highs.

Educate

“Make people constructively discontent.” – Ernest Piotter

1. Convince them.
2. Objection
3. “Great, I’m glad you’re happy with… But isn’t it good to have options.”
4. Show them what we / you offer as an option, and if we are empathetic, then can sell them to make them uncomfortable.

Empower

Nudge into Buying

IMAGE: Give them a visual to see what money or trade-off they are losing to set off alarms.

• Keep in mind that with every no, something else is getting a yes.
• What are they saying yes to if it’s not you, and how can you bring them better value than that?
• Will they be losing money?
• Not saving money?
• What is the intrinsic or actual cost?
• This is what people respond to. We all want to guard our assets and do what is in our best interest. How are you doing what is in the person’s BEST INTEREST? LET THEM KNOW!

Customers don’t want more info, they want more insight.

Information beyond the obvious.

• What do I need to understand?
• Where will I save money?

Info Assymetry -> Explaining and they don’t understand, such as because you are so educated or using jargon they are not familiar with and talking down to them or even just implying that they don’t know something. (Example:  the Over-educating sales person)

• This increases anxiety and decreases confidence.

Goal is to close the gap!

• Simplify Language
• Empathize to Understand
• Be at eye level with your customer! Puke with them!

Drivers of Customer Loyalty:

• 19{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} Company and Brand Impact
• 9{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} Value to Price
• 53{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} Buying Experience!!!

This is a Valuable perspective. Know where to navigate alternatives and avoid Problems with ongoing or new issues.

Frame your questions to guide the customer to come to your correct conclusions.

Not sure what he means? Try this exercise:

1. Pick a number 1-10
2. Multiply by 9
3. Add those two digits together.
4. Subtract 5
5. Name a European Country that starts with D
6. Name the largest land living mammal that is gray.

Did you get this Answer?

4 Denmark (or Deutschland) Elephants!

Great, we’re on the same page. Buy this… ring.

Blocking Structure

1. Objection is Raised:  “It’s too complicated.”
2. Offer to Resolve:  “But let me show you how easy it is, may I?”
3. Demonstrate: Show & Tell
4. Tie Down the Objective: “Based on what I’ve shown you and with our support, do you think you can do this?”

Sequence your presentation. Make an orchestration and event of each interaction with a customer. YOU are on stage! Wow them!

Asking for the Sale – Martial Petit

Current environment:

2/20/80: 2{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} of clients = 20{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} of Revenue + 80{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b} potential indirect sales

Measures of success:

1. Closing ratios / conversion rate: number of customer interactions to number of sales
2. Repeat Business Opportunities!
   1. Maintain existing clients
   2. ½ the work to maintain a client than acquire new
   3. 1/5 of the marketing money
3. Sales Cycle: Selling Ceremony
   1. Ask for the sale
   2. Not an option
   3. An obligation
4. Culture of Excellence
   1. Minimum quarterly summary sequence

Management – Josh Pruschen

The Employees fork:  different job vs. stay and grow

Separate the following into two different conversations:

• Compensation evaluation
• Performance evaluation

Other tips:

• Pre-Plan the Changes, don’t go in without a plan!
• Edge + Podium to follow up with clients, and schedule appointments.
• Daily, Weekly, Monthly, Quarterly, Annual Checklists for Staff and Management Meetings
• Category report for types of goals and coach according to profit.
• Have events to offload old inventory: “Margaritas and Markdowns”

SOCIAL Media THAT SELLS – BEN SMITHEE

1. Change Mindset
2. Cleanup site
3. Install Facebook Pixel
4. Have Event Codes

• Reach 40{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b}
• Retarget 30{f4f1c227a9297829d6c2f0b223ad0188fddc4ac1a871d87b426e6cec743bfd5b}

Don’t use the 3^rd party scheduling apps; organic posts have better engagement.

Maintain an Editorial Calendar to have an Annual layout of monthly plans.

There was so much information, that my notes don’t give the presenters justice, but I hope you’ve gained some insights from my key takeaways.

My final takeaway to help your future, become an AGS member and attend AGS Conclave.