If you read Jewelry Selling Insights you know that I recommended that you give away – for free – gift certificates that have a face value of $10 (for example), to your best customers to give to two people of their choosing, like a friend or family member.
For those of you who aren’t sure if this is a good idea, here is why I love this marketing technique:
The concept is that your BEST current customers are people who LOVE your jewelry, and love buying from you, too. When you give them a gift certificate for $10 to give to someone they know, presumably the following
1. They have fun trying to figure out whom to give the gift certificate to;
2. They tell the person they give it to how awesome you are, and they show that person the jewelry they bought from you;
3. The recipient gets excited to buy from you and use the gift certificate;
4. They buy from you and become a great customer, too.
The $10 you’re giving those new customers is not much. If you were to do a mailing that cost $250, and you got 10 new buyers from it, you would have paid $25 per new customer (the cost per new customer is just one
way of judging the cost of a marketing campaign). Also, the gift certificate concept lets your established customer be a sport by giving a gift they didn’t have to pay for to someone they know well.
So if your lowest priced pieces wouldn’t be profitable if you took $10 off, you would make no profit on that sale. But, I hope you’ve priced your jewelry higher, so $10 would make little to no difference.
Another concern that you might have is it’s possible that someone might resent you giving them a gift certificate that they can’t use themselves, but in the 15 or so years that I’ve been recommending this technique, not a single handmade jewelry maker has told me she received a complaint from a good customer with whom she used this method.
As with all marketing techniques, your decision to use this method must be based on:
1. Your confidence that it’s a smart thing to do;
2. The excitement with which you share it with good customers;
3. The quality of your relationship with good customers;
4. Your willingness to accept the gift certificates cheerfully, and to make it fun for the new customer.
Make sure you include space on the gift certificate for your customer to write his or her name and the name of the recipient. That way, you’ll know who your top referral sources are. You can always limit the number you issue, and you can state a minimum purchase amount on the gift certificate, although my preference would be
to offer it without “conditions,” as prospects can feel slightly manipulated when you do that.
Have you ever tried this technique? How did it work for you?
To selling more!