7 Ways To Use Jewelry Store Data Analytics

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Are you tracking your jewelry store’s data?

If not, you’re missing out on valuable insights. Modern digital systems give small business owners the ability to record and analyze more data from their business — including sales numbers, inventory levels, and customer information.

Having access to more data allows you to make more informed decisions and set more effective goals — this helps you improve various aspects of your business, from inventory turnover to promoting your jewelry store online.

In this blog, we’ll explore seven ways to use jewelry store data analytics to your advantage. By paying attention to this data and adjusting your strategy accordingly, you can make your business more efficient and increase sales.

1. Optimize Jewelry Inventory Management

As the owner of a jewelry store, the gemstones on your shelves are your greatest asset — but you need to manage them strategically to get the most value out of them. The goal of efficient inventory management is to keep inventory turning over as quickly as possible, and keep items from sitting on the shelf for months on end. To do this, you need to know how many of each type of piece to purchase (and how often).

Tracking sales trends with a digital system helps you make informed inventory purchasing decisions. Pay attention to how many of each item you’re selling in a month or year to determine how much customer demand there is.

If you’re selling out of a certain item, like a popular pair of diamond earrings, place larger orders of the item. If there’s another product with low sales, like a bracelet that’s going out of style, order fewer of these items, or try promoting them more heavily to create greater demand.

Some modern point of sale (POS) systems let you set automatic reorder points, which is useful for your most popular jewelry pieces. When your stock of a selected product drops below a preset threshold, the system places a new order so you never run out. This helps you avoid missed sales and disappointed customers.

By using a system that tracks sales quantities of each item, you can optimize your stock levels, keep inventory turning over, and keep sales high.

2. Improve Sales Forecasting

Tracking your sales helps you more accurately forecast future sales numbers. While unexpected changes in sales trends are always a possibility, having a forecast that’s as accurate as possible is a great benefit as you manage your business.

Knowing what sales numbers to expect at different times of the year allows you to more responsibly plan your budget. If you expect a surge in sales close to Valentine’s day or around the holiday season, you can make more room in the budget to purchase inventory. If you know you’re approaching a time of slower sales, you know to cut costs and place smaller inventory orders.

Having an idea of what sales numbers will be at different times of year also helps you plan your marketing efforts and promotions. During a time of slower sales, you might try offering deeper discounts or more aggressive marketing to encourage more sales. For example, you could offer a buy one, get one (BOGO) deal on a popular style of bracelet, and run ads on social media to advertise the deal.

You can also offer sales during peak seasons to turn over inventory. But remember: Offering too many sales and discounts may backfire if customers get used to lower prices.

3. Personalize Marketing Campaigns

Digital systems let you track information about your customers. POS systems are often equipped with customer relationship management (CRM) features, which allow you to keep track of a customer’s purchase history. You can use this data to send them personalized offers and recommendations.

If a customer has a history of purchasing necklaces, for example, send them a discount on another necklace or alert them when you’ve added a matching pair of earrings to your inventory. Personalized messages make customers more likely to make a purchase.

4. Refine Pricing Strategies

Jewelry store data analytics also help you set the right prices. Looking at which items are selling the best at your store and which ones are taking longer to sell helps you better understand your customers. If your customers tend to buy your cheaper options (like costume jewelry), you may want to stock more of these items or bring prices down as you can. If your more expensive pieces tend to be popular (like an emerald ring), you may be able to raise prices or stock more premium items.

5. Manage Multiple Locations

If your jewelry store has multiple locations, it’s important to find a digital system that tracks data for both an individual location and the entire business. Having full access to inventory levels, sales, and customer data across multiple store locations allows you to make decisions that are best for the entire business. For example, if stock of a popular product is low at one location but you have plenty at another, you can move some inventory from one store to another.

The ability to manage multiple locations also helps you identify the differences between customers at stores. Maybe one location sees fewer, higher-value purchases, while another sees a greater number of purchases, but of smaller transaction value. Insights like these help you customize your inventory purchasing decisions from store to store.

6. Enhance Loyalty Programs

Loyalty programs encourage customers to choose your jewelry store over a competitor. When customers make frequent purchases, they earn loyalty points, which can be exchanged for rewards like discounts or free or exclusive items. As a loyalty reward, you might offer a customer a discount that can be used on any piece in your store, or choose a specific item as a reward, like a necklace.

Tracking data from loyalty programs helps you determine which rewards customers prefer, how often they’re reaching rewards, and how effective these programs are. If you find that customers are taking too long to reach rewards, you may choose to lower the spending threshold. Tracking data about loyalty programs and monitoring it closely helps you make these programs more effective.

7. Measure Marketing ROI

You should also be monitoring the results of your marketing campaigns.

If you’re using email and text messages to market your jewelry store, for example, you can measure the effectiveness of these methods with the following metrics:

Open rate: This is the percentage of customers who opened an email or text message out of the total amount of sent messages.

Click-through rate: This is the percentage of customers who clicked a link in your message out of all those who opened the message.

Conversion rate: This is the percentage of people who become customers after receiving a certain communication or seeing a piece of marketing content.

If you understand how much revenue is coming in based on marketing and how much you’ve spent on marketing, you can also calculate your return on investment (ROI).

As you track which marketing strategies are leading to more traffic and greater sales, you can better allocate your marketing budget. Put more money and effort towards the strategies that are driving the most results. Eventually, you’ll create a customized marketing strategy that works for your jewelry store.

Track Jewelry Store Data Analytics With Jewel360

Tracking and monitoring jewelry store data analytics data helps you improve your business. By using a POS system that tracks your inventory totals, sales numbers, and customer purchase histories, you can refine your business’ operations — leading to a better customer experience, faster inventory turnover, and increased sales.

However, you can only make these improvements if you pay attention to your metrics, look for insights, and adjust your strategies accordingly. If your business has multiple locations, pay attention to metrics for both individual locations and your business as a whole. You’ll find insights that will help you cater your strategy to customers at each location.

To track these metrics, you need a solid POS system — and for best results, look for one designed specifically for jewelry stores.

Enter: Jewel360.

Our industry-specific software tracks your most important metrics and generates reports to help you understand your numbers and communicate them to others. You’ll also have features for payment processing, custom order and repair management, and e-commerce.

To see what Jewel360 can do for your business, schedule a demo today!