JET Business Network

Data – it’s potential gold dust

Increase your 2022 profits by using your data, suggests Michael Donaldson, JET Business Network facilitator.

Last November, I was on a Zoom panel at the World Jewellery Confederation 2021 Congress – it was the final global open session, and the digital audience was truly global, but down nearly 60 per cent on the open session average. Not that I took it personally, you understand; the topic –

‘Dealing with Data in the Digital and Online

Jewellery Trading Environment’ – sadly doesn’t seem to rock (pun intended) many jewellers’ boats. To my mind, that’s bonkers, as data can be gold dust if used correctly… or just dust if ignored.

Before joining our industry, I worked in the FMCG and electrical appliance sectors, and my time there taught me two key data lessons: an opinion without data is just an opinion, and whether it’s big data or small data, if you don’t use it, it’s just data.

My biggest shock on arriving in jewellery over 20 years ago, at Cookson Precious Metals (CPM), was the lack of independent market sales data and the seeming lack of appetite for market sales data – then I suppose what you’ve never had, you never miss!

There was some consumer research available, but I didn’t have enough confidence in interview diary research, which offered more opinion than hard sales data. In the absence of any market data, we created our own at CPM, by counting the individual items in the Christmas windows of the leading retailers – based on the assumption that retailers give more window space to their better performing product categories. We usually counted around 10,000 items every year, then collated and formatted the data to share face-to-face with the respective retailers – “Here’s how your range looks compared to retailer A, B, C.” It opened the dialogue, created cooperative relationships and helped us make business decisions round supply, channels, products, promotions and price points; it helped us reduce our risk and maximise any retail opportunities, but I missed the Growth from Knowledge data reports I was used to.

As a jewellery business owner, you may see purchasing data as an unnecessary expense, or you might be waiting for our sector organisations to get together and produce our own market data, or perhaps you believe that using data can’t make a positive difference to your business performance – so why bother.

There’s lots of free data out there if you’re prepared to spend time to find it; some is usable, some is informative, the majority just opinion, but combined, it provides food for thought, and planning your business decisions over the next few years will require a lot of thought in the absence of a crystal ball.

Still too busy to seek it out? Then start with your own internal data around your business pain points; quick wins in these areas build confidence and increase the appetite for using more data to drive business improvement activities. It doesn’t have to be complicated, so keep it simple to begin with and avoid over complicating the process. For example, managing stock starts with three questions, the answers to which can improve your performance in stock turn, cash flow and buying process:

* What percentage of your stock sells in the same year you put it into stock? * What percentage of your stock sells in the year after you put it into stock? * What percentage of your stock is three or more years old and growing a beard sitting in stock?

If you’ve never used data or have stopped using data, here are five tips to get you started: 1. Use data that quickly address your current pain points 2. Do NOT use the data to support a preconceived idea 3. Avoid getting distracted by data discoveries unrelated to the task in hand 4. Do more with what you’ve got but remember rubbish in means rubbish out 5. If you haven’t got a system that collects your data, you need to GET ONE – the

NAJ can help you identify reputable system suppliers for our sector

JBN members have been sharing and using data to improve their retail businesses for years – they’ve used data to assist strategic decisions, such as opening new stores, relocating stores, refurbishing stores and closing stores. They’ve used it to assist operational decisions, such as sales space, stock management, gross margins and pricing. And they have used it tactically on product ranging, supplier selection and staff incentives.

As JBNers know, data can be gold dust if used correctly or just dust if ignored.

For an annual subscription of £1,000+VAT, you and your business will benefit from the shared knowledge, experience and expertise of the JBN via:

• Monthly Performance Reports - enabling you to benchmark your business against other retail jewellers

• WhatsApp Market Group – for finding, buying and selling products and services. • Online Q&A Forum – whether you have a business issue or just seek guidance. You ask the question and the members answer

• Educational Store Visits – see and hear what other jewellers are doing

• Regional Group Meetings – to discuss the issues and opportunities you face, as well as develop new business skills • New Flash Service – receive relevant business and industry articles straight to your inbox

• Member Business Surveys – on topics identified by the members • Plus – influence and shape the content of the Annual Retail Jewellers’ Congress

For further information Visit naj.co.uk/JBN Email michael@thevalueinnovator.co.uk Call Michael Donaldson on 07817 305 122