At this point, I don’t think I need to convince anyone about the valuable role data plays in building businesses. Everyone’s heard how having the right information makes it easier to identify and connect with new customers, make better operational decisions, and become more profitable. What everyone hasn’t heard is that making full use of your data requires your active participation.
With its ruling in South Dakota vs. Wayfair, Inc. the Supreme Court has created a situation relevant to all jewelry retailers. By ruling that internet retailers can be required to collect sales tax in states where they don’t maintain a physical presence, the court has removed a meaningful competitive advantage from e-commerce.
There’s no doubt that one of the biggest problems in e-commerce is customer retention. Nearly two-thirds of customers who make a purchase never return to make a second one. Jewelers have two valid avenues to remedy this situation. The first is to make a concerted effort to continue the relationship with those customers who have made a purchase; the second is to secure a steady supply of new customers.