RAPAPORT... Much has been made of the knowledge savvy shoppers are bringing to their purchasing decisions. This is especially true of jewelry shoppers, who are availing themselves of the ample information available online in ever-growing numbers. But knowing a customer is doing online research before making a purchase — whether that purchase is made online, or in a brick-and-mortar store — raises many questions. Of chief interest is, “Where are people getting their information?” And close on the heels of that query, “Is the information my customers receive accurate?”
WIKIS AND BLOGSToday’s internet is as much the provenance of “blogs” and “wikis” as it is a home to commercially produced content. Blogs, internet shorthand for “web logs,” are generally run by individuals with a particular interest in one specific subject, such as jewelry — although several retailers, newspapers, magazines and more also maintain their own online journals. The entries are opinionated and subjective, and though bloggers do a terrific job of self-policing, the content is, by its very nature, the personal opinion of the writer. That said, many blogs, such as The Bling Blog (theblingblog.typepad.com), have a loyal and expanding user base. It is their very insistence on noncommercial content that makes them an important resource for consumers seeking help on making informed decisions regarding potential purchases.
“I think people like researching with me because they know they’re safe with me,” says Susanna Jenney Hermann, owner of fine jewelry company Square J Designs and founder of The Bling Blog. “I’m not going to try and sell them anything, and I’m going to tell them the truth, and they can get a good laugh, too!” It’s the straight talk that bloggers hand out that makes consumers feel like they’re getting information from a “friend,” instead of a salesperson.
Wikis are a little different. The term comes originally from Wiki-wiki, the Hawaiian word for quick. One of the best-known examples of the genre is Wikipedia. According to Wikipedia, a wiki “is a website that allows visitors to add, remove and otherwise edit and change content, typically without the need for registration.” A search on Wikipedia for “diamonds” will produce all manner of user-generated content, which is continually monitored by Wikipedia users for accuracy, and updated as needed.
The users who create content for Wikipedia do not have to have any credentials at all, but as with blogging, wikis are self-policed by users. The participants of the gemology and jewelry “wikiproject,” for example, range from scientists and gemologists to users with a pointed interest in the subject. And it’s crucial not to underestimate the impact of Wikipedia’s vast user base. According to an article published last year in Wired magazine, “[Wikipedia] is now the biggest encyclopedia in the world. The mainstream media covers it extensively. It was recently lampooned by The Onion and Comedy Central. Soon, Wikipedia may also become familiar to thousands of people without internet access — selected articles from its extensive database will come prepackaged with MIT’s $100 laptop project.”
“I think people trust sites like Wikipedia,” says Jeff Ostroff, chief executive officer (CEO) of BridalTips.com. “Whoever writes these topics is pretty knowledgeable. People also go online and they type ‘buying diamond rings’ into Google.” Ostroff notes that search engines such as Yahoo! and MSN come in a “distant second and third” in search engine popularity.
OTHER SITES PROVIDING INFORMATION FOR CONSUMERSIn addition to blogs and wikis, there are several sites devoted to providing informed content for consumers. The Federal Trade Commission has posted articles on its site about purchasing jewelry (Ftc.gov). The Better Business Bureau (bbb.org) has a wide array of information online, as do sites such as RipoffReport.com and BridalTips.com, as well as multiuser, nonwiki sites, such as eHow.
On eHow.com, editors write articles based on questions, such as “How to buy a diamond” or “How to buy an engagement ring.” According to the site’s internal statistics, articles on these two topics alone generated more than 1,000 page views each month in 2006. While not precisely a wiki, eHow is leaning towards more user-generated content, and also offers sponsored links.
Sites such as DiamondHelpers.com and BridalTips.com are more concerned with preventing consumers from getting scammed than with simple tips on diamond-buying. “Our site gets a few thousand visitors every day,” says Ostroff. “People want to research the reputation of a store before they buy, and also research the cost. Some people wouldn’t ever buy a diamond online, and others know they wouldn’t have the experience to shop for a diamond. We always tell people to make sure the GIA [Gemological Institute of America] certficate is online — and to make sure there’s a 30-day, money-back guarantee.
SUCCEEDING IN THE INFORMATION AGEForearmed is forewarned. Businesses need to understand that their customers are almost surely prepared with information before entering a store. And while Ostroff estimates that the number of customers doing online research and then buying in a brick-and-mortar store is about 50 percent, he also believes that that number is growing. And he feels that etailers have some advantages in the information game.
“The two things customers worry about are, ‘Am I going to pay too much?’ and ‘Will the store lie to me about how much a diamond is worth?’” says Ostroff. His advice? “Stores should tout a 30-day, money-back guarantee and have their GIA certificate online. Stores should also have a pretty good price, especially brick-and-mortar stores, because the online sites are cheaper, and you can get the same quality of service online these days.”
Ostroff cautions that consumers are wary of information that comes from a store because it doesn’t seem objective. “The thing about getting info from a store like Blue Nile is that they won’t give you info on scams,” he cautions. “Blue Nile might teach you about the 4Cs, but we tell people that if you go to a store, have a diamond book with you.”
Article from the Rapaport Magazine - June 2007. To subscribe click here.