Yesterday I became one of those “email first think later” people, after I got a catalogue in the mail, from a well known Jeweler. For anybody in New Zealand Michael Hill is well known, and started from a small store growing into a global brand.

I took the opportunity to look over the website, and to say I was extremely disappointed, would be an understatement.

On visiting http://www.michaelhill.com (Link opens New Window)- I had to download and install a file (from Microsoft) before I could even enter!

But even when I did get it, it’s a dark site which was hard to get around, and gave me no reason to take an action.

That’s when I got on to the feedback form and sent an email, which was written very quickly, (and probably made me look like a raving nutcase)

To their credit I did get a very fast reply, from the IT department, saying that they were using the new siverstripe from Microsoft  as it made the products look the best they could.

The point that I got redirected to the IT department, rather than marketing, means that it had an IT focus rather than a use as a effective “marketing tool”

But what about the whole concept of diamonds online, do people actually buy diamonds online?

Let’s look at some facts:

Search for Diamond rings last month =  673,000 global searches per month.

That’s all good, but what about actual buying?

BlueNile.com (http://www.bluenile.com (Link opens New Window) is a Nasdaq listed online only diamond retailer.

Here is quick snapshot from a press release:

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SEATTLE, Feb. 10, 2011 (GLOBE NEWSWIRE) — Blue Nile, Inc. (Nasdaq:NILE), the leading online retailer of diamonds and fine jewelry, today reported financial results for its fourth quarter and fiscal year ended January 2, 2011.

Net sales for the fourth quarter increased 11.5% to $114.8 million from $102.9 million in the fourth quarter of 2009. Operating income for the quarter rose 11.8% to $9.2 million, from $8.2 million in the fourth quarter of 2009.

Net income totaled $6.2 million, an increase of 13.6% over the fourth quarter last year.

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From that picture, people are definitely buying online. And quick look at their site, shows the company really knows what they are doing.

Two quick main points from the site:

1.    Stunning pictures in bright white easy to see images
2.    Calls to action build a database for those not quite ready to buy yet.
3.    Site Loads like a rocket, without special tools and detected I came from New Zealand- very helpful.

But here is the important point (yes I have one)….

Michael Hill actually has an advantage over this huge company

Read that again….

Michael Hill actually has a REAL advantage over this huge company

That’s right, a big advantage, that’s IF they decide to effectively use it.

See, buying rings, diamonds or any type of Jewelry is an emotional decision, many people like to touch, see, feel, that’s why a retail shop has the advantage.

But the online presence needs to actually work will ALL the other marketing, including the nice brochure and TV advertising, which could leverage the website better.

With TV ad, and the Direct mail, you have one shot at getting them to come to the shop and become a customer (most direct mail will get less than a 1% conversion rate, at best )

But if more of the focus, was directed to the website, and the potential customer, was aware that there is major advantage to being on a email mailing list.

This was obvious at the site (products or Prices that they can’t get at the shop unless they register online) then now you have one hit of normal advertising would turn into a 10x or even 100x return on investment.

Now if Michael Hills focus is to build a large global brand, opening new shops, then the website would focus the ads in the countries and areas, towards the website, even BEFORE the new shops open, so that when they did, imagine have opening day offers, that only went to the email list (and they had to produce a printed code, so you track EXACTLY the dollar amount from the promotion)

And as far as branding, you will have built trust, so that you market directly into email, with branded email and an advantage over other retail sites (most shopping mall retail shops, don’t do any of this, or they don’t do it well)

Imagine sending a personlised email ONLY to people who lived in a that area, about a shop opening locally

I have raved enough, you get my point, leverage your different types of media, to a website with a specific purpose, to give your company a competitive advantage.

I am a big Fan of Michael Hill, his first book was an excellent read. I guess I get frustrated when I see an opportunity that could increase profits, using assets they already have.

I welcome your feedback