Blue Nile Finds New Unique Customer Experience

Blue Nile CXCreating that unique and differentiating customer experience is an aspiration held by every marketer.

Online jewelry retailer Blue Nile CEO Harvey Kanter believes his company might have found that with its new Web Room brick-and-mortar concept that opened in June at the Roosevelt Field Mall on Long Island, N.Y.

“This is a first of its kind of jewelry retail experience that gives shoppers in the New York area the chance to try on jewelry in person and test our no-pressure, online experience in the physical environment of a retail showroom and, simply put, it’s working,” Kanter said during the company’s second-quarter earnings conference call on Aug. 7, according to Seeking Alpha. “The feedback from customers is not only that it’s different, but also an empowering experience, and we believe that’s what people want. Something different, something different than the traditional jewelry experience. We are finding more shoppers that are buying engagement rings online from within the Web Room, using our iPads and the help of our non-commissioned Diamond and Jewelry Consultants.”

Kanter is excited about the early results from this bold new endeavor.

“With what is fundamentally a different cost structure from traditional brick-and-mortar retailers, our results so far lead us to believe the Web Room concept should achieve a financial return that is similar to our overall business,” he added. “We are excited about this opportunity. I also must remind everyone that it’s just one location, and we have a long way to go to make this a material part of our business.”Blue Nile Customer Experience

Kanter said Blue Nile will continue to invest in new types of both online and offline marketing to drive awareness and familiarity, leveraging ongoing analytics to further refine pricing, strategy, grow margins, leverage scale to source products, and enhance overall profitability.

“All of this to achieve one single aim,” Kanter explained. “Moving more customers online because when customers buy online, they win and so do we. For consumers who are buying an exceptional piece of jewelry, we are value redefined.”

Kanter said Blue Nile isn’t looking to become a market place.

“We are looking to make sure that we are curating a collection of designers that really brings a unique positioning of the mix that’s on target with our millennial customer, and really that’s what’s critical,” he explained. “We actually have said very directly that, at times, there will be designers that will work and will still transition through to continue to have newness in the mix, which is critically important. Our designers are really an embedded part of our mix, but we are not going to materially grow to the point they become Blue Nile. Blue Nile brings the value and all the elements we bring to market based on our bridal business, and was augmenting that designer point of view with the belief that it will target the millennial customer even more finitely.”

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