Philip N. Diehl, the U.S. Mint director who counts among his credits the transformation of a sleepy government agency into an entrepreneurial enterprise dedicated to improving customer relationships, has resigned to become president of Zale.com, the Internet component of jewelry retailer Zale Corp.
Diehl, who planned to step down Sunday, is expected to be replaced by Jay W. Johnson, a former Wisconsin congressman and now deputy executive director of the Treasury’s Savings Bond Marketing Office. Johnson, who was nominated for the post by President Clinton in August, could be confirmed by the Senate as early as this week. Holding the Mint reins until then is deputy director John Mitchell.
In the past three years, the Mint has increased its annual profits six-fold to more than $2.7 billion. Diehl, who was appointed in 1994, also counts among his successes the launch last year of the 50 State Quarters program, described as the most successful numismatic initiative in history. Six weeks ago, the Mint introduced the Sacajawea Golden Dollar, of which there are now more than 300 million in circulation.
Diehl, who stretched his appointed five-year-term at the Mint by nine months in order to shepherd the launch of the new dollar coin, said his experience in overseeing the Mint’s Web site (http://www.usmint.gov) primed him for move to a dot-com.
Diehl will also take the title of senior vice president of Irving, TX-based Zale Corp. (http://www.zale.com). The company, which operates about 1,350 specialty jewelry stores under four brands, reported sales of $1.4 billion in fiscal year 1999.
“The big question of course with a brick-and-mortar dot-com venture is whether or not they have a model for integrating an aggressive dot-com venture within the structure of the current business,” he said. “It was real clear to me that this management team had been wrestling with this issue and had come to some conclusions.”
In his new post, Diehl will lead the development of Zale’s Web-based business, including site development, online sales, marketing, fulfillment and customer relationship management.
Diehl said his immediate task will be to oversee the launch of four distinct Web sites servicing Zale’s four brands. Sites for Zales Jewelers and its upscale counterpart, Bailey Banks & Biddle Fine Jewelers are expected to launch this year, followed by sites for Zales mid-level market Gordon’s Jewelers and Zale’s Canadian brand, Peoples Jewellers, next year.
As he did at the Mint, Diehl is eager to exploit the Web’s CRM potential.
“One of the crucial, creative elements of successful competition on the web is that it offers ways to develop rich relationships with customers, and not simply to convert a paper catalog to an electronic one,” Diehl said. “It’s about getting your customer to know you better, and creating an avenue through your Web site that increases your utility to your customers.”
One of Diehl’s primary targets: the average American male who knows little about jewelry– and is somewhat intimidated by it.
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