The Idea: Jack Welch once described trust by saying, “I could give you a dictionary definition, but you know it when you feel it.”
The theme of the most recent Drug Store Industry Issues Summit in New York was that “trusting relationships unlocks growth.”
Once a year, senior retail and manufacturing leaders get together to review the evolving dynamics around the consumer, the retailer and their manufacturing partners. It is a time to take a look in the mirror and be honest with ourselves.
What stops growth?
Not picking the right trusting partners, not building a distinct culture and not hiring enough leaders who have a growth mindset. The best growth organizations know what they stand for and who they stand with.
Among the many discussion points at the summit, a few really resonated with the industry leaders.
Here are five ideas – all revolving around the concept of “trusting relationships” – from the summit that all sales and marketing leaders must embrace:
Marketing Mobilization. Manufacturers complain that retailer pressures shrink margins, hindering consumer investment. So how do we honestly discuss and improve brand growth while investing in the most productive brand building investments? Here is a clue.
One executive shared “I can’t fix your brand, I can only tell your story. I can’t fix what I don’t know.” So be truly transparent about your company’s profit and brand needs. Leaders must also be very gifted at mobilizing their internal marketing organization around the customer’s needs, while honestly, proactively confronting the facts!
Good-Better-Best. There are more premium & value products (and consumers) than ever before. How do you partner with retailers to effectively build stronger “everyday” value & premium products for all consumers? There is a sea of sameness and most retailers would rather you innovated up in price since their own store brands already hold down the value position in the customer’s eyes. Don’t over commoditize the category; instead, go further with your innovations and stand for something special and distinct.
Is there such thing as a true value consumer?
According to the panel we are all both value and premium consumers based on the shopping occasion and the product’s role in our lives. Value and premium consumers are often times the same person. Brands must offer a “Good-Better-Best” set of options addressing all consumer needs. And if you decide to create a premium brand you must have proof that the consumer truly needs your product.
If you are not in demand, you are only taking up space.
Entrepreneurial Culture. By 2017 20% of all market leaders will lose their dominant position to a company founded after the year 2000 because of a lack of digital business advantage. The trends show that trips are down & many categories are growing nominally, with most of the growth fueled by smaller, emerging or new brands.
Why is this occurring?
Smaller or emerging companies are outpacing the industry, because they operate under a more agile, entrepreneurial culture. These entrepreneurial companies often ask different and even bigger questions of themselves and the industry.
They can’t afford to concentrate on micro-innovations; instead, they break molds and birth ideas that disrupt categories often dominated by the larger multi-nationals.
Personalize Everything. Today’s new consumer sees the world from a “values perspective.” Brands can’t ignore the interests of their customers. Furthermore, the relationships can’t be bought only earned! So how do the best companies create a seamless brand experience?
The best partners think of omni-channel as an enterprise philosophy. The whole organization must possess this mindset and don’t separate store merchandising from the on-line experience. They are one.
Since 50% of shopping trips start on a person’s phone you must have a distinct experience that moves the consumer through the sales funnel. Research shows that 40% of consumers buy more from retailers who personalize the shopping experience.
We all relish a personal touch, so personalize everything.
Curious Leadership. Do you know why your brand exists? Or what customer service traits matter to your most valuable customers? It’s not just smarts, its passion, curiosity, love of novel approaches, a willingness to ask tough questions, relentless pursuit of new ideas and a philosophy of creating sustainable growth.
One of the most valued leadership skills is learning how to become an internal advocate for the customer and marshaling support for their causes. Become a brand evangelist for your customer, not just your own company.
The best sales providers uncover new opportunities (others are not even aware of) and never violate trust.
Can you deliver on that promise?