5 hidden gems from the DSN Industry Issues Summit

What hinders 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 whom they stand with. They also have built a trusting brand — one that is beyond reproach.

These were some of the ideas that helped set the tone at last month’s Drug Store News Industry Issues Summit in New York last month.

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 for looking in the mirror and honest self-examination. 

Amid the discussion at Industry Issues Summit, a few key points really resonated with the industry leaders in attendance. Below are five hidden gems from the summit that all leaders must embrace — all revolving around the concept of “trusting relationships.”

1. Pioneering 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, and many categories are growing nominally, with most of the growth fueled by smaller, emerging or new brands. 

Why is this occurring? 

Smaller and emerging new companies are outpacing the industry because they operate under a more agile, pioneering 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 new ideas that disrupt categories often dominated by the larger multinationals. 

The very best pride themselves on “new-to-industry” thinking.

2. 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; it’s passion; it’s curiosity; it’s the love of taking novel approaches; it’s the willingness to ask tough questions; it’s a 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. 

 

3. Mobilize marketing.  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? 

One executive offered a clue: “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 also must be extremely gifted at mobilizing and activating their marketing organization around the customer’s needs, while honestly confronting the facts about their own brands. 

Brands can no longer afford to operate in secrecy. The best marketing organizations are courageous, openly sharing their two- to three-year plans with their most trusted retail partners.

4. Good-better-best. The fourth-century church historian St. Jerome once quipped, “Good, better, best. Never let it rest. Until your good is better and your better is best.” These are words to embrace.

There are more premium and value products — and consumers — than ever before. How do you partner with retailers to build stronger everyday value and premium products for all consumers effectively? 

According to DSN Industry Issues Summit panelists, we are all both value and premium consumers based on the shopping occasion and the product’s role in our lives. Is there such thing as a true value consumer? 

Value and premium consumers often are the same person. Brands must offer a “good-better-best” set of options addressing all consumer needs. 

If you decide to create a premium brand, you must have proof that the consumer truly needs your product. If you are not truly in demand, you are only taking up space. 

Personalize everything. Today’s new consumer sees the world from a “values perspective.” Brands can’t ignore the interests of their customers. Furthermore, these relationships can’t be bought — only earned.

So how do the best companies create a seamless brand experience? 

The best partners think of omnichannel as an enterprise philosophy. The whole organization must possess this mindset and not separate store merchandising from the online experience; they are one and the same.  

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 — and you must personalize everything.    

Research shows that 40% of consumers buy more from retailers who personalize the shopping experience. We all relish a personal touch, so personalize everything.

Do you dare embrace these five ideas?

For more insights on Dan Mack and the Elevation Forum, go to www.mackelevationforum.com. To learn about his first book, “Dark Horse: How Challenger Companies Rise to Prominence,” visit www.darkhorsebook.com.