Ep 107: Staying Iconic: How Mary Kay Blends Legacy, Innovation & Purpose

I believe that when you change the life of a woman, you can change the life of her family. You can change the life of her town. You can change the life of a society. You can have a reverberating positive effect all around the world, and all women are on board with that. Changing the world one woman at a time.

Well, as we talked about earlier, we're here for our independent beauty consultants. And so, we carefully curate and define our portfolio to be hardworking for her, is the way we kind of talk about it. It's got to be the right size that it's manageable for both us and her because there are a lot of complexities being a global company with a large portfolio. So we take firsthand a very strategic view. We have a strategy. We're being clear on what we want to prioritize, where we want to win, what we want to stand for. We're very clear on the fact that we are global and that there might be regional nuances or generational needs across the board. Again, we're not trying to be everything to everyone, but we want to be good, aka great at everything we do. I'm so proud of the fact that we manufacture cutting edge skin care, cosmetics, fragrances, and nutritional supplements in some of our markets around the world. You know, we have a very robust portfolio, but we do have to retire things. That's called product portfolio management. It's that life cycle. You know, we need to do that first and foremost because, as you said, consumers may want or need different things, but also we're looking at her business. We're looking at what she needs to grow her business and earn her income. And so, we make choices based on that as well. And so, we have a plan, we have an approach, and then we partner with, you know, like Tara's my bestie friend here. We partner together to make sure that we're jointly making decisions that's really beneficial for our independent beauty consultants.

It starts with having that genuine connection with the field that again they are in business for themselves but not by themselves. And so we have a level of trust that you can have a beloved product but it needs to be tweaked or you have a beloved product that now you need to move to a new beloved product. And so it starts with the connection and with us being genuine about it. And then it goes into education and really taking the time because this isn't just we're throwing products at our salesforce. We are helping them behind the scenes to be able to sell that. So it really starts with the connection, the trust, the education, and then of course having the excellent products that the salesforce are going to fall in love with. We just have to sometimes get them to the table.

It's not always easy because as you know they are so loyal to our products that when it changes there's a little bit of like, 'Oh my gosh, what's the impact on my business or my consumer really loves this product?' But as she said, we make the connection and we're transparent about why. I mean, you know, in a global world, in the complex world, there's so many reasons why we might want to phase out some. It is just strategic fit as we've thought about the future and where we want to go. It doesn't make sense. Over time, as we created more products, they start to overlap. And so, that's confusing. And so, if I want to help her get the best out of her business, then I want to make sure she doesn't have a confusing line. Sometimes it's regulatory. You know, sometimes it's just not a great seller. You know, as long as we're clear in our message, we're transparent and authentic about why. And then we tell her other products to look towards or what she could be excited about coming. You know, there becomes a trust and you know what, they're doing this for me, not to me. And I think that helps really kind of they're helping me go along on the path with them. Absolutely. We don't just do it and then them be impacted. We give them support along the way. Exactly. So that they can be successful.

Any compensation plan evolves over time, right? And it can evolve because it has to. It can evolve because you can hit a wall and your compensation plan isn't working anymore. So it is always a work in progress and it is something that we're constantly looking at. We have a basic compensation plan and then we do different testing and different changes around the world because it has to be applicable to the place that that salesforce is in right there and then and what they can achieve and what they feel is going to be a reward for what they're achieving. So it's something that we're constantly looking at and we will continue to be constantly looking at. We want to make sure, you know, maybe in the past, maybe people were ready to work for 12 months to get their reward at the end of 12 months, but in our world today, people don't really look at a 12-month horizon anymore. They might be looking more at a three-month or a month horizon. And so, we also, but that can change from culture to culture around the world also, right? And so we're constantly looking at all that again with the internal talking that we are with our salesforce to make sure that with the limited resources, the pie that we have that is compensation, that we are using those resources as effectively as possible for the Salesforce member to feel good but also that she can be then energizing her business with the compensation that she's getting or with the prizes or the trips and all of that type of thing. Again, we go back to COVID, right? Trips was always a big thing for our Salesforce. We have wonderful trips. I go around the world with Mary Kay, but we couldn't do that during COVID. And so, we had to switch it up. And then you would think, oh, well, people don't want trips. Well, people do, but it's not all about the trips. So, there's plenty of things that we constantly need to be thinking about to make sure that it's something that someone wants because you want someone to feel good about the compensation that she's getting and you want her to be reaching for the next thing. And it's not the same as it was 30 years ago when I joined, right? Or it's not the same from market to market. So it's something that we're constantly looking at. And I think that that's a very healthy position to be in because if we got to a certain point and said, 'Oh, let's take a big step back and change everything.' That's not going to work. Just like with products, that's not going to work also because people are very used to the ways that they're working and the programs that they're working. So, right, it's a work of art that constantly has to be added to and tweaked and taken away.

That's what we as a company continue to do to be the best iconic brand in the business and to stay true to who we are.

I wouldn't say that it's about sequencing. It's about the different tools that our Salesforce has. And again, from person to person and situation to situation, someone might have more of an in real life business or an online business, but they could also be attracting people online that they are ready to. I had a Salesforce member say to me recently, 'I attract people online, but I always have my keys in my hand for when I need to get in the car and go meet her.' So, we're teaching them to have a really hybrid business that there's not just one way to do it. It's the way that works for you with your customer. And it's our job to make sure that they have the tools to do that. And I think what's great is it's not up to us to dictate how she runs her business. What we need to do is have the technology and the ability to build it in a way that suits her. And as you said, providing the technologies, the tools, and the training to enable her to do it to make it accessible to her. Exactly. No matter where she is or how she wants to run her business is the key thing. And so we continue to invest in that so that she can have that ability of choice.

As you said, we live, we work in a very fragmented category and we're kind of in two categories. We're in direct selling and we're in beauty. So, we compete with a lot of folks, if you will. And I think one of the most important aspects for Mary Kay is to be clear on why we're differentiated. We're not trying to compete head-to-head. Even though I would put our beauty products up against any product, they're amazing. But at the end of the day, our differentiator is our independent beauty consultant. It is her ability to be the personal beauty advisor with amazing products at mass-tige prices in a company that has a purpose beyond any other. That trifecta, if you will, is what makes us unique. And being able to tell that story no matter how much time you have with a person in what forum, in person or face to face, it's key. And so from a product standpoint, we have to be clear that we have high performance, high quality, efficacy, proven results. That matters to us and that's kind of the backbone of how we think about science behind the beauty and our products. But it's what she does as a personal beauty adviser and how she can relate and advise on her customer that is differentiated. That's her differentiator. And you mentioned before about influencers. Well, a Mary Kay consultant fully believes in the products. She is using those products. She is not getting compensated for using those products. She believes in them. She lives those products and she wants other women to enjoy those products, too. So, she really is, like we've been saying, our differentiator. And she can make that human connection again, whether it be in real life, hybrid, or online, she can make the connection because she wants to help each of her customers, not just to sell them products, but to find out what do they need from their products, not just that they're going to put some makeup on their face, right? But what is she trying to solve with that? Who is that person? And that is again our human connection, right? And why people keep coming back to Mary Kay and to their Mary Kay independent beauty consultant, right? And one of the things that we make a choice not to do is we don't try to put on pack every single claim and benefit that a product does. If you've looked at the evolution of our product packaging, we've kind of simplified the look and feel to not be too busy and not be too messy online or in person. And that's the beauty of what the beauty consultant can provide. Now obviously we'll make sure that we have assets and toolkits that can note it, but that's where she can really provide that customer service aspect of it. And so we've really been intentional on that evolution as well.

I think in messaging the opportunity, we've always talked about ourselves. We only talk about ourselves. We don't compare ourselves to anybody else. We don't say we have a buffet of offerings for women as they come into our company about what they could be looking for. And it might be gig work. It might just be a part-time. And so, we're welcoming. We have the tools. We're attractive to those women, but we're not competing with others. So, we're very much just standing on who we are, what our mission is, and if somebody's looking for a gig job that is XYZ, well, we might not be that. And we're not going to try to be that. We are just who we are and we're making sure that there's great word of mouth out there. And you know, as a company, we have never spent a large amount of money on advertising and pushing ourselves out there. And so the fact, like you said at the beginning, Wayne, that we are such an iconic company, an iconic household name is based on word of mouth. It's based on trust. It's based on experience. It's based on the amazing experiences that women and their families have had being associated with Mary Kay, whether they've been a consultant, whether they've been a consumer, whether they're still a consultant or maybe not a consultant because we meet many women who say, 'Oh, I did Mary Kay when I was in college or that was my first job and it really helped me to learn the confidence to then go on to school and become an architect, but I'll never forget what I learned at the school of Mary Kay.' So you know that again is just how we differentiate ourselves is our word of mouth and our sincerity. We are inspiring women to be their best and what a person defines as being their best is very specific to them. And so we afford them the flexibility and the choices in our opportunity and I think that's another part of the beauty and what we offer that allows it to be relevant and almost personalized. It's very individual. Very individual and people can create their own business. Yes.

Well, thank you. It's amazing to be a part of. It is.

Well, it has really been an amazing journey and we are in over 40 countries around the world. And as we would open markets years ago, we would go into markets for example and people would say, 'Well, we don't really show our emotions on our sleeve and we don't really cheer for each other and so this isn't going to work here.' But it's not about that. Or 'Oh, we don't really value skin care in our society. It's all just about the cosmetics.' Well, it's not about that. It is about, and as simple as it gets, it's about the sincerity. It's about the opportunity and it's about that individualism for each woman. And so, as we've gone to many different countries with all different languages and all different economic situations, we've been able to speak to women to say, 'If you're ready to put the work in, we have a business opportunity for you. It might be small. It might be extra money. It might be medium. It might be the income for your entire family, but like we said before, we will be with you. You are in business for yourself, but not by yourself. We are a brand that you can trust. We're going to be here for years.' And it has resonated with women all around the world. And when you meet our Salesforce, again, we're saying all women are individual. I mean every single Salesforce member around the world is an individual, many different backgrounds, many different nuances. We are in all over the world, all different types of situations, all different markets. And so it really has been that sincerity and that we are who we say. And in many countries as we've opened them, people think, 'Oh, you know, every company's coming into my country right now. We'll see who lasts.' But we are who we say and we stay and we are a long-term business opportunity for so many women. We most recently opened, it's been about two years now, into Hungary. So we're developing out of our Czech Republic and Slovakia markets into Hungary and so it's a neighboring market that had been looking and saying, 'Hey, we have direct selling companies but we don't have Mary Kay, so what can we learn about Mary Kay?' So that's been super exciting. At the same time, we're in Hungary. We opened up about 10 months later in Kyrgyzstan, which is a very, very small country. Women need the opportunity. It's not just about interest. It's about need. But all different women all over the world and in different countries there's different levels of that. So again, it's been our sincerity. It's been that we say who we are and we try to keep it as simple as possible so that she can be making money and we do not push people. We let them develop their business in their natural cadence of where it needs to be. And someone can be in Mary Kay for 10, 20 years and be at a very stable level of what she's selling and then she can say, 'I'm going to ignite my business.' We don't push anybody. We just try to pull in by saying, 'Hey, come join us. We have a wonderful sisterhood. We have a wonderful way to educate yourself. We're a school of confidence.' And we were women empowerment before women empowerment was popular. And it has resonated all around the world in many different countries.

Well, we have a Mary Kay quote for everything and we have a Mary Kay quote for that advice, which is 'Never rest on your laurels. Nothing wilts faster than a laurel rested upon.' And so, it would be to continue to innovate and to stay true to who you are. My advice is very similar. It's you have to know your north star. Trying to change and be something different decade by decade really at the end of the day won't be successful. It might be a short-term game, but in the long run, you have to be clear on your north star, and that's something that I think that we've never lost sight of. I completely agree. And that would be some of my advice.

Well, I'm most excited about more and more women finding out what they can have in Mary Kay or becoming reacquainted with our brand all across the world. So, I'm excited about the women and the impact that we're going to have through women and for women.

Thank you. Thank you. Thank you, Wayne. You have a great day.