What is Socialism?

Words matter.  The word "new" is so highly motivating to some that we have regulated its use.  Legally a product can only be called "new" for six months.

Last February, the Republicans announced that their strategy for winning the 2020 election was to label anyone who votes Democratic as a Socialist.  (Stolberg, 2019)

All I could think of was a woman who I saw holding a sign at an anti-Obamacare rally in 2010 which said - "Keep your government out of my Medicare." 

But as we said, words matter and if the wisdom of the tribe says that Socialism is wrong, then there are many people out there who will accept that statement at face value and not bother to figure out what it means.

This week YouGov released a new poll suggesting that the word Socialism might not be the lever that the Republicans are looking for.  What it showed was a huge difference in perception among different generations. 

Here are the percentages who say they would support a socialist candidate by generation:

Silent Generation: 33%

Baby Boomers: 36%

Millennials: 70% (20% extremely likely)

Gen Z (over 16): 64%

(Derysh, 2019)

That's some difference.  But it brings me back to the original question.  What is Socialism?  And why would the older generations be against it and the younger generations for it?  How do the tribes people associate with impact these views?  Would a change in wording change perceptions?  And if so, what words might be used and what would the impact be?

Stolberg, S. (2019, February 17)  Republicans Hope to Sway Voters With Labels That Demonize Democrats.  nytimes.com.  Retrieved October 29, 2019, from

https://www.nytimes.com/2019/02/17/us/republicans-democrats-messaging.html

Derysh, I. (2019, October 29)  Here's why millennials are ready to go socialist.  rawstory.com.  Retrieved October 29, 2019, from

https://www.rawstory.com/2019/10/heres-why-millennials-are-ready-to-go-socialist/

Will banning fur save Macy's?

In a joint press conference with the Humane Society yesterday, Macy's Inc. said that it will stop selling and storing fur in all its affiliated stores (includes Bloomingdales) by early 2021. (Forbes, 2019)

Needless to say the activists were pleased.  But what about the less engaged?

Research tells us that Gen Z is more passionate about causes than are previous generations.  53% say they have bought a product to show support for a brand.  23% say they would consider it.  40% have stopped buying a brand, and 27% would consider doing so if the company behaves in a way that doesn't align with their values. (Hessekiel, 2018)

Research also tells us that 14-24 year-olds appears to have a fondness for brick-and-mortar shopping.  In fact, 81% prefer to shop in stores.  And, 58% of them say that they consider it to be an opportunity to disconnect.  (Wu, 2019)

That's probably bad news for companies that want to serve them mobile ads while they walk around the store.  But it could be good news for retail as a whole.

And it could be the reason why Allbirds just announced plans to open 20 new stores in 2020, bringing their total to 35. (They are also going to start offering clothing.) (McDonald, 2019)

So what do you think?  Will Gen Z be motivated enough by Macy's new policies to shop there?  How important is it if a store sells fur or not?  What other changes might a store make to attract Gen Z's who care about the environment?

Do you think that Gen Z has a preference for brick-and-mortar?  If yes, is it because it allows them to deal with stress?  Or are there other reasons?

Forbes, T. (2019, October 22)  Animal-Rights Activists Hail Macy's Decision To Stop Selling Storing Fur.  mediapost.com.  Retrieved October 23, 2019, from https://www.mediapost.com/publications/article/342309/animal-rights-activists-hail-macys-decision-to-st.html?edition=115795

Hessekiel, D. (2018, June 26)  Engaging Gen Z In Your Social Impact Efforts.  forbes.com.  Retrieved October 23, 2019, from https://www.forbes.com/sites/davidhessekiel/2018/06/26/engaging-gen-z-in-your-social-impact-efforts/#1e421bde6499

Wu, J. (2019, September 17)  Gen Z shopping habits can fuel a brick-and-mortar resurgence, report says.  cnbc.com  Retrieved October 23, 2019, from

https://www.cnbc.com/2019/09/17/gen-z-shopping-habits-can-fuel-a-brick-and-mortar-resurgence-report-says.html

McDonald, S. (2019, October 9) Digitally Native Allbirds Doubles Down on Brick-and-Mortar Expansion.  footwarenews.com.  Retrieved October 23, 2019, from

https://footwearnews.com/2019/business/retail/allbirds-stores-opening-2020-1202854124/

Will Wine Insiders' Boomer media also reach younger people?

Wine Insider is an old school D2C company.  Founded in 1982, their primary consumers are Baby Boomers.  Their media selections reflect this as they continue to rely on direct mail, ads in Sunday newspapers and discount cards.  It's a trifecta of senior media.

In a nod to the growth of social media, the company now uses Facebook and Instagram as well.  

But they appear to be most excited about their performance on QVC, which they ran with earlier this year.  The segment was hosted by Chris Hoel, a former sommelier at The French Laundry, and was in their words "performing very nicely for us."  It is consistent with their core positioning as wine experts who can advise you on the best choices and get you the best prices, so it is clearly a good fit.

They also note that they get some of their best customers from referrals.  10 referrals gets you some free wine.

Wine Insider does offer subscription services, for those who prefer them, but it isn't a company priority.  (Mahoney, 2019)

While their media selection is perfect for their primary target it doesn't really cover media that reaches Gen Z and Millennials.  But that doesn't mean some of them aren't seeing these efforts and being influenced by them. 

Do you receive direct mail?  Read a Sunday newspaper?  Perhaps you got a coupon is your order from jet.com?  What about QVC?  Are you a fan?  Has YouTube replaced it?  Or something else?  Who do you look to for advice on wine purchases?

Mahoney, S. (2019, October 13) Wine Insiders' Secret?  Older Drinkers, Plenty of Reds, QVC.  mediapost.com.  Retrieved October 16, 2019, from https://www.mediapost.com/publications/article/341922/wine-insiders-secret-older-drinkers-plenty-of-r.html

Why do loyalty program rewards come with an expiration date?

Research tells us the easiest sale to make is to get your current customers to buy more; and it's less expensive to keep the customers you have than it is to get new ones.  

Loyalty programs are designed to help do this. By offering specials and rewards, they not only bring in more money and keep customers longer, they also can generate good word-of-mouth, social proof and customer referrals.

Like many people I belong to several rewards programs, one of which is Staples.  Staples has reduced their rewards significantly since I joined.  Duane Reade has too, especially since they were bought by Walgreens. 

The reduction in rewards from Duane Reade, which effectively translated into a price increase, was directly responsible for my moving most of my purchases to jet.com.

As for Staples, while I maintain my membership I have shifted many purchases to lower cost suppliers for the same reason.  But I do still recycle my ink there so I get a coupon from time to time. 

A few months ago, Staples combined two of my coupons in one email and led with the newest one.  As a result I missed the fact that the bigger coupon was expiring earlier, and had no opportunity to use it.

It may have only been for $8, but it made me mad.  I know that it's not a lot of money in the scheme of things.  But it was enough that loss aversion set in.  So a gesture that was supposed to make me feel good about being a customer instead made me angry. 

But it also made me wonder.  Why do loyalty coupons even have expiration dates?  If someone is a loyal customer why would a company care when they used their rewards, just as long as they did?

In August United Airlines announced that they would no longer impose a deadline to redeem frequent flier miles.  They join Delta and JetBlue.  But American Airlines is still requiring customers to earn or redeem miles every 18 months.  (Gazdik, 2019)

So, what do you think?  Why do companies do this?  Have you experienced the frustration of expiring rewards?  How does it make you feel about the company?  Have you shared your feelings with others?  Have you shifted your purchase patterns as a result?  Will you now favor United and Jet Blue over American?

Gazdik, T. (2019, August 29)  United Airlines Loyalty Miles Will No Longer Expire.  mediapost.com.  Retrieved October 8, 2019, from https://www.mediapost.com/publications/article/339941/united-airlines-loyalty-miles-will-no-longer-expir.html