The Catalan textile firm Mango will launch in April a loyalty program with a particular philosophy. Although it has a traditional base of getting points with each purchase that becomes discounts for new garments, it includes the possibility for customers to spend those points outside of Mango, in movie tickets, subscriptions to HBO or Spotify or in donations to NGOs such as the Vicente Ferrer Foundation, Doctors Without Borders or Plant for the Planet, or transfer them to another person. The company has invested three million euros in the development of the program, half in technology.
"It's a differential program, which goes beyond the transactional part; what he is looking for is to create a greater bond between the client and the brand through experiences, "explains Guillermo Corominas, Mango's customer area manager. The program, called Mango likes you (You like Mango) pretends "to convey a groundbreaking message: for the first time, a brand likes to his clients, instead of the other way around ". Those likes they are the points and the client will not only receive them for making purchases, but also for taking garments to the stores to recycle, for picking up an order on-line in the store (for the saving that it means for the brand), for downloading the app or using it in an establishment or for his birthday. That is, it also seeks that the customer goes to the store, which increases the chances of new purchases.
Each euro of purchase will grant 10 likes and each like equivalent to half a cent discount for future purchases (up to a maximum of 50% of the price of the garment, the initial if reduced) or in other possible uses: movie tickets or subscriptions to Spotify or HBO. In the case of NGOs, equivalencies have been established so that packages of between 50 and 1,000 likes are exchanged for treatments against malnutrition (Doctors Without Borders), cataract operations in developing countries (Fundación Barraquer), bicycles for go to school (Vicente Ferrer Foundation) or for hours of oncological research (Fundación Fero). A client can also transfer to another person their likes, which have a one year expiration. "We want people to see it not only as a points program, but it has to do with important values for the company, such as sustainability, community or culture," Corominas sums up. The company plans to incorporate other NGOs and companies into the program in the future.
All customers who have registered on the web or the Mango application to make an online purchase will automatically be users of the program. Those who have not done so will never be able to register at a store with a phone number and an email. The Catalan company expects to have 1.5 million active users of the program in one year, around 35-40% of the clients that Mango has registered today. "From the technological point of view is very well armed, touches all systems, is very ambitious," defends the manager, who says that the company has invested three million euros to develop the program, half in technology and the rest in marketing and others.
According to Corominas, Mango, who had just entered the world of loyalty, unlike brands like Cortefiel, which gets 75% of its sales with these programs, or El Corte Inglés with your card, is launched now because it understands that the environment is appropriate. "It's a project that had always been on the table, but we wanted it to be omnichannel and now we see that the client is totally omnichannel: buy here, pick up there, act a lot between channels. Now it made more sense than ever, "he explains. Corominas dissociates the launch of the difficulties that the company has gone through in recent years, but he does trust that he will give a boost to sales, which have been shrinking for three years. "We will be able to understand the behavior of the client, what interests him, how often he buys, and that will allow us more personalized strategies," he summarizes. "It has its objectives, but we consider it an essential piece because it is increasingly evident that only those brands relevant to users will survive," he reasons.
The program will be launched in Spain in mid-April, after a month of testing with employees that starts tomorrow. It is thought that it will expand to other countries -in France, in May-, as long as they have the same currency, so that in 2022 they are within the "countries that represent 60-70% of the turnover of Mango".