Campaign Summary

To reward their consumers in new, engaging ways, O2, the leading provider of mobile services throughout the U.K., launched Priority Moment. Accessed through mobile phones, the location-based loyalty program provides customers with unique experiences and exclusive, targeted offers that deliver everyday value from brands that O2 consumers love.

Strategy and Execution

O2 set out to challenge the stale daily deals and discount category by offering new, amazing experiences along with offers that were 30 percent better than the market, from brands that normally didn’t discount. Armed with consumer insights and research, O2 identified moments in their relationship with consumers when a consumer’s attitude toward O2 shifted and the risk of churn increased. A tiered reward structure identified:

• Extraordinary Moments
• Extraordinary Offers
• Thank-Yous
• Extraordinary Partners

Extraordinary Moments: Unique, unmissable experiences and rewards that couldn’t be found anywhere else, delivered to thousands of O2 consumers:

• Limited-edition Harvey Nichols bag
• Free pair of Union Jack flip-flops from BHS to celebrate the Jubilee
• An upgrade on the Heathrow Express, airport lounge pass, and champagne welcome
• Free lunch at Upper Crust

Extraordinary Offers: Exclusive offers providing O2 customers with terrific values in tough times:

• 20 percent off at Toni & Guy hair salons, marking the first national discount in the company’s 40-year history
• BYGO shoes at Office
• 40 percent off movie tickets at Odeon
• £1 for a pizza and unlimited salad at Pizza Hut

Thank-Yous: Targeted rewards based on segment, spend, and tenure to thank O2 customers for their loyalty:

• Coffee at Café Nero
  
  
• £5–£20 mobile gift card to spend at Debenhams

Extraordinary Partners: Top innovative U.K. brands that O2 customers love. To win them over, a 12-month actionable plan was created:

• Tiered investment and media packages with guaranteed outcomes
• Measurable and defined benefits from their investment, with in-depth tracking, analysis of who is responding and redeeming, and, most importantly, sales tracking
• A totally flexible and controllable management platform with daily reporting
• A closed-loop evaluation system to track the success of each offer
  
  

Results

O2 Priority Moments is now the U.K.’s fastest growing loyalty program.

• O2 saved over £8 million during the first year by bartering with partners to provide investment in media exposure with the rewards and offers
• 2.6 million registrations in the first year, with 50,000 more each week since launch
• Over 1 billion offers viewed, averaging 75 offers per second
• More than 4.5 million rewards and offers have been accepted
• 62,000 social network shares since launch
• Customer Service Index scores are 16 percent higher, and churn has also been reduced for Priority Moments active users
• Customers are saving up to £840 per year (68 percent higher than VoucherCloud)
• Conversion rates as high as 95 percent
• Increase in average basket spends up to 40 percent