O2 has changed the way mobile operators approach loyalty with the success of Priority Moments - an innovative mobile-based loyalty program that uses real time insight and targeting to give O2 customers unique and exclusive rewards (offers, experience, and content) from brands they love based on their interests, behavior, and geo-location.

The ‘Power of Targeting’ through Location

Through Priority Moments O2 delivers exclusive rewards to 4m+ registrants based on location technology:

• Geo-location enables customers to reap rewards from leading partners whenever and wherever they are

• Proximity alerts and push messaging driven by geo-fencing delivers relevant and easy-to-redeem rewards

• Bespoke technology facilitates real-time marketing to mobiles

• Bespoke algorithm highlights the nearest offers and experiences within a determined area, including customer’s individual preferences and behaviour

Strategy

Priority Moments was borne in a fiercely competitive mobile market, where high churn, increasing acquisition costs, limited differentiation, and low customer engagement are commonplace. Customer retention is the number 1 priority.

The task was to create an innovative loyalty programme that customers would engage with every day, offering extraordinary partner rewards, dramatically different from the multitude of daily deals sites saturating the market, and deliver a value-led proposition.

Combining real-time insight and direct-to-customer communications, O2 developed Priority Moments – a groundbreaking loyalty programme anchored in location technology.

Leading brands including Caffè Nero, M&S, Odeon, TONI&GUY, Ocado have all offered O2 customers highly valued and exclusive rewards. Each reward performs a function, whether to drive everyday engagement, acquire/re-activate a lapsed user, or to reward customers based on tenure and spend.

Examples of extraordinary rewards:

• M&S ‘Dine in’ for £8 (25,000 redemptions in a weekend)

• Free Caffè Nero Iced Coffee on the first day of Summer (100,000 redemptions in 4 weeks)

• 20% off at TONI&GUY– their first national discount in 40 years

• Free Halfords de-icer and scraper when it snowed

Results & Success

From March 2012 to April 2013, Priority Moments registrants increased 100%+ to 4million+ with 30% active monthly, making it one of the UK’s most successful, fastest-growing loyalty programs.

Churn reduction

• Incremental churn benefit of 2.5%, saving O2 £14m across registered customers

Usage and engagement

• 1+ billion offers viewed to date

• 75 offers viewed every second, 5 offers redeemed per minute

• Customers save on average £35-£40 per month, total savings across O2 customers almost £30m

Perception

• Consideration up 10+

• Attractiveness up 69%