With UK mobile penetration is the highest in Europe levelling off at around 74%., acquisition marketing had become more about stealing market share than organic growth. Today's consumer is tempted to a new mobile operator with price offers, handset deals or bundles of free minutes and texts.
O2's challenge was to seek out emotional factors that would strengthen their preference for the brand, making it easy for customers to stay and hard for them to leave.
The Priority experience is a customer loyalty programme which aims to deliver exceptional experiences to O2 customers, either through specific campaigns or with events at The O2, O2 Academies and other UK venues. The aim is to set O2 apart from its rival networks and offer something over and above customer expectation, and turn customers into fans.
O2 already had some success at this 'customer to fan' strategy with Priority experiences for O2 customers at music venues like The O2 or one of the O2 Academies. However, unlike their music offering, O2 didn't have an endless supply of events they could offer to customers who enjoyed a sporting, as opposed to a musical fix.
As sponsors of England rugby, and to match their music experience offering, O2 wanted to provide a Priority experience at the place their sports-mad customers would cherish most: Twickenham, the home of English rugby.
England only play a maximum of six competitive home games a year, and tickets often sell out months in advance. Also, through research showed that compared to the traditional Twickenham audience, the O2 rugby base was younger, had less spare time, and less disposable income. They were also spread fairly equally across the country. This meant that the opportunity to enjoy the live experience at the stadium was extremely limited.
O2's communication strategy focussed on indulging its live-match deprived rugby-mad fans with the perfect Priority experience: The UK's first live 3D broadcasts of rugby at cinemas throughout the country.
Initially O2 concentrated on the technology to create event buzz with techies and early adopters. Key digital influencers were identified and shown preview footage at a live 3D demonstration to promote O2 as tech-savvy and forward-thinking.
O2 email communications went out two weeks in advance with messages to attract, England fans at first, and then people interested in family events. O2 customers were able to register for updates and early ticket sales. These people were directed to associated England content and a second video featuring England players.
40 'mini-Twickenhams' were set up for fans across the UK. Each showing a world-first sports broadcast: England rugby in 3D. A Priority experience as good as being there for a fraction of the normal ticket price.
The 3D broadcast gave a view that was better than being at the stadium, complete with O2's commentary teams, 3D match graphics and live replays. The mini match-days were designed to be as social and entertaining as a day at Twickenham itself.
Interested O2 customers were counted down to the big event through a set of emails and our campaign Twitter feed. Both built the drama and released England content to the audience. Cinemas were dressed as mini-stadiums with free beer, St George's flags and 3D glasses.
A pre-match 3D film whet the appetite and a real-time Twitter feed with comments from O2 customers was an integral part of the match commentary. The matches became shared experiences for O2 customers.
On YouTube, a dedicated 3D Rugby channel showed reactions from players and fans to the 3D demo games. A special website showed off the technology, and allowed O2's Priority-registered customers to buy advance tickets.
Results
Each game was a 10,000 ticket sell out in 48 hours.
O2 drove a quarter of a million visitors to O2 blueroom, with the 3D Rugby email communications seeing a 27% open rate (50% above the O2 average), and a 22% CTR (150% above the O2 average.)
This produced a 250% increase in customers registering to hear more about future O2 Priority experiences. O2 customers engaged with blueroom spend an extra 4.10 each month (ARPU), and have an average churn rate of 5.23% compared to 10.54% across the base.
PR coverage generated by the campaign was valued at more than 2.4m of equivalent media spend across the world, with the story being picked up by Fox News in the US and as far afield as Australia.
The campaign paid back immediately with £250,000 worth of tickets sold to O2 customers.
20,000 England fans in cinemas across the UK stood up to sing the national anthem before kick-off.