O2 fights churn with £8m customer loyalty drive

by Ben Carter, Marketing 23-Mar-05, 10:56

O2 is launching an £8m advertising campaign to establish itself as the mobile consumer champion.

The activity, part of a reappraisal of its marketing strategy, is intended to step up competition within both the pre-pay and post-pay markets against rival networks, particularly new entrants such as easyMobile.

O2 will introduce a range of initiatives to increase loyalty among its 14.2m customer base. These include a pledge to give pre-pay customers 10% of their top-up payments back every three months. The network will also offer 50% extra text messages and calls for life to post-pay customers who have been with the network for more than a year.

A multimedia campaign created by Vallance Carruthers Coleman Priest will break on 1 April. Television, outdoor, online and print activity will carry the strapline 'A world that revolves around you'.

The strategy will focus solely on existing customers to stop them switching to another network. Compared with its rivals, O2's churn rate is relatively low.

It is also intended to offer extra incentives to pre-pay customers. O2 was badly affected in its last set of results by customers buying a pre-pay O2 phone, using up the credit and putting in a different operator's SIM card.

Separately, O2 this week confirmed details of its Wireless Music Festival (Marketing, 23 February).

The network will be the headline sponsor of four live concerts in London's Hyde Park this summer. Taking place in late June, the events will feature acts including New Order, Basement Jaxx, Keane and Kasabian.

O2 customers will be offered priority tickets to the concerts, which are expected to attract crowds of 90,000.