• Category

    Category

Innovative Loyalty Program — O2’s Priority

O2

Innovative Loyalty Program Ideas

O2 loyalty program is segmented into two parts: O2 Rewards and Priority.

O2 Rewards:

Pay As You Go customers get you 5% or 10% back every 3 months when they top-up their mobile phone. Customers can redeem the rewards as extra airtime credit or save them for money off all tickets to must-see gigs, a new mobile or high street vouchers via Priority.

O2 Rewards Program Benefits: As a new customer, when you join O2 Pay As You Go and opt into O2 Rewards, members earn 5% back on all top-ups every three months. After they have been a member for six months, the percent of rewards the member earns increase to 10%. Each quarter members receive a text letting them know how much they have earned over the previous three month period and how they can claim or save your rewards.

Priority

Gives customers exclusive access to great offers from high street brands, tickets and experiences, as well as access to the best in entertainment.

Priority Loyalty Program Goals: O2’s goal was to make Priority Moments the best and most-used mobile loyalty program in the UK. O2’s strategy was to use the loyalty program to understand what really mattered to customers and to connect with customers through personal moments (holidays), celebratory moments (birthday or anniversary with O2), and moments in their relationship with O2 when their attitude shifted (dip in NPS), and the risk of churn increased. A tiered reward structure based on value and real-time location-based insight enables O2 to drive everyday engagement, acquire or reactivate a lapsed user, or to reward customers based on their spend and tenure, and to increase overall satisfaction with O2. What is really unique about the loyalty program’s rewards are FREE. They don’t have a set amount of money to participate in the program. All customers get access to the program. The loyalty program is positioned as one of the benefits you get as an O2 customer.

O2 Priority Rewards Program Overview

Priority Program Benefits

Members can claim or save their rewards in Priority. Members can redeem rewards for gig tickets, a new mobile, High Street vouchers, or extra airtime credit. In addition, members have access to a loyalty app, Priority Moment, which gives O2 customers exclusive offers and experiences. It allows people to see the deals nearest to them.

Tierred Rewards with Priority Rewards

Tiers of the Priority Moments

Each type of Priority Moment’s reward performs a special function, whether to drive everyday engagement, acquire or reactivate a lapsed user, or to reward customers based on their spend and tenure and to increase overall satisfaction with O2. There are four levels of Priority Moments:

  1. Extraordinary Moments
  2. Extraordinary Offers
  3. Headline Moments
  4. Thank-Yous

Priority Rewards Loyalty Program Results

The program is measured by a number of key metrics including retention, brand preference, and customer engagement.

Priority Rewards Program Results
Click Image to Enlarge

Overall the program has been very successful in extending the reach fo the brand reach, improving brand preference, reducing attrition, and driving customer engagement.

  • 2.6 million registrations in the first year, 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
  • Brand preference as measured by the Customer Service Index scores are 16 percent higher,
  • Customer retention as measured by a 2.5% churn benefit
  • For every £1 that O2 has spent on the loyalty program, the program has generated a £9.60 in returns

About O2

Company Overview:  O2 is the commercial brand of Telefónica UK Limited and is a leading digital communications company. The company has over 25 million customers. O2 has over 450 retail stores and sponsors.

Markets:  With 25.3 million subscribers (as of September 2017),  O2 is the second-largest mobile network operator in the United Kingdom.