IPA Effectiveness Awards 2006: Gold Award

Campaign title: The best way to win new customers? Talk to ones you
already have
Client: O2 UK
Agencies VCCP; ZenithOptimedia Group; Archibald Ingall Stretton;
Authors: Sophie Maunder, VCCP; Louise Cook, Holmes & Cook
Contributing authors: Nadine Young, ZenithOptimedia Group; Bob Udale,
Archibald Ingall Stretton; Nick Hough, Lambie-Nairn; Andrew Cox, O2 UK
Media used: TV, print, outdoor, interactive, DM, ambient, press

IN A NUTSHELL: A radical shift in rewards, now for loyalty not for defection, with a medium-term payback on investment of up to 80:1

SUMMARY: In 2005, O2 changed the conventions of the UK mobile network market. A new campaign, "O2: A World That Revolves Around You", talked to O2 customers through broadcast and personal media. It announced a radical shift in rewards, now for loyalty not for defection, with a new emphasis on customer service. The campaign reversed a rising trend in disconnections and attracted new customers. By the end of 2005, O2 overtook Orange to have the largest UK user base. O2's brand affinity also improved on a range of measures, including bonding, consideration and recommendation. Econometric modelling suggests a medium-term payback on investment of up to 80:1. Now part of Telefonica, O2 has achieved UK brand leadership.

JUDGE'S COMMENT: A wonderful case study on the value of loyalty. A new chapter for O2, showing how they executed a communications campaign in order to retain the customers they had won following the highly successful re-branding campaign which scooped the Grand Prix at the 2004 IPA Effectiveness Awards. This was a hard act to follow and they did an exceptional job. O2 rewarded loyalty, a relatively new concept in this category, and delivered a sensational return on the initial investment.

- Greg Nugent, marketing director, Eurostar.

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