In July, O2 launched Priority Moments, an extension to the network service provider’s existing priority loyalty scheme. Priority Moments is an app that uses geo-location technology to offer their 22 million customers access to exclusive and innovative offers provided by a range of 30 partners. Following a two week launch, the Priority Moment app rose from 12^th to 1^st place in the Brand Republic branded app chart so what is it that makes Priority Moments stand out from the crowd?

Using partner rewards as a way to engage and reward customers is not a new principle. With brands across all categories recognising that one of the biggest motivators for customers is cash, offering discounts across their favourite brands holds value. Or does it? In an environment where at the drop of a hat people can visit Vouchercloud or Groupon to get a free starter at Zizzi or group discounts on National Express, are third party rewards valued by consumers enough to have a positive impact on reducing churn? O2 certainly think so….

What O2 have done with Priority Moments is provide people with practical savings straight into the palm of their hand, rewards that can be redeemed instantly, oozing simplicity and relevance. With a promise of saving customers up to £105 a month through partner rewards, Priority Moments becomes a strong retention tool as well as an acquisition driver.

The success of Priority Moments is as much about the support the brand gives the scheme as it is about the scheme itself. The level of investment has enabled O2 to offer its customers new and exclusive rewards that in turn provide stand-out amongst the crowd – until now, I haven’t seen French Connection, Neals Yard or House of Fraser participate in a programme of this nature.

It is estimated that O2 has spent £6m in ad spend alone to promote Priority Moments. Different creative executions feature partner logos and imagery, making participation in a programme of this nature a very attractive proposition to brands - access to 22 million customers as well as above-the-line support!  By properly supporting the campaign with significant investment, partners are willing to put forward strong offers in return for the exposure they will receive. This, coupled with an immediate and simple redemption mechanic makes Priority Moments different to all other third party based retention tools.

The moral of the story is, in order to create an engaging partnership strategy brands should be prepared to invest in above-the-line support as well as the partnerships themselves. A recent report from the Institute of Practitioners in Advertising showed that combining above-the-line advertising with promotional marketing is the most effective way to achieve ‘hard business objectives’*. Not only does this raise awareness of the campaign but, more importantly, in Partnership Marketing it creates an attractive proposition to take to partners, ensuring valuable rewards are secured.

Taking Priority Moments as an example – a scheme solely based on partner rewards, why wouldn’t brands invest in the very backbone of their strategy?

In an ever competitive market, O2 have got it right with Priority Moments but it didn’t come without a price. Moving forward, brands should recognise the importance of supporting partnership activity with above-the-line advertising, ensuring activity is engaging, exclusive and offers real value to customers.

www.ipm.org.uk

Somebody asked me yesterday to explain partnership marketing. My immediate thought was they must be joking – when you’re immersed in something on a daily basis you do tend to assume everyone already gets what you do.

When I realised they weren’t, my answer was as follows. Partnership marketing can be sales promotion. It can be about generating loyalty or finding new routes to market to acquire new customers. It can be a promotional campaign to support a new product launch.

It’s basically any kind of promotional marketing with one key point of difference – the selected route to reach a target market is via a brand that audience is already interacting with, making the delivery of a message all the more powerful. So for every sales promotions brief, there will be a partnership marketing solution. For every acquisition or loyalty brief, there will be a partnership marketing solution. In short, wherever there is a need to motivate a change in customer behavior, there will be a role for partnership marketing.

That’s why at the heart of our slick new re-brand is the line ‘creating change through partnerships and promotions’ which we think sums up exactly what we do. If you want to take a closer look at how it all works, check out our case studies. We’re also now on Twitter and Facebook and between the two will be sharing our opinions on industry news, our own campaigns and generally giving you the chance to get to know us better.

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Elaine Robertson
Managing Director