2024 Silver Utilities and Telecommunications

Agency: RAPP

Client: Virgin Media O2

Entry Title: Turning old into gold

Executive Summary

O2’s Switch Up proposition, which empowered customers to switch phones whenever they wanted, was a runaway success. But if the business couldn’t shift phones being returned to them, they’d be out of pocket.

Strategy

Whilst the majority of people default to a buying new phone, there is a healthy 58% of O2 high-value customers who said they would consider a refurbished phone. But those same high value customers were also the least likely to own one. So, what was causing the gap between consideration and purchase?

It turned out sustainability was a driver for just 10% of those who chose refurbished over new. The bigger issue, and key insight, was customers felt pre-owned phones were too much of a compromise; they wouldn't last very long, couldn’t be relied upon, and wouldn’t work as well as new phones.

To challenge perceptions and turn consideration into purchase, RAPP relaunched O2’s refurbished phones as ‘Like New’ phones. The campaign used customer segmentation data to help identify which benefits were most likely to drive engagement and action for each customer.

Creativity

The campaign had to make the new name stick, challenge current negative perceptions of refurbished phones, and punch above weight budget-wise to create cut-through

The creative platform put the new name front and centre: ‘Like New feels like…’ It challenged current refurbished phone perceptions by dramatising the emotive benefits of owning a Like New phone - which was in direct contrast to the usual ‘trading’ approach seen in the category that focussed on price flashes and lists of product features.

A combination of bold typography, design and motion created a striking look. Like New feels like... worked equally well in awareness-driving emails and MMS as it did in targeted messages within customers’ MyO2 apps. It even translated into automated voice messages that qualifying customers heard when they rang the call centre.

Results

Pre-campaign, O2’s refurbished phones page got around 1,000 visitors a day. On the day ‘Like New launched, 51,000 potential customers took a look, a 5,000% increase. More than two-thirds (67%) of O2 customers said they were now aware that they could buy refurbished phones from O2 (vs 55% pre-relaunch).

Weekly sales of Like New phones increased by 21% during the campaign, generating as estimated revenue of £1.1m in just five weeks. Customers saved money too - an estimated £180,000 between them - thanks to the savings on offer from choosing a Like New phone over a new phone.

The Team

RAPP - Vicky Gelling, Managing Partner - Matt Wiseman, Planning Partner - Sophie Becket, Account Director - Sebastian Weston, Strategy Director - Adam Rolfe, Creative Director - Sarah Buller, Senior Creative - Becky Smith, Senior Creative - Stephanie Bryan-Kinns, Senior Designer - Boyd Necker, Deputy Head of Creative Imaging - Matt Culmer, Production Manager - Greg Chapman, Senior Retoucher - Oz Osborne, Head of 3D and Motion Graphics - Andy Wolf, Motion Graphic Designer - Rosie Atherfold, Senior Project Manager - Emily Laflin, Campaign Manager - Prena Amin, Group Account Dierctor - Russell Handy, Data Analytics Director - Nicola Parrish, Data Analytics Director - Helena Clark, Data Analyst - Jade Thomson, Senior Copywriter - Julie Adams, Head of Copy

Virgin Media O2 - Paul Stevenson, Customer Marketing Director - Ben Mooney, Head of Customer Planning & Measurement - Eve Thirsk, Head of Customer Marketing Engagement, Service and Loyalty - Ricky Kanani, Head of Customer Marketing Growth - James Hampson, Customer Marketing Planning Manager - Matt Looker, Senior Content Marketing Manager - Zain Hameed, Senior Marketing Communications Manager - Jania Saha, Campaign Manager - Camilla Garcia, Campaign Manager - Alex Abbott, Go to Market Manager - Hayley Bolter, Senior Squad Member