‘O2 reduced cost and complexity’ for O2, by The Marketing Practice

Summary

The ‘Reduced cost and complexity (RCC) campaign was designed to establish O2 as a leader in joined up communications. In anticipation of its planned joint venture with 2e2, O2 wanted to further establish its credentials as a partner who could integrate customers’ communications with complex IT and deliver joined up communications.

Firstly, The Marketing Practice (TMP) undertook analysis of both market and customer data to help O2 segment their audience by both size and fit of the potential opportunity. This enabled a ‘tiered’ approach, helped to set individual targets for segments and defined the campaign treatment each received.

To engage the target audience, a research-based, interactive maturity model was developed to give the audience opportunity to assess their communications maturity and receive a personalised report outlining recommendations on where to invest for best returns. TMP then commissioned independent research into the state-of-play of communications within 300+ businesses to provide the benchmark data.

The campaign consists of many elements from the interactive tool on the website to DM, email and telemarketing. At its heart, however, was solid and rigorous research and insight.

Client

Bought in 2006 by Telefonica, O2 is well-known as a mobile provider to both consumers and businesses. O2’s Enterprise division targets organisations with 2,000 plus employees – offering everything required to keep a business connected from a fixed, mobile, voice, data and technology perspective.

Following the recent joint venture with 2e2, O2’s customers are now able to outsource their IT and communication needs to a single provider, helping to join up communications and reduce costs by up to 30 per cent.

Strategy

O2 wants to establish itself as the joined up communications supplier of choice for business and the public sector, to significantly increase its market share. Reducing cost and complexity are key priorities for senior decision makers, and supplier consolidation is seen as one of the best ways to address these issues.

The first stage of the campaign was to develop and segment prospect data to help O2 pinpoint where to focus sales and marketing effort. A matrix was created comparing each industry by its potential spend (the size of the opportunity in real terms) versus the industry’s fit with O2, in terms of both brand and propositions. Further work was then done by The Marketing Practice (TMP) to establish contract end dates to identify the immediate opportunities and those organisations that would benefit from a longer term nurturing approach. This market insight helped to inform sales resource requirements for 2011 and ensure effort was being put behind those sectors most favourable to O2.

This initial research was based both on customer and prospect data analysis, as well as competitor research, and allowed a tiered approach, with individual ROI predictions, campaign and telemarketing treatments for each segment of the data.

TMP used this detailed view of the market to help create a communications maturity model, which would allow O2 to discuss organisations’ communications needs with real authority, fulfil the brand reputation for helpfulness, and provide prospects with information and tools they could really use.

To build the intelligence and benchmark data behind the model, TMP commissioned detailed qualitative research of over 300 organisations across six verticals, looking at communications strategy, technology, flexible working, cost, and integration. The results of the research were used to plot four different ‘communications stages’ that organisations could find themselves at – from ‘traditional’ to a fully mature state at level four. 

Using this benchmark as the backbone for an online maturity model tool (measure.o2.co.uk), prospects were able to answer simple questions about their own communications infrastructure and plot how they were performing versus all businesses and those just within their sector. A personalised PDF summary of the report could be produced from the website and used as further evidence to create a business case.

As you’d expect, target organisations were all at different stages of their communications journey. O2 therefore needed to show how it could help organisations at all levels reduce the cost and complexity of their communication; for O2, the end goal was to be seen as the credible partner for the next steps, and the ongoing journey towards a more integrated (therefore simpler and more cost-effective) communications strategy.

The campaign used a series of communications from emails to nurture calling to promote the maturity model, build further insight and generate sales opportunities.

Objectives

The key objectives from O2 were to generate 167 leads over 12 months and to provide insight to help the sales team progress these opportunities through the pipeline.

Target audience

The campaign targeted all key decision makers in communications, particularly IT directors, telecoms and network managers and their equivalents.

Media, timescales and budgets

A series of email and DMs drove the audience to the website hosting the maturity model. Upon arrival, visitors are invited to answer simple questions about their own communications infrastructure and plot how they are performing versus all businesses and those just within their sector. A personalised PDF summary of the report can then be downloaded from the website and used as further evidence to create a business case.

Intelligence of the market, and the audience, informed the creation of all campaign assets: from the development of the questionnaire, reports and maturity model; through to video and case study content on the site designed to ‘knock out’ these objections. For example, case studies were selected with addressed likely objections that the sales team had identified as being common barriers to sale.

Timescales

The campaign began in November 2010 and is set to run until December 2011.  

Client testimonial

“‘Reduced cost and complexity’ was a milestone campaign in positioning O2 as the go-to joined up communications partner for business, so we had to get it right. The Marketing Practice’s insight-led approach to planning and delivery meant we could have timely, valuable and fruitful conversations with our audience, now and in the future.”

Zoe Frost, head of marketing execution, Telefonica UK

 

Related content

Access full article

B2B strategies. B2B skills.
B2B growth.

Propolis helps B2B marketers confidently build the right strategies and skills to drive growth and prove their impact.