Consumers are growing increasingly apathetic to new phones as the devices get so good that fewer feel an urgent need to regularly upgrade. This was a particular challenge for O2 ahead of the launch of the iPhone 8.
The mobile operator found that increasing numbers of out-of-contract customers were holding on to their handsets rather than upgrading, with the percentage of customers out of contract increasing from 18.7% in 2016 to 21.1% in 2017.
At the same time, the mobile market was moving towards de-coupling and sim-only plans. And to make matters worse, O2’s share of voice in the market was coming under pressure as BT, Vodafone and EE upped their spend and Sky launched its mobile offering.
That led to a business challenge for O2. The market headwinds had led to a declining market share among iPhone customers, a significant issue given that a loss of one percentage point of market share can equate to £40m of value.
With the new iPhone about to launch, O2 needed a marketing approach that didn’t lean on the quality of new handsets or on price alone.
To do that, O2 engaged its agency VCCP to find a compelling new proposition that could get people excited about the new iPhone and buying it on O2. And the campaign it launched had…