O2 creates Priority Moments business division

O2 is to create the first dedicated team for its Priority Moments loyalty service as it prepares to put more long-term marketing weight behind the scheme in 2012.

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The scheme was previously handled by the marketing division and O2 Media’s brand partnership team but the company is now creating a new “head of Priority Moments” role to lead a team devoted to expanding the proposition.

Priority Moments launched in July, backed by a £6m integrated marketing campaign.

It extends O2’s previous loyalty initative, that was limited to giving customers early access to tickets for the Academy venues it sponsors, to offering its 22.2 million customers location-based high street deals via their phones from more than 93 brands. Current partner brands include HMV, National Express and Odeon.

O2 says Priority Moments is differentiated from other voucher and deals services, because it claims to offer “exclusive experiences” beyond discounts, such as free gifts and early access to sales.

At the time of the launch, O2’s marketing and consumer director, Sally Cowdry said that “only O2” could launch such a service.

“No other companies in this space have the direct, loyal relationship with the customer,” she added.

The company has not yet released official figures on how many times the Priority Moments app has been downloaded or how much revenue it has generated, although more detail is expected when parent company Telefónica next reports its financial results in February.

O2 is the biggest mobile operator in the UK in terms of customers, with a 26.7% share of the market, according to comScore. Its closest competitors are Vodafone with a 20% share and Orange with 19.9%.

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