O2 ran a direct mail campaign targeting prepay customers who had not used their phones in a designated period to encourage them to start using their phones again. The campaign offered €20 in free credit to incentivize customers and included the recipient's name for personalization. It achieved a 14% response rate, showing that a targeted offer with a call to action and time limit can boost customer retention in a competitive telecommunications market.

1. O2Sleeper CampaignAgency: RR Donnelleyanpost.ie/mailmedia

2. Sleeper CampaignThe ChallengeThe telecommunications market has become increasingly competitive with customers having much more choice when it comes to choosing a network. The recession has brought many challenges; one is a shrinking market. Customers want value and will leave a network to get it. This is why customer retention is more important than ever.Prepay customers are not tied into a contract and can leave at anytime. The challenge was to create a compelling offer that gave great value and showed customer that they’re better staying with O2.

3. Sleeper CampaignThe Target MarketThe targeting criteria were very specific with O2 identifying customers who had not used their prepay phone in the last designated period.

4. Sleeper CampaignThe ThinkingO2 wanted to give these customers an offer that was compelling enough to encourage them to start using their phone again. They also wanted to put a closing date on the offer to make the call to action stronger – so customers knew the offer wouldn’t last forever.

5. Sleeper CampaignThe MailingPersonalisation played a big role in this campaign. The outside of the mailer promised the recipient free credit using the customer’s name. When the recipient opened the mailer to find out more, they were greeted with €20 free credit. Overall the mailer was simple, and did not require an envelope.

7. Sleeper CampaignThe ResultsThis campaign achieved an average response rate of 14%.

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