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O2 UK to Target Reducing Churn Ahead of New Customer Sign-Ups

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The UK arm of Telefonica O2 is shifting its focus away from mass customer sign ups and will instead be focusing on key customer segments in its marketing in the future.

Jonathan Earle, head of customer strategy & development at Telefonica told a marketing conference that the mobile network is responding to the realities of a saturated market.

Earle said that brands needed to look at their existing customers as advocates for the brand and its services, an "permeate that out" to their friends. He sees word of mouth as a vastly more powerful marketing tool.

Addressing the issue of churn, he added: "We have your calling circle and know how influential you are in the group of people you talk to. If you were to go to another mobile phone provider, it is likely you will take a bunch of people with you."

For that reason, retention of existing customers is looking more important for the mobile network, and it is adapting its marketing towards discounts and offers for long-term and influential customers.

On the web: Marketing Magazine

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Tags: o2  UK