O₂ increases store sales and footfall with digital signage solution

Customer challenge

In the highly competitive and fast-paced mobile phone industry, O₂ needs to be able to demonstrate its credentials as a market leader. This means its 400-plus retail stores must be equipped with the latest technologies in order to draw in customers and create a positive sales environment. In addition to improving the ambience of its stores, O₂ was keen to explore new ways of interacting with its customers.

Computacenter solution

O₂ partnered with Computacenter to deploy a digital signage solution that enables its stores to display promotional material, sponsored events and the latest offers and tariffs. In the event of a price change or new offer, the entire estate can be updated in minutes. Computacenter also assisted with the procurement and installation of the digital signage technologies.

Results

The implementation has created a new channel through which O₂ can communicate with its customers to improve the in-store experience. In addition to keeping customers informed on the latest offers, the solutions create an impressive impact to enhance O₂'s reputation as the market leader and improve its competitive advantage. In the stores that have adopted these new and sophisticated technologies, O₂ has experienced an average increase in footfall by 21 per cent and sales by 24 per cent.

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Customer profile

A digital life partner of choice
O₂ UK is a leading communications company for consumers and business in the UK, with 13,000 employees and 490 retail stores in the UK.

Launched in 2002, O₂ now has more customers than any other UK mobile network, with 21 million mobile customers and more than 500,000 fixed broadband customers. By building on the existing O₂ brand, the company aims to become a "digital life partner of choice" through its high quality products and services as well as customer retention and loyalty programmes.

O₂ is currently expanding its services, with the recent launch of initiatives such as O₂ Money and O₂ Recycle.

Business challenge

Creating an impact in-store
The mobile phone industry is fast-paced and fiercely competitive, with success often dependent on a company's ability to harness new and innovative technologies.

As a result, O₂ needs to be seen to be at the cutting-edge of mobile communication by customers, partners and stakeholders. With a large proportion of the company's UK revenues coming from its retail stores, conveying the correct messaging in store is essential.

The stores provide the opportunity for both existing O₂ and potential customers to browse new handsets and keep up to date with the latest offers and promotions. The technology introduced enables key purchasing decisions to be made within these stores, so when O₂ was looking for a new in-store design study it was keen to investigate innovative ways of interacting with its customers and advising them on the latest offerings.

Andrew Lee, Project Manager for O₂ comments: "We were looking for ways to tempt customers into stores. Traditionally we have always used posters, pamphlets and flyers at the point of sale to attract customers and ensure they are fully informed. We wanted to investigate new visual communication technologies that could create a real impact."

Computacenter solution

State-of-the-art digital signage
To explore the options available, O₂ opted to partner with Computacenter. Computacenter arranged a one-day workshop with various audio-visual vendors to enable O₂ to review the different technologies available to them. "The workshop was very informative," explains Andrew. "It enabled us to investigate the latest technologies, following which we drew up a proposal for a digital signage solution."

The main challenges of the implementation were due to the tight timescales of the project, as Andrew explains: "We originally needed to equip a large number of stores with the digital signage solution in just three months, which made the schedule very demanding. Computacenter met any challenges head on, and we were impressed with the openness of the relationship."

Based upon a media delivery system and commercial LCD screens, the solution has been installed in more than 250 O₂ stores and is used to display various promotions, specific offers and adverts, along with O₂ sponsored events; such as rugby and football matches and music concerts at the O₂ Arena.

Although the content is controlled centrally from O₂'s head office in Slough, the company is able to stream different material to each store to enable the company to advertise on a regional basis. "In the event of a price change or new offer, the entire estate can be updated in minutes," comments Andrew. "This saves cost, ensures total compliance and exponentially decreases the time to market."

Many of the stores feature a 65" LCD 'focal point', which includes an audio system to add further impact. This large display can also accept local input, for example from a laptop, to provide a presentation medium in store.

Computacenter has also deployed a control system that automatically alerts the retail support team in the event of an equipment failure.

In addition to managing the vendor relationships, procurement and installation, Computacenter is responsible for all the technology involved in the project under an ongoing managed service contract.

Results

Enhancing the customer experience
The project was a resounding success, and both O₂ staff and customers have been impressed with the new technologies. "The digital signage solution adds to the ambience of the stores, and provides a draw for staff to engage with customers and initiate potential sales," comments Andrew. "The stores that have been refitted have experienced on average a 24 per cent increase in footfall and a 21 per cent increase in sales."

As a result of the project, O₂ is able to:

Leverage a new communication channel: The new technologies help to ensure that both potential and existing customers are fully informed on the latest tariffs, offers and promotions.

Enhance the in-store experience: By improving the ambience of its stores and providing interactive entertainment, O₂ is able to attract more customers through the doors.

Strengthen its reputation as a market leader: Image is very important in the mobile phone industry. By deploying new and sophisticated audio-visual solutions, O₂ is able to demonstrate its commitment to the latest technological developments.

"To maintain our position as market leader in the UK mobile phone industry, O₂ must stand out," comments Andrew. "By ensuring we are one step ahead of our competitors with new and exciting technologies, O₂ is able to retain and attract more customers."