Beyond Connectivity: O2’s Strategy for Building Deep-Rooted Loyalty

For nearly two decades, O2 has built a strong presence in the UK live music scene, not just through clever branding, but through partnerships that have blurred the line between sponsorship and service. This strategy underpins the O2 loyalty programmes, Priority and Rewards, which have become central to its customer experience and are often cited as the reason customers stay with the UK operator. Indeed, they’ve been widely copied, but rarely surpassed, helping O2 to attract and retain customers, despite operational challenges and a network performance that regularly trails its main rivals.

An Enduring Relationship with Live Music

Back in May 2005, the mobile operator signed a deal to rebrand the Millenium Dome as The O2, a move at the time, given the venue’s troubled reputation. This bold bet has evolved into of the more effective loyalty strategies in the telecom world. It was also the year O2 launched Priority Tickets, giving customers early access to Wireless Festival and laying the groundwork for the operator’s loyalty strategy.

A landmark partnership with the Academy Music Group in 2008 saw 11 venues rebranded as O2 Academies, offering music lovers early access to gigs and exclusive experiences. This relationship was strengthened in 2017 with a renewed 10-year deal with Live Nation and the Academy Music Group, which maintained their presence across 19 O2 Academy venues in 13 cities, including iconic spots like O2 Academy Brixton and O2 Shepherd’s Bush Empire.

The marketeers at Virgin Media O2 emphasize that this isn’t just sponsorship; it’s an “integrated relationship” that provides vital grassroots and midsize venues with the technological infrastructure and visibility they need to host thousands of gigs each year.

There’s no doubt that this strategy paid off for O2, but in a fiercely competitive mobile market, the question is how a major brand can continue to build customer loyalty that extends beyond its core services. In recent years, the operator’s association with live music has faced new pressures from the dynamics of the live events industry.

The Tyranny of Ticket Touting: A Fan’s Nightmare

The increase in demand for live music has brought with it a series of challenges that undermine the fan experience. None more so than the rise of touting and resale platforms, which mean that buying tickets for popular gigs often descends into a frustrating battle against a system many view as rigged.

Ticket touting costs UK music fans £145 million each year, according to Virgin Media O2’s research. Face-value tickets that sell out in minutes often reappear on sites like Viagogo and StubHub at hugely inflated prices — sometimes up to 10 times their original cost. This artificial scarcity and price gouging force fans to choose between missing out or paying an extortionate amount that mostly benefits profiteers, not artists or venues.

This problem is made worse by bad actors exploiting technology. In today’s digital age, bots, run by professional touts, can snap up thousands of tickets in milliseconds, bypassing security systems and purchasing limits. Fans stand little chance as they’re left staring at “sold out” messages.

Secondary platforms also operate in a grey area with minimal consumer protection and little accountability. Buyers are frequently left in the dark about the exact location of their seats, the identity of the seller or even whether the tickets they’ve bought actually exist, with some left out of pocket and denied entry at the door. It’s an opaque environment that fosters distrust and preys on fans eager to see their favourite artists.

In addition, misleading marketing and search engine optimization (SEO) tactics make unofficial resale sites appear legitimate. Through aggressive advertising and clever use of SEO practices, they mislead many people into believing they’re buying directly from the artist or venue. This confusion funnels genuine demand away from legitimate sites toward platforms where prices are inflated and consumer protections can be weaker.

Beyond the impact on fans, touting also undermines the industry. When inflated resale profits go to intermediaries rather than artists, promoters and venues, it takes money away from future tours, album production or venue upgrades. Having overpaid for a single ticket, fans may be less willing or able to support other events, buy merchandise or engage further with the artists they love.

O2 Responds by Strengthening the Value of Priority

Against this backdrop, Virgin Media O2 is responding with three initiatives to tackle these problems and reinforce its commitment to fans’ love of live music and entertainment.

1. Fighting bots in real time. In just six weeks, the operator blocked more than 50,000 suspected bots from accessing its Priority platform. This intervention may not solve the problem entirely, but it shows a willingness to ensure genuine fans get a fair shot at tickets, directly combating the technological advantage that touts exploit.

2. Backing new legislation. Virgin Media O2 is throwing its weight behind the UK government’s efforts to create a fairer market. This includes advocating for a 10% cap on resale prices and clearer identification of secondary platforms within search engine results. This public stance positions the company as a brand aligned with fan interests and wider industry and policy efforts to level the playing field.

3. Educating consumers. Beyond direct intervention, Virgin Media O2 is using its communications channels to offer customers advice and guidance on how to safely navigate the ticketing landscape. It’s an educational step that builds trust and should strengthen the operator’s role as a helpful, reliable resource in a confusing and often predatory landscape.

These efforts show how the Priority platform is shifting. For O2 customers, it has long offered exclusive access to events, but increasingly, it’s also positioning itself as a gateway to fairer access and greater transparency.

This isn’t just about ticking a box for social responsibility; it’s a strategic move to stay in step with what customers care about and tackle their frustrations. And by taking on a common enemy, the greedy ticket tout, Virgin Media O2 is reinforcing the value of its entire loyalty programme and extending its relevance beyond phone or broadband services.

The operator’s commitment to live music is clearly a long-term play that reinforces its broader customer experience strategy. But that strategy is now under pressure from external forces, and the O2 brand is taking a hit. These latest changes are a necessary reset of the customer relationship. Some might say it’s a problem of success, but it’s a problem all the same. O2 has to protect its investment, although it’s still too early to know if these measures will be enough.