Magic moments

Mobile network operator O2 launched a service for its customers earlier this month that gives them access to special offers with a large number of retailers, leisure and hospitality brands. Once a customer signs-up to Priority Moments they can launch an app or go to a mobile-optimised website and the location services built into the phone serve them up offers that are relevant to the local area. Consumers can also set up preferences to further personalise the offers they are shown.

Retailers using the service as a marketing channel include Harvey Nichols, WHSmith, JJB and French Connection. For example, JJB is offering a 20% discount on all Nike products, and WHSmith 50% off the top two selling books each week.

02 says that customers can save up to £105 a month using the service, and as many of the deals are exclusive to Priority Moments, it is clearly a great added value service for 02 customers. But are developments such as this going to be the catalyst for driving footfall to retailers if they are struggling against the competition?

There has already been much debate about whether the soaring number of promotions and Sale events seen in stores are the right way to run a retail business. The offers retailers are promoting through Priority Moments so far appear to be more of the same.

If the cost of the lost margin of such offers is worth the revenue gain of a customer coming into store, then it can be argued that retailers are right to buy footfall in this way. But though it uses clever technology and much-hyped mobile marketing techniques, it’s essentially just another example of high street discounting.