They say money can’t buy happiness, but it can buy points with mobile subscribers - both existing and new. Putting a few extra dollars in the hands of your subscribers with a well-run, effective device trade-in program is a fast way to boost customer satisfaction ratings. More importantly, it actually increases revenue and accelerates buying cycles across all retail locations.
Want to learn how to increase post-transaction customer satisfaction ratings by 10%? Keep reading!
Device trade-in programs aren’t just for specialized, limited time promotions. They are a great tool for improving the in-store experience. People like knowing that their old phones won’t end up in a landfill and that they’re supporting a worthy cause. More importantly, they like the cash that comes with it.
Institutionalizing a Trade-in Program
Many companies only discuss device trade-ins with customers when they’re offering a special promotion – unfortunately these organizations are missing an opportunity to build goodwill from the moment a customer walks in. People appreciate hearing that large companies are concerned about the environment and social issues. When a sales rep then offers to check trade-in value, customers become instantly engaged.
Sure, the latest version of the iPhone will be worth more (to consumers and service providers) than a low-end Android phone; but that doesn’t mean it isn’t valuable. Even if a phone is only worth $25, every consumer loves bonus money. What could bring greater satisfaction – especially when they can turn around and use it to get the phone, case or earbuds that they’ve been dying to have?
Training sales reps to discuss their mobile trade-in program with all store visitors – regardless of promotion – is a great way to increase customer satisfaction on multiple levels.
What’s in it for the service provider?
It’s easy to say that even $25 will delight consumers, but what does a good trade-in program do for service providers in the long run? Let’s look at some proven facts about service providers who have implemented successful trade-in programs:
- Even with newly structured payment plans or subsidized pricing, new phones are still very costly. A brand new (off contract) iPhone 6 can cost consumers upwards of $850. With such high prices, it should come as no surprise that customers are more likely to trade up when they see how much money they are getting back – even if they just came in to take a look. If sales reps can take the two minutes to evaluate a phone, service providers can increase upgrade rates, customer satisfaction and the bottom line all at once.
- Customers who trade-in their old device spend 30% more on accessories than those not trading in. Customers often view the trade-in credit as free money, so they are more willing to spend it on new cases or other merchandise.
- Early life churn is a costly problem for service providers. Customers often upgrade their device, but soon decide that the unfamiliarity is too much to deal with and return to their old phone. Customers that take part in trade-in programs are less likely to contribute to early life churn simply because they no longer have their old phone.
- With all of the promotions service providers run to bring in new business, customer acquisition is a major cost. By taking old devices from customers at trade-in, service providers can cut acquisition costs by between 30% and 60%.
In-store Mobile Device Trade-in programs: The Easy Choice
It takes a bit of training to get sales reps to lead with a trade-in offer for all consumers, but it’s clear that the customer satisfaction benefits are worth it. The educated consumer knows that service providers have similar offerings, so a trade-in program can make the difference that keeps them from seeking a better deal elsewhere.