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Are You Overlooking Mobile Trade-Ins as a Source of New Sales?

Posted by Dave Ronis on Feb 2, 2017 5:02:00 AM

Creating new sales from mobile trade-insOdds are, customers aren’t beating down your door to buy mobile phone accessories.

Sure, you’ll help the occasional patron who walks in only needing a protective case, but all in all, it’s new phones that draw most customers into your store. 

Aside from promoting new phone sales, there is another way to boost the sale of accessories: mobile trade-ins.

 

 

Mobile Trade-in Add-ons and Cash Alternatives

Indeed, offering in-store trade-in credits, rather than a cash alternative, significantly increases the odds that customers will purchase mobile phone accessories.

Tweet: Customers who trade-in old mobile phones spend 30% more on accessories than those who don't >> http://ctt.ec/9x1X6+ Customers who trade-in old or lightly used mobile phones for in-store credits spend 30% more on accessories than those not trading in their devices. They often view trade-in credits as free money, so they are more willing to spend it on new phone cases and other merchandise. 

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With this “free money” in hand, they will likely spend some of those credits to meet the cost of high-margin items like phone accessories. That’s why it’s important for retailers and carriers to offer customers at the point of sale - instant value and immediate gratification.

Providing Incentives to Your Mobile Customers

Global revenues for mobile accessories are forecast to grow to $101 billion in 2020. Tweet: Looking for a strategy that’s sure to increase #MobileDevice accessory sales? http://ctt.ec/BeElG+Why not get a slice of that billion-dollar pie by implementing a strategy that’s sure to increase accessory sales?

First, keep in mind that deferring payment as a bill credit or mailed rebate check will not incentivize customers. You need to benefit from their psychological desire to want to spend now. It’s not often customers have little inhibition about parting with money, so it is important to take advantage of this window of opportunity.

mobile trade-in stats click to tweet

Even if a used mobile phone is worth only $30 or $40, every consumer loves bonus money. Customers also want accessories, but are often inhibited by the out-of-pocket costs. The average time spent by smartphone owners on their devices increased to 170 minutes a day in 2015, from 30 minutes a day in 2010.

The more time customers spend with their devices, the more they will recognize a need for an accessory, and a sure-fire way to get customers to purchase accessories is to get them into the store.

Accessory Sales Soar with Mobile Trade-In Credits

Here are 4 examples of mobile accessories that are most popular with customers: 

  1. Protective CasesMobile phones are an investment. They are also thinner and lighter than ever before, which makes them more aesthetically pleasing –but also more vulnerable. A case will safeguard that investment by protecting a phone’s glass and metal. The style and make of cases are like ice cream flavors: there are infinite options and every consumer has a favorite. Whether it’s a rugged case, a fashionable one or a basic offering, smartphone owners recognize the importance of device protection.

  2. Headphones – Smartphones obviously do more than make calls. They’re handheld entertainment centers. Many device owners watch videos and listen to music while at work or in transit, creating the need for privacy. Many consumers don’t like the complimentary headphones that are packaged with a new phone, so by offering your customers a wide variety of headphones, it will increase the likelihood of them upgrading this standard accessory.

  3. Chargers and Adapters – Woe is the person with a dead device. Smartphones need a lot of juice to make calls, stream data and take pictures. Even before a day is over, they need to be recharged. Keep device owners happy with a large selection of chargers – for the wall and car – and power adapters for every emergency situation.

  4. Bluetooth and Wireless Speakers – When earbuds won’t do, these tiny speakers are popular with people who like to play their music loud for friends, whether at the beach or a party. However, these accessories often pose a significant investment, which makes many  consumers hesitate. By offering a selection of wireless speakers after providing a consumer with his/her trade-in credits, you are more likely to make a more valuable sale.

Three-quarters of smartphone buyers purchase at least one accessory; according to the research firm NPD Group. Increase the consumer incentive to buy several accessories at your store by encouraging them to trade-in their old devices and offering them in-store credits.

That free money from the mobile trade-in will surely tempt them to stock up on headphones, speakers and other accessories that would otherwise have been left on the shelf.

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Topics: Device Processing and Liquidation

About This Blog

The HYLA Mobile blog is a place for thoughtful dialogue that will ultimately change the perception of “used” phones around the world. Visit the HYLA website to learn more.

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