Retailers and wireless carriers could conceivably run a sales promotion every minute of the day. With scores of mobile devices to sell, and with older products constantly being replaced by newer models, carriers and retailers need to consistently move products. Creating promotional deals can help boost a retailer’s product sales.
Wireless carriers and retailers also want consumers to participate in mobile trade-in programs. In fact, it’s virtually a required component of most sales nowadays: For consumers to take advantage of any promotional deal for a new phone they typically must also trade-in their used devices.
Carriers, retailers and OEMs want to offset the costs of customer acquisitions in addition to their marketing and advertising efforts. To do that, sellers are bundling the promotions of new phones with trade-in offers as a sure-fire way to entice customers to bring in their old devices, thus allowing the seller to profit from either recycling the device or reselling it in the secondary market.
Without question, the best way to efficiently combine sales of new phones with the mobile trade-in program is to integrate those transactions in a point-of-sale (POS - the time and place where a retail transaction is completed) system.
Bundling Promotions with Trade-ins
Carriers and retailers can and should bundle products and services with promotions at POS. For example, a carrier offers a promotion such as unlimited data but only if the customer agrees to start a new line of service and trade in their phone.
This enables the carrier to decrease its cost of customer acquisition by knowing it will be able to get the current residual value of the traded-in device down the line, while also getting another new line of service activated. Bundling the promotion within the mobile trade-in also helps defray the cost of the new line of service activated in the bundle. In this example the new service would be the unlimited data.
The residual value of the phone that is traded in is very valuable to the carrier or retailer. They can keep those dollars and significantly decrease their new customer acquisition costs in the extremely competitive mobile environment. The value of the device that is traded in can also reduce the cost of the promotion the carrier or retailer is offering. For example, if the carrier or retailer is offering a “buy one device and get a second device at half price” promotion, the residual value on the phone that is traded in can help cover the cost of running that kind of powerful offer. Many of the devices that customers trade in still have significant value, and the carrier or retailer should take full advantage of retaining that value.
To best process a trade-in with a promotion, a powerful, feature-rich POS system is a must have for any retailer or carrier location. The system allows a sales person to easily and quickly take care of customers and ensure they are able to take full advantage of every possible promotion for which they are eligible. It should be done with ease and extremely quickly. In fact, the sales rep, in most cases, shouldn’t even have to know all current promotions. The POS system should have the capability to find them and apply them instantly. It should also be able to alert the sales rep of promotions that exist that the customer could get if they, for example, added one more item to their cart. Integration of promotions into a POS system is extremely critical, especially in the case of device trade-in.
HYLA’s Trade-in Platform Improves POS
The HYLA CE Trade-in engine is fully integrated into all leading POS systems, making it easy for carriers and retailers to ensure their customers are participating in all eligible promotions. Another sometimes overlooked but powerful capability of HYLA’s Trade-in platform focuses on tracking and measuring sales reps effectiveness. The HYLA platform includes a powerful and robust suite of reporting capabilities that can track not only down to store level but all the way down to rep level, allowing management to easily see high performers, low performers and also control fraud or dishonest behavior before it becomes widespread.
HYLA’s platform also lets sales reps complete attestation. In other words, the rep basically clicks a “yes” or “no” radio button attesting that the customer is eligible for the promotion, perhaps based on the model of the device they are trading in or some other criteria. This is helpful when doing reviews on sales reps and promotion effectiveness when evaluating future promotional offers. Without a fully integrated trade-in platform, sales reps would need to use one screen to complete a sale and then enter all their credentials into a different system in order to complete the trade-in and offer promotions. This approach is inefficient and time consuming, and leads to a poor customer experience and a weaker customer acquisition and retention retail model.
Bundling the trade-in of used phones with promotional deals for new phones will generate significant revenue for carriers and retailers, and raise customer awareness of trade-in. A powerful POS ensures that sales reps have every bit of information at their fingertips so they can complete a transaction quickly and effectively, hopefully prompting customers to return with their used devices the next time a promotion grabs their attention.