The secondary market for mobile devices continues to grow, giving you a significant opportunity to strengthen your revenue streams. By 2023, IDC predicts that the market for used smartphones will be worth $67 billion.
Taking steps now to capture that market opportunity can significantly impact your bottom line for years to come. But you aren’t just competing with other carriers and retailers in this space.
Often times, your customers are taking it upon themselves to sell their pre-owned devices through third-party platforms like eBay, Craigslist, Facebook Marketplace, and Gazelle. Convincing customers to use your trade-in program instead of selling the device on their own can be difficult—but it’s not impossible. These three approaches can help your salespeople bring more customers into the trade-in program and help you capture the revenue opportunity.
1. The Scare Tactic
The classic argument when convincing customers to trade their phones instead of selling on their own is the data privacy angle. When customers sell their phones via third-party platforms, the only thing they can do is run a factory reset to clear data. But we all know that those on-device factory resets don’t fully protect customer data.
Factory resets only delete reference pointers between the device OS and personal data files. When customers power on the device, they experience it as if it was just activated. But the data is still there until it’s overwritten.
For customers that are concerned about data privacy, reassuring them that your trade-in program is R2 Certified for secure data sanitization can ease concerns.
2. The Financial Factor
Money is the primary motivator for customers choosing to sell their devices on third-party platforms instead of trading in at the point of sale. From the strict point of view of device value, you won’t be able to match exactly what customers may be able to get for their device on a third-party platform. If you’re offering $100 at trade-in for a certain iPhone model in good condition, that same device might sell for $150 or more on eBay.
The good news is that you don’t have to focus on trying to match trade-in value with third-party sale value. Instead, focus on selling customers on promotional trade-in offers you’re currently running. Even though that iPhone is only worth $100 at trade-in, using your program might help the customer save an extra $200 on the latest model. In the end, the value is actually $300 instead of the lower price the customer would get on a third-party platform.
Customers should also be reminded that the trade-in price being offered is a guarantee; there is no guarantee of what they would be able to sell it for themselves.
When money is the most important factor in your customer’s decision, make sure you’re taking every opportunity to explain the true financial value of trading their device at the point of sale.
3. The Convenient Option
There are customers who may be choosing to sell a device on their own for the first time. In these cases, you may be able to convince them to use your trade-in program by focusing on convenience.
While a third-party platform may be able to get the customer some extra money, there’s a tedious process they have to follow. Selling on third-party platforms means taking the time to post pictures and write up descriptions about the device. Then, they have to monitor offers and complete the sale either by shipping the device or taking a chance on safety by meeting up with the buyer in person.
All of this takes time. Instead of taking the trade-in value right at the point of sale and never thinking about the device again, it could take days or even weeks to get that extra bit of cash value. For some customers, the hassle may not be worth the effort.
Making Trade-Ins the Natural Option
Trade-in programs have come a long way over the last decade. While customers are taking advantage of them more often, there’s still work to do to make your program the natural option for customers. Giving your sales reps as much information as possible to win customers over can make a major difference in your ability to capture secondary market value.
The goal is to get mobile device trade-ins to the same place as car trade-ins. The vast majority of your customers never think of selling their old car on their own when buying a new one. They just trade the car in at the point of sale to alleviate some of the financial cost of the new one. Mobile device sales can work the same way if we keep educating customers on trade-in program value.
If you’re ready to improve your trade-in program so that it’s more attractive to customers, contact us today and find out how HYLA can help you get there.