The mobile device industry has long been one of the most complicated businesses—right up there with the process of buying a house or a new car.
However, OEMs didn’t have to worry much about this complexity because of the tight link that always existed between them and carriers.
When two-year contracts and mobile device subsidies died, OEMs were suddenly left to fend for themselves. And even though it feel like the industry is moving back toward the carrier subsidy model, that link between carriers and OEMs doesn’t seem to be reforming any time soon.
Today, OEMs are in a unique position to differentiate their products and services as the war between carriers and device manufacturers heats up. With a proper mobile device buyback program, you can set yourself apart from the crowd.
Where are All of the OEM Buyback Programs?
Apple has been at the forefront of the OEM shift since it announced the iPhone Upgrade Program in 2015. And while the program may have its issues, it’s worth billions of dollars for Apple.
The expectation is that Apple can lure customers away from carriers and retailers, locking them into buying an iPhone at the time of upgrade, increasing upgrade frequency, and driving upsell value. This way, they can own the customer experience both in store and online.
Other OEMs have caught on to an extent. For example, Samsung and Google both sell their devices directly (unlocked) rather than relying solely on carriers and retail sales.
And yet, Apple is still the only OEM offering a robust trade-in/buyback program. In the age of decoupled OEMs/carriers, it’s time OEMs realize they can benefit from trade-ins as they take on more and more of the services that carriers and retailers have traditionally owned.
How Mobile Trade-in Tech Increases OEM Efficiency
Overall, buyback programs can help OEMs build the customer experience they’ve never had to worry about in the mobile device market. But you can’t just dive head first into the secondary device market if you have little (or no experience). It’s more complicated than you think—especially if you look at how carriers and retailers have traditionally operated them.
To get the full benefit of a buyback program, you need mobile trade-in technology that can make you as efficient as possible. A few benefits of powerful mobile trade-in technology include:
- Better Pricing, Better Market Share
Mobile trade-in technology can help streamline your costs so you’re always offering the best prices for devices compared to competing OEMs. This will help you attract new customers and satisfy existing loyalists.
- Reduce Human Resources in Buyback Processes
Don’t worry about having to implement a whole new department of trade-in operators. Mobile trade-in technology can automatically identify devices and assess condition to accurately determine proper pricing—without extensive human interaction during tedious processes.
- Create Targeted Promotional Offers
Integrate mobile trade-in technology into your existed mobile app and you can start offering targeted promotions based on specific phone models and conditions. If users are engaging to learn more about your brand, you can maximize sales opportunities by offering great value for mobile device trade-ins.
- Build a New Revenue Stream
Buyback programs don’t have to just be the means to a new-device-sales end. When you can offer buyback price guarantees for customers, you can start to regulate the secondary market for your devices (like the iPhone has with consistent used device demand) and create an entirely new revenue stream.
It’s important to understand that buyback programs don’t offer benefits like these at the blink of an eye. You need to take the time to set up your processes and mobile trade-in technology properly to make the most of a new program.
If you want to learn more about designing a proper buyback program, download our free white paper, 15 Steps to Creating an Efficient Mobile Trade-in Program.
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