Way back in 1963, Andy Williams released his song “It’s the Most Wonderful Time of the Year” on a Christmas album. And undeniably, the vast majority of people connect this phrase to the holiday season. But for mobile device carriers and retailers, the most wonderful time of the year starts a few months earlier.
We had Samsung releasing its new mobile devices in August. And we just had Apple’s release of the iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max. In October, Google is expected to unveil its new Pixel model. And after all of these OEM releases of their new mobile devices, November kicks off the rush of holiday shopping with Black Friday and Cyber Monday.
While high volumes of transactions during this time make it easy for every carrier, retailer and OEM to cash in, you can’t just sit back and hope to overcome the competition. During the most wonderful time of the year, you need to get a bit creative with your trade-in promotions.
Secondary Market Marks the Most Wonderful Time of the Year
When we run our quarterly trade-in data reviews, we try to analyze how the secondary market is maturing quarter-to-quarter as well as year-to-year. One pattern that stands out every year is the spike in activity in both Q3 and Q4. In Q3 2018 alone, carriers and retailers returned $628 million to consumers through their trade-in programs. And as we hit the most wonderful time of the year in 2019, we can expect similar performance.
But even as trade-ins become more common in the overall mobile device purchase/upgrade process, there’s still work to be done to spread awareness to consumers. The most wonderful time of the mobile device year is the perfect time to do that.
Your trade-in program should be a win-win proposition. You get second-hand devices that fuel new revenue streams while consumers get potentially hundreds of dollars toward a new device of their choosing. And as all these new devices come to market, it’s the perfect time to develop trade-in offers that consumers can’t refuse as they consider a purchase.
The challenge is coming up with promotional offers that stand out from every other carrier, retailer and OEM.
The Key to More Creative Trade-In Promotional Offers
Every year brings a new opportunity to win over both new and existing customers as devices come to market. But just because you can predict the release cycles of manufacturers doesn’t mean you should become predictable with trade-in offers.
It seems as if every year comes with a similar wave of trade-in promotions as we reach the most wonderful time of the year. You offer $300 toward a new iPhone if someone trades the previous year’s model. You work a buy-one-get-one deal into the mix for a period of time leading up to the holidays. Or, you bundle some kind of additional service into the purchase of a new device if the customer trades a recent model.
These are tried-and-true promotional offers that have served carriers, retailers and OEMs well for years. But if you want to stand apart from the crowd and attract new customers this year, you need to branch out.
Doing so requires one thing—detailed trade-in value data.
Tried-and-true promotional offers present low levels of risk. You know what your margins are, and you know what the trade-offs might be as you try to acquire new customers. Experimenting with creative promotional offers without the right data can increase your risk and impact your bottom line. And during the most important time of the year, that’s just not acceptable.
Real-time insights into market trends ensure you’re providing competitive pricing to your customers as they trade-in their devices. When you start to think of creative offers, you can use both real-time trade-in values and historical trends to stretch the limits of your promotions without unnecessary risk to your profit margins.
However, knowing trade-in market trends is only one piece. Understanding what the traded in device will sell for in the secondary market is the other piece in making sure you are setting trade-in values correctly. This is where HYLA can help. Our Analytics platform provides maximum profit potential and mitigates risk associated with the buying, selling, pricing, processing and wholesaling of mobile devices.
It’s not too late to take a more creative approach to the most wonderful time of the year. As consumers get excited about the latest-and-greatest smartphone innovations, you have the opportunity to win them over with the best deals and experiences—and we’d love to help.
The coming months aren’t just the most wonderful time of the year for carriers, retailers and OEMs. It’s our favorite time of the year, too. We help to re-purpose millions of trade-in devices year-round and this time of year we always prepare for the highest volumes.
All of these trade-in transactions give us a wealth of data we can use to help you design more creative promotional offers. If you want to learn how we can help you capitalize on this time of year, contact us today for more details.