We spend a lot of time talking about how to optimize the performance of mobile device trade-in programs. For the most part, these conversations come down to two sides—the backend operations and the customer experience. Having the technology to support a trade-in program is a great first step. Next, you have to find ways to generate the most value from device trade-ins.
One way to maximize returns from your trade-in program is to drive consumers to purchase accessories with their credits. But it’s certainly not the only option.
Turning your mobile device trade-in program into a funnel for selling protection services can increase your profit margins while also providing value to your customers.
The Connection Between Trade-Ins and Device Protection
At first glance, selling device protection plans and building out a trade-in program might seem like entirely separate tasks. However, the two are more connected than you’d think.
A study we conducted with Deloitte found a direct correlation between consumers who trade devices in when upgrading and those who invest in device protection. These customers recognize that small investments in device protection go a long way.
From buying screen protectors to investing in cases, this subset of your customers will do what it takes to maintain their phone’s value leading up to a trade-in. And taking advantage of device protection plans is just another way for them to make sure they’re getting the highest value when it comes time to upgrade.
As a result, 90% of mobile device protection plans are purchased through retailers, carriers, and OEMs—most often at the point of sale or within 30 days of the transaction.
If you’ve been contributing to these statistics, you know that mobile device protection is a high-margin service. The more you can get trade-in customers to buy into protection services, the better your bottom line will look.
And the best part is that there is still so much opportunity in this aspect of your business. Just 40% of consumers have invested in device protection services, opening the door for a win-win scenario between you and your customers.
Gaining Buy-In for Device Protection
Mobile protection sales are a byproduct of strong trade-in programs. The challenge is bridging the gap between giving trade-in credits and getting customers to invest in your protection plans.
Gaining buy-in for your device protection services often starts with educating your sales reps on its tremendous value and how trade-in can ease any financial burden the customer may feel. Consumers get to maintain the value of their devices (and reap the benefits over and over again as they upgrade). You get the high-margin services added to new device bills when trade-ins occur.
If you want to use trade-in technology to improve your device protection offerings (and improve your bottom line), we can help. Contact us today and find out how.