Consumers have the ability to receive a certain amount of credit towards the purchase of a new smartphone when they trade in their old devices.
It was at Samsung’s Unpacked event that we realized just how much trade and retail have evolved over the years.
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Samsung said consumers could trade in their old model devices for their new Galaxy series devices, and that got us thinking on how customer retention including innovative ways of purchasing a smartphone have evolved over the years.
Today, you can trade in your old Galaxy smartphone, or receive a cash value directly into your bank account in order to possibly get an upgrade.
This is not new, what’s the point?
A few brands allow trade-ins. Brands such as Apple, Huawei, Honor and Samsung allow consumers the ability to trade in their older version devices for newer models by simply providing an avenue for users to return to the brand.
This is smart business.
Trade-ins and the ability for consumers to trade in a device means recycling is done effectively by the manufacturer of the device. This also allows the brand to retain the customer with an opportunity to retain the customer for another product sale.
That’s three points with one efficient service, for most brands. That’s the magic. Keep the customer for a longer period.
What’s the catch?
On paper, the idea of trade-ins is brilliant until you’re in a real-life situation in an attempt to trade in the old for a newer model. The trade-in value is often the challenge as brands mostly buy low and sell high.
While trade-in values of smartphones can be high on paper, trade-ins, in reality, may at times leave a customer with a giant amount of cognitive dissonance.
The pros and cons
Many retailers provide retail programs, but why would you trade in a device?
This can be quicker than selling your device by sifting through a number of buyers.
No confusion over the sales process with no middleman.
Added benefits: Some trade-in packages offer trade-in promotions which could aid in ensuring consumers get value on their next buy.
Trade-in values are usually lower than when selling a device independently.