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Attracting consumers to omnichannel mobile phone trade-in journey

More and more consumers consider used phones as an attractive and sustainable alternative. Where there is consumer demand there is a healthy business opportunity as well. During this year we have seen a fast growth of companies focusing on a business of used mobile devices. This growing trend has been already there for some years.

IDC has forecast the used mobile device market to grow rapidly. In 2019 the used smartphone market was already 206.7 million units and is forecast to grow to nearly 333 million units in three years. This means that roughly 1/10 of smartphones sold globally is a used phone.

Why used phones are compelling to consumers?

A refurbished or a used phone is a cost-effective alternative to save money. The reselling value of a smartphone will decline after 2-3 months. After two years it accounts for roughly half of the original value. Besides, new phones do not always have attractive enough features on them and can be expensive. Now consumers might be waiting for the new 5G devices before they buy a new phone. An increasing number of customers are more aware of the environment and many also want to make sustainable choices.

The ecosystem of the used phone market has also evolved fast. Many new companies are focusing only on the used phone market. Operators and retailers are investing more in trade-in and buy-back programs.  There is also an increasing focus on trade-in and trade-up campaigns by leading OEMs.

In previous years when the consumer purchased a used phone, it was difficult to trust the device’s quality. The used phones did not have a warranty either. Now the companies in the second-hand phone market are grading the purchased devices, refurbishing them with high-quality spare parts, and providing a warranty. New regulations, such as Right to Repair, are making it easier for the ecosystem players to repair the phones and to get spare parts.

Based on studies consumers are interested in exchanging their old phone for a new one if it is easy and if they can get good value from the old phone. Improving phone condition analysis will improve the consumer experience. Many phone buyback and trade-in campaigns require device condition evaluation to be filled in manually to verify phone conditions. Enhancing the service with accurate, objective, and automatic diagnostics will increase the trust of all stakeholders while decreasing variance in device pricing. Automatic device model detection will enhance the user experience, reduce human error and possible fraud.

Added business value to companies

Buyback campaigns offer an opportunity for operators and retailers to create new revenue by attracting consumers to buy new or used phones when the consumer can get money back from the old device. Many operators and retailers have stated ambitious sustainability goals. They are driving the trade-in programs as part of environmental initiatives and everyday business processes. Many companies are also focusing only on used phones due to business opportunities.

There is more consumer demand than supply for used phones. This has led to supply constraints and companies are facing a challenge in getting enough used phones. This is why there is a constant need to come up with new innovative ways to attract more users to trade in their phones. And that’s where Piceasoft’s mobile device lifecycle management solutions can help.

Driving more consumers to trade in their devices

Piceasoft has developed a compelling omnichannel trade-in solution to help attract consumers to trade in their devices.  Picea® Services Trade-In solution is available for point of sales and digital channels. Picea® Services Mobile enables operators, retailers, and trade-in companies to quickly implement and easily promote mobile device trade-in offers directly to consumers and let consumers initiate the trade-in service anytime and anywhere.

Retailers, operators and used phone companies can create a branded trade-in campaign in just a few minutes using the easy to use web-based Picea® Services Product Management (PMC) toolset. The Retailer can select the desired workflow for consumers, such as which phone identification methods and device diagnostics tests are performed on the consumer’s mobile and customize texts and branding for the trade-in offer. It is also up to the retailers if they want to drive users to a store or to a website to complete the trade-in.

How does it work for the mobile phone trade-in?

In the PMC toolset, the potential trade-in price and available campaigns can be set to be shown at the beginning of the mobile workflow. The tool allows to customize the workflow with text and branding and give special offers or vouchers. Pricing and device grades can be also automatically fetched from the trade-in partner catalogue by integrating the PiceaServices Trade-in API.

The PMC toolset will generate a link or a QR code that retailers can use in their marketing campaigns, such as online advertising, newspapers, emails, or social media. The QR code or link can be also dynamically updated and test cases can be removed or added during the campaign if required, while the link to the consumers remains the same. This results in a highly dynamic campaign tool for retailers and operators to include in their existing marketing mix.

The consumer can engage with the campaign just by clicking the QR or the link. The service will enable the identification of the device automatically and test device conditions remotely. The consumer gets a buyback offer that is based on the device’s condition.

The consumer can be guided to the website or to the point of sale to complete the trade-in deal. At the point of sales, the sales agent can review the results of the phone condition analysis performed earlier by the consumer. They can also see the given device value and complete the trade-in.

If you are interested in attracting more consumers to your trade-in programs by deploying Piceasoft’s omnichannel Trade-In solution, contact us by requesting a Demo.

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About Piceasoft Ltd
Piceasoft is a Finnish company, located in Tampere. Since it was founded in 2012, Piceasoft has created a unique set of software solutions to cover the whole lifecycle of mobile devices. These solutions create new business opportunities and enable a cost-efficient service for mobile operators and retail chains. Our innovative products are disrupting the mobile device buyback, repair, and recycling business. Our software products are easy to use and offer added value to the end-user, which means better ROI and user satisfaction. In short, we promise to Simplify Your Mobile Life.