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Home » Resources » Used Smartphone Sales are Poised for Growth—Are Your Buy-back / Trade-in Processes Ready?
As 5G availability increases, consumers will seek credit from their old phones to put toward the latest devices. With used smartphone sales continuing to increase, Blancco Mobile Solutions will ease the buy-back/trade-in process so you can breeze through the activity from all sides—and deliver a seamless experience to consumers at home, online or in your store.
Vivian is a career writer and editor, having covered technology-related topics for government and B2B organizations since before LinkedIn and the iPhone. As Blancco’s communications and content manager, she supports the development of thought-leadership-based copy for web, social media, and other Blancco communication channels.
There’s a common saying that when one door closes, another opens. Of course, sales of brand-new phones are nowhere near “closed.” In fact, smartphone sales are widely expected to bounce back as 5G networks and phones permeate the market in the coming months. But 2019 wasn’t the market’s best year, and the two years before showed a sales slowdown compared to earlier, more dramatic increases.
For the first time, the global new mobile device market actually ended with a year-over-year decline, reported Gartner. Consumers kept their old devices longer in 2019, which could be because they didn’t see enough technical advancement in newer ones—especially as average new phone prices dramatically increased.
It’s a different story with used smartphone sales, however, and OEMs and resellers can take steps now to prepare for increasing growth.
While final numbers are currently pending, the International Data Corporation (IDC) expects 2019’s worldwide shipments of used smartphones (both refurbished and pre-owned) to grow 17.6 percent over 2018 and reach a market value of $67 billion by 2023.
The IDC also predicts that 5G networks and smartphones will revive new phone sales, and that they will boost the growing mobile resale market as well.
Our 2020 global consumer research report, 5G Smartphone Upgrades and the Secondary Device Deluge, confirms this tipping point:
There’s reward to be had if you sell new devices or process pre-owned mobile devices for resale—and Blancco Mobile Solutions (BMS), as well as Blancco Mobile Diagnostics & Erasure, can help you make the most of the opportunity.
Returns management has a huge impact on business:
So how do businesses overcome these challenges and capitalize on a highly active mobile market?
Blancco Mobile Solutions improve the customer experience and purchasing process through diagnostic precision, accurate value determination, increased efficiency and unmatched data protection. These solutions help you deliver what mobile consumers want: flexible buying and customer service options (online or in-store) and accurate device assessment for the most value on trade-in.
Blancco Mobile Solutions makes buy-back/trade-in (BBTI) convenient, with health and valuation tools and insurance purchasing options available to the customer from their home or a retail store. This provides flexibility to users and increases customer satisfaction. A brick and mortar location can certainly function as the hub for customers to bring in devices, but it’s not necessary. Blancco’s digital approach even allows online-only retailers to have BBTI programs, enhance returns reduction, improve the customer experience and add insurance offerings without requiring a face-to-face interaction.
The success of buy-back programs is measured by the latent values extracted from collected devices. Half (51 percent) of consumers admitted that unlocking credit to put towards a new smartphone was the main reason they would trade in their old device.— 5G Smartphone Upgrades and the Secondary Device Deluge
The success of buy-back programs is measured by the latent values extracted from collected devices. Half (51 percent) of consumers admitted that unlocking credit to put towards a new smartphone was the main reason they would trade in their old device.
— 5G Smartphone Upgrades and the Secondary Device Deluge
Blancco Mobile Solutions allow you to expand new revenue opportunities: You can now offer your customers mobile insurance at the right price based on accurate phone condition at any time during the mobile device lifecycle, not only at point-of-sale. The insurance process takes less than two minutes and can be initiated by the consumer at any time. BMS can also help you reduce fraudulent claims by up to 50 percent and avoid costly “no fault found/no trouble found” (NFF/NTF) returns.
There are several ways Blancco enhances your return experience:
The credit that can be unlocked from used devices provides a useful subsidy to make new 5G smartphones more affordable. It also drives a more sustainable model that promotes reuse if the device is void of any data from the previous owner. Blancco’s data erasure capabilities allow processors and resellers to confidently wipe and resell the maximum number of used devices and support the circular economy.
The coming wave of 5G buy-back campaigns and users who simply want to upgrade are two catalysts for device buy-back and trade-in. Other reasons include diagnosing and processing devices received from warranty programs, repair requests, expiring lease deals or insurance claims.
Managing these complex processes concurrently and accurately takes time. Blancco offers the most comprehensive solutions on the market to ease the process while maintaining accuracy across the full mobile journey. No one else can offer full visibility and solutions across the entire mobile device lifecycle and provide an omnichannel solution (home, in-store, phone) that addresses customer needs across multiple aspects of device purchase, use and trade-in.
The result is a winning trade-in and purchase experience for your customers—and added profits, saved time and reduced friction for you.
Find out how many used devices the secondary market can expect to collect in 2020, as well as what customers are looking for from the device buy-back and trade-in process: Read our mobile report, 5G Smartphone Upgrades and the Secondary Device Deluge, next.