69 per cent of onsumers in the UK will upgrade to a new laptop within two years if retailers guarantee them a rebate of 50 per cent on the origina; purchase price of the current model.
A new survey carried out by Censuswide for risk-managed sales promotion expert Opia, has found that by offering consumers future value, retailers would be more inclined to invest in a new laptop rather than just waiting on it to get worn out.
The figure goes up to 73 per cent for consumers in the US.
“Guaranteed future value (GFV) offers have huge potential to help retailers and manufacturers on both sides of the Atlantic bust out of ever-longer refresh cycles in the laptop market,” says Steve Gales, sales director at Opia.
“With more than 17 million units shipped in the US in the last quarter of 2015 and an estimated nine million UK consumers obtaining a laptop or notebook in the year, the revenue boost from customers upgrading more often could be colossal. The average US citizen, for example, spends $500 on a new laptop and if they do that every 2.5 years, instead of every five, retailers and manufacturers will see revenue rocket by more than $170 billion in a five year period.
“Many consumers are hanging on to laptops for five years or more, putting up with ever-poorer performance because they fear having to spend on a new device. Although there are slight differences between the two countries, the survey shows that GFV can remove that fear, encouraging consumers to make new purchases more regularly.”
The survey also reveals that 69 per cent of consumers across the UK and US view a new laptop as less expensive if the resale value is guaranteed to be 50 per cent of what they paid for it, provided they upgrade within two years.
“Since most respondents (59 per cent) in the two countries have previously taken up some form of promotional offer to buy a laptop, they are already open to suggestion if the offer is compelling. Retailers who don’t act fast to implement closed loop upgrade promotions are subjecting themselves to ever-longer refresh cycles and lower revenues.” says Gales.
The findings showed that in the US and UK, an average of 85 per cent of consumers wait more than three years before buying a new laptop. In the US, 69 per cent said they did not buy a new PC or laptop because new models were too expensive and are waiting for the right offers compared with 63 per cent in the UK.
“These survey results demonstrate clearly how retailers and manufacturers failing to use risk-backed GFV promotional mechanisms are doing themselves out of a significant amount of business. One final example from the survey reveals 35 per cent of US consumers and 30 per cent of UK consumers said a 50 per cent GFV offer could encourage them to buy a more expensive model when they come to upgrade”, concludes Gales.