New research conducted by Blancco Technology Group, Online Device Trade-Ins: Building Trust in an Invisible Process, found that 57 percent of global consumers expect to upgrade to a 5G device in the next 24 months. Of these, almost half (49 percent) intend to trade in their old device as part of the process.
According to the study, while 69 percent of consumers have never engaged with an online trade-in process, consumers are open to the idea. Forty-one percent said they would be willing to use an online trade-in process in the future, and a further 31 percent said they would consider it. However, assurances will be necessary to increase engagement. The findings demonstrate that online device trade-ins can grow if consumer confidence is improved through greater transparency and appropriate data management. Thirty-one percent of consumers said they are concerned about potential data misuse when they trade in a device online and 27 percent do not trust an invisible, unassisted process.
“The shift in shopping habits, along with the impending 5G smartphone super cycle, is creating a key inflection point for operators, retailers and OEMs to capitalise on their chance to put 5G devices in subscribers’ hands,” said Russ Ernst, Executive Vice President, Products and Technology, Blancco.
“Trade-ins will continue to play a key role in incentivising consumers to upgrade by subsidising the costs of new devices, and there is a significant opportunity at play for organisations involved in the collection of used devices to drive revenue through online device trade-ins,” Ernst said. “However, operators, retailers and OEMs will need to build their trust by providing assurances in data protection and device care throughout the customer journey.”
The report concludes that the responsibility is on organisations involved in online device collection to provide visibility into every stage of device processing. At the same time, these organisations must mirror the in-store experience digitally and implement best practice data management to protect against personal data lingering on the device. The report also found that providing consumers a user experience built on assurances in data protection, holistic device care, and sustainable e-waste policies will be essential in driving demand for online trade-ins.
“Online capabilities ultimately help to streamline and strengthen the mobile device trade-in process. They create new customer touchpoints for operators, retailers and OEMs. Trading in devices via an online mechanism also enhances customer trade-in experiences and understanding through quick, reliable online solutions that can be accessed anywhere, at any time, from any device. The convenience, speed and transparency that online trade-ins can accomplish will ultimately be the driving factor for success,” concluded Ernst.
According to Blancco’s global study of 6,000 consumers:
- Of the 32 percent of respondents who prefer online trade-ins, 62 percent stated the process is convenient as it is done from home and 51 percent said it is faster.
- Due to the perceived lack of transparency, data privacy and data misuse is a persistent concern for consumers when trading in a device online. However, this study found that most consumers either already trust or can be persuaded to engage with online, provided they are met with the right kind of reassurances during the process. Only 29 percent of consumers said they will never trust an online process, no matter the assurances.
- Forty percent of consumers interviewed for this study said they need assurances of a fully recorded process allowing them to track the device step-by-step. Twenty-eight percent want full diagnostics of the device to accurately determine the device’s trade-in value, and 25 percent want more information about where the device goes.
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