US Study Reveals Consumer Dissatisfaction with Mobile Trade-In Process
New MCE Systems Data Confirms Over $50B Untapped Opportunity for Mobile Device Industry
DALLAS, June 22, 2022 /PRNewswire/ -- MCE Systems Ltd., the global leader in mobile device lifecycle management, today announced a new research study showing the massive unrealized potential of mobile trade-ins. This study reveals why US consumers are holding onto their old mobile devices and exposes their dissatisfaction with the current trade-in process. On average, American households have four or more phones sitting in drawers adding up to 550 million idle phones across America, which represents a $50 – 60 billion in unrealized value to consumers either in cash or by lowering their monthly cost for a new device. Currently, only 15% of new smartphones are sold as part of a trade-in. The findings highlight the opportunity for mobile carriers to significantly increase trade-ins and consumer satisfaction by offering a state-of-the-art trade-in experience for their customers.
This comprehensive study, which included over 3000 US respondents, identified the size of the current trade-in market, the untapped opportunity, the issues preventing 42% of mobile phone owners from ever trading in their devices, and the friction experienced among the 58% who had traded in a device.
Examining the motivation for trading in their devices, the top three reasons are:
- Upgrade to a better phone (44%)
- Reduce the monthly cost of their new phone (30%)
- Replace a damaged phone (24%)
Diving deep into the current trade-in experience across the top 3 US operators (Verizon, AT&T & Sprint/T-Mobile), this research reveals the sources of friction that undermines trust. Specifically, consumers identified issues around how long it took, price transparency, and credit timing:
- 95% report that it took more than 5 minutes
- 42% of consumers report that the trade-in process took more than 30 minutes
- 29% report that the price quote for their trade-in changed after the phone was inspected
- 33% report that the credit for their trade-in was not on their next bill
- 24% report having to call their mobile operator multiple times during the trade-in process
- 18% complained about the trade-in process
- 29% felt that the carrier took advantage of them during the trade-in process
- 9% switched carriers due to an unsatisfactory trade-in experience
For operators, the research shows that trade-ins led to a 6-percentage point higher Net Promoter Score. However, the research also shows that this was driven by promotions, and if the promotions are removed the NPS is 4 points lower than consumers who have never traded in a device.
Among the 42% of consumers that have never traded in their devices, there are further insights:
- 66% did not even consider trading in their device
- 34% reported that they had data backup and privacy concerns
- 23% didn't think they would get enough money for their old phone to make it worthwhile
- 23% didn't know they could trade in their device
The study also included a concept test revealing a substantial opportunity for mobile operators if they make changes to their current trade-in process. MCE calls this approach "Trade-in 2.0", and the research validates the need to make process improvements:
- 80% of "Traders" would be more likely to trade in their devices if operators embraced the Trade-in 2.0 solution
- 70% of "Never Traders" would be more likely to trade in their devices if operators offered Trade-in 2.0
Specifically, the concept test suggested operators address 4 key drivers, convenience, speed, privacy, and price transparency:
- Provide an app: 53% of US consumers expect trade-ins to require an in-store visit
- Offer a price guarantee: 62% of US consumers believed they couldn't get a fair price when trading in their mobile device
- Make it easier: 42% of US consumers said the trade-in process took more than half an hour
- Make it secure: 34% of US consumers were concerned about their privacy being compromised when trading in their mobile device
"Consumers' current understanding of the trade-in process leaves them vulnerable to missing out on lucrative opportunities to upgrade their devices, pocket some money, and help reduce waste," says Robert Hackl, President of MCE Systems. "By using the right enabling technology, the trade-in process can be much better for consumers and operators alike. These findings highlight the need for a more streamlined trade-in process that is a win-win for customers and operators. The key question for me is which operators will lead the change and which will follow?"
The full survey findings can be downloaded here.
For more information about MCE Systems, please visit https://mce.systems/. Follow us on LinkedIn at https://www.linkedin.com/company/mce-systems, and visit our Facebook page at https://www.facebook.com/mceSystems.
About MCE Systems:
MCE Systems is the pioneer in mobile device lifecycle management, having created more than $2.5B of shareholder value for operators and their partners since 2005. MCE's industry-leading solutions simplify operations, increase revenues, and decrease inefficiencies. Specific solutions range from device diagnostics and care to trade-in management with a price guarantee to handling device returns. All are omnichannel-ready with world-class virtualization and provide fully integrated data management to anticipate customer needs around device-related issues (e.g., device health, upgrade timing). Over its more than 15 years of experience, MCE Systems has become the trusted solution to Tier-1 operators and their partners.
SOURCE MCE Systems
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