Home News & Press Consumers demand assurances from online trade-ins as 57 percent expect to upgrade to 5G mobile
Consumers demand assurances from online trade-ins as 57 percent expect to upgrade to 5G mobile devices in next two years May 26, 2021
New Blancco report confirms that with trust in online processes, operators, retailers and OEMs can increase revenues as smartphone market rebounds amid 5G upgrade super cycle'
AUSTIN and LONDON - May 26, 2021-New research launched today by Blancco Technology Group (LON: BLTG), the industry standard in data erasure and mobile device diagnostics, reveals consumer attitudes toward online device trade-ins. It also outlines the revenue opportunity for operators, retailers and original equipment manufacturers (OEMs). Blancco's study, 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. The report demonstrates an opportunity for operators, retailers and OEMs to drive device trade-ins outside traditional retail store walls if consumers can receive the assurances they need.
Following a turbulent year of decreased smartphone sales, industry analysts expect the broader availability of 5G and strong global consumer intent to upgrade to cause a resurgence in smartphone demand. With purchase activity shifting to digital platforms due to pandemic-restricted store operations, the study aimed to explore whether this change in consumer behavior had also influenced preferences around device trade-ins.
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 capitalize 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 incentivizing consumers to upgrade by subsidizing the costs of new devices, and there is a significant opportunity at play for organizations 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 organizations involved in online device collection to provide visibility into every stage of device processing. At the same time, these organizations 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.
For full analysis, read the report here: Online Device Trade-Ins: Building Trust in an Invisible Process.
Methodology: The study was commissioned by Blancco Technology Group and conducted independently by Coleman Parkes Research in March 2021. Respondents were 6,000 consumers divided equally between the United Kingdom, the United States, Canada, Japan, Germany and France.
About Blancco Technology Group Blancco is the industry standard in data erasure and mobile device diagnostics software. Blancco data erasure solutions provide thousands of organizations with the tools they need to add an additional layer of security to their endpoint security policies through secure
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Home News & Press Consumers demand assurances from online trade-ins as 57 percent expect to upgrade to 5G mobile 
