Archive for October, 2012

Trade-In Gives The Customer A Hammer

How many times have you heard someone say, “I can’t stand (insert carrier name here!)? Their service is horrible and they won’t do anything about my dropped calls, bad phone, wrong bill, etc.” Carriers need to take heed and step up their customer service game. Trade-In is a customer’s hammer and they are starting to use it. As a carrier, you subsidized an expensive phone down to an accessible cost for that customer, and they are about to use that subsidy against you if you don’t find a way to take care of them.

Take a current example:

A customer purchased an iPhone 4S 64GB phone from a carrier and paid $399.00 for it. They have been on the network for a year, are not happy, and have threatened to leave. The carrier tells the customer they can leave, but they are responsible for the early termination fee which has a balance of $175.00. On our partner sites the Trade-In value of that phone is up to $305 dollars today, October 5 2012, which allows the customer to buy the new iPhone 5 device for $399, pay the early termination fee of $175, and have a net cost after trade of about $269 before taxes. For many consumers that discounted price for the latest iPhone technology is well worth it.

Let’s face it, most companies don’t want a customer to leave for any reason and they should do everything in their power to nail customer service. However, with Trade-In as an option, if they don’t nail it, consumers have a hammer that can’t be ignored.