Almost Two-Thirds of UK Smartphone Users Skip Trade Ins

Alchemy and CCS Insight surveyed 1,000 UK consumers, and here's what they found could be a big mistake for electronics providers in the UK – it equally bears an important weight in the US.

Over a third of UK electronics consumers were not offered a trade-in option at the point of their last purchase, and just over half (57%) of smartphone users are given the option. Only 44% of total smartphone users traded in their phone.

For UK providers, these numbers mean untapped revenue and a miss on sustainability targets, as consumer loyalty and recycling opportunities are missed. The solution can be as simple as the providers training their staff to offer smartphone or device trade-in during the sales process and at point of purchase.

Stephen Wise, Director of Global Marketing at Alchemy, says: "When over a third of UK shoppers aren't even being asked if they want to trade-in at the point of purchase, that's a massive missed opportunity not just for revenue and loyalty, which keeps customers coming back, but for the planet too as millions of usable devices end up scrapped instead of recirculated."

Sales and untapped revenue

The data insights from Alchemy and CCS Insights show the numbers that UK providers are missing out on, and could mitigate with a slight shift in sales strategy, as nearly two thirds (64%) of consumers surveyed would replace their smartphone sooner if offered a compelling trade-in offer.

This has the potential to shorten the time period that customers spend before approaching their provider for a deal on a new phone to an average of 7 months.

86% of surveyed consumers even said they would be more likely to remain loyal and purchase their next smartphone from the same retailer or brand if they were given a competitive trade-in value, so providers really could be missing out on a trick.

The estimated value of all potential trade-ins that are left untapped in the UK totals approximately £23.47bn (US$31.65bn). The survey's findings indicate that retailers could unlock this revenue by training front-facing staff in consumer sales strategy.

A sustainable move forward for providers

As only 57% of smartphone customers surveyed report that they are offered a trade-in option, this explains why 64% of smartphones in the UK are not traded in or recycled.

However, the research finds that 90% of UK consumers of electronic devices have either traded-in before or are open to the idea of trading-in in the future – while the 'refurb' seems a trend among Gen Z customers who are interested in more sustainable options.

These trends also resonate in the US, as previous research by Alchemy demonstrates how young Americans are more likely to opt for tech that has been traded-in and refurbished. 47% of Gen Z consumers say they prefer refurbished tech as a way to reduce e-waste, compared with just 18% of Gen X – so trade-ins really could be the future for tech and sustainability.

What are the consumer concerns providers need to address?

There are further barriers that prevent trade-in, as consumers who are offered the option reported in the survey that one of the reasons they do not take it up is their concern around fair valuation. 34% of UK consumers expressed this as a concern.

Data security is another worry expressed by 26% of respondents of the survey. Some consumers are also not aware that older models still have trade-in value, which leaves significant resale value on the table for brands and retailers, which would help reduce waste.

Ben Wood, Chief Analyst at CCS Insight, says: "This research reinforces the momentum we're seeing across global consumer tech buying behaviour. Trade-in has moved from niche to mainstream, but the next step is consistency.

"For manufacturers and retailers, clear offers and transparent processes will be essential to convert intent into action and meet the huge consumer appetite identified in this study."