Not By Gadgets Alone

Electronics retailers are already accustomed to benefiting from trade-ins. This increases (cross)sales and average checks, attracts attention to the core product, especially during a new model release, and improves customerexperience and loyalty.

This time, Breezy, in collaboration with partners Foxtrot and De'Longhi, embarked on a unique experiment that elevated the concept of Trade-In. Instead of the usual exchange of used gadgets, buyers were offered a novel opportunity to use their old devices as a universal means of payment for… promotional De'Longhi coffee machines, for example. 15% of them were sold in Trade-in in Ukraine during the three-month special offer period.

Objectives:

• Increase promotional coffee machine sales,
• Boost traffic to stores
• Enhancement of customer experience by creating more value for buyers.

Solution:

• Trade-in mechanics to use old phones as payment for a promotional De'Longhi coffee machine.
• Coverage advertising campaign (in-store, social networks, etc.);
• Staff training on Trade-In conditions and addressing objections.

Results:

• Trade-In Attachment Rate of 15%, when every sixth promotional De'Longhi coffee machine is sold in exchange for a used gadget;
• More than half of referral purchases were made on the advice of friends who had already taken advantage of the promotional offer. This indicates high customer satisfaction.

Ruslan Doroshenko, Head of Additional Services Development and Management Department in Foxtrot: "Our main goal was to provide customers with as many opportunities as possible on the chain. To do this, we collaborated with top players in their segments: the Italian brand De'Longhi, one of the leaders in the production of coffee machines, and Breezy company, the leading Trade-In provider in Ukraine. The result of this cooperation was a unique offer on the market: when purchasing promotional De'Longhi coffee machines, part of the amount could be paid with used gadgets. This rather unconventional approach brought good results."

How it works

The offer was simple and profitable: when purchasing a promotional De'Longhi coffee machine in Foxtrot stores, old gadgets could pay part of the purchase price. At the same time, the client could bring a huge number of gadgets and cover up to 99% of the purchase price with them. Thanks to the collaboration of brands, customers get a top-up cost for old devices when purchasing a promotional coffee machine.

"There was a client who brought three old phones for exchange at once in order to save more on the purchase of a promotional coffee machine. Although not all of them met the requirements of the program, he enjoyed the purchase," recalls Foxtrot.

The offer's feature was the choice of equipment for exchange. Typically, in Trade-In, customers change devices inside one segment. For example, smartphone to smartphone. However, in this case, it was possible to trade in your usual smartphone to pay for a premium coffee machine, which was an absolute innovation on the market.

"The concept of using old electronics as a unique form of payment lies at the very core of Trade-In. Therefore, it's essential to leverage this tool fully and the opportunities it offers, not just limiting it to exchanging items within the personal electronics category. We are currently developing several campaigns with brands that are unrelated to gadgets. I am confident that these will be no less successful than our projects with De'Longhi and Foxtrot," said OlehVilkhovoi, Commercial Leader at Breezy Ukraine.

Ekaterina Petlak, De'Longhi: "This was the first Trade-In experience for our Company. In the beginning, we were not sure whether our proposal would resonate with the audience. Based on the results of the campaign, I can say we are interested in launching a full-scale Trade-In for coffee machines, and we are discovering this possibility with our partner."

The Crucial Role of Communication

Many Foxtrot customers were already well acquainted with the Trade-In service when the promotion was launched and were accustomed to exchanging similar devices, such as phones. Therefore, they expected that the same story would happen with coffee machines: coffee machines into coffee machines. They were pleasantly surprised that all they needed for Trade-in was a used phone, which can be found in every apartment.

"We focused on conveying the idea that an old smartphone is a kind of currency for buying a new product. And it doesn't have to be a smartphone. In our case, you can pay for the coffee machine using your phone. This was a pleasant finding for customers, and the month-to-month increase in activity was 100%," says Ruslan Doroshenko.

Marketing campaign

The first stage was focused on organic demand with POS informational support. Organics gave stable linear growth. At this stage, a decision was made to move forward on a large scale. The advertising campaign used standard channels, such as social networks, user notifications, and staff training.

Referral purchases are the best indicator of customer satisfaction

After large-scale promotion, the program received a new round of popularity thanks to word of mouth. The happy owners of a new coffee machine purchased in exchange for an old smartphone were happy to share their experience. In the last month of the promotion, more than half of sales were made by recommendations. Even after the end of the program, the retailer's salespeople continue to be asked when it will be possible to buy a coffee machine again with a phone.

A high referral rate is evidence of customer satisfaction with the offer.

Insights:

• Communication is crucial. Even for a service that is familiar to customers, it is important to explain the terms of the program and ensure they are understood correctly. At the same time, you should focus on delivering one very clear message because information noise does not allow customers to perceive too much information while scrolling the feed or visiting a store.
• Sometimes, it takes a little longer. Referrals and friend-based purchases take slightly longer to complete than direct purchase conversions. But they work just as well, especially if the terms of the program are unique and truly beneficial to buyers.
• Important interaction between all participants. When launching projects with innovative mechanics, it is very important that all participants in the process can quickly adapt to new inputs. After all, when you create something new, unexpected challenges are likely.

"We were very satisfied with Breezy's response to our comments, how quickly and with what readiness they made changes to the process right during the promotion. Trade-in is an experience that we are constantly expanding with our top partner. Together, we create a new understanding for the client that gadgets pointlessly collecting dust in a drawer are an analog of money that can be used in promotions. With such synergy, it is much easier and more enjoyable to create innovative projects for clients," emphasized Ruslan Doroshenko.

"Brezy's goal is to prolong the lifespan of devices to reduce their environmental footprint. Therefore, we continue to discover opportunities to expand programs such as Trade-In. Our team never tires of demonstrating that we are creative in our projects, highly adaptable to processes, and focused on creating the best customer experience. Our successful cooperation with De'Longhi coffee machines is definitely not the last of our projects. After all, used equipment is a valuable asset that simply needs to be given a chance to benefit its owners and the planet," emphasized Andrii Kosar, CEO and co-founder of Breezy.