In a competitive consumer landscape, it can be difficult for brands to stand out from the crowd and get their message heard. That’s where trade up or trade in promotional campaigns come in. They can help capture consumer interest and add value, which impacts the bottom line for brands.

Trade-in promotions and trade-up promotions can be a great way for brands to get rid of old products and promote their latest ones. Consumers can be rewarded with cash or points if they exchange an item. These types of promotions can be great for both brands and consumers. For brands these promotions can help them meet their sales and marketing goals, while consumers are able to get the latest and greatest products with a more attractive offer.

The benefits of trade-in and trade-up promotions

Trade-in and trade-up promotions are very flexible and allow brands to tailor their offer to achieve specific objectives. In general trade-in promotions are beneficial because they:

Remove Barriers to a Sale

Offering a trade-in promotion can help remove some of the barriers that may be preventing a sale. By making it easier for customers to trade in their old items, you can encourage them to take the plunge and buy something new from you.

Strengthen Brand Loyalty and Customer Retention

Brand loyalty and customer retention are crucial for any business. Trade-in promotions can be a great way to strengthen those customer relationships. By offering customers a discount or other benefit for trading in their old product for a new one, businesses can show their appreciation.

Gain Market Share From Competitors

Trade-in promotions can be used as an aggressive marketing tactic to directly target a competitor’s market share. It’s a way to give customers an incentive to switch brands and try something new.

Build Your Customer Database

This type of promotion can be a great way to nurture relationships with existing customers while also attracting new ones. Plus, it provides you with an opportunity to learn more about your target market and what they’re looking for. Customers can trade in their old products for new ones, and you can collect valuable information such as contact details and product preferences. Win-win!

How to run a trade-up or trade-in promotion

Trade-in (and trade-up) promotions can be implemented in a variety of different ways with criteria tailored to a brand’s objectives, so this is step number one; defining the goals and then the promotion criteria needed to support those goals. For example, specifying that a customer must purchase a certain promotional product within a limited timeframe to qualify, which can help create urgency and give a short-term boost in sales.

Next will be deciding how customers will access the promotion, will it be instore? Online? Both? If it is online, how will they physically trade in the product? Will it be collected? Or via a pre-paid envelope? Will they post at their expense?

Other considerations should include things like, how will fraud attempts be monitored and stopped, how will multi-currency promotions be run (if applicable) and how will the success of the promotion be tracked and measured.

Benamic clients rest easy knowing that we take care of all the above using our proprietary technology to ensure their trade-in and trade-up promotions are always a success.

When should a brand consider and trade-up or trade-promotion?

Highly effective trade-in promotions follow similar trends which determine the success or failure of the campaign. Trade-ins can be a compelling offer in a variety of scenarios:

New Product Launches

A trade-up promotion can increase the uptake of loyal customers upgrading to the latest model. Apple is a notable example of this tactic in action. With each new iPhone release, to encourage customers to upgrade to the latest model, Apple offers a trade-in promotion. This gives customers a discount on their purchase when they trade in their old iPhone. Not only does this help Apple to sell more phones, but it also keeps customers loyal to the brand. Other companies have also implemented trade-in promotions, find out how Hotpoint ran a trade-in promotion with Benamic on their new range of slimline dishwashers.

New Territory Launches

When expanding into a new territory, it can be difficult to gain traction and market share against established competitors. One way to incentivise customers to switch to your brand is to run a trade-in promotion. For a limited time, customers who trade in a competitor’s product can receive a discount on your brand’s product. Trade-in promotions are an effective way to quickly gain market share and build brand awareness in a new territory. Find out how Denon tested competitor brand loyalty with a Benamic trade-in promotion.

Support Sustainability Campaigns

In recent years, there has been a growing movement to reduce humanity’s impact on the environment. As a result, more and more people are looking for ways to recycle and reuse products instead of simply throwing them away. One way your company can help demonstrate and support sustainability is by running a trade-in promotion. Customers can trade in their old products knowing they will be recycled. This not only helps to reduce waste, but it also shows your customers that you are committed to a greener future. Trade-in promotions are a great way to showcase your brand’s commitment to the environment and encourage customers to make more sustainable choices.

Retain Existing Customers

Many businesses focus on acquiring new customers, but it’s just as important to retain existing ones. A trade-in promotion can be especially helpful at the end of a product’s lifespan by offering an incentive to repurchase your brand when customers may be considering switching to a competitor.

The Dos and Don’ts of Running Trade-In Promotions

Communication is essential to any campaign’s success. Brands that effectively communicate and promote their campaigns reap the benefits in promotion performance. Aside from that, here are some more dos and don’ts when running a trade-in or trade-up promotion:

Do

  • Communicate effectively with consumers and resellers.
  • Actively promote your trade-in campaign Identify opportunities to capture greater market share.
  • Make the customer experience as seamless as possible.
  • Focus on value add for consumer.
  • Make consumers aware of reduced carbon footprint.
  • Partner with a trusted and reliable promotions agency.

Don’t

  • Use confusing or lengthy promotional messaging.
  • Overcomplicate the Terms and Conditions.
  • Underestimate the work involved! Third party agencies can assist with implementation, legalities, validation, and fulfilment.
  • Forget to promote, promote, promote.

Running a trade-in promotion can be a great way to increase sales, support customer retention, and build brand awareness. If you’re looking for help implementing or promoting your trade-in promotion, our team at Benamic can assist you. We have a wealth of experience in running successful trade-in promotions and can help make sure your campaign is a success. Contact us today to learn more.