According to YouGov research, at least a one-year warranty is a top reason that motivates respondents to purchase refurbished phones. Indeed, providing a device quality guarantee is a significant competitive advantage for businesses. In today’s article, we explore how to be sure of smartphone quality and provide longer warranties while minimizing the return rate.
Why Do Customers Prefer to Buy Electronics with Longer Warranties?
When buying a device, the warranty period is one of the most important factors customers consider. Longer warranties show that the seller is confident in the smartphone’s quality and willing to take responsibility for potential defects.
Therefore, a longer warranty directly increases customer trust in the seller.
In addition to improving reputation, warranties ensure that any defects will be repaired or the customer compensated by the business. For a customer, this means a more convenient process, as they don’t have to worry about fixing a problem. Convenience, simplicity, and quality are features people are ready to pay for. As a result, devices with longer warranties remain in demand—even if they cost more than those without.
Why Are Longer Guarantees Advantageous for Businesses?
While the benefits of warranties are apparent for customers, they might not be as obvious for businesses. However, there are several reasons why longer warranties result in extra profits.
First of all, increased customer trust leads to sales. As a guarantee is appealing to customers, they are more likely to buy a smartphone with a longer warranty. Now, the guarantee itself is not rare, and many businesses provide this option. But providing extended warranties is a way to outperform your competitors.
An additional benefit is lower return rates. To provide a warranty for the smartphone, a business needs to thoroughly assess it and understand its condition. Consequently, the chance of missing a defect and accidentally selling a poor-quality device is lower. Therefore, customers are more likely to be satisfied with the product, leading to reduced return rates and related expenses.
How to Reduce Product Returns and Provide Longer Guarantees
Accurate diagnostics is the first step in ensuring all defects are detected, fixed, and the smartphone is in perfect condition. The most efficient way to test pre-owned electronics is with the help of software solutions, such as NSYS Diagnostics. It ensures comprehensive defect detection and helps businesses minimize returns.
After implementing NSYS Diagnostics, Eminence Corporation, a UK-based online retailer of secondary electronics, cut their return rate by two-thirds!
“The only reason for our returns now is that the buyer changes his mind, not a functional defect with the device. This is the main value of the product,”
—says Ash, COO of Eminence.
Also, NSYS Diagnostics provides testing certificates that reassure clients of the smartphone’s quality. This independent verification of the device condition adds extra trust to your deals. With NSYS Diagnostics certificates, Media Kontor GmbH, a German reseller and refurbisher of consumer electronics, improved customer satisfaction and increased device throughput.
“At the end of each test, NSYS Diagnostics allows us to print labels and certificates, providing a detailed report of the device’s condition. This is an added benefit for both our internal quality control and our end customers, who receive a certified product with a clear indication of its quality and performance,”
—shares Melanie Gundelach, CEO of Media Kontor GmbH.
What Tests Does NSYS Diagnostics Perform?
The solution provides complete diagnostics of smartphone functionality, including tests of battery, cameras, sensors, indicators and other components. Overall, NSYS Diagnostics performs 60+ checks to detect over 100 hardware defects.
Also, it automatically extracts the IMEI and assesses its status with integrated GSMA Device Check. This detects whether the smartphone was reported lost or stolen, has a carrier lock or a negative financial balance.
Moreover, the solution checks the authenticity of phone components for iOS devices and highlights parts that were potentially replaced. This feature prevents businesses from buying fraudulent devices and ensures the high quality of your stock.
Try NSYS Diagnostics to make your used phone business more efficient!
