Contact Center Solutions Featured Article

Refurbished Cell Phones Can Hurt Customer Experience

August 27, 2007

When it comes to a customer experiences, delivering a favorable experience is really key for any business looking to succeed.
When it comes to purchasing a cell phone, this has proven a particularly important element, especially in the growing market for prepaid phones and the convenience stores that carry them.
A recent news release points out that "nearly 80% of mobile users in Europe and Asia already prefer using prepaid over postpaid calling plans causing many analysts to see prepaid as the inevitable future of consumers' cell phone habits."

While purchasing refurbished cell phones may seem like an attractive buy, the customer service that can be sacrificed has caused many retailers and buyers to think again.
According to prepaid wireless company Airlink Mobile, who has "seen its growth rate climb nearly 800% since March 2006," refurbished handsets have a chance of turning out defective (as many as three out of ten), that in addition to customers needing to make returns damages customer experiences.
And as many have come to find, customer experiences are really key to loyal customers and driving business success. Airlink Mobile also noted that often, retailers may not even have enough inventory in stock to cover all of the customer returns for faulty phones, only worsening the customer experience to a level where they not only risk that customer, but other business as well.
For that reason, Airlink Mobile points out that both customers and retailers are leaning toward not purchasing refurbished handsets in place for a better, more valuable, customer experience.
Customers who purchase new phones will not only have a more positive experience, but the rate at which they will be a repeat customer, and can enjoy new functionalities included on newer models, has a positive impact on both the retailer and the customer.
"New cell phone handsets provide increased revenue and a longer-term relationship with their subscribers than refurbished ones," said David Stanek, CEO of Airlink Mobile in a statement to the press. "Customers keep new handsets longer, and come back to the same store to buy more minutes and to get recommendations on new products."

Stefania Viscusi is an established writer and avid reader. To see more of her articles, please visit Stefania Viscusi’s columnist page

Green is the new black. At least, that’s the case in the communications industry where companies are finding that using green technology is not only good for the planet but good for business as well. Want to learn more about how being green can make money? Mark your calendar now for TMC’s first annual Green Technology World Conference, Sept. 11-12, 2007 at the Los Angeles Convention Center in California. Preview the show schedule, speakers and exhibitors—then register to attend. .