One person’s trash, was another person’s over priced treasure…
but not now! trust is king, queen and the joker.
So, if you are buying something second hand, that level of trust is going to need to be sky high.
Well, that sector is sky rocketing, in the UK alone it is worth roughly £7.6 billion. So what are the heavyweights in that sector doing? And what can they teach us about building trust?
Let's start with Back Market .
If I asked you 20 years ago:
"Would you spend £800 on a second-hand phone?"
Most people would probably have spat out their filtered water, and asked me to take my iPod and leave.
Second-hand electronics had a baaaaad reputation, scratched, broken, missing chargers. And slapped all over the place in places where you could purchase some bottom of the rung electronics were signage that clearly showcased: "No refunds."
MIRROR ME THIS
So buying them from eBay or CeX Webuy.com felt like a bit of a gamble, but fast forward to today and millions of people actively choose refurbished technology.
And fascinatingly not because they have to, because they want to. And that's an example of commercial positioning that you can simply not ignore, so lets jump in.
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The Problem Was Never Second-Hand
Ok, so Back Market didn't invent refurbished electronics, they simply changed how people felt about buying them.
So if the the barrier wasn't availability, it must have been trust, right??!
Customers weren't asking:
"Can I buy a refurbished phone?"
They were asking:
"Can I trust a refurbished phone?"
For example, and if that's the case we are talking about two completely different business lanes.
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Most Businesses Sell Products.
But Back Market sells something different, let's take a quick peek at the website.
BackMarket Website Home Page
The messaging isn't dominated by:
processor speeds
battery capacity
technical specifications
yawn.
Instead it focuses on removing anxiety, professionally refurbished, warranty included, battery health, quality checked and better for the planet.
Also, returns welcome.
Every message answers a concern before the customer asks it, and that's commercially brilliant.
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The Biggest Competitor Wasn't a Mega Brand like Apple
It was uncertainty.
Just let that sit for a minute, Apple wasn't really the biggest challenge. It was the fear of buying something that cost a lot of money, and maybe looked rough round the edges, that could break again once you had it.
"What if I've wasted my money?, What if it's damaged?"
Back Market understood something that applies to every industry.
Customers don't buy when risk disappears, they buy when the PERCEIVED risk disappears. And that's where trust becomes a growth strategy, because that's not actually changing the product in any way, it's the sales positioning.
IDC
Why This Matters Beyond Electronics
Ok, so let's imagine you're a bank, a big tier 1 bank.
Customers aren't just choosing an account, they're asking:
"Can I trust you with my money?"
Insurance?
"Will you actually help and pay me when something goes wrong?"
Telecoms?
"Will switching my package be painful?"
Every industry has a specific uncertainty, and the businesses that grow fastest remove it first, and sell that trust.
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Trust Is A Commercial Asset
This is where many businesses make life difficult, they spend huge amounts of time on telling everyone why they're brilliant. And that is instead of reducing the customer's worries and concerns about X or Y thing.
Just think about your own marketing for a second, how much of it says:
"We're great."
And how much of it says:
"We understand why you might hesitate."
One builds confidence, the other puts a chasm in-between you and your customer. 💨
BYEEEE
What Back Market Really Sells
We think what we are talking about here, isn't actually anything to do with refurbished phones, laptops, tablets or anything else like that for that matter.
Back Market sells the opportunity to spend less, buy sustainably, and to do it in a way that is presented like a 'cheat code' is hugely powerful.
Because the customer isn't compromising on what they want, really, they are making a conscious choice and that's exactly how brands build a healthy long term proposition.
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The Commercial Lesson
Trust shortens decision making timescales, because when customers feel safe:
📈 Conversion Rates increase.
📉 Customer Acquisition Costs fall.
⏱ Sales Cycles become shorter.
💰 Lifetime Value increases.
Because customers come back and perhaps more importantly...
They recommend you, yes, that's the one. NO NEED FOR A 'REFER A FRIEND' strategy. Instead, Back Market customers refer friends to be 'part of the club'.
🤯🤯🤯
OK, I am today years old...
Back Market didn't change the product, they changed the perception. And perception in sales and commercial growth is often the most valuable commercial asset a business owns.
The strongest brands don't just make buying easier, they make customers feel smarter for buying what is on sale.
LEVELS of marketing by doing that sit in the Shaolin.
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Marinade on this...
What's the biggest piece of uncertainty stopping your customers buying today? Because removing that might generate more revenue than adding another feature ever will.
Good luck out there.
