How ecoATM increased conversions by 20% with cart abandonment bonuses

ecoATM is a renowned leader in reducing electronic waste. With over 7,000 kiosks across the US, they make it easy for folks to recycle used phones, tablets, and more. By offering instant cash for these devices, ecoATM encourages recycling and helps tackle the issue of electronic waste.

• Boosting CLV by encouraging multiple device trade-ins throughout a customer's lifetime.
• Finding a cost-effective solution in a highly price-competitive market.
• Minimizing fraud and code leakage.

ecoATM aimed to enhance customer lifetime value (CLV) and deploy kiosk-specific incentives. They were looking for a flexible incentives technology capable of running targeted and fraud-proof incentives across diverse locations.

"Voucherify gave us the flexibility to create customer-specific bonuses that fit perfectly with our business goals. Its tools make it easy to run secure campaigns across our business while maintaining visibility and benefiting our customers.

Incentivizng trade-ins with contextual bonuses

In the recycling business, repeated trade-ins are essential for profitability, and ecoATM focuses on making this process as enjoyable as possible.

Customers place their devices into an ecoATM kiosk, which uses electronic diagnostics and AI to assess the device's condition, functionality, and appearance. The kiosk then offers a price based on the device's condition, market demand, and resale value.

To make these transactions even more attractive, ecoATM uses Voucherify to offer bonuses that increase the value of trade-ins. While Voucherify typically manages discounts, in ecoATM’s case, it enables a price increase calculated based on the kiosk and device type that serves as a bonus. This is possible by adding a new line item to the order, which reflects the extra value offered to the customer.

A key part of this setup is making sure customers trade in the exact device they first assessed. Voucherify helps verify that the traded device matches the estimate, ensuring ecoATM offers the right price. 

The entire process relies on the Qualification APIs, which check whether the kiosk and transaction details meet the conditions for bonuses. This ensures customers receive incentives that fit the specific context of their transaction.

ecoATM found that fine-tuning the size of their bonuses was key to maximizing results. By testing different ranges, they discovered that offering 25-30% bonuses delivered the highest overall margin saved. Although higher discounts meant giving up more margin per device, the substantial increase in completed trade-ins more than offset the cost. In contrast, when the offer was reduced, conversion uplift dropped to 10-12%, proving that the right incentive size is critical for balancing customer motivation with profitability.

Dynamic bonuses for long-term engagement

ecoATM focuses on providing bonuses to encourage customers to complete their trade-ins. For example, customers may receive a bonus if they return to finish a trade-in after initially abandoning it. These bonuses are set up using the Voucherify incentive formula builder which allows ecoATM to adjust offers based on transaction details and customer activity.

“Cart abandonment is always a challenge, but with Voucherify, we can offer bonuses that bring customers back to complete their trade-ins. It’s a simple and effective way to turn potential drop-offs into completed transactions."

Abandonment promotions are the strongest performers so far, driving an 18-20% uplift in conversions from customers who would have otherwise abandoned their trade-ins.