After the mess that Samsung’s Note7 has caused, many analysts wondered how the company would hold onto customers that it had inadvertently placed in harm’s way with its phones. The company took steps to begin answering those questions with a Thursday addition to its safety recall notice.
In a newly added FAQ, the company explains the policy behind trading in the troubled smartphone. The terms are more or less standard, with Samsung offering a full refund for customers looking to trade the Note7 in for a phone from another manufacturer. What is intriguing, however, is the policy surrounding trading within the Samsung family of products.
“What if I want to exchange my Galaxy Note7 for another Samsung smartphone? As a sign of our appreciation for your patience and loyalty, we are offering up to a $100 bill credit from select carrier or retail outlets if you exchange your Galaxy Note7 for another Samsung smartphone, less any incentive credits already received,” reads the statement, which can be found on Samsung’s official recall notice.
This is a significant clause for several reasons. First and foremost, this serves as Samsung’s response to the question of brand loyalty. The company is clearly making an attempt to salvage trust in its brand, and is willing to offer a $75 more (those trading to other companies still receive a $25 credit) in order to do so. Without an exact figure of how many Note7’s were sold, we can only speculate the cost of this refund, but needless to say, the financial woes surrounding the phone continue to pile up. Clearly however, the customer loyalty means enough to the company to spend the money in hopes of making it back with future business.
A refund for a faulty—not to mention dangerous—device is standard, but Samsung’s $100 additional credit shows that the technology company is determined to repair the trust it had built through years of quality products. This generosity for sticking with the brand may cost them dearly in their next financial reporting, but it also may have rescued a significant larger share of purchases going forward.