(Source: https://pltfrm.com.cn)
Introduction
In China’s highly competitive retail environment, brands that personalize their promotions based on past behavior stand out. An advanced purchase history-based discounting strategy allows overseas brands to move beyond flat discounts and design dynamic offers that reflect actual customer loyalty and purchase intent. This article explores how data-driven discounting can deepen customer relationships, boost repeat sales, and maximize ROI.
1. Build a Centralized Purchase Data Engine
1.1 Consolidate Multi-Platform Purchase Records
Chinese consumers often shop across Tmall, JD, WeChat, Douyin, and brand-owned stores. Use a centralized CRM or CDP (Customer Data Platform) to unify purchase history across these platforms.
1.2 Use Recency-Frequency-Monetary (RFM) Modeling
Segment customers based on how recently, how often, and how much they’ve purchased. This helps tailor discount levels—e.g., rewarding high-frequency, high-value users with exclusive perks.
2. Apply Behavioral Segmentation to Design Targeted Offers
2.1 Segment by Product Affinity
Use past purchases to group users by category preferences. For instance, offer skincare bundles to beauty product buyers, or volume discounts to frequent home goods shoppers.
2.2 Trigger Discounts Based on Purchase Milestones
Reward specific behaviors, such as third-time repeat purchase or annual spending thresholds. These incentives encourage continued engagement and higher lifetime value.
3. Integrate Discount Rules into SaaS Marketing Platforms
3.1 Real-Time Personalization via Mini Programs
Deploy rules through WeChat Mini Programs that show dynamic discounts based on real-time CRM data. Discounts adjust automatically based on purchase history and cart behavior.
3.2 Cross-Platform Automation
Use platforms like iParllay or JINGdigital to trigger discounts across channels—WeCom, SMS, email—once certain purchase conditions are met, creating seamless omnichannel engagement.
4. Analyze Outcomes and Optimize Discount Structures
4.1 A/B Test Discount Thresholds
Test different thresholds (e.g., “Buy over ¥200, get 15% off” vs. “Buy 3 items, get 1 free”) among similar cohorts to see what best boosts conversions with minimal margin erosion.
4.2 Monitor Discount Impact on LTV
Track whether historical-discounted customers return at higher frequency or spend more long-term. Refine your rules based on what truly drives loyalty—not just one-time sales.
Case Study: French Pet Food Brand Boosts Repeat Orders via Historical Discounts
A French premium pet food brand operating on JD.com and WeChat Mini Program implemented a CRM-linked discount strategy. Customers who had made three purchases within six months were offered a customized “VIP 20% off next order” coupon. Using RFM segmentation and WeCom delivery, they achieved a 35% uplift in repeat purchases and a 22% increase in average basket size within three months.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
