(Source: https://pltfrm.com.cn)
Introduction
Subscription products in China—from SaaS tools to consumer goods—face high churn if the pricing model doesn’t meet user expectations. For overseas brands entering this competitive space, affordable retention pricing is not just about being cheap—it’s about perceived value, smart timing, and personalization. This article explores effective pricing strategies that reduce churn and increase lifetime value, without eroding brand equity.
1. Tiered Pricing for Lifecycle Engagement
1.1 Entry-Level Hook
Offer a basic, low-cost tier to attract price-sensitive first-time users. This tier should demonstrate the product’s core value while acting as an onboarding funnel into higher-priced plans.
1.2 Upgrade Incentives
Introduce milestone-based rewards (e.g., usage thresholds, time-based loyalty) to encourage upgrades. This keeps users invested in the product while rewarding long-term commitment.
2. Loyalty-Driven Discounts
2.1 Renewal Rewarding
Provide time-based loyalty discounts (e.g., 10% off after 6 months of use) to reduce churn at critical decision points. These offers are especially effective when timed with subscription renewals.
2.2 Annual Plan Value Stacking
Encourage longer commitments by offering significant perks on annual plans—such as bonus services, exclusive content, or priority support—without having to discount core pricing heavily.
3. Behavior-Based Personalization with SaaS Tools
3.1 Usage-Triggered Offers
Use CRM integrations to monitor inactive accounts and automatically send personalized re-engagement offers (e.g., “Come back and save 20% this month”).
3.2 Feedback-Driven Pricing
Embed in-app surveys or Net Promoter Scores (NPS) to segment pricing responses. Offer retention-focused pricing adjustments based on satisfaction levels or reasons for churn.
4. Bundling to Increase Stickiness
4.1 Cross-Product Bundles
Bundle subscription offerings with complementary services (e.g., SaaS software with e-learning access) to create more value and reduce the likelihood of cancellation.
4.2 Progressive Unlock Bundling
Introduce tier-based unlocking (e.g., “unlock advanced features in Month 3”) that gradually deepens the user’s reliance on your ecosystem over time.
5. Localized Payment and Billing Flexibility
5.1 Localized Payment Integration
Work with Alipay, WeChat Pay, and UnionPay to reduce friction at checkout. Affordable pricing loses impact if payment access is limited or confusing.
5.2 Flexible Billing Cycles
Let users choose monthly, quarterly, or pay-as-you-go options. Giving Chinese users control over payment intervals improves satisfaction and extends retention.
Case Study: A Nordic Wellness Subscription Brand Boosts Retention in China
A Scandinavian wellness brand offering personalized supplement subscriptions struggled with high churn in China. After implementing a localized CRM system, they introduced a tiered pricing structure with flexible billing options and WeChat Pay integration. They also rolled out a reactivation offer using in-app behavior signals. These changes led to a 31% increase in 6-month retention and a 22% lift in average revenue per user (ARPU) within four 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!
