(Source: https://pltfrm.com.cn)
Introduction
Chinese consumers expect personalized experiences—and that includes discounts. Blanket promotions are losing effectiveness, while data-driven, purchase-history-based offers are emerging as a top-performing strategy. For overseas brands, tapping into this potential means designing offers that are both timely and tailored. In this article, we explore how historical transaction data can fuel intelligent discounting across China’s leading ecommerce and CRM platforms.
1. Identify Key Behavioral Patterns Through Purchase History
1.1 Time-Based Purchase Cycles
Analyze order timestamps to uncover shopping rhythms—e.g., weekly grocery top-ups or monthly skincare refills. Time your discounts to arrive just before repurchase windows to nudge conversion.
1.2 Product Lifecycle Triggers
Track purchase patterns to offer timely add-ons or replacements. For example, if a customer buys a printer, offer ink cartridge bundles after a set usage period.
2. Set Up Intelligent Discount Tiers Based on Loyalty
2.1 Loyalty Thresholds with Custom Rewards
Design multi-tier discount structures that unlock larger benefits based on cumulative spending or frequency. Use this to retain high-value users and push mid-tier users to higher engagement.
2.2 Smart Coupon Delivery
Deploy SaaS systems that deliver discount coupons triggered by loyalty status—sent via WeChat, email, or app notifications—to ensure consistent brand engagement and reactivation.
3. Connect Discount Engines to CRM and Inventory Systems
3.1 Stock-Aware Discount Personalization
Sync discounts with available inventory. For example, offer personalized flash sales on overstocked SKUs to past buyers of related items, minimizing warehousing costs.
3.2 CRM-Linked Discount Logic
Use CRM tags (e.g., “VIP Beauty Shopper” or “High AOV Buyer”) to trigger specific discount rules. Campaigns become smarter with every transaction.
4. Refine Discount Strategy Using Purchase-Based Analytics
4.1 Margin-Adjusted Discount Testing
Run simulations to compare how different discount structures affect gross margins. Prioritize those that drive volume without eroding profitability.
4.2 Monitor Cohort Retention Impact
Track how different customer cohorts respond to tailored discounts—does it lead to greater repurchase rates, bigger cart sizes, or lower churn?
Case Study: US Home Appliance Brand Increases Loyalty with Data-Tiered Discounts
A US-based kitchen appliance brand launched on Tmall segmented its Chinese customer base by lifetime value and purchase frequency. High-spending customers received 15% off upgrades, while less frequent buyers were offered timed flash deals. Using Alibaba’s CRM suite and a third-party CDP, they saw a 2.3x increase in repeat order rate over one quarter and a 30% reduction in inactive customers.
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!
