(Source: https://pltfrm.com.cn)
Introduction
In China’s competitive subscription market, retaining users is more cost-effective than acquiring new ones—but it requires the right pricing model. For overseas brands, the challenge lies in creating affordable yet strategic pricing that balances value, personalization, and loyalty. This article unpacks actionable retention pricing strategies that protect margins while keeping subscribers engaged long-term.
1. Multi-Tiered Subscription Structures
1.1 Entry to Premium Progression
Design a funnel-based pricing structure with an affordable entry-level tier, mid-level access, and a premium all-in-one plan. This provides a clear upgrade path and retains users as their needs evolve.
1.2 Feature-Led Differentiation
Ensure each tier introduces value rather than simply removing restrictions. Offer enhanced services like dedicated support or early access to new features in upper tiers to justify the transition.
2. Commitment-Reward Pricing
2.1 Duration-Based Discounts
Encourage users to commit longer by offering steeper discounts on 3-month, 6-month, or annual plans. Highlight cost-per-month savings to make the offer more compelling.
2.2 “Freeze and Resume” Flexibility
For users hesitant to commit, provide a “freeze my subscription” option instead of cancellation. This preserves the relationship and allows reactivation without restarting at full price.
3. Churn-Prevention Through Data Personalization
3.1 Early Warning Indicators
Use CRM systems and behavioral analytics to detect signs of disengagement—like reduced session time or skipped renewals. Send custom retention offers before churn occurs.
3.2 Custom Pricing Adjustments
Adjust plan pricing based on tenure and usage frequency. For example, offer a “VIP loyalty plan” to 1-year+ subscribers with a locked-in discounted rate.
4. Incentivized Retention Programs
4.1 Referral-Driven Loyalty
Reward users who refer others with discounts on future billing cycles. This lowers CAC and increases retention simultaneously.
4.2 Usage-Based Milestones
Offer bonus features or small perks for achieving certain usage goals—e.g., “unlock free month after 30 consecutive logins.” Gamification sustains user interest and boosts loyalty.
5. Integrating Local Behavior in Retention Pricing
5.1 Align with Cultural Consumption Patterns
Design pricing strategies around Chinese consumer behaviors, such as holiday renewals, Qixi Festival promos, or 618 events, which align with peak engagement cycles.
5.2 Use Local Billing Systems
Seamlessly integrate WeChat Pay and Alipay recurring billing, offering familiar payment experiences that remove friction at the renewal stage.
Case Study: A Singaporean Beauty Subscription Box Gains Loyalty in China
A beauty brand from Singapore entered China with a subscription box service. Initially priced at a flat monthly rate, the service faced churn after three months. After restructuring pricing into flexible 1/3/6-month tiers and introducing milestone-based perks (like exclusive items for 6-month users), they retained over 68% of users beyond Month 4. Localized checkout via Alipay helped reduce drop-offs by 19%.
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!
