Editor's Note: How do you set the price of a membership to improve customer retention? The author of this post talks about ways to set the price of membership as well as the problems encountered in the membership pricing process and the strategies to solve them, take a look together. Today, we will continue to talk about membership ~ the last article is about "product operation that 50 things (1): how to develop the distribution cycle of membership benefits? , today we will talk about the problems encountered in the pricing process of membership products and the strategies to solve them. The author's membership system has two kinds of paid membership, called platinum membership and diamond membership. Platinum membership is the birth of the priority, when the selling price is 199 yuan; diamond membership is born after the birth, when the selling price is 299 yuan. In the early stage, we used the lower-priced platinum membership as a catch to introduce a wave of retained users. In order to improve the user's membership experience, we continue to expand the rights and benefits of membership. However, in this process, due to the initial selling price is too low, resulting in platinum membership cost pressure is getting higher and higher. This led to the birth of the second membership product: Diamond Membership. The benefits of both Platinum and Diamond memberships include 12 car washes per year, but the benefits of Diamond membership are more abundant. For example, diamond members have member price items, while platinum members do not have member price items; for example, diamond members have a higher proportion of consumption points, and so on. However, the actual situation after the launch of the new product is very different from my initial conception: the original 199 yuan of platinum members sold better, the new product on the line 299 yuan of diamond members do not sell. Why platinum membership is better, diamond membership is not good? Because platinum members and diamond members of the rights and interests of the annual 12 car wash, but the price difference between the two types of membership is too large. But the diamond membership does not have more membership rights? Why don't users pay for it? Although the benefits of diamond membership are more abundant, but these membership benefits are more often used in the user's re-purchase scenarios, such as consumption to get more points, you can enjoy the member price and so on. Car wash is a high-frequency demand of users, so 12 car washes in a year is the main grip point for stores to sell membership products. Car wash is a free benefit that both members can enjoy every month, while the other benefits are used for repurchase scenarios, resulting in users will prioritize the comparison of the car wash benefits, forming this thinking misunderstanding: one is 199 yuan for 12 car washes, and the other is 299 yuan for 12 car washes. And the communication scene between most users and stores is short, leading users to easily favor the 199 yuan platinum membership. Then how to enhance the volume of the 299 RMB diamond membership to meet the more diversified use scenarios of the members? Strategy 1: change the free benefits of the two memberships, weakening the comparability of the two memberships; Strategy 2: do not change the free benefits of the two memberships, and continue to expand the benefits of the diamond membership; Strategy 3: change the pricing of the two memberships, narrowing the price difference between the two memberships. For strategy one, the change of product logic is large, and the volume of diamond membership is large, so it is not suitable to easily change the mind of old users, so it is not considered for the time being. Against strategy two, the two free rights (such as 12 free car washes) is still the main standard for users to compare the value of the product, diamond members do not adjust the price under the premise of expanding the rights and interests of the diamond members, the rights and interests become bloated and the cost becomes high. For strategy three, you can have a good chat about pricing strategy. In the final analysis, the two current problem is the price difference is large, and the lack of a suitable price-anchored products, so there are four strategies as follows. Throughout, as above, narrowing the price difference between the two memberships can solve the problem of low sales for Diamond members, as the free benefits are the same for both. The way to narrow the price difference can be a direct price adjustment or the issuance of discount coupons, the former there is a certain development cost, the latter on-line faster and lower cost. However, it should be noted that too large a discount will stimulate consumers to become price-sensitive, not conducive to the later marketing of the product; and the price difference between the two products is too large, long-term marketing discounts to narrow the price difference is not appropriate. Therefore, the direct price adjustment is more appropriate than the long-term issuance of discount coupons. However, direct price adjustment is recommended to use frequent, low-volume price increases, do not one-time substantial price increases, otherwise the user experience is extremely poor. Product pricing try to avoid price increases, price increases are the last trick. Summarized, the product pricing techniques are as follows: the product should not be priced too low at the beginning, it is easy to let the members of the product to form a cheap and worthless perception, at the same time, it will affect the members of the late marketing space and price reduction space. The difference between different membership product benefits should be large, and different product lines should be built according to different user scenarios. Try to avoid price increases, price increases are the last resort. It is recommended to use frequent, low-volume price increases when you have to increase prices, not a one-time large price increase. Reasonable use of price anchoring, set a bait option. Set the bait option, you can build a high-priced products, guide users to buy low-priced products. Can also be built a low-priced products (but the price difference between the two can not be too large), expand the rights and interests of high-priced products, to guide users to buy higher-priced products. But the price-anchored products should not be too much, otherwise the user will be allowed to enter a choice paradox: the face of more options, the user may be more difficult to choose. Because the user chooses one product, it means that he loses the benefits of another product, and such a sense of loss makes the user hesitant to make a decision. Therefore, the pricing of membership involves many levels, including business costs, financial settlement, consumer psychology, etc.. But the essence of a good product is not a good pricing, but a product that communicates value to users. Instead of learning how to play around with pricing, it's better to run the product well, optimize and iterate the product from the user's perspective, and give the user a good product experience. About the product operation of the 50 things, today first chat to this. See you next time~