Increasing customer retention with discount cards in China

It had been a hectic week, and my back was not happy about it. My shoulders had locked up and my upper back was screaming. I decided to go to the spa across the street, a respectable chain with locations throughout Shanghai, for a 90 minute massage. They don’t offer the cheapest massage in the area, but it’s one of the best, isn’t shady, and is reasonably priced.

After my massage I stumbled to the front desk to pay; I was so relaxed it was hard to walk straight. With my defenses down, they decided to make the pitch I hear with surprising frequency in China: “Would you like to pay 3000 RMB today for a prepaid discount card, then we can give you 20% off this and future massages.” I gave my usual response, “Maybe next time.”

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