Exploring New Revenue Streams: Testing a Children’s Book Rental Service Across Three Scenarios

Project Background

The client, a company with years of experience in the book publishing industry and a mature SaaS platform (connected to 120+ publishers and 600+ bookstores), aimed to explore a new business model: a children’s picture book rental service in physical locations. Leveraging its supply chain resources, the client planned to test this model across three scenarios—bookstores, kindergartens, and communities—within 12 weeks. The goal was to validate user willingness to pay, single-point service efficiency, and the feasibility of integrating online and offline data, while generating key metrics to support its first round of funding.

Project Execution

Our operations team began by conducting a comprehensive resource audit, identifying 120,000 picture books from the client’s publisher partnerships for priority use, analyzing 200 SaaS platform users (bookstore buyers) for targeted outreach, and assessing 3 adaptable locations (client-owned or partner sites) for rapid deployment. We then designed tailored execution plans for each scenario:

• In bookstores, we added "membership-based borrowing shelves" to existing children’s sections, allowing parents to scan a QR code to activate a $28 (199 RMB) monthly membership for borrowing 10 books per month (including 3 exclusive titles). Borrowing data was synced in real time with the SaaS backend, and a "reading check-in" incentive (e.g., free publisher-branded stationery after 10 days of borrowing) was introduced to boost store visits.
• In kindergartens, we installed smart borrowing cabinets in a premium private kindergarten, enabling parents to reserve books remotely via their SaaS accounts. We also developed a "reading report generator" that transformed borrowing records into actionable analytics (e.g., literacy progress, thematic preferences) for both parents and educators.
• In communities, we launched "free trial + membership conversion" stations in large residential areas, offering free weekly borrowing of 3 books (no deposit required) and featuring a "Book Sharing Wall" showcasing exclusive titles to drive SaaS registrations. Key metrics such as borrowing duration, repeat rates, and reading preferences were tracked to validate the conversion path from community trial users to paid SaaS members.

Project Outcomes

Within 90 days, the pilot served 3,200+ families across all scenarios. In bookstores, we achieved a 37% membership activation rate, with members visiting an average of 4.2 times per month, driving a 58% increase in associated book sales. In kindergartens, 85% of parents activated SaaS accounts, leading to a 210% surge in B2B book procurement for top-borrowed titles. In communities, 42% of trial users converted to SaaS members, with 28% purchasing monthly plans. The project also delivered actionable insights, including the development of a 《Physical Store CAC vs. LTV Model》, which revealed that bookstore users’ lifetime value (LTV) was 3.1x higher than community users. Kindergarten channels reduced customer acquisition costs (CAC) by 47%, while maintaining 80%+ retention rates. Based on the pilot data, the client secured investor negotiations within 2 weeks post-pilot, prioritized scaling the kindergarten smart cabinet model due to its high retention and low CAC, and integrated high-demand community themes into the SaaS recommendation algorithm, increasing the utilization of slow-moving books from 18% to 63%. This solidified the client’s transition from a SaaS provider to an OMO (Online-Merge-Offline) leader.