Flo · B2C · period tracking app
Sell higher tiers and extra features to people who already pay
Cohort revenue retention ~60% in year one, then rising every year
Workedupsell-expansion
What they did
Existing subscribers upgrade to a more premium tier and buy features not included in their first purchase, so each cohort's revenue grows after year one.
What happened
Host cites a Flo chart: year-one cohort revenue retention ~60%, then rising year after year; Flo later raised at a $1B+ valuation.
In their words
Sub Club by RevenueCat · How V1 Sports Doubled Revenue with Bold Bets — Alex Prasad, V1 Sports“where the initial cohort retention in year one is like 60% revenue retention, and then it actually goes up year after year after year because they are selling more into those users”
Related topics
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More from Flo Health
All 10 Flo Health tactics- Test many prices in each country; keep the one with the most revenue per userHalf-price variants sometimes won: 3x retention and much higher revenue per user
- Give the core app away free, then sell add-on modules as users' needs change60M+ monthly users; thesis behind a $200M raise at a $1B+ valuation
- Cut the price sharply in BrazilBrazil revenue up hundreds of percent in a year; now a top-4 market
- Hire a bank to run a competitive raise, then take more than plannedSet out for $100M; raised $200M at a $1B+ valuation
- Set separate country prices for iPhone and Android usersAndroid's best price is ~15-20% below iPhone in US/UK; far bigger gap in Brazil
- Lower the local price so ads get enough sales to scale profitably in BrazilUnlocked profitable paid installs in Brazil; not possible at the higher price
More from this episode
- V1 Sports: Drop the free tier for a free trial, and make long-time free users pay tooRevenue up 80-90% in 12 months despite a wave of one-star reviews
- V1 Sports: Keep it free for students to share videos with their own golf coachCoaches bring in about a third of new sign-ups every day
- V1 Sports: Tell existing users about the change with one short, honest reasonUsers only heard the first point; they complained anyway
- V1 Sports: Act out a conversation with an angry customer before making a big changeGuided the paywall switch; guest says the bet played out as expected
- V1 Sports: Ask every new user "Why are you here?" during sign-up10-15% want a coach; those users subscribe far more often
- V1 Sports: Connect golfers looking for a coach with the instructors already on the platformEarly; guest says it is far from optimized
- V1 Sports: Let support staff make deals with upset customers, but never free forever
- V1 Sports: Keep the first price low ($70/year) and earn more as users grow