Flo Health · B2C · women's health app
Cut the price sharply in Brazil
Brazil revenue up hundreds of percent in a year; now a top-4 market
Workedpricingmarket-selection
What they did
Reduced the Brazil subscription price 'really significantly' (exact level not given), chosen through the regional price-testing process. The lower price raised conversions and improved retention.
What happened
Brazil revenue grew hundreds of percent year over year and Brazil became Flo's #3 or #4 market; conversions and retention improved and paid acquisition became profitable.
This shipped together with other changes, so the result can't be credited to this alone.
In their words
Sub Club by RevenueCat · How to Maximize Revenue with Regional Pricing — Dmitry Gurski, Flo“And what happened, we reduced price significantly, really significantly. And it helped not just increase conversions and improve retentions”
“We got quite significant success in Brazil this year, and significant means that revenue was growing like hundreds of percent year-to-year, very significantly.”
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More from Flo Health
All 10 Flo Health tactics- 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
- Sell higher tiers and extra features to people who already payCohort revenue retention ~60% in year one, then rising every year
- Hire a bank to run a competitive raise, then take more than plannedSet out for $100M; raised $200M at a $1B+ valuation
- Pitch the app as #1 in women's health instead of competing in all of healthBecame the first women's health unicorn: $200M+ raised at a $1B+ valuation
- Run over 100 experiments a monthGuest cites it as part of what made it a top health app; no direct numbers
More from this episode
- Flo Health: 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
- Flo Health: 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
- Flo Health: 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
- Flo Health: Give the full app free in 50+ countries where people can't pay20M+ free subscriptions given; no direct revenue or growth, but motivates staff and users