Flo Health · B2C · women's health app
Lower the local price so ads get enough sales to scale profitably in Brazil
Unlocked profitable paid installs in Brazil; not possible at the higher price
Workedpaid-socialpricing
What they did
At the higher Brazil price there were too few conversions to feed ad networks' optimization and compete in auctions. After the price cut, conversions became frequent enough to send sufficient signal to the networks; Flo found a 'hot spot' for paid acquisition and significantly increased paid UA volume in Brazil, profitably. Networks and spend not given.
What happened
Paid user acquisition in Brazil scaled significantly and profitably; guest says it would not have been possible with higher prices. Brazil revenue grew hundreds of percent YoY.
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“it unlocked paid user acquisition. Because with this price conversions are enough to provide enough signals to networks and to get traffic profitably.”
“And it would not be possible with higher prices just because like level of conversions is not enough to really start being in auctions.”
Related topics
Get tactics like this every Monday
New tactics from the week's founder interviews, each linked to where it was said.
More from Flo
All 21 Flo tactics- Give your best-performing ad angle its own onboarding path that continues the ad's storyBecame a great revenue driver; no numbers given
- Add an onboarding question that tells users which stage they're in, never 'sorry, we couldn't tell'Lost ~10% twice; the evidence-based rewrite won 23%, confirmed by a blackout test
- Hold a weekly sync where marketing and product share every change they makeSource of experiment ideas like the ad-angle onboarding path; no numbers
- Re-check test wins 3, 6 and 12 months after rolloutFinds that not all reported conversion wins became business wins; no numbers
- Keep the core app free and offer paid extras when users' needs change40% of subscriptions start more than 6 months after install
- Remove a step that just won to check the win was realRemoving the 23%-winning step lost, confirming the uplift
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: Cut the price sharply in BrazilBrazil revenue up hundreds of percent in a year; now a top-4 market
- 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