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
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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: 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