Flo Health · B2C · women's health app
Test many prices in each country; keep the one with the most revenue per user
Half-price variants sometimes won: 3x retention and much higher revenue per user
Workedpricingexperimentation
What they did
With 200K+ installs a day and ~70M MAU, Flo uses a 'brute-force' approach: create large enough test groups, put many price points into test against the initial price, and decide separately for each region. The success metric is the effect on average revenue per user, not conversion, because price moves trial conversion, trial activation and subscription retention together. Example: a price half as high can triple retention and give much higher overall ARPU.
What happened
Cheaper prices sometimes win on ARPU because retention rises more than the price falls (e.g. half price, 3x retention).
- Effort
- Large-scale ongoing testing on 200K+ daily installs across many regions
In their words
Sub Club by RevenueCat · How to Maximize Revenue with Regional Pricing — Dmitry Gurski, Flo“Just like to create enough testing group, like to put many prices to test, to compare with initial price, and make a decision for each region.”
“we're not measuring pricing and success in pricing by conversions, and it's very often a big mistake. We measure pricing by influence on average revenue per user.”
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: Cut the price sharply in BrazilBrazil revenue up hundreds of percent in a year; now a top-4 market
- 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