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
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: 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