This episode is shorter than usual and will be featured in RevenueCat’s State of Subscription Apps report.
On the podcast: why the Big Mac Index falls short for app pricing, how Flo Health’s regional pricing strategy drives profitable user acquisition in emerging markets, and the importance of aligning pricing with long-term user retention for sustainable growth.
Top Takeaways:
💭 Know your audience - not just the economy
Don’t rely on basic indexes like the Big Mac Index. Instead, understand your audience in each region. For example, iOS users in emerging markets are typically wealthier than Android users, so pricing should reflect each platform’s unique audience.
💸 Test prices with a focus on revenue, not conversion
Measure pricing success by average revenue per user (ARPU), not just conversion rates. Lower prices can boost retention and unlock profitable user acquisition by winning more auctions through better conversion signals.
🌎 Adapt to cultural norms and changing habits
Price sensitivity varies by culture and is influenced by local norms. Streaming giants like Spotify and Netflix are paving the way for digital subscriptions globally. Monitor cultural shifts and adapt pricing strategies accordingly.
About Dmitry Gurski:
🌍 CEO and Co-Founder of Flo Health, Dmitry Gurski leads the world’s largest health app, with 73 million monthly active users globally and a mission-driven approach to health and wellness.
📊 Dmitry is an expert in regional pricing strategies, leveraging extensive experimentation to optimize average revenue per user (ARPU) while maintaining accessibility. Under his leadership, Flow has achieved remarkable revenue growth by tailoring subscription models to meet diverse market dynamics worldwide.
💡 "When people can’t pay, it’s almost sinful to block access. Flow’s mission is to empower women globally, whether through paid or gifted subscriptions. Pricing isn’t about conversions—it’s about maximizing long-term value while staying true to our purpose."
👋 Connect with Dmitry on LinkedIn!
Resources:
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