You may not like online flirting or dating apps. Tinder is the most famous nowadays, and you may say you will never try it, but must you know it is impressive. One way to analyse if a company is successful is based on its revenue. Tinde’s capacity of making money is the main reason why I love it, one of the best cases of app monetisation in the world.
Last year, Tinder beat all other apps on gross revenues. That’s it; the popular dating app is the one that makes more money at Apple Store, more than candy crush. According to App Annie, a platform which deliveries data and insights from multiple apps, dating apps are the ones who monetise the most on Apple store. It is a 3 billion dollar industry. Remember YouTube Music? Video and Music streaming also monetise a lot, according to the same research, just behind dating apps.
What I want to share with you is how Tinder became so successful. For the first 2 years, it was free to swipe right. The natural mechanism to swipe, which you can do with one hand holding your phone, is just the beginning. Swiping is an easy way to hijack users minds, it is a repetitive action that you must do to see what’s next. This strategy makes users addicted. The business model pivot after the second year was brilliant. The first step was to quit free and introduce freemium by limiting basic features. Indeed, it is a classic strategy among mobile platforms. Then, they started enhancing people’s engagement by adding new features. Those, all paid, are how Tinder became the top grossing app in 2017.
Tinder Gold, the top subscription option offering all features, is what made Tinder so successful. Teams were focused on monetisation and optimisation. The new subscription plan and the new features were developed based on Artificial Intelligence. Recommendation engine improvements were prototyped. Tinder “knows” what users want to see next. It was not only a business model pivot but also a pivot based on data.
That is an excellent example of how to create value based on data. Tinder changed its User Experience based on that, looking forward new revenue streams. More value does not mean more users, but sometimes more revenue per user. They did not stop with Tinder Gold, they recently added a great, and paid feature. You should try it. This mindset pushes Tinder to keep creating value to its users, and, consequently, making more money.