Let's get our Tinder pricing on
Because Tinder is one of the fastest-growing apps out there, finding respondents for our algorithm wasn’t tough. To bring any PriceIntel blog virgins up to speed, our software asks ranged pricing questions, and subsequently crunches those answers across a sample to see the price elasticity of that particular group. We’ve validated this across millions of responses to date, so we know we’re pretty accurate as long as we have enough respondents (more on measuring price sensitivity, in case you're curious).
Here’s the actual survey we sent out to several hundred Tinder users throughout the U.S. where we asked individuals their age, gender, and the pricing questions.
What we found was pretty fascinating. After crunching the data, we discovered that Tinder is absolutely justified in pricing these two user groups differently and could likely add even more differentiation to their pricing structure.
Individuals in the 18 to 29 year old demographic were willing to pay between $8.44 and $10.36 per month with a median price point of close to $10. What’s interesting about these willingness-to-pay numbers though is that some of this demographic was willing to pay much more, up to the $20/month range.
Our older folks were willing to pay a much wider, but higher range that centered around the $25/month range. Especially interesting about this data though is that some folks were willing to pay as much as $50/month for the product.
We also split the data based on gender, where we found that men were driving willingness to pay considerably more than women with their median willingness to pay being 11.9% and 47.9% higher for our young and older groups respectively. This shouldn’t come as a huge surprise, as a big persona for Tinder is Hookup Hank, who is potentially looking to find special someones before traveling (you normally only can swipe left/right on people within 50 miles of you).
Cool. Tinder isn’t completely out of control with this differentiated pricing, but why is this important to you and for Tinder’s overall pricing strategy? Well, it comes down to two big things: (1) an opportunity to expand to a multi-price mindset and (2) taking advantage of differences in the same persona.