Match Group’s Tinder emerges as cash cow courtesy of data science, dynamic pricing, paying off tech debt | ZDNet

The more interesting development will be seeing how Tinder uses artificial intelligence to drive matches as well as monetization and revenue growth. Tinder has been building its data science team and added Dr. Xue Liu, a computer science professor at McGill University, as its chief scientist. Tinder is also adding analytics and data science talent to its team.

Tinder’s main objective is threading the needle between revenue growth, usability, new features and mining the data provided by 1.6 billion swipes a day and 1 million dates a week. When you start applying AI to Tinder’s dynamic pricing model the potential for optimization gets interesting.

For a 29-year-old male in New York City, Tinder Gold for 12 months is $12.50 a month; $18.83 a month for 6 months and $29.99 a month for one month based on one iOS app. A 21-year-old female in Nashville was offered Tinder Plus at $4.58 a month for 12 months; $5.83 a month for 6 months and 1 month at $9.99. Tinder Gold for that woman went for $6.92 a month for 12 months; $8.83 a month for 6 months and 1 month at $14.99.

An Android app had Tinder Plus for $19.99 a month. Pricing is unclear at best in the Tinder app as well as on the web.

That pricing model is by design. Match CFO Gary Swidler said:

We took all the learnings from the other businesses and applied to Tinder. We’ve talked for a long time about the fact that we have effectively dynamic pricing program. Across our other businesses, we have add-ons, we have packages, we have discounting and premium pricing and a la carte. So we’ve actually done this far more intricately in our other businesses than we have at Tinder. This is really the beginning of doing it at Tinder. In fact, even before Gold, we do have multiple price points at Plus, which we talked about. They’re geographically-driven. They are driven by a number of components to discounting.

To be sure, Tinder’s matching system will be optimized more by AI, but the real win is going to revolve around pricing models.

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Match Group’s Tinder emerges as cash cow courtesy of data science, dynamic pricing, paying off tech debt | ZDNet.