Case Study: Unveiling The Success Of Tinder

For the romantically unattached, the first few weeks of a new year are peak cuffing season. Cuffing, a pragmatic tradition in which single people try to find a temporary partner for the dark winter months, is also big business for dating apps. This year, the pandemic has added a dash of extra urgency. Cooped up, bored, and lonely, user interactions on dating apps have soared over the past nine months. Swiping on potential romantic interests is one of the few activities unaffected by lockdowns, making it a huge opportunity for entrepreneurship.

In this Tinder case study, let’s explore the intelligence behind the star of the dating show – Tinder:

• The design tricks Tinder pulls out to the market.
• Branding tips to promote your dating app.

1. What is Tinder?

Tinder is a mobile dating application that matches prospective partners with one another through a novel interface and interaction design. Users of the app are presented with potential dates made up of suggestions from their friends’ social networks and other people using the service from the surrounding locale. 

After viewing a profile, the user can either swipe left, dismissing the potential partner, or swipe right, suggesting interest in starting a conversation. If the other person also swipes right on that user during their time using the app, the two people are “matched,” where they can start a dialog, coordinate a date, etc.

When a user opens Tinder, the app uses their last known location along with information regarding shared friends (via Facebook), interests, and networks to generate potential matches. The more a user engages with Tinder, the better the app’s potential matches become. This is a core aspect of the success highlighted in this Tinder case study.

2. How successful is Tinder?

The number says it all.

• 6.7 million paying Tinder subscribers, as of Q4 2020 (Match)
• Total Tinder users estimated at 66 million (Apptopia via Reuters)
• 17% of US adults have used Tinder, rising to 52% of those aged 18-24 (CivicScience)
• Other estimates find the highest US Tinder penetration among 30-44-year-olds, at 19%, compared to 15% of 18-29-year-olds, if we consider only current users (Morning Consult)
• It is estimated that 72% of the US Tinder userbase is male, compared to 28% female (Statista)
• 50% of UK Tinder users and 56% of those in the US use the app at least once every few days (Cast from Clay)
• Tinder 2020 revenue came to $1.4 billion (Match)
• Tinder accounted for 59% of total Match Group revenue of $2.4 billion (Match)
• The US (40-43% over 2019-20) and the UK (5-8%) are the biggest contributors to Tinder revenue (Sensor Tower)

Regarding the financial/share performance of Tinder, it reported a record 3bn “swipes” in a single day in the second quarter of 2020. Shares in parent company Match, whose subsidiaries also include Hinge and OkCupid, traded at a record high in mid-December as it joined the Nasdaq 100. Rival Bumble has taken the opportunity to reportedly file for an initial public offering.  

Given the number of dating apps, it is a wonder there are any single people left. Around the world, the most popular include Badoo and eharmony but those with particular requirements can find niche sites like Christian Mingle or countryside-focused Muddy Matches. Clowns alone have their choice of two tailored apps: Clown Dating and Clown Passion. 

Facebook is also trying to muscle its way in, on the strength of its 2.7bn user base.  In the US, however, Tinder remains the app that defines online dating. Launched in 2012 in a start-up incubator backed by IAC and included in Match when it was spun out as a standalone company, it has driven its parent company’s growth. When Match listed in 2015 it priced its shares at $12 each. They now change hands for $153. 11m Number of Match subscribers. 

More than half use Tinder Success is down to Tinder’s relatively simple set-up. The company says that it dropped its Elo score, an unnerving system that rated user attractiveness based on how many people liked their profile and then showed them equally popular users. But it still matches on proximity and encourages users to swipe yes or no based on appearance rather than pretending to care about a date’s hobbies or interests. 

The result is that shares in Match now trade at 70 times expected earnings, according to Refinitiv data. To warrant that high it must continue to add paying subscribers when life returns to normal. Tinder, which accounts for more than half of Match’s 11m subscribers, has an offering that should do the trick: a subscription level that allows users to see who likes them. This lure has helped Tinder convert free users to subscribers. 

3. Breaking down the formula of Tinder’s success

3.1. App Design

• Efficiency
  The development of the “Swipe Right” feature is one of the most notable aspects in this Tinder case study. Tinder designed the user interface to be as intuitive and straightforward as possible, allowing users to engage effortlessly. This ease of use keeps users on the app longer, driving more engagement.

• Gamification
  Another key takeaway from the Tinder case study is the incorporation of gamification elements. The app ensures users are having fun while finding potential matches, which encourages prolonged and frequent use, crucial for Tinder’s continued growth.

• Simplicity
  Tinder constantly makes small tweaks and updates to simplify its interface and enhance the user experience. Whether it’s the visible parts of the app or the back-end infrastructure, Tinder is committed to maintaining a seamless experience for its global user base.

3.2. Branding & Marketing

– Personalized Attention 

Tinder’s success in this Tinder case study also comes down to its unique branding and marketing tactics. For example, Tinder paid for a USC student’s birthday party and used it as an opportunity to promote the app by requiring guests to download it to enter. They also promoted Tinder in coffee shops by discussing the app in front of their target demographic.

The take-home from this Tinder case study is that even in a world dominated by digital marketing, grassroots tactics can still be highly effective, especially when launching a new brand.

– UX Design

There are a lot of dating apps, websites, and services. The industry itself has been around nearly as long as civilization and the concept of marriage itself – there has always been a “busybody” in every social group that advised parents as to the best pairing for their children. 

Note, however, the evolution: while at the dawn of matchmaking, the best user experience interacted directly with the parents of the eligible young people, over time it has changed to be directly interactive with those who are seeking partners. With the advent of the internet and smartphones, the human component of the UX has all but entirely been removed. As we see in the Tinder case study, technology now drives much of the dating process.

Tinder has proven that, in addition to there no longer being a need for much human guidance, there is no longer a need for a hefty website, and users no longer tolerate long lapses in time between contact. The Tinder case study shows that Tinder succeeded by being the first to recognize that today’s eligible singles are consumed with their responsibilities and pastimes, and no longer want to wait days for a response.

Tinder has succeeded by recognizing the need to expedite the entire process. The Tinder case study illustrates how Tinder made the process faster, more engaging, and less stressful than its competitors. If you want your brand to succeed, notice these same trends within your own industry. How can you make purchasing faster? How can you make your interface more engaging and easy to use? How can you be less stressful than your competitors?

 

Related Analysis

If you found the insights from our Tinder case study helpful, you’ll definitely want to explore more success stories. Don’t miss our detailed Grab case study, where we examine how the company transformed ride-hailing in Southeast Asia. We also dive into the L’Oréal case study, highlighting their digital beauty marketing strategies, and the Sephora case study, showcasing how they became leaders in retail innovation. Each case study offers valuable lessons to inspire growth and innovation in your business.