How a related DVD premium offer impacts donor conversion and revenue on a course ‘Thank You’ page
Experiment ID: #2835
Hillsdale College
Experiment Summary
Timeframe: 10/13/2017 - 10/24/2017
Hillsdale College found that this premium treatment page did, in fact, increase revenue by 75%, with an 11.6% increase in donor conversion and a 56.4% increase in average gift. We’ve seen in other tests that a premium offer can often increase total revenue when the offer supplements the course material (i.e. a guide book that is referenced in the course). It’s clear that visitors who were offered the DVD premium of the course they just enrolled in were still motivated to receive the physical edition of the course. Since these visitors had already responding positively with a number of ‘micro-yes’s throughout the online course signup funnel, they were primed and ready to give the ‘macro-yes’ for this premium offer. They felt incentivized to receive a physical version, in addition to taking the course online–perhaps, in order to give this course as a gift or keep it on the movie shelf.
The results of this experiment have prompted further testing across other online courses for related DVD premium offers.
Research Question
Will a related DVD premium offer increase revenue on a course signup ‘Thank You’ page?
Design
C: Control
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Results
| Treatment Name | Revenue per Visitor | Relative Difference | Confidence | Average Gift | |
|---|---|---|---|---|---|
| C: | Control | $2.03 | $35.60 | ||
| T1: | Variation 1 | $3.54 | 74.6% | 98.7% | $55.69 |
This experiment was validated using 3rd party testing tools. Based upon those calculations, a significant level of confidence was met so these experiment results are valid.
Flux Metrics Affected
The Flux Metrics analyze the three primary metrics that affect revenue (traffic, conversion rate, and average gift). This experiment produced the following results:
0% increase in traffic
× 11.6% increase in conversion rate
× 56.4% increase in average gift
74.6% increase in revenue
Key Learnings
Hillsdale College recently released their popular online course ‘An Introduction to C.S. Lewis’ on DVD. They wondered: Will offering this DVD as a premium on their ‘An Introduction to C.S. Lewis’ course signup ‘Thank You’ donation page increase revenue? They created a treatment page that offered this premium and launched an A/B test to find out.