How asking for less impacted overall revenue
Experiment ID: #72772
KCBI
Experiment Summary
Timeframe: 09/15/2021 - 09/30/2021
For KCBI’s fall fundraising campaign, we gained access to a new tool (Pursuant’s GivingDNA) with the ability to predict donors who were likely to upgrade. To validate this modeled data, we decided to launch a two-prong experiment. We wanted to see if we could accelerate the upgrade process by asking for a gift above their highest previous gift. We also decided to see if we could increase conversion by asking for a donation less than their highest previous gift for the segment that was not identified as likely to upgrade.
We split the donor file in four ways to create control and treatment groups of the upgrade and non-upgrade identified segments for this experiment. We then created four distinct emails in an eight email campaign that would either include the standard ask or would ask them for the upgraded/downgraded amount. The upgrade/downgrade language would consist of logic that explained why we were asking for more or less. This same language was used in all four experiment emails.
The experiment information below is specific to the segment that was identified as not likely to upgrade.
In this campaign, we utilize a tactic known as the chart of standards. We segmented each segment by their highest previous contribution and then selected a limited number of donors for a specific ask amount we wanted for this campaign. You can see this breakdown here. This concept is based upon research done on a theory in social psychology known as construal level theory. Our previous research has found this to lift giving in high urgency campaign–this experiment was a continuation of this research effort.
At the end of the campaign, we analyzed the behavior of these distinct donors to understand how it both impacted their likelihood to upgrade and their likelihood to give.
Research Question
We believe that asking for less than their previous highest gift for recent donors will achieve an increase in overall appeal revenue.
Design
C: Standard Language
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Results
| Treatment Name | Revenue per Visitor | Relative Difference | Confidence | Average Gift | |
|---|---|---|---|---|---|
| C: | Standard Language | $2.76 | $79.23 | ||
| T1: | Downgrade Language | $3.63 | 31.3% | 87.6% | $83.46 |
This experiment was validated using 3rd party testing tools. Based upon those calculations, a significant level of confidence was not met so these experiment results are not valid.
Key Learnings
With a directional lift of 31% in revenue, we found that asking for a donation that was less than their highest previous gift amount increased the total revenue raised from the appeal. This came from a 24% increase in response rate combined with a higher average gift in the treatment group.
The concern with this approach was that we would suppress giving from donors that would have upgraded their gift amount. However, we found that the same number of people increased their giving despite the treatment group seeing a downgraded ask. This means the tactic didn’t negatively impact the likelihood of a donor upgrading their highest previous gift.
This tactic needs to be further validated with additional experimentation but is exciting in its potential.