How emphasizing recurring giving impacts overall revenue
Experiment ID: #5758
The Heritage Foundation
Experiment Summary
Timeframe: 11/29/2016 - 12/07/2016
In the latest in the series of optimization experiments on the main Heritage donation forms, we implemented a new donation form and value proposition that emphasized the value of recurring giving. In addition to the expanded and more visual value proposition, the new form also laid out a cohesive product-level value proposition on why recurring giving is so important.
With this new treatment, we ran a test across several of the most highly trafficked donation pages to see which would result in more gifts.
Research Question
Which donation page treatment will yield the greatest number of donors and revenue?
Design
C: Original Form
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) ) )
Results
| Treatment Name | Conv. Rate | Relative Difference | Confidence | Average Gift | |
|---|---|---|---|---|---|
| C: | Original Form | 4.0% | $72.94 | ||
| T1: | Recurring Gift Emphasized Form | 1.8% | -54.0% | 100.0% | $176.74 |
This experiment has a required sample size of 469 in order to be valid. Since the experiment had a total sample size of 28,547, and the level of confidence is above 95% the 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
× 54.0% decrease in conversion rate
× 142.3% increase in average gift
11.5% increase in revenue
Key Learnings
This experiment had interesting results. The new treatment resulted in a 54% decrease in the number of donors acquired. However, since the goal of the treatment was to acquire recurring donors given their increased value, we need to analyze the impact on that segment. In the case of recurring donors, the new form does see a 87% increase in acquisition.
Assuming that the average recurring donor will last 12 months, we then factored these two results and discovered that after 12 months, the new treatment would effectively break even on revenue compared to the original control. With a 54% drop in donors, continuing with the treatment would seem to be a pretty risky bet on long-term revenue potential. Based upon this analysis, we decided to end the test and continue with the current control.