How moving a premium offer earlier in the communication chain affects donor conversion
Experiment ID: #9111
Compassion International
Experiment Summary
Timeframe: 06/01/2018 - 06/15/2018
Compassion International had run a test offering a book by Chip and Joanna Gaines as a premium for sponsoring a child. Adding the book to the landing page produced no significant lift at all. However, this suggested that users already had their mind made up to sponsor by the time they made it to the page.
The team then hypothesized that they might be able to get more traffic to the page with a higher motivation to give if they inserted the offer upstream, into the Facebook ad.
They created a new version of the ad that featured the premium in the copy, near the bottom. Their hypothesis was that this would attract much more clicks, and thus, more sponsorships.
Research Question
How will inserting an offer earlier in the communication stream affect donor conversion?
Design
C: Control
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) ) )
Results
| Treatment Name | Click Rate | Relative Difference | Confidence | |
|---|---|---|---|---|
| C: | Control | 0.00% | ||
| T1: | Treatment 1 | 0.02% | 569.2% | 100.0% |
This experiment has a required sample size of 32,739 in order to be valid. Since the experiment had a total sample size of 497,716, 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:
569.2% increase in traffic
× 0% increase in conversion rate
× 0% increase in average gift
Key Learnings
The treatment ad produced a 24.6% increase in clickthrough rate, but an astounding 555% increase in donor conversion after the click. From impression to donation, the ad featuring the premium and the landing page that featured the premium produced a 569.2% increase in conversion.
This increase in conversion led to an 82% reduction in cost per sponsorship, which brought the results well under the benchmark for cost-per-sponsorship. While the results for this premium may not last forever, it does suggest a remarketing tactic that can be used to bring highly motivated traffic back to the site.