How a lesser ask impacts revenue
First Baptist Dallas
Experiment Summary
Ended On: 09/14/2022
Pathway to Victory promotes a premium each month through its website, tv, radio, and email. The goal is to get resources to strengthen one’s faith and equip one to pierce a dark and fallen culture. But also to raise revenue to keep PTV on the air and expand worldwide.
In the last several months PTV has seen a decline in new donor conversions and overall revenue. This led us to test asking for a lower amount for the promoted premium.
The control group was asked for a gift of $25 or more, while the treatment was asked for a gift of $10 or more.
We kept this test segmented only to PTV nondonors that are on their email list.
We conducted this test over the course of 3 emails (email 1, resend of email 1 to those that did not click the link, and email 2) while keeping the control and treatment audiences separated. And suppressing those that made a gift with each send.
Research Question
We believe that by asking nondonors to give a lesser amount, they will be more likely to make a gift.
Design
Results
| Treatment Name | Revenue per Visitor | Relative Difference | Confidence | Average Gift | |
|---|---|---|---|---|---|
| C: | Control - $25 ask | $0.00 | $24.59 | ||
| T1: | Treatment - $10 ask | $0.00 | 142.7% | 98.8% | $30.66 |
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
× 94.6% increase in conversion rate
× 24.7% increase in average gift
142.7% increase in revenue
Key Learnings
Not only did this test increase the average gift by 24.7% we observed the donors that received the $10 ask were more likely to make a larger gift.
Break down of actual gift amounts from the $25 ask
- 2 – $1
- 1 – $5
- 1 – $8
- 9 – $10
- 1 – $20
- 18 – $25
- 1 – $35
- 2 – $50
- 2 – $100
Break down of actual gift amounts from the $10 ask
- 1 – $2
- 2 – $5
- 32 – $10
- 6 – $15
- 5 – $20
- 13 – $25
- 1 – $30
- 3 – $50
- 2 – $75
- 4 – $100
- 1 – $200
- 1 – $400
Since PTV premiums can be acquired with a gift of any amount, they have struggled with donors that give very low $1-5 gifts for the premium. With this test, we not only saw an increase in donations for those that received the $10 ask, we saw a decrease in the very low gift amounts compared to the $25 ask.
Our hypothesis is that when asked for a $10 donation, this ask was low enough that the very low gift donors decided to give the full ask. For an individual donor, the ask for $10 and meeting it when they were expecting to make a low donation is a small sacrifice. But this pays off greatly for the organization when so many people are able to make this small step up from $1-5 to $10.
The number of donor conversions saw a 94.6% increase with a LOC 99.9%
Link clicks in the email saw a 13.3% increase with a LOC 98.1%