How adding a premium to an instant donation page impacts revenue
Experiment ID: #103179
The Navigators
Experiment Summary
Timeframe: 08/04/2022 - 09/04/2022
Navigators is a ministry organization that runs a variety of eBook offers. We hypothesized that offering a physical version of an already popular offer as a premium on the donation page would increase the average gift amount. This hypothesis stemmed from two ideas: 1.) providing a physical copy is seen as having greater value than the free digital version, and 2.) a premium is a bridge of appreciation to the user. You’ve generously given this, and we want to thank you for something in return. There was $50 gift minimum requirement to get this premium.
Research Question
We believe that offering a physical copy of the ebook for donors who give $50 or more will achieve an increase in average gift .
Design
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)
)
)
Results
| Treatment Name | Conv. Rate | Relative Difference | Confidence | Average Gift | |
|---|---|---|---|---|---|
| C: | Control | 1.9% | $0.00 | ||
| T1: | Treatment-With Premium | 0.99% | -48.9% | 99.5% | $0.00 |
This experiment has a required sample size of 1,226 in order to be valid. Since the experiment had a total sample size of 5,149, 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
× 48.9% decrease in conversion rate
× 0% increase in average gift
Key Learnings
We ran the experiment for 30 days and saw a 48.9% decrease in conversion rate with a 99.5% confidence level based upon 75 total conversions. The data surrounding premiums for a donation amount often varies. When offering the premium prior to the actual donation, one theory is that it places the donor in the mindset of exchange. When you attach an item (in this case a book) to a specific number it could cause the donor to shift from the decision-making process of generosity to a more typical evaluation of purchase: is the item worth this?
Consider that the book they just received for free, is now having a "price" of $50 attached to it, this could cause the donor to see less value in what the organization is offering. They've been taken from the mindset of giving to one of consumption, and as a result, the donor is no longer interested.
Observations of the impact on other visitor segments in the experiment:
- (Other) visitors had a 55.5% decrease in donations with a 100% level of confidence.
- Mobile visitors had a 53.1% decrease in donations with a 99% level of confidence.
- New visitors had a 37.4% decrease in donations with a 91% level of confidence.
- Returning visitors had a 70.3% decrease in donations with a 99% level of confidence.
- Desktop visitors had a 64.4% decrease in donations with an 87% level of confidence.
- Female visitors had an 82.0% decrease in donations with a 99% level of confidence.
- Male visitors had a 100.0% decrease in donations with a 96% level of confidence.
- 55-64 visitors had a 100.0% decrease in donations with a 98% level of confidence.
- 35-44 visitors had a 100.0% decrease in donations with a 96% level of confidence.
- 45-54 visitors had a 100.0% decrease in donations with a 92% level of confidence.
- 18-24 visitors had a 100.0% decrease in donations with an 85% level of confidence.