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The Heritage Foundation

How asking for less impacted overall revenue

Experiment ID: #78478

The Heritage Foundation

Experiment Summary

Timeframe: 11/30/2021 - 12/02/2021

As part of their Giving Tuesday campaign, The Heritage Foundation wanted to test a relatively new concept known as the downgraded ask. For this experiment, they created a chart of standards based upon the donors’ previous highest contribution where they would ask for a certain number of donors to give a specific amount. For the treatment version of this ask, they asked for a level below what the donor had previously given and added language acknowledging that they were being asked for less.

This was then tested across both emails that were sent out on Giving Tuesday and results were determined based upon all online giving (excluding recurring gifts) during Giving Tuesday and the day following.

Research Question

We believe that asking for less than their previous highest contribution for existing donors will achieve increase overall response and revenue.

Design

C: Control
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T1: Downgrade Treatment
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Results

  Treatment Name Revenue per Visitor Relative Difference Confidence Average Gift
C: Control $0.08 $59.61
T1: Downgrade Treatment $0.11 34.4% 95.1% $74.28

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
× 7.8% increase in conversion rate
× 24.6% increase in average gift
34.4% increase in revenue

Key Learnings

The "downgrade" treatment resulted in a 34% increase in overall revenue with a 95% level of confidence. However, it did not reach the required sample size to statistically validate this learning so it should be viewed as a directional lift.

When digging into the data, we analyzed a few distinct segments to better understand how the decreased giving language impacted donors based upon how much they have given in the past. Here is what we observed:

  • Highest gift between $1 - $99: We saw a 10% increase in conversion rate but an 8% decrease in average gift. The net result was a 1% increase in overall revenue which was not statistically significant.
  • Highest gift between $100 - $999: The treatment segment saw an increase in both conversion rate (10%) and average gift (52%) which resulted in a 67.3% statistically significant increase in revenue (both LoC and Sample Size validated). This means we that, despite asking for less than they have given in the past, the segment actually gave more!
  • Highest gift greater than $1K: This segment did not have enough gifts to be able to observe a trend.

This means that for the lower-dollar donors, the tactic was able to increase overall response rate but at the cost of average gift. In the future, for this segment, we would want to consider this tactic only for those we're trying to reactivate (like lapsed donors) rather than the whole file.

For the $100-$999 donors, this is absolutely a tactic that should be repeated in future campaign. We would need additional testing to validate the $1K+ segment in the future.

Experiment Documented by NextAfter

Question about experiment #78478

If you have any questions about this experiment or would like additional details not discussed above, please feel free to contact them directly.