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Luther Seminary

Changing the default payment option for recurring donations

Experiment ID: #187535

Luther Seminary

Experiment Summary

Timeframe: 07/30/2024 - 08/23/2024

Like most nonprofit organizations, Luther Seminary places a high value on acquiring new recurring donors. Their current donation form for recurring donations defaults to asking for a credit card payment. We wanted to measure the impact of asking for a direct debit or ACH gift. The donation page copy, format, form fields, and gift array all remained identical between the control and treatment. The only variable in this experiment was the default payment option.

Research Question

We believe that changing the default option to ACH/direct debit for donors considering a recurring gift will achieve an increase in donor conversions because the percieved greater ease for managing their ongoing gifts..

Design

C: Control
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T1: ACH Payment Method Default
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273 [thumb_574_382-height] => 382 [thumb_776_395] => https://nextafter-1a91a.kxcdn.com/wp-content/uploads/ACH_Payment_Method_Default-2-282x395.png [thumb_776_395-width] => 282 [thumb_776_395-height] => 395 [gform-image-choice-sm] => https://nextafter-1a91a.kxcdn.com/wp-content/uploads/ACH_Payment_Method_Default-2.png [gform-image-choice-sm-width] => 214 [gform-image-choice-sm-height] => 300 [gform-image-choice-md] => https://nextafter-1a91a.kxcdn.com/wp-content/uploads/ACH_Payment_Method_Default-2.png [gform-image-choice-md-width] => 286 [gform-image-choice-md-height] => 400 [gform-image-choice-lg] => https://nextafter-1a91a.kxcdn.com/wp-content/uploads/ACH_Payment_Method_Default-2.png [gform-image-choice-lg-width] => 428 [gform-image-choice-lg-height] => 600 ) ) )

Results

  Treatment Name Conv. Rate Relative Difference Confidence
C: Control 1.8%
T1: ACH Payment Method Default 9.8% 458.8% 92.6%

This experiment has a required sample size of 62 in order to be valid. Since the experiment had a total sample size of 108, and the level of confidence is not above 95% the experiment results are not valid.

Key Learnings

The key learning from this experiment is that changing the default payment option to ACH/direct debit for donors considering a recurring gift resulted in a significant increase in donor conversions. The treatment group saw a 458.8% increase in Recurring Donations for All Traffic compared to the control group.

However, the statistical level of confidence was only 92.6%, slightly below the 95% threshold for standard significance. This means that while the results are promising and indicate that the treatment was successful, further testing is needed to confirm the effectiveness of this strategy.

While this was not the primary metric we measured, the treatment version also had a slight decrease in one-time donation conversions through this form. Since the donation page copy was focused on recurring donations, and the result was well below the level of confidence for validation, this result should not discourage future testing and optimizations for default ACH payments for recurring giving pages.

In future experimentation, it would be beneficial to continue testing the default payment options for recurring donations to see if the initial results hold true - would offering additional methods of payment increase the conversion rate? Additionally, considering other variables such as the messaging around the payment options, the design of the donation form, and value proposition language throughout the page could affect the conversion rate. It is essential to continue experimenting and iterating to ensure that the organization is maximizing donor conversions and ultimately increasing support for Luther Seminary.

Experiment Documented by NextAfter

Question about experiment #187535

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