How does adding an annual recurring option affect donor conversion rate for prospects?
Experiment ID: #195454
The Heritage Foundation
Experiment Summary
Ended On: 02/19/2025
The Heritage membership team tested adding a third Annual Recurring Gift tab to the donation form during their Founders Day campaign. The test went to a nonmember prospect audience and featured 3 emails. The emails and the landing pages contained variable copy for the “Annual recurring gift” treatment asking prospects to “activate your annual recurring gift to The Heritage Foundation”.
Results showed a large decrease in overall transactions but a substantial increase in monthly and annual recurring giving. There was a 451% increase in monthly gifts from prospects who received the annual gift treatment, with the control receiving 2 and the treatment receiving 11. In addition, 18 of the total 32 gifts received on the treatment were an annual recurring gift.
Research Question
We believe that adding a tab for an annual recurring gift for prospects will achieve a lift in annual recurring gifts without affecting the donor conversion rate because members value consistency and the option to set and forget a gift is appealing to some donors. because people value consistency and the option to set and forget a gift is appealing to some donors.
Design
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Results
| Treatment Name | Conv. Rate | Relative Difference | Confidence | |
|---|---|---|---|---|
| C: | Control | 0.01% | ||
| T1: | Treatment #1 | 0.01% | -51.1% | 99.9% |
This experiment has a required sample size of 208,483 in order to be valid. Since the experiment had a total sample size of 1,234,329, 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
× 51.1% decrease in conversion rate
× 0% increase in average gift
Key Learnings
The key learnings from this experiment are:
1. Adding a tab for an annual recurring gift significantly increased annual and monthly recurring giving from nonmember prospects. This shows that providing the option for donors to set up automatic, recurring donations is appealing and can lead to a substantial increase in long-term giving.
2. Despite the increase in annual and monthly recurring gifts, the overall number of donations decreased by 51.1% for the treatment group. This suggests that some donors may have been deterred by the additional option, impacting the total number of transactions.
3. The control (without the annual recurring gift tab) outperformed the treatment in terms of donations for all traffic, indicating that for this particular audience, the traditional donation form without the additional tab was more effective.
In future experimentation, it is important to consider the trade-off between increasing recurring giving and potentially decreasing the total number of donations. It may be beneficial to conduct further research to understand which audience segments are most receptive to the annual recurring gift option and tailor the donation form accordingly. Additionally, it would be valuable to test different messaging and placement of the annual recurring gift tab to optimize its impact on giving without negatively affecting overall conversion rates.