How does calling out the loss of exclusive membership benefits for lapsed members affect conversion rates
The Heritage Foundation
Founded in 1973, The Heritage Foundation is a research and educational institution—a think tank—whose mission is to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense.
Experiment Summary
Ended On: 01/31/2024
The Heritage Foundation is running thier annual Kickoff Campaign to acquire members. You can become a member by giving a gift of any size, one-time or recurring. This experiment was sent to lapsed members to Heritage asking them to reactivate their membership. For this test, we wanted to see how lapsed members would react to calling out what they will lose by not reactivating their membership in 2024.
Research Question
We believe that calling out what they will lose by not reactivating their membership for lapsed members will achieve a higher donor conversion rate because the fear of losing something can be a more powerful motivator than the prospect of gaining something of equal value.
Design
Results
| Treatment Name | Conv. Rate | Relative Difference | Confidence | |
|---|---|---|---|---|
| C: | Control | 8.3% | ||
| T1: | Treatment #1 | 17.1% | 105.3% | 89.5% |
This experiment has a required sample size of 112 in order to be valid. Since the experiment had a total sample size of 148, 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 calling out what lapsed members will lose by not reactivating their membership can be a powerful motivator for increasing donor conversion rates. The treatment in which the loss aversion approach was used saw a 105.3% increase in donations compared to the control with an 89% level of confidence.
In future experimentation, it would be beneficial to refine the messaging and presentation of the loss aversion approach to optimize its impact. Testing different variations, such as emphasizing specific benefits or highlighting the potential negative consequences of not reactivating, could help identify the most compelling approach.
Additionally, it would be valuable to analyze the characteristics and preferences of lapsed members who responded positively to the loss aversion strategy. Understanding their motivations and demographics can inform targeted marketing efforts to similar segments in the future.
Overall, this experiment suggests that leveraging loss aversion can be a successful strategy to reactivate lapsed members. Continued testing and refinement will provide more conclusive evidence and insights for future campaigns.