How the relevancy of an offer affects donor conversion and revenue
Experiment ID: #4398
Hillsdale College
Experiment Summary
Timeframe: 05/10/2016 - 06/29/2016
Hillsdale College launched a campaign to offer free pocket editions of the United States Constitution to anyone who requested one. They were promoting this through radio ads and paid search.
After the visitor requested their free Pocket Constitution, they were offered the option to enroll in Hillsdale’s popular Constitution 101 course, which includes a donation ask. However, their team wondered if visitors would be more likely to donate to a more relevant offer: supporting the Pocket Constitution program to provide them to more people.
There were many important factors to consider in this test: Hillsdale wanted more donors, but not at the cost of more revenue. The return on investment of this program affected how long it would run, and they wanted to get the most return possible.
They split the traffic after the Pocket Constitution request and measured results to determine a winner.
Research Question
Which offer will result in more donors and revenue?
Design
C: Course Offer
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)
)
Results
| Treatment Name | Conv. Rate | Relative Difference | Confidence | Average Gift | |
|---|---|---|---|---|---|
| C: | Course Offer | 0.49% | $44.16 | ||
| T1: | Pocket Constitution Offer | 1.7% | 248.0% | 100.0% | $20.97 |
This experiment has a required sample size of 570 in order to be valid. Since the experiment had a total sample size of 4,952, 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
× 248.0% increase in conversion rate
× 52.5% decrease in average gift
65.3% increase in revenue
Key Learnings
The treatment, which asked for a donation to support the Pocket Constitution program, produced a 65% increase in revenue.
Though the lift in revenue was statistically valid, it wasn’t an easy decision. The treatment produced a 248% lift in donor conversion, but had a much lower average gift. However, when the Hillsdale team looked at overall revenue, the increase in donations outweighed the decrease in average gift.
This prompted a new experiment to see if average gift could be increased to shrink the gap between the two and increase revenue even more.