How focusing on the product-level value proposition affects revenue
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
Timeframe: 02/17/2015 - 08/05/2015
The Heritage Foundation operates a political news organization called the Daily Signal. Part of the site has links back to the Heritage Foundation properties include a donation link found at the bottom of the page.
Since the donors coming from the site may not be as familiar with The Heritage Foundation, we wanted to discover what value proposition would be most appealing to the donors. We decided to create two treatments, one that targeted the primary value proposition of giving to The Heritage Foundation and the other that focused on a product-level value proposition of giving to the Daily Signal.
Research Question
Which value proposition is most appealing to visitors from the Daily Signal?
Design
Results
| Treatment Name | Revenue per Visitor | Relative Difference | Confidence | Average Gift | |
|---|---|---|---|---|---|
| C: | Heritage branded | $4.39 | $42.30 | ||
| T1: | Daily Signal branded | $11.98 | 172.8% | 98.8% | $98.68 |
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
× 16.9% increase in conversion rate
× 133.3% increase in average gift
172.8% increase in revenue
Key Learnings
By focusing the messaging on the value of the Daily Signal, we were able to better align with the visitors’ motivations. We were also able to keep visual congruence by changing the header of the page to reflect the branding of the Daily Signal. All of these adjustments led to a lift in revenue by 172.8%.