Low Propensity Promo Offer
CLIENT:
Mid-size US Publisher
OBJECTIVE:

A mid-size publisher wanted to grow digital subscriptions among users who were not likely to subscribe: 1) those who had already seen the paywall 7 times, and 2) those in the Stable Users engagement group, the lowest engagement amongst all the returning users.

APPROACH:
  • Users were segmented into the test using the criteria above for one month.
  • 50% of users received an extended promotional offer, while the other 50% remained a ‘business as usual’ control group.


RESULT:
  • A/B testing revealed a 0.38 percentage point lift in the conversion rate (.52% versus .14%). This is greater than a typical conversion rate for Fanatics of .36%.
  • There was a negligible difference in non-promo conversions between the test and control group. 23 users in the test group subscribed to standard site offers versus 26 subscriptions in the control group.
  • After two years, the net gain for permanently implementing the tactic is estimated to be $76K* above the baseline. 

    *Assumption that monthly conversions remains constant with a 45% churn at time of first increase.

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