What does A/B testing mean?
Let’s take it back to grade-school science class. Remember hypotheses? A/B testing is a means of taking your hypotheses (in this case, with webpages or pages elements) and experimenting to determine which option achieves your goal the best. It involves creating a version A, a version B, and the third version which is the control group.
As we refer to it, A/B testing performance is measured based on predefined metrics, such as donation conversion rates or average donation amounts. Why we’re big proponents: even minor adjustments to content or design can significantly help nonprofits influence donor behavior and increase giving.
Why A/B testing is important for fundraising strategy
A/B testing helps nonprofits gain insights into donor behavior and preferences and make informed decisions that can lead to more effective fundraising campaigns.
Take this example:
To see if off-site donation forms affect click-to conversions, we conducted A/B tests with several nationally established nonprofits.
- For the tests, each nonprofit's navigation bar donation button was set to direct 50% of website visitors to the organization's existing donation form (the control), and 50% to the Fundraise Up donation experience (the test).
- Over the course of a year, we measured conversion statistics for more than 5.6 million website visitors.
Here’s what we found: The control form saw an 8% drop in views while the test form (Fundraise Up) saw just a 0.7% drop. From this, we have data-backed proof showing why it’s so important to have an on-page donation form.
A/B testing should be standard for nonprofit SaaS companies (but it’s not)
To us, experimentation is a core tenet. We test to understand what resonates with donors which helps nonprofits increase conversions and revenue for their mission. But despite the clear benefits of A/B testing, it remains uncommon among nonprofit technology providers for several reasons:
Concern 1: Resource constraints
Many nonprofit tech companies operate with limited resources, making it challenging to implement robust A/B testing programs:
- Time constraints: A/B testing requires dedicated time for planning, execution, and analysis, which can be difficult for small teams juggling multiple priorities.
- Personnel limitations: Effective A/B testing often requires specialized skills in data analysis and statistical interpretation, which may not be readily available in-house.
- Infrastructure costs: Setting up and maintaining the necessary infrastructure for A/B testing can be expensive, especially for inexperienced companies.
Concern 2: Lack of expertise
Effective A/B testing requires specialized knowledge that many nonprofit tech providers may not possess:
- Statistical literacy: Interpreting A/B test results requires a solid understanding of statistical concepts, which may be lacking in some organizations.
- Experimental design skills: Creating valid and meaningful A/B tests demands expertise in experimental design and methodology.
- Data analysis capabilities: Extracting actionable insights from A/B test data requires advanced analytical skills.
Concern 3: Status quo comfort
Some nonprofit tech providers may be hesitant to experiment with changes that could potentially change how they’ve always done things:
- Resistance to change: Established companies may be comfortable with their current practices and resistant to adopting new methodologies.
We see A/B testing as the key to setting a new standard in the industry, demonstrating the value of data-driven decision-making in nonprofit technology.
Embrace: Continuous improvement
Regular A/B tests demonstrate a commitment to continuous improvement. This approach ensures that technology is evolving to meet the changing needs of nonprofits and their donors.
Embrace: Data-driven decision making
The results of A/B tests are based on concrete data rather than assumptions. This data-driven approach leads to more effective and reliable tools for nonprofits.
Embrace: Enhanced user experience
A/B testing allows nonprofit tech providers to experiment with different elements and find combinations that resonate most with users. This process ultimately improves the overall user experience for both nonprofits and their donors.
Embrace: Optimized fundraising performance
By consistently testing and refining their platform, tech providers can help nonprofits maximize their fundraising potential. This is particularly crucial during peak giving seasons, such as the end-of-year period.
Exploring future trends in A/B testing and fundraising strategy
It’s important to note that A/B testing should be an ongoing process that’s performed regularly to assess current trends — not a one-time analysis. Continually experimenting with and refining strategies helps ensure fundraising efforts always align with donor preferences and behaviors, even as they change.
AI plays an important role in A/B testing. Its ability to process immense data sets in real time, aptitude for pattern recognition, and utilization of predictive analytics present an opportunity to optimize fundraising with increased speed and accuracy.
The integration of A/B testing with other marketing channels has also become more prevalent as the emphasis on personalization in messaging grows. In other words, A/B tests aren’t just for webpages! Similar comparative experiments can be leveraged for email marketing, social media, and other channels to develop tailored, omni-channel campaigns that truly resonate with your nonprofit’s audience. Looking for support in these areas? Visit our Partner Marketplace to find a trusted company in our ecosystem.
Maximize on donor giving with Fundraise Up
With A/B tests, we do the hard work to understand what resonates with donors. You reap the rewards. And the numbers don’t lie.
- Average conversion rate (click-to-donate) — 29% (Fundraise Up) vs. 12% (industry)
- Average one-time donation — $189 (Fundraise Up) vs. $115 (industry)
- Average monthly recurring donation — $44 (Fundraise Up) vs. $24 (industry)
- Average recurring 12-month plan retention rate — 76% (Fundraise Up) vs. 61% (industry)
With the right nonprofit donation platform, you can both excite and encourage donors to give (and give again!). Join the 3,000+ nonprofits that already love us. Talk with our platform experts today.