Use a matching offer, but a bigger match does not add much more
Updated: 2 days ago
The match is more important than the size of the match.
The study. Economists from Yale and the University of Chicago sent letters that asked for money to about 50,000 past donors of a US nonprofit. Some letters offered a matching gift. With a matching gift, a second donor adds money for each dollar that you give. The letters used different match ratios.
The finding. A matching offer increased the money from each letter by 19%. It increased the percentage of people who gave by 22%. Larger matches (2-to-1 or 3-to-1) did not collect more money than a 1-to-1 match.
Why it matters. This study shows how people react to a bonus offer. The match itself causes people to act. A bigger match costs more, but it adds little. The same idea can apply to a "buy 1, get 1 free" offer.
The takeaway. Test a simple matching or bonus offer. Start with the smallest version. A larger version can cost more and not add more results.
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