HOW RANDOM ASSIGNMENT SAVED US $1M IN MARKETING SPEND

Summary from the TLDR Marketing newsletter

IntelyCare, a nurse staffing agency, tested varying bonus amounts for clinicians. It offered random bonuses between $0 and $100 instead of a flat $100. For nursing assistants, a $25 bonus improved completion rates, while nurses showed a decrease with higher bonuses. This approach saved $1M in unnecessary spending. The experiment demonstrated the value of random assignment and controlling for multiple comparisons. Smaller, targeted bonuses can be as effective as larger ones.