Grocery Sign-up Rate

The Scenario

In late June, we mailed out promotional content to some of our customers for our "Delivery Club" Signing up to the club cost dollars and gave customers free grocery deliveries for one year, starting on July 1st.

We wanted to see if a nicer looking mailer would get more customers to sign-up. We randomly selected 3 groups, the first group received Mailer 1, a very basic and cheap version simple outlining the deal, the second group received Mailer 2, a really nice, colourful mailer printed on cardboard, and the third group were the control group and received to mailer at all.

We're very confident that the customers who were mailed, signed up at a far higher rate than the control group... but we're unsure if there is a significant difference between signup-rate for the cheaper mailer and the more expensive mailer. At first glance, there does appear to be a slightly higher sign-up rate for the expensive version but before making any conclusions we wanted you to run your eyes over the numbers.

The Task

Assess whether there is a difference between mailer 1 and mailer 2 in terms of sign-up rate to the club

The Hypotheses

null_hypothesis = There is no relationship between mailer type and signup rate and that they are independent.

alternate_hypothesis = There is a relationship between mailer type and signup rate and that they are not independent.

The Test used

Chi-square Test

The Result

chi2_statistic = 1.94

p_value = 0.16

critical_value = 3.84

Null hypothesis is retained. There is no relationship between mailer type and signup rate. They are independent.