“A/B testing is dead” proclaims the copy on the homepage of OfferFit, a three-year-old startup based in Boston. Founded by George Khachatryan, a PhD mathematician and former co-founder of education software startup Reasoning Mind, OfferFit is disrupting the world of digital marketing with its innovative approach.
OfferFit offers brands a way to optimize and personalize their digital marketing efforts more easily and with better results than traditional methods. Through the use of machine learning, specifically reinforcement learning, the company’s automated marketing solution delivers optimal messages to customers at the right times and on the right channels.
“The beauty of this is it’s not a one-time thing,” says Jean-Paul (JP) Sanday, a partner at Menlo Ventures. “It just always optimizes and it stays on — the lift actually improves over time.”
The Power of Reinforcement Learning
“[OfferFit’s] approach to digital marketing…relies on trial-and-error, similar to how human babies learn,” explains Sanday. “Reinforcement learning forms the backbone of OfferFit’s automated marketing solution, which ingests data about its clients’ customers and marketing efforts-to-date, and automatically figures out the optimal messages to send.”
Traditionally, A/B testing involved sending different types of communications to different groups of recipients and measuring the performance of each. However, OfferFit’s machine learning algorithms take this concept to a whole new level. By gamifying the learning process and using trial-and-error, OfferFit’s algorithms continuously improve and adapt to changing user behavior.
OfferFit’s flexibility is another key advantage. Regardless of the key performance indicators (KPIs), whether it’s open rates, engagement, click-throughs, or any other measurable result, OfferFit’s platform can optimize messaging times and channels to achieve the customer’s goals.
Impressive Results and Future Plans
The success of OfferFit has not gone unnoticed. The company recently announced a $25 million series B funding round led by Menlo Ventures, with participation from other prominent investors. Capital One Ventures, for example, has already seen success using OfferFit to automate personalized mass marketing messages to its customers.
OfferFit’s impact on its customers’ businesses is undeniable. Liberty Latin America, a telecom company, experienced a 120% increase in average revenue per user (ARPU), while Brinks home security achieved a 450% growth in value by driving contract extensions from existing customers.
Looking ahead, OfferFit plans to expand its product offerings. The company will build integrations with marketing software platforms, enabling its machine learning capabilities to work seamlessly with existing workflows. Additionally, OfferFit aims to enhance its self-serve and content generation capabilities, potentially incorporating generative AI for generating raw marketing copy and visual assets.
However, Jean-Paul Sanday emphasizes that human oversight and approval will always be essential. “These [AI-generated] assets would, of course, be subject to the approval of a human marketing manager or equivalent before being pushed out to end users,” he clarifies.
The future of digital marketing is here, and OfferFit is leading the way with its AI-powered solution. By leveraging machine learning and adopting a reinforcement learning approach, brands can achieve better results and personalization in their digital marketing efforts.
