• Fri. Dec 1st, 2023

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OfferFit secures $25 million in funding to revolutionize marketing through machine learning personalization, making A/B testing obsolete.

Byyasmeeta

Nov 13, 2023

The homepage of OfferFit, a Boston-based startup led by CEO George Khachatryan, a PhD mathematician and former co-founder of education software startup Reasoning Mind, boldly declares, “A/B testing is dead.” OfferFit aims to revolutionize digital marketing by offering brands a more efficient and effective way to optimize and personalize their marketing efforts.

This declaration is backed by a recent $25 million series B funding round led by Menlo Ventures, with participation from Ridge Ventures, Canvas Ventures, Harmony Partners, Alumni Ventures Group, Carbide Ventures, and Burst Capital. Capital One Ventures also invested after successfully using OfferFit for automating personalized mass marketing messages about its financial services products.

OfferFit’s approach to digital marketing relies on machine learning, specifically reinforcement learning, which gamifies the learning process by training algorithms to take actions that result in “penalties” or “rewards.” This approach forms the foundation of OfferFit’s automated marketing solution, which analyzes client data and past marketing efforts to determine the best messages, timing, and channels for each customer, even when dealing with millions of users.

The system continuously optimizes its messaging, adapting to changes in user behavior and emerging channels. OfferFit’s machine learning solution is flexible enough to work with various key performance indicators (KPIs) without requiring extensive retooling.

Investor Jean-Paul (JP) Sanday of Menlo Ventures initially had reservations but was won over by the founders’ mathematical backgrounds and the platform’s potential to serve as a one-stop shop for optimizing and personalizing marketing across various sectors, channels, audience segments, and timespans. OfferFit claims to have achieved impressive results, such as a 120% increase in average revenue per user (ARPU) for Liberty Latin America and a 450% growth in value for Brinks home security.

OfferFit serves customers in various sectors, including retail, ecommerce, travel, hospitality technology, media, entertainment, telecommunications, utilities, financial services, insurance, healthcare, and wellness. Importantly, OfferFit maintains the privacy and data security of both its customers and end users and does not aggregate or co-mingle customer data.

With the recent funding, OfferFit plans to expand its product by integrating with marketing software platforms and enhancing self-serve and content generation capabilities. This may include a generative AI component for creating marketing copy and visual assets, subject to approval by human marketing managers before reaching end users.

yasmeeta

Just a 23-year-old girl on an exciting journey of self-discovery, eagerly seeking new skills and experiences to enrich her life