Lifecycle marketers understand that, when it comes to engaging customers, practical experience surpasses theoretical concepts. Regardless of how brilliant a campaign, email subject, ad, or creative may seem on paper, the true test lies in putting it into action with real customers. Traditionally, marketers have turned to A/B testing as a method of trying out their ideas.
Yet, as many marketers have discovered, A/B testing comes with its own set of issues. It’s a slow process that doesn’t scale efficiently. Moreover, the personalization it provides often lacks a genuine connection. Recognizing these challenges, a tech startup has taken the initiative to address these issues by introducing a revolutionary approach to accelerate experimentation for marketers.
Enter OfferFit, a Boston, Massachusetts-based startup that’s revolutionizing the game of A/B testing with its AI-driven automated experimentation platform. Designed for enterprises, OfferFit develops self-learning AI designed to streamline the experimentation process, enabling marketers to test and learn at a significantly faster pace compared to traditional A/B tests. OfferFit propels lifecycle marketers from traditional A/B testing to a more advanced level using the organization’s own data to achieve genuine 1:1 personalized experimentation.
In response to the growing demand for its platform, OfferFit announced today that it has secured $25 million in Series B funding led by Menlo Ventures. The funding will not only fuel OfferFit’s expansion but also contribute to further product development.
This funding round also includes support from Ridge Ventures, as well as previous investors such as Canvas Ventures, Harmony Partners, Alumni Ventures Group, Carbide Ventures, and Burst Capital. Capital One Ventures, the strategic investment arm of Capital One, also participated, building on the success of their previous collaboration with OfferFit.
In tandem with the funding news, OfferFit revealed key additions to its leadership. JP Sanday from Menlo Ventures is now a member of OfferFit’s board, and Alexander Rosen from Ridge Ventures has joined as an observer.
Founded in 2020 by CEO George Khachatryan and Victor Kostyuk, OfferFit uses reinforcement learning AI, which accelerates experimentation for lifecycle marketers by continuously learning and adapting to customer actions. Noteworthy enterprises like MetLife, Foxtel Group, and Brinks Home have already embraced OfferFit’s AI to streamline and automate their experimentation processes.
“We’ll use this funding to continue to scale, of course,” Khachatryan said. “But we’ll also invest heavily in our product. We’re making OfferFit quicker and easier to deploy, and giving marketers more tools to leverage the insights they gain from automating experimentation,” he added.
In a statement, JP Sanday, Partner at Menlo Ventures, said: “Marketing is undergoing a tectonic shift. AI makes it easy to create content, but how do you measure what is effective? The real power comes from leveraging AI with automated experimentation. OfferFit is the torchbearer in this space, helping businesses leverage 1:1 personalization to optimize critical lifecycle marketing campaigns like cross-sell, upsell, retention, referral, and win back.”
Aparna Sarin, Chief Marketing Officer for Business Cards & Payments at Capital One, also shared his views on the investment: “Today, personalization is table stakes, and leveraging AI-based experimentation platforms like OfferFit to automate learning is key to getting personalization right. This enables faster generation of data-driven insights into our customer preferences, allowing us to create more tailored offers and content, and lifting engagement.”
Businesses understand the impact of loyal customers, who can become influential advocates and set in motion a positive flywheel effect. With the rising costs associated with acquiring new customers, companies are turning to referral sources and leveraging targeted campaigns powered by AI as more efficient pathways for sustainable growth.
“We have invested in multiple successful AI companies, and we knew OfferFit had the potential to build a meaningful AI enterprise,” said Mike Ghaffary, General Partner at Canvas Ventures, who led OfferFit’s Series A round. “OfferFit is on pace to triple this year, and they’ve never churned a customer, with every existing customer either expanding or in active discussions to do so.”