Offermatica Unveils Site Optimization Tool

Start-up marketing technology firm Offermatica today launched its hosted testing and optimization service, which allows marketers to test multiple elements of a Web page to determine which combination is most effective at converting visitors.

Marketers define the ads, emails, offer page or search engine landing page to be tested, and insert a snippet of Javascript into the site code to create what Offermatica calls an “mbox.” Offermatica servers then automatically generate and publish into the mbox the content to be tested.

Using statistical analysis, the Offermatica service is able to test an unlimited number of potential page variations by only testing a few combinations or “recipes.” Offermatica then identifies the impact of each of the elements in their default and new versions to identify the theoretical best-converting page. In this way, marketers and agencies can test and change page elements like forms, pricing and merchandising to optimize campaigns for multiple target segments.

While online marketers use an array of tools to optimize ad copy and placement in their ad campaigns, many neglect to do the same to their site, according to James Roche, president of Offermatica.

“In order to lower their cost per acquisition, companies must convert more of the customers they have paid to acquire,” Roche said. “Offermatica allows companies to get more revenue out of their online acquisition spend by delivering the right campaign to the right customer.”

The company has been trialing the service for the past six months with more than 20 advertisers, including JoAnn.com, PETCO and Restoration Hardware. Most of the companies start with a paid proof-of-concept test, but all who have tested the product have signed on as customers, Roche said. Pricing for the service is either $125,000 per year for unlimited tests, or $0.10 per tested visitor.

Fabrics and craft retailer JoAnn.com was able to increase its Web site conversion on the sewing machine page by 30 percent with the testing service. It also increased average order value by 137 percent, and improved revenue per visitor by 209 percent.

The first test was a comparison of on-site promotions — “free shipping” or “buy two sewing machines and get 10 percent off” — which would be easily won by the free shipping offer, said Linsly Donnelly, COO at Idea Forest, the company that owns and manages the JoAnn.com site.

“We were shocked to discover that 10 percent off two machines was the better offer, but we found that Joann.com customers were pulling their friends together to purchase. This is a perfect example of why testing is so critical — without Offermatica’s service, we would have promoted the free shipping offer and left money on the table,” Donnelly said.

Donnelly said her team now uses the product every day to test some part of their site.