Offermatica Readies Hosted Testing Service

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Offermatica Inc. is set to debut an online testing service Monday that should be familiar to traditional direct marketers. The service goes beyond the A/B split test, letting companies test and change several marketing elements on Web sites like forms, pricing and merchandising without expensive site redesign.

According to Offermatica, San Francisco, the multivariate system can quickly test and change content to identify the best offers to increase conversion and sales. It can be implemented in less than a week with no programming effort and requires no IT involvement, instead letting the marketing department control the key elements.

Offermatica has signed 24 clients since its beta launch last fall, including Timberland, Restoration Hardware, Urban Outfitters and Neiman Marcus. The company has generated $35 million in additional revenue for clients in their six-month trial of the system, according to founder/CEO Matthew Roche.

In contrast to the traditional A/B test approach, multivariate testing lets marketers test and quantify the effect of several elements at the same time, allowing for fast, accurate results with minimal traffic. Roche said results can be measured in as little as two weeks.

Using statistical analysis, the service can test an unlimited number of potential page variations by only testing a few combinations. Offermatica then identifies the effect of each of the elements in their default and new versions to identify the theoretical "best" page.

Pricing is a $125,000 annual baseline charge for unlimited tests.

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