SOURCE: Optimizely

Optimizely

November 16, 2010 07:00 ET

Optimizely Launches Simple Product to Dramatically Increase Online Sales, Raises Investment

Announces $1.2 million funding round including prominent investors like Ron Conway, and Gmail-creator Paul Buchheit; Optimizely helped Clinton-Bush Haiti Fund increase donations by $1 million; Customers include Cafe Press, Causes, Democratic National Committee, Shopify, Cloudera, and TRUSTe

SAN FRANCISCO, CA--(Marketwire - November 16, 2010) - Optimizely today launched its ridiculously simple product to help marketers convert more website visitors into customers. Using Optimizely, marketers can run tests to measure which designs and content are most effective in encouraging visitors to buy something, register, donate, or take some other desired action. Optimizely vastly simplifies the process of running these tests (known as "A/B tests") and is often capable of boosting revenue and customer conversions by 10% or more.

The vision for Optimizely is based on CEO Dan Siroker's experience as Director of Analytics for the Obama campaign, where he and his team increased online donations by more than $60 million through repeated A/B testing. He and fellow ex-Googler Pete Koomen knew they were on to something big after using Optimizely to help raise more than $1 million in additional donations for the victims of the Haiti earthquake this year. Optimizely revealed that small changes, like adding an image of earthquake victims to the donation page and changing the "Submit" button to "Support Haiti," increased the total amount of money raised online by 10%, which meant more than $1 million in additional donations.

Optimizely makes A/B Testing dramatically easier, enabling web marketers to test new designs and content without the help of IT. The need for a simple tool like this was apparent after speaking with dozens of companies says Siroker. "On average, only 2% [1] of website visitors actually turn into customers, and most companies aren't doing anything to improve this because testing has always been too hard. By focusing on usability, we've created a product anyone can use, not just techies."

Customers

Optimizely customers include e-commerce platform Shopify, privacy seal provider TRUSTe, and the Democratic National Committee, which used Optimizely to run tests on its viral "Commit to Vote" Facebook app during the most recent U.S. midterm elections. 

Says DNC Deputy Director of New Media, Josh Peck: "The Commit to Vote Challenge Facebook app was very effective at engaging people in the voting process, many of whom were otherwise unlikely to turn out. It experienced viral growth soon after launch, and currently has more than a million active users on Facebook. This would not have been possible without the improvements made using Optimizely."

Marie Ewald, former director of online fundraising for the Clinton Foundation, commented: "With a disaster like the Haiti earthquake, every second counts when it comes to attracting donations -- and it goes without saying that every dollar counts. In less than 48 hours, we tested eight versions of the donation page and, through this experiment, we were able to generate an additional $1,022,571 in online revenue."

Shopify, one of the fastest growing e-commerce platforms online, commented: "Since the success of our initial test, we are more thrilled about A/B testing our webpage than ever," said Daniel Weinand, Chief Design Officer at Shopify. "It's amazing how easy it was to run different videos against each other and determine the winner statistically. Without Optimizely, we never would have known that."

TRUSTe uses Optimizely as part of its business development process. "Using Optimizely, TRUSTe is able to simply and immediately demonstrate the uplift in conversion that our customers can achieve from our industry-leading Privacy Certification and Trustmark programs," explained James Arra, VP Sales at TRUSTe. "Optimizely is an invaluable tool in our sales process and, best of all, it's super easy to use. We don't need a Java or HTML tech to set up a test -- anyone on the team can do it." 

Pricing

Optimizely offers monthly subscriptions starting at $19 per month.

Funding

Optimizely today announced $1.2 million in funding from prominent angel investors including

  • Ron Conway
  • Chris Sacca
  • YouTube co-founder Steve Chen
  • Gmail creator Paul Buchheit
  • Actor and producer Ashton Kutcher
  • Lotus founder Mitch Kapor
  • Hunch co-founder Chris Dixon
  • Delicious founder Joshua Schachter
  • Naval Ravikant
  • Ram Shriram
  • Ariel Poler
  • Aydin Senkut
  • Popsugar founder Brian Sugar
  • Deep Nishar
  • Loopt founder Sam Altman
  • Reddit founder Steve Huffman
  • Nils Johnson
  • Jonathan Heiliger
  • Keval Desai
  • Elad Gil
  • Avichal Garg

About Optimizely

Optimizely was founded in 2010 by ex-Googlers Dan Siroker and Pete Koomen in order to help marketers dramatically improve website conversion rates through testing. The company is based in San Francisco and privately funded by investors including YCombinator, Ron Conway, Paul Buchheit, and Ashton Kutcher. For more information, please visit http://www.optimizely.com.

[1] Fireclick web analytics benchmark index -- http://index.fireclick.com/

Contact Information

  • For media inquiries, contact:
    Carol Tong
    Atomic PR
    (415) 593-1299
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