Can a 15% CTR and 5.7% conversion rate in Google Search ads indicate product-market fit?
I recently launched a user feedback chatbot SaaS called realfeedback.co and wanted to test demand with search ads. As I'm not a PPC expert, I set up basic keywords like "user feedback tool" and was surprised to see high numbers after just a few days:
- 15% click-through rate
- 5.7% conversion rate (including free plans)
Should these early results make me optimistic about product-market fit? Or is this too little data to draw conclusions from yet?
I'd appreciate any thoughts from those with more PPC and product-launch experience. Are these promising signs I'm on the right track or should I be cautious about reading too much into limited data?
Congrats on launching a chatbot @laszlo_kiss!
There is usually a misunderstanding among startup founders when it comes to the term "product-market fit".
In its essence, PMF is something that is achieved in the post-revenue phase.
With a ballpoint estimation, it takes 12-18 months to achieve PMF after launch.
You need to have achieved high NPS, low churn, double-digit annual growth, 70%+ growth coming from a single channel, etc. for PMF to come.
So here are a few questions you need to ask yourself;
Some metrics are vanity metrics. (Read more here: https://www.tableau.com/learn/articles/vanity-metrics) They can make you overly optimistic about your business.
So if you are going to run a B2C or small B2B SaaS, it may be good to start tracking the ultimate SaaS metrics, some of which I mentioned above.
Ping me if you have more questions and good luck!
I believe it's a mix of metrics, not just one. You should define what success means for your business, it varies for everyone. A simple example: a company like Airbnb might see success as an increase in repeat customers, indicating PMF for them, and not just looking at reservations, CTR or CR. Hope it helps. Good luck!