So, about a month ago I started a company and just last Tuesday we launched our B2C edtech web-app. The results so far after throwing $1800 into Google Ads:
- 450 signed-up users
- 120 users solved 8 questions in free-trial (no credit card required).
- 16 users created 20 checkout sessions on Stripe.
- 2 paid user from U.S, pay by LINK, 1 user failed to make a payment after 1 hour - recorded by Stripe.
- The other 13 users? Ghosted us after creating one or more checkout-sessions.
Our product is really really good technically, also the price is cheaper than the market price from 5-10 times, but the final conversion is really worrisome even the students seem to be highly interested in our app by time per sessions, rate of solving 8 questions (which takes around 15-30 minutes).
I would like to ask whether the conversion from checkout sessions to paid users is normal or something fishy with the payment? Also, where I should go from here, I am very very technical but much less experience in growing and pushing sale.
Thank you,
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If you have good activation -> conversion should be in single digits at least . Look for benchmarks from Lenny here. Of course edtech is a tough category - is it towards adult education or children’s ?
Do you have email follow ups setup for folks who clicked on checkout but didn’t complete?
Checkout -> paid (should be 25%+) unless you have something broken ATM. Share a screenshot of checkout in case you need detailed feedback on what could be amiss?
What is it your app does? Maybe that can give us some context as to why your conversion rate is so low or why so many people stop when activating the stripe link?
There is no product-market fit. You made a lot of assumptions building your product and now in front of the market reality pops in. You pride yourself having a technically superior product and cheaper than your competitors, great for you but obviously the market does not care. You do not bring relevant value to the target you are aiming for, that is your issue with conversion. I am not attacking you, I am simply explaining to you what’s going on. Building a product that does not bring value to the customers and pay for Google ads is not the way to do it. I get it, first time founder, but what is shocking here is at no point you realize you got it wrong from the start of your business, you think it is a technical problem.
Hi u/S_kara10
Statistically, if you read my post, there is a strong market fit.
However the metrics which don’t make sense now is the number of customers created a checkout session with Stripe and actually making successful payment.
Currently 16 different users created 20 checkout sessions,
- but only 2 successful payments through LINK
- 1 failed after trying 1 hour to pay through CashAppPay.
- 13 have no recorded.So I am trying to gauge if there is something wrong with this step - I am contacting with Stripe representatives at the moment. As a mathematician, I am driven by numbers, and this number seems abnormal to me.
If this number is normal, then it is a nightmare for me, conversion to checkout is okay, but the conversion rate from checkout at Stripe to successful payment is 5% then there is no way I have the strength to continue.
Assuming you paid $1/click that would put you at a 25% sign up conversion rate which isn’t bad. From that to 2 sales makes me think there’s a disconnect somewhere. Without knowing more a few things come to mind.
- Are you running automated campaigns? Google might be giving you cheap leads from low intent/quality search terms. Have you looked at your search term report?
- My last startup was in edu as well and we saw poor results from Google. Facebook on the other hand was phenomenal. From memory it was .5% click to sale conversions on Google and 3% on Facebook.
- Disconnect with copy. If you’re using “free” in your ad copy, I would test copy without it. Your CTR will definitely drop, but you’ll get higher quality clicks. It could be something with your landing page copy as well. Maybe there’s something in there that people feel like they aren’t getting. If your selling point is “AI” maybe drop that. You might be getting clicks from curious clickers vs interested prospects.
- Are you following up with these leads? We found roughly 70% of our sales came from email follow ups. I would also add a separate follow up funnel for abandoned checkout sessions.
Hi u/RegisterConscious993,
My number is actually much better, the total $1800 spans 9 days, conversions from the first 5 days were almost nill. I just got confirmed by Stripe representatives that there is some issues with our payment gateway and most people can only pay with LINK.
If the payment is fixed, it seems like our CPA is around 50$/ customer yesterday and should go do to 10$ next week - we dont have stats on LTV yet, but our cheapest subscription package is 7.99/month
It seems like you have a lot of experience in this field, do you want to connect?
Sure, feel free to PM me.