I have created a minimum viable product that I'd like to turn into a business. I have used pay per click advertising to get:
It is a monthly subscription and I spent 6 months of subscription costs to get each of my 2 paid subscribers. So I will need to retain them for at least 6 months to break even on advertising costs. I feel this number is pretty high and that my conversion costs could come down a lot.
Also, my product is quite minimum so I feel my retention on these subscribers may suck. Frankly, I am almost a little embarrassed of where the product stands right now
(Sounds like this is common for MVP though).
I feel I have a number of assumption I need to test. But I'm not sure it what order to tackle them.
Possible next actions:
What should I be focusing on?
Claus Schwarm has already given a good answer. In addition to this, I'd like to comment on a few sentiments from OP's post.
need to retain them for at least 6 months to break even on advertising costsI'm speaking outside of what I have hands-on experience with here, but I wouldn't worry too much about this. Based on the cases I have read continuous improvement of your site and ad campaign will in the long run give significant conversion rate improvements.
What should I be focusing on?Learning more about your customers' needs. But you mention using a web survey. IMHO these have their issues, and on a small group of 12'ish people websurveys flat out don't work. If at all possible, I would say get the phone numbers of your customers, and call them, and ask open-ended questions. Phone or face to face works so much better for conversations where the conversation topic isn't well known beforehand.
This is rather hard to answer. There are so many variables that influence success.
However, you should try to base your decision on data if possible. Therefore, your next action should be gathering more data (and better data) before you determine other actions.
Also, use a better metric -- for example, conversion rate. Your metric of acquisition costs to subscription costs has too many potential causes. What if your monthly subscription price is simply too low?
Concerning assumptions: The three you mentioned are typical for any startup. It's not rational to start a company if one wouldn't believe in them. They are also rather general and therefore hard to test. Figure out specific assumptions, you're currently using. For example:
Note that features, in general, are the least influential cause for a bad conversion rate. In most cases, customers worry about other things. They seldom note the lack of something.
A list of specific assumptions is easier to test them. It's also easier to find alternative ideas to test. For example, you could sumbit your site to HackerNews or Business of Software for a review. Sometimes, major flaws on your homepage can easily spotted by outsiders.
Hope this helps.
I also agree with asking open ended questions in a non-email/form way. In addition to the site analytics, try to capture the usage data such as how many times a feature was checked within the site/application and understand the user interactions. These metrics would also help you when the subscription rate grows and you can calculate signups/churn rate etc better.