Effective autocomplete triggers from the second character, matches mid-word rather than prefix-only, tolerates typos, mixes query completions with categories and a few real results, highlights the matched text, and responds in under 100ms. Its real job is preventing zero-result searches before they are submitted.
The keyboard occupies roughly half the viewport, so only two or three suggestions are genuinely visible. Rank ruthlessly, keep the list from reflowing as characters arrive, and never let the field lose focus while the visitor is still typing.
Track suggestion click-through as its own metric. A high rate means visitors are finishing sessions in the dropdown — the fastest successful search there is — and it will not show up in results-page reporting at all.