Metadata
- Author: Erik Bernhardsson
- Full Title:: Modeling conversion rates and saving millions of dollars using Kaplan-Meier and gamma distributions
- Category:: 🗞️Articles
- Document Tags:: Survival Analysis,
- URL:: https://better.engineering/modeling-conversion-rates-and-saving-millions-of-dollars-using-kaplan-meier-and-gamma-distributions/
- Finished date:: 2024-05-01
Highlights
❌ Can extrapolate: it would be amazing if we could look at the early shape of a cohort curve and make some statements about what it’s going to converge towards. (View Highlight)
The ability to extrapolate isn’t just a “nice to have”, but it makes it possible to make assumptions about final conversion rates much earlier, which in turn means our feedback cycle gets tighter and we can learn faster and iterate quicker. Instead of having to wait months to see how a new acquisition channel is performing, we can get an early signal very quickly, and make business decisions faster. This is extremely valuable! (View Highlight)