Conversion rates – you are (most likely) computing them wrong

1 · Erik Bernhardsson · May 23, 2017, 4 a.m.
How hard can it be to compute conversion rate? Take the total number of users that converted and divide them with the total number of users. Done. Except… it’s a lot more complicated when you have any sort of significant time lag. Prelude – a story Fresh out of school I joined Spotify as the first data analyst. One of my first projects was to understand conversion rates. Conversion rate from the free service to Premium is tricky because there’s a huge time lag. At that time, labels were highly s...