Why conversion matters – a toy model

There are often close relationships between top level business metrics. For instance, it’s well known that retention has a super strong impact on the valuation of a subscription business. Or that the % of occupied seats is super important for an airline. A fun little toy model that I can up with generates a curious relationship between conversion rates and revenue. The intuition Let’s look at an ecommerce company. I’m working at a company that does mortgage online, for instance. My intuition is...

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