The Whale Curve of Customer Profitability

The Whale Curve of Customer Profitability - depicts the profit contribution profile of a customer base and highlights that 20% of customers can actually contribute 140% of overall customer base profitability, and that another 20% of customers can erode 40% of the bottom line. The horizontal axis of the Whale Curve graph represents the percentage of total customers ranked from the most profitable to the least profitable. The vertical axis represents cumulative profit contribution.

Literature

Grey P., Gold mining your customer portfolio: Customer Profitability, loyalyty & lifetime value (http://issuu.com/vaasaett/docs/goldmining-customer-portfolio)

Author

Zieliński Tomasz