Introducing the Whale Curve: A Powerful Tool for Visualizing Customer Profitability
Are you tired of drowning in a sea of customer data, struggling to identify the most profitable ones? Look no further! The Whale Curve is a game-changing chart that helps you visualize your customer profitability and make data-driven decisions.
What is the Whale Curve?
The Whale Curve is a graphical representation of your customer profitability, ranked from most profitable to least profitable. It shows the cumulative profit as each customer is added to the curve, revealing the impact of each customer on your overall business profit.
Benefits of Using the Whale Curve
- Identify your most profitable customers: See which customers are driving the majority of your profits and focus on nurturing those relationships.
- Optimize your customer portfolio: Make informed decisions about which customers to retain, acquire, or divest, based on their profitability.
- Improve resource allocation: Allocate resources more effectively by prioritizing customers with high profit potential.
How to Create a Whale Curve in Excel
Don’t worry, it’s easier than you think! Follow these simple steps:
Gather and organize your customer profit data: Collect the profitability data for each customer and organize it in a spreadsheet.
Enter your data into the template: Download our Whale Curve Excel Template and enter your customer list and profitability data.
Sort and calculate cumulative profit: Sort your data by profit descending and calculate the cumulative profit using our pre-built formulas.
Adjust the chart scales: Fine-tune the chart scales to focus on the most critical areas of your data.
Analyze and act: Interpret your Whale Curve and make data-driven decisions to optimize your customer portfolio.
Get Started with Our Free Whale Curve Excel Template
Download our template now and start visualizing your customer profitability today!
Important Note: Remember to use net profit data, rather than gross margin or gross profit, to get an accurate picture of your customer profitability. If you’re using Activity-Based Costing (ABC), you’re already on the right track!
By following these simple steps and using our Whale Curve Excel Template, you’ll be able to:
- Identify your most profitable customers and focus on nurturing those relationships
- Optimize your customer portfolio and allocate resources more effectively
- Make data-driven decisions to drive business growth and profitability
So, what are you waiting for? Dive into the world of Whale Curves and start swimming towards greater profitability today!
Whale curve can be easily created in Excel. Most of the Excel users trying to create Excel chart with whale curve are looking at visually analyzing and reporting their customer profitability.
You can download the Whale Curve Excel Template here