The whale curve shows that the middle 60% of customers generate the majority of total profits.

Question

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The whale curve of cumulative profitability in Exhibit 6-3 shows that the most profitable 20% of customers generated about 180% of total profits; this is the peak, or hump of the whale above sea level. The middle 60% of customers about break even, and the least profitable 20% of customers lose 80% of total profits, leaving the company with its 100% of total profits ("sea level" in the whale curve represents the company's actual reported profits).

The Whale Curve Shows That the Middle 60% of Customers