costalloc

Whale curve

Customers Products

Cumulative ABC profit, most profitable customers first. The curve peaks at 2,056,843 after 58 customers; the 22 least profitable ones erode it to 1,817,560.

ABC

0500,0001,000,0001,500,0002,000,0002,500,000 01020304050607080 peak

Traditional costing (for comparison)

0500,0001,000,0001,500,0002,000,000 01020304050607080 peak

Peak 1,597,485; 11 loss-making customers under traditional costing versus 22 under ABC.

Value destroyers

RankCustomersProfitCumulative
80C061 Online account 061-59,1661,817,560
79C060 Online account 060-35,6521,876,726
78C059 Online account 059-20,9471,912,378
77C062 Online account 062-17,7761,933,325
76C053 Online account 053-15,5481,951,101
75C077 Contract account 077-13,2981,966,649
74C058 Online account 058-12,0891,979,947
73C056 Online account 056-10,6231,992,036
72C065 Online account 065-9,1532,002,659
71C054 Online account 054-6,6542,011,812
70C068 Contract account 068-4,6752,018,466
69C052 Online account 052-4,5682,023,141
68C078 Contract account 078-4,1712,027,710
67C010 Retail chain account 010-3,9962,031,880
66C012 Retail chain account 012-3,9452,035,877