Term of the Day:



A graph of a company's profitability on a customer relationship over time, with time on the x-axis and profit per customer on the y-axis. This curve is often J-Shaped because a company has costs associated with acquiring and onboarding a new customer that are offset over time by incremental revenue from that customer. Some people refer to this as an S-Curve because, in most cases, incremental revenue stops being generated and the curve takes the shape of an S instead of a J.

Example: The J-curve is an illustration of why customers that churn quickly are not profitable.

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