← Every exhibit
Why does a unified customer value label conceal three distinct behavioral outcomes?
| Outcome | Decision question | What can go wrong if it is used as a proxy |
|---|---|---|
| Next purchase | Which customers are likely to buy again within the horizon? | A purchase can be small, unprofitable, or unrelated to retention |
| Partial defection | Which customers may reduce their relationship or activity? | A reduced activity pattern can be missed by a binary churn label |
| Profitability evolution | Which customers' profit contribution may change? | Revenue or purchase count can omit cost and margin |
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Reference & Evidence
Source: Table from this essay. Sources and interpretation are given in the article.
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