← Every exhibit
Why do historically predicted customer tiers fail to match future profitability cohorts?
| Object | Question | Mistake if it is collapsed |
|---|---|---|
| Predicted group | Who does the model select at the decision date? | A forecast is treated as an observed outcome. |
| Future group | Who belongs to the value group after the stated horizon? | The result is read without its time boundary. |
| False exclusion | Who later belongs in the target group but was not selected? | Missed opportunity is hidden. |
| False inclusion | Who is selected but later belongs outside the target group? | Treatment cost is hidden. |
| Profitability object | What value, cost, price, and margin inputs are being aggregated? | Revenue or activity is treated as profit. |
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Reference & Evidence
Source: Table from this essay. Sources and interpretation are given in the article.
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