Profit curves are graphical representation of data, which show the extent to which a population dimension (such as customers or products) contributes to or detracts from overall profitability.

Profit curves are used for profitability analysis. They enable a simplified visualization of a large amount of data. You can select a portion of the profit curve and perform a category analysis for a selected attribute. You can also download the snippet of data pertaining to that category analysis. For more information, see Generating Profit Curves.

For example, a population dimension (such as Customers or Products) displays along the x-axis of the profit curve in descending order by profit yields.

With customers, the most profitable customer is at the far left and the least profitable at the far right. The y-axis shows cumulative values for the account dimension, such as net profit. The most profitable customer's profit is the first y plot. The second y plot is the second customer's profit added to the first, and so on.

The first part of the curve is the steepest and shows the largest gains in profit. As less profitable customers are added to the curve, it flattens. If profitability goes negative for the least profitable customers, the curve moves downward.