Tag Archives: Lifetime Value

STOP! – Understand and Apply Growth Curves Correctly

Growth curves are a critical part of many different disciplines including the physical disciplines, however, many business,  with the exclusion of financial companies, tend to neglect growth curves due to the preference of simpler, easy to implement linear lines. They are often misunderstood and when incorrectly applied,  lead to very divergent results. If used properly, however,  they are a great way to understand long term behavior of business activity. This article presents a brief analysis of a few different curves and compares them to a linear approach and further examines their application.

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