Chapter 5 · Customer Value Portfolio
Friction Portfolio
Every customer has current value (what they’ve already created) and potential value (future stream while the LifeCycle is alive). Map the base. Act by quadrant.
2×2 portfolio
Low potential →
High potential →
High current ↑
Win back
Defecting Best
Were rocket fuel; activity cooling. Retention’s real home.
Retain
Rocket Fuel
10–20% of customers, majority of profits. Protect.
Low current ↓
Skip
Low / Low
1× and non-responders. Default $0 incremental.
Activate
New High Potential
Recent but thin history. Grow into rocket fuel.
Potential value is inferred from behavior (Recency, Latency, RF trend) — not vibes.