Customer Concentration

Measures the degree to which a company's revenue depends on a few customers.

Customer Concentration

Measures the degree to which a company's revenue depends on a few customers.

Customer Concentration

Measures the degree to which a company's revenue depends on a few customers.

Formula

Concentration = Revenue from Top Customers / Total Revenue

Know your metric

Importance of

Customer Concentration

  1. Risk Assessment

Helps assess risk associated with dependency on few customers.


  1. Revenue Stability

Indicates potential volatility in revenue streams.

  1. Customer Dependency

Highlights dependency on major customers.

Drawbacks of

Customer Concentration

  1. Risk of Customer Loss

High concentration increases risk.


  1. Inhibits Diversification

Can deter efforts to diversify customer base.


  1. Market Vulnerability

Makes the company vulnerable to market changes affecting a few customers.

Try it now

Bespoke Subscription Analytics for your business.

Automatic Data Pulls

Set Alerts

Pre-Built Dashboards