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Customer Group Concentration
The process of identifying and focusing resources on specific customer segments that are most likely to drive growth.
Implications
The degree to which a company�s revenue or customer base is dependent on a small number of customers or customer groups, often used to assess risk and identify opportunities for diversification.
Example
Example: A B2B company identifies high customer group concentration when it realizes that 70% of its revenue comes from just three large clients, prompting it to seek new customers to reduce dependency.
Related Terms
Different from market concentration, which looks at the distribution of market share among competitors, customer group concentration focuses on the distribution of revenue among a company�s customers.
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