Monetisation · Revenue quality · Component

The concentration measure

How much of the revenue depends on how few customers, channels or markets — the risk that only becomes visible when it arrives.

The deliverable

What it is

Concentration is the most common single point of failure in a revenue base, and it accumulates without any decision being taken.

It also hides. Apparently diverse customers frequently share one sector, one buying centre, or one economic driver, and they leave together.

One level in

What it is made of

Each element is a constituent part of the component. Follow one to see the attributes it carries.

  1. The customer concentration

    What share of revenue the largest customers represent.

    3 attributes: Largest customer share · Top five share · Loss impact

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  2. The other concentrations

    Dependence on a channel, a market, a sector or a single partner.

    3 attributes: Concentration type · Share · Depends on

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  3. The correlation check

    Whether apparently independent revenue sources would actually fail together.

    3 attributes: Shared driver · Affects · Confidence

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Check what single event would affect two apparently independent sources. Nominal diversification is worse than acknowledged concentration.