EightyTwenty+ guide
Customer concentration analysis: know where revenue exposure really sits
Customer concentration analysis measures how much of total revenue is generated by a relatively small number of customers. It is a useful exposure signal, but concentration and dependency are not the same thing.
Measure the concentration
Rank customers by revenue, calculate the contribution of the leading group and review the A/B/C distribution.
Separate concentration from dependency
A large customer can buy a broad, diversified product mix. A smaller customer can be heavily dependent on one product. EightyTwenty+ tests the relationship in both directions rather than treating customer size as dependency.
Add complexity before judging account quality
Where Order ID exists, Order Share can be compared with Revenue Share. This identifies customers with disproportionate ordering activity without pretending that order count is a measured cost-to-serve.