E-commerce · Economics
Customer concentration economics
Published · Reviewed by The Diligence Standard Team · Updated
Customer concentration should be measured by revenue, contribution and dependence on common acquisition sources.
Records to reconcile
- Customer-level sales
- Customer contribution
- Source and contract data
Warning signal
Apparently diversified customers originate from one partner, audience or marketplace.
Transaction impact
Loss of one source can affect many customers simultaneously.
Response
Measure direct and correlated concentration and adjust transition protection.