Glossary
What is customer concentration?
Customer concentration is the share of revenue that comes from the largest customer, or the largest few. A business earning half its revenue from one customer is exposed to anything that happens to that customer, which is why the figure appears in most management packs and in the Nella Score.
The same measure applied to suppliers (supplier concentration) shows dependence on one source of goods or services. Nella works both out from invoice-level data where the accounting platform provides it.
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