Named Account Revenue Concentration
Percentage of total revenue generated from designated strategic or named accounts
What is Named Account Revenue Concentration?
Named account revenue concentration is the percentage of total revenue that comes from a defined list of named accounts. It shows how dependent the business is on its key customers.
High concentration can be a strength if those accounts are loyal and growing, but it is also a risk if one leaves.
How this KPI is measured
- Function
- Sales
- Sub-function
- Account-Based Selling
- Industry
- All Industries
- Type
- Lagging
- Impact
- Revenue
- Unit
- %
- Measurement frequency
- Quarterly / Annual
- Formula
- (Revenue from named accounts / Total revenue) × 100
How to calculate it
Divide revenue from named accounts by total revenue, and multiply by 100.
For example, if the named account list produced 6,000,000 of 10,000,000 in revenue, the concentration is 60%.
Fix the list of named accounts at the start of the period, and also look at the share of the largest single account.
Where it is used
Managing risk
See how exposed the business is to a few customers.
Testing strategy
Check whether a focus on key accounts is paying off.
Planning coverage
Decide how much attention key accounts need.
How to improve it
Tips and common mistakes
- Look at the single largest customer's share as well.
- Concentration is not always bad, but it needs a plan.
- Review the named list at least annually.
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