Customer Concentration

This topic demonstrates how to set up a dashboard that helps you measure how total revenue is distributed among your customer base. Understand what percent of customers contribute what percent of revenue and create segmented lists to best market to and retain your high contributing customers.

This analysis contains advanced calculated columns.

Getting Started

You need to first upload a file containing just a primary key with the value of one. This allows the creation of some necessary calculated columns for the analysis.

You can use the file uploader and the image below to format your file.

Calculated Columns

If you are on the original architecture (for example, if you do not have the Data Warehouse Views option under the Manage Data menu), you want to contact the support team to build out the below columns. On the new architecture, these columns can be created from the Manage Data > Data Warehouse page. Detailed instructions are given below.

A further distinction is made if your business allows guest orders. If so, you can ignore all steps for the customer_entity table. If guest orders are not allowed, ignore all steps for the sales_flat_order table.

Columns to create

• Sales_flat_order/customer_entity table

• (input) reference

• Column type: – Same table > Calculation

• Inputs: – entity_id

• Calculation: - case when A is null then null else 1 end

• Datatype: – Integer

• Customer concentration table (this is the file you uploaded with the number 1)

• Number of customers

• Column type: – Many to One > Count Distinct

• Path – sales_flat_order.(input) reference > Customer Concentration.Primary Key OR customer_entity.(input)reference > Customer Concentration.Primary Key

• Selected column – sales_flat_order.customer_email OR customer_entity.entity_id

• customer_entity table

• Number of customers

• Column type: – One to Many > JOINED_COLUMN

• Path – customer_entity.(input) reference > Customer Concentration. Primary Key

• Selected column – Number of customers

• (input) Ranking by customer lifetime revenue

• Column type: – Same table > Event Number

• Event owner – Number of customers

• Event rank – Customer's lifetime revenue

• Customer’s revenue percentile

• Column type: – Same table > Calculation

• Inputs: – (input) Ranking by customer lifetime revenue, Number of customers

• Calculation: – *case when A is null then null else (A/B)100 end

• Datatype: – Decimal

• Sales_flat_order table

• Number of customers

• Column type: – One to Many > JOINED_COLUMN

• Path – sales_flat_order.(input) reference > Customer Concentration.Primary Key

• Selected column – Number of customers

• (input) Ranking by customer lifetime revenue

• Column type: – Same table > Event Number

• Event owner – Number of customers

• Event Rank – Customer's lifetime revenue

• Filter – Customer's order number = 1

• Customer’s revenue percentile

• Column type: – Same table > Calculation

• Inputs: – (input) Ranking by customer lifetime revenue, Number of customers

• Calculation: – *case when A is null then null else (A/B)100 end

• Datatype: - Decimal

Metrics

• Total customer lifetime value
• In the customer_entity table
• This metric performs a Sum
• On the Customer's lifetime revenue column
• Ordered by the Customer's first order date timestamp

Reports

• Customer concentration

• Metric: Total customer lifetime value

• Filter: Customer's revenue percentile IS NOT NULL

• Metric: Total customer lifetime value

• Filter: Customer's revenue percentile IS NOT NULL

• Group by: Independent

• Metric A: Total customer lifetime revenue by percentile

• Metric B: Total customer lifetime revenue (ungrouped)

• Time period: All time

• Interval: None

• Group by: Customer's revenue percentile

• Show top/bottom: 100% of Customer's revenue percentile Name

• Chart type: Line

• Top 10% concentration

• Filter: Customer's revenue percentile <= 10

• Metric A: Total customer lifetime revenue

• Time period: All time

• Interval: None

• Hide chart

• Group by: Email

• Chart type: Table

• Bottom 50% concentration with only one purchase

• Metric A: Total customer lifetime revenue

• Customer's revenue percentile <= 50

• Customer's lifetime number of orders = 1

• Filter:

• Time period: All time

• Interval: None

• Hide chart

• Group by: Email

• Chart type: Table

• Bottom 10% concentration

• Filter: Customer's revenue percentile > 90

• Metric A: Total customer lifetime revenue

• Time period: All time

• Interval: None

• Hide chart

• Group by: Email

• Chart type: Table

After compiling all the reports, you can organize them on the dashboard as you desire. The result may look like the above sample dashboard.

If you run into any questions while building this analysis, or simply want to engage the Professional Services team, contact support.