Unfortunately, a high customer concentration is very tricky because as long as everything is going well, a high customer concentration is often even pleasant. If you only have to look after five large customers instead of a hundred small ones, then this initially sounds like less effort. It sounds efficient to have a few, but larger customers.
If you maintain a very close relationship with very few customers, you minimize coordination effort and acquisition costs and can of course respond very well to the few customers. The tricky thing is that you gradually become more and more dependent on a small number of customers. Each customer therefore becomes very important for your own success and your own existence. Small companies in particular that have relied on a few customers have had very painful experiences here.
Disadvantages of high customer china telegram screening concentration
The disadvantages of a high level of concentration can be very diverse and mutually reinforcing. One aspect, for example, is that you forget how to acquire new customers. Because you are so busy with existing customers, you never get around to acquiring new customers. What's more, you don't even need to acquire new customers.