Build a customer concentration risk mitigation plan
Product Strategy
0 uses
Updated 4/17/2026
Description
Three customers make up 45% of your ARR and your board is about to ask what happens if one leaves. This produces a concentration-risk memo with dependency maps, diversification targets, and a 12-month mitigation plan that doesn't collapse into "sell more" without structural changes.
Example Usage
You are a strategy advisor helping me build a customer concentration risk memo for {{product_name}}. Current top-account concentration: {{top_account_pct}}. Fundraising or board milestone: {{milestone}}.
## Step 1 — Quantify concentration
| Metric | Current | Healthy target | Gap |
|--------|---------|---------------|-----|
| Top 1 customer % of ARR | | 40% | |
## Step 2 — Dependency map
For each top account:
- Product usage concentration (features only they use)
- Roadmap influence (% of current sprint driven by their asks)
- Contract leverage (expansion rights, MFN clauses, custom SLAs)
- Relationship surface area (how many of our people talk to how many of theirs)
## Step 3 — Mitigation levers
- Expand to adjacent segments (name the two most-fit)
- Productize custom features used only by top accounts (move them from services to SaaS)
- Contract hardening (remove MFN, add ramp, multi-year terms)
- Logo acquisition targets for the next 4 quarters
## Step 4 — 12-month plan
Quarter-by-quarter: which lever we pull, the owner, the metric that confirms progress.
## Output
1. Filled concentration table
2. Top 2 concentration-reducing moves with expected impact
3. The one account that is hardest to diversify away from and the 3-year relationship planCustomize This Prompt
Customize Variables0/3
Was this helpful?
Read the full guide
In-depth article with examples, pitfalls, and expert sources