Hi,

without further context it is impossible to provide a general answer to this. There are too many factors that play a strong role here (e.g. what is the industry, etc.). Generally, I would consider the profitability of each customer and analyze whether a significant share of the customers are not really profitable. Then the profitability needs to be compared with the costs/effort to serve the customers.

General rules could be:

- If the profitability of the less profitable customers is still high/acceptable, you could increase the number of customers // If many customers are not very profitable, you may want to consider increasing the number of customers

- If the marginal effort to serve another customer is high, concentrating the customer portfolio would be preferred // If the marginal effort is low, you may want to consider serve more customers.

Depending on the situation/context, additional factors might be important. Would need more information to address these.

Hope this helps and PM me if you have further questions