Cost To Serve
Cost to serve measures the profitability of servicing customers or producing a product. Profitability can be calculated by customer, product, process, facility, and other factors. Ultimately, it represents the value of a customer to a business.
What Small and Midsize Businesses Need to Know About Cost To Serve
Businesses use a cost to serve analysis to determine whether customers, products, and market routes will profit. These facts act as a basis for making business decisions relevant to a particular customer. Companies can use the information to reduce the cost to serve and increase profits.
Related terms
- Tokenization
- ROIT (Return on Information Technology)
- SAC (Subscriber Acquisition Cost)
- Energy Trading and Risk Management (ETRM)
- Chief Revenue Officer (CRO)
- Core Banking System
- Record to Report (R2R)
- Fintech
- Financial Management System (FMS)
- Business Capability Modeling
- Capital Allocation
- Compound Annual Growth Rate (CAGR)
- Net Present Value
- Hedge Fund
- Gateway
- Selling General and Administrative (SG&A) Expenses
- ROE (Return on Equity)
- Financial Planning and Analysis (FP&A)
- Dollar-Cost Averaging (DCA)
- Procure-to-pay Solution
