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Cost to Serve (CTS or C2S) is an accountancy and financial planning tool used to calculate the profitability of serving the needs of a particular customer account, based on the actual business activities and overhead costs incurred in servicing that customer or customer type. [1]
Customer profitability is the difference between the revenues earned from and the costs associated with the customer relationship during a specified period. In theory, this is a trouble-free calculation to find out the cost to serve each customer and the revenues associated with each customer for a given period. [1]
Compare customer particular cost pool ratio to average customer ratio - e.g. if 20% of total costs of Customer A is applicable to customer service, while on average, for entire customer base, customer service costs are 10% of total costs, company if given interesting information allowing to take action (look for ways to reduce Customer A ...
For customers, the advantages include reduced upfront cost, increased flexibility, and lower overall cost compared to traditional software with perpetual software licenses. [25] In some cases, the steep one-time cost demanded by sellers of traditional software were out of the reach of smaller businesses , but pay-per-use SaaS models makes the ...
Furthermore, costs incurred for infrastructures are expected to be smaller compared to on-premises software as users only need their electronic devices to be able to get access to the services. Although initial costs for the access to services are usually low for cloud-based software, total costs required for the use of software over a specific ...
The IPO was priced above the company's previously indicated range of $65 to $67 and values it at around $6.30 billion, according to Reuters calculations. The U.S. IPO market, which was impacted by ...
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