Centrally managed systems cost to perform the processes "manage sales orders", "manage customer service requests/inquiries", and "manage customer complaints" per $1,000 revenue

This measure calculates centrally managed systems cost (i.e. direct and/or allocated to the business entity) per $1,000 revenue to take, receive, process and acknowledge new customer orders or amendments to outstanding customer orders; monitor status from order receipt to customer delivery/customer invoicing; manage customer service requests/inquiries; and manage customer complaints. Systems costs include a variety of specific costs related to computer hardware/software, network maintenance, data storage, etc., and all fees paid to full-time, part-time, or temporary employees or independent contractors hired to perform these services. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "plan and manage customer service operations."

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure Id:
100401
Total Sample Size:
389 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are dollars.

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(Centrally managed systems cost to perform the process "manage sales orders" + Centrally managed systems cost to perform the processes "manage customer service requests/inquiries" and "manage customer complaints") / (Total business entity revenue * 0.0010)

Key Terms

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Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

Systems Cost

Systems costs include all expenses, paid or incurred, in conjunction with:

Computer hardware or computer software acquired by the organization or provided to the organization through service contracts.

Any related costs to process, service and maintain computer hardware or computer software. The costs of providing and maintaining services for each applicable process (e.g., computer system(s) processing (CPU) time, network/system communication charges, maintenance costs for applications and data storage). This includes the costs related to LANs, WANs, etc. This does not include one-time costs for major new systems developments/replacements. Consultant fees should not be included in depreciation of new system implementations. Include only those costs that occur more than six (6) months after implementation, as normal system maintenance costs. Any systems cost (e.g., maintenance) which is outsourced to a third party supplier should be captured in the separate cost category labeled outsourced cost.

Systems cost should include all salaries, overtime, employee benefits, bonuses or fees paid to full-time, part-time or temporary employees or independent contractors who perform services relating to computer hardware, computer software, processing or systems support.

Cost Effectiveness

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Measure Scope

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Cross Industry (7.3.0)

  • 6.2.1 - Plan and manage customer service work force (10387)
    • 6.2.1.1 - Forecast volume of customer service contacts (10390)
    • 6.2.1.2 - Schedule customer service work force (10391)
    • 6.2.1.3 - Track work force utilization (10392)
    • 6.2.1.4 - Monitor and evaluate quality of customer interactions with customer service representatives (10393)
  • 6.2.2 - Manage customer service problems, requests, and inquiries (10388)
    • 6.2.2.1 - Receive customer problems, requests, and inquiries (10394)
    • 6.2.2.2 - Analyze problems, requests, and inquiries (13482)
    • 6.2.2.3 - Resolve customer problems, requests, and inquiries (10395)
    • 6.2.2.4 - Respond to customer problems, requests, and inquiries (10396)
    • 6.2.2.5 - Identify and capture upsell/cross-sell opportunities (16928)
    • 6.2.2.6 - Deliver opportunity to sales team (16937)
  • 6.2.3 - Manage customer complaints (10389)
    • 6.2.3.1 - Receive customer complaints (10397)
    • 6.2.3.2 - Route customer complaints (10398)
    • 6.2.3.3 - Resolve customer complaints (10399)
    • 6.2.3.4 - Respond to customer complaints (10400)
    • 6.2.3.5 - Analyze customer complaints and response/redressal (19072)
  • 6.2.4 - Process returns (20094)
    • 6.2.4.1 - Authorize return (10364)
    • 6.2.4.2 - Process return and record reason (20095)
  • 6.2.5 - Report incidents and risks to regulatory bodies (12840)