This measure calculates outsourced cost per active customer 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. Outsourced cost refers to the total cost of outsourcing a specific process to a third party, except one-time charges for any type of restructuring or reorganization. A customer is considered active if they have purchased a business entity's product at least once in a 12-month period. 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."
(Outsourced cost to perform the process "manage sales orders" + Outsourced cost to perform the processes "manage customer service requests/inquiries" and "manage customer complaints") / Number of active customers in customer master file
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.