This measure calculates overhead 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 requests/inquiries; and manage customer complaints. Overhead costs refer to those that an organization cannot identify as direct costs of performing a process; these include occupancy, facilities, utilities, and maintenance, etc. 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 "manage customer service."
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(Overhead cost to perform the process "manage sales orders" + Overhead cost to perform the processes "manage customer service requests/inquiries" and "manage customer complaints") / Number of active customers in customer master file
For the purpose of this study, provide the total actual overhead costs for the year related to the specified process. These are costs that cannot be identified as a direct cost of providing a product or a service. Include the primary allocated costs such as occupancy, facilities, utilities, maintenance costs, and other major costs allocated to the consuming departments. Exclude systems costs that are allocated, since these will be captured separately as systems cost.
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.