Systems cost to perform 'define customer management strategy' activities per $100,000 revenue

This measure calculates systems cost to perform 'define customer management strategy' activities per $100,000 revenue. Systems cost refers to a variety of expenses related to computer hardware/software, network and application maintenance, data storage, etc., and all fees paid to full-time, part-time, or temporary employees or independent contractors hired to perform these services. These should not include one-time costs for major new systems developments/replacements. Defining the customer management strategy refers to the process of developing strategies for serving customers. It includes planning customer service levels and reviewing performance of the order management function. This Cost Effectiveness measure is intended to help companies understand this cost expenditure related to the process group "Develop customer care/customer service strategy".

Benchmark Data


Sorry! Not all users have access to all of our resources.

Want to unlock access to all of our resources?

Learn about Membership Arrow with stem

Measure Category:
Cost Effectiveness
Measure ID:
Total Sample Size:
289 All Companies
25th Median 75th
- - -
Key Performance Indicator:

Sample image showing interactive filters for more detailed measure peer group data and an interactive graph.

Compute this Measure

Units for this measure are dollars.

Back to Top

Systems cost to perform 'define customer management strategy' activities / (Total business entity revenue * 0.00001)

Key Terms

Back to Top

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 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 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

Back to Top

Cross Industry (7.3.1)

  • 6.1.1 - Define customer service requirements across the enterprise (20086)
  • 6.1.2 - Define customer service experience (20087)
  • 6.1.3 - Define and manage customer service channel strategy (20088)
  • 6.1.4 - Define customer service policies and procedures (10382)
  • 6.1.5 - Establish target service level for each customer segment (10383)
  • 6.1.6 - Define warranty offering (20089)
    • - Determine and document warranty policies (16893)
    • - Create and manage warranty rules/claim codes for products (16890)
    • - Agree on warranty responsibilities with suppliers (20090)
    • - Define warranty related offerings for customers (20091)
    • - Communicate warranty policies and offerings (12673)
  • 6.1.7 - Develop recall strategy (20092)