Commerce Glossary

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What is Cost-to-serve?

cost to serve
noun
a helpful analysis tool that allows the calculation of the profitability of each customer and product. Cost-to-serve can contribute to a business’s success because it helps determine which products or customers add more value, or not, to a business. With knowledge of this aspect, it’s easier to invest in improvements and optimization to trim down unsuccessful services and focus on improving the services that are profitable for a business.

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