Cost to Serve

Overview

The Cost to Serve (CTS) solution is designed to quantify the total cost associated with delivering products or services to customers.

Steps to create cost to serve

Cost Gathering / Allocation
- Create a cost allocation that includes direct and indirect/shared components (segments) of the costs to arrive to a Total Cost of the allocation
Cost Splitting
- Identify the cost splitting i.e. identify the cost that you wanted to split segments in unit Cost ( per execution )
Cost To Serve
- Calculate the cost that can be served for the segment ( per dimension, e.g. Customer )

Below are examples of cost gathering, cost splitting, and calculating cost to serve

Example 1 - No Dimension

Identify the unit metrics that you want to apply, as shown below

Month	# of Calls
2025-01-01	400
2025-02-01	200

Cost Allocation - Total Cost of cost allocation in a Month, e.g. consisting: direct, shared, etc.

Month	Total Cost
2025-01-01	1000
2025-02-01	600

Cost Splitting - Unit Cost of running on allocation per Execution:

Month	Unit Cost
2025-01-01	1000 / 400 = 2.5
2025-02-01	600 / 200 = 3

Cost To Serve - N/A

Unit Metric API to post via Postman

CODE

curl --location 'https://api.mavvrik.ai/api/cost-to-serve/metric/<cost to server id>' \
--header 'Content-Type: application/json' \
--data '{
    "metrics": [
        { 
            "date": "2025-01-01", /* will be aggregated to month */
            "value": 400
        },
        { 
            "date": "2025-02-01",
            "value": 200
        }
    ]
}'

Example 2 - Single Dimension

Units BY Customer, with the following Unit Metric input:

Month	Customer	# of Calls
2025-01-01	Customer A	100
2025-01-01	Customer B	300
2025-02-01	Customer A	100
2025-02-01	Customer B	100

Cost Allocation - Total Cost of cost allocation in a Month, e.g. consisting: direct, shared, etc.

Month	Total Cost
2025-01-01	1000
2025-02-01	600

Cost Splitting - Unit Cost of running on allocation per Execution:

Month	Unit Cost
2025-01-01	1000 / 400 = 2.5
2025-02-01	600 / 200 = 3

Cost To Serve - Serving Cost of running on allocation per Dimension:

Month	Customer	# of Calls	Cost To Serve
2025-01-01	Customer A	100	2.5 * 100 = 250
2025-01-01	Customer B	300	2.5 * 300 = 750
2025-02-01	Customer A	100	3 * 100 = 300
2025-02-01	Customer B	100	3 * 100 = 300

Unit Metric API to post via Postman

CODE

curl --location 'https://api.mavvrik.ai/api/cost-to-serve/metric/<cost to server id>' \
--header 'Content-Type: application/json' \
--data '{
    "metrics": [
        { 
            "date": "2025-01-01", /* will be aggregated to month */
            "dimensions": [
              { "key": "customer", "value": "Customer A" }
            ],
            "value": 100
        },
        {
            "date": "2025-01-01",
            "dimensions": [
              { "key": "customer", "value": "Customer B" }
            ],
            "value": 300
        },
        { 
            "date": "2025-02-01",
            "dimensions": [
              { "key": "customer", "value": "Customer A" }
            ],
            "value": 100
        },
        {
            "date": "2025-02-01",
            "dimensions": [
              { "key": "customer", "value": "Customer B" }
            ],
            "value": 100
        }
    ]
}'

Example 3 - Multi Dimensions

Units BY Customer and Location, with the following Unit Metric input:

Month	Customer	Location	# of Calls
2025-01-01	Customer A	US	60
2025-01-01	Customer A	EU	40
2025-01-01	Customer B	US	200
2025-01-01	Customer B	EU	100
2025-02-01	Customer A	US	30
2025-02-01	Customer A	EU	70
2025-02-01	Customer B	US	25
2025-02-01	Customer B	EU	75

Cost Allocation - Total Cost of cost allocation in a Month, e.g. consisting: direct, shared, etc.

Month	Total Cost
2025-01-01	1000
2025-02-01	600

Cost Splitting - Unit Cost of running on allocation per Execution:

Month	Unit Cost
2025-01-01	1000 / 400 = 2.5
2025-02-01	600 / 200 = 3

Cost To Serve - Serving Cost of running on allocation per Dimension:

Month	Customer	Location	# of Calls	Cost To Serve
2025-01-01	Customer A	US	60	2.5 * 60 = 150
2025-01-01	Customer A	EU	40	2.5 * 40 = 100
2025-01-01	Customer B	US	200	2.5 * 200 = 500
2025-01-01	Customer B	EU	100	2.5 * 100 = 250
2025-02-01	Customer A	US	30	3 * 30 = 90
2025-02-01	Customer A	EU	70	3 * 70 = 210
2025-02-01	Customer B	US	25	3 * 25 = 75
2025-02-01	Customer B	EU	75	3 * 75 = 225

Unit Metric API to post via Postman

CODE

curl --location 'https://api.mavvrik.ai/api/cost-to-serve/metric/<cost to server id>' \
--header 'Content-Type: application/json' \
--data '{
    "metrics": [
        {
            "date": "2025-01-01", /* will be aggregated to month */
            "dimensions": [
              { "key": "customer", "value": "Customer A" },
              { "key": "location", "value": "US" }
            ],
            "value": 60
        },
        { 
            "date": "2025-01-01",
            "dimensions": [
              { "key": "customer", "value": "Customer A" },
              { "key": "location", "value": "EU" }
            ],
            "value": 40
        },
        {
            "date": "2025-01-01",
            "dimensions": [
              { "key": "customer", "value": "Customer B" },
              { "key": "location", "value": "US" }
            ],
            "value": 200
        },
        {
            "date": "2025-01-01",
            "dimensions": [
              { "key": "customer", "value": "Customer B" },
              { "key": "location", "value": "EU" }
            ],
            "value": 100
        },
        {
            "date": "2025-02-01",
            "dimensions": [
              { "key": "customer", "value": "Customer A" },
              { "key": "location", "value": "US" }
            ],
            "value": 30
        },
        { 
            "date": "2025-02-01",
            "dimensions": [
              { "key": "customer", "value": "Customer A" },
              { "key": "location", "value": "EU" }
            ],
            "value": 70
        },
        {
            "date": "2025-02-01",
            "dimensions": [
              { "key": "customer", "value": "Customer B" },
              { "key": "location", "value": "US" }
            ],
            "value": 25
        },
        {
            "date": "2025-02-01",
            "dimensions": [
              { "key": "customer", "value": "Customer B" },
              { "key": "location", "value": "EU" }
            ],
            "value": 75
        }
    ]
}'

Steps to create cost to serve in Mavvrik portal

Log into Mavvrik
Click on the menu
Click on unit economics
Click on cost ot serve
Click on +cost to serve
Fill in the details and click on create
Cost to serve entry is created
Click on the created cost to serve entry
Click on +segment
Select the Cost allocation to which you want to apply the unit economics and click on Next
Enter the dimensions you have calculated in the cost splitting step and click on Create
You will see below
Click on the three dots and click on edit
Go to the metrics tab and capture the curl command
Update the cost to serve metrics calculated and post the data using Postman
After the data is posted, you can see the data in the UI as below