Cost Per Customer

I. Formal Definition

The variable infrastructure cost attributable to the average customer over a period, computed as relevant cost divided by the active customer count. Cost per customer is a tenant-level unit-economic measure and is the federation-preferred denominator for SaaS and consumption businesses where customer is the meaningful unit of value. The federation requires cost per customer to be reported with active customer definition, cost basis, and tenant attribution methodology disclosed. Variations across customer cohorts are required when material under UFMS-001:2.4(h).

II. Etymology

A SaaS metrics coinage of the early 2010s; the term entered general use through the venture capital diligence vocabulary of unit economics.

III. Federation Usage

Federation members publish cost per customer quarterly with cohort breakouts when distributions are material. Tenant attribution methodology is documented and reviewed annually under MEV-Annex:3.2. Cost per customer is a tier-1 input to capital efficiency calculations.

IV. Related Terms

• cost-per-unit
• cost-per-transaction
• cost-attribution
• unit-economics

V. Authoritative Citations

• UFMS-001:2.4UFMS Article II - Tenant Costing
• MEV-Annex:3.2MEV Annex III - Customer Cost Reporting

VI. Citation in BibTeX

@misc{ifo4_glossary_cost_per_customer,
  title        = {{Cost Per Customer}},
  author       = {{IFO4 Federation Editorial Board}},
  howpublished = {{IFO4 Federation Glossary, slug \texttt{cost-per-customer}}},
  year         = {2026},
  url          = {https://ifo4.org/glossary/cost-per-customer},
  note         = {Category: FinOps; key: CostPerCustomer}
}

VII. Challenge This Definition

Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.