Definition
Customer Margin
Revenue minus variable costs attributable to a specific customer. Shows profitability before fixed costs.
Formula: Customer Margin = Revenue - Variable Costs
Worked example
If a customer pays $500/month and their AI infrastructure costs $150/month, their margin is $350 (70%).
Related
- Margin Intelligence→ (how Bear Lumen applies this)
- Cost-to-Serve
- Usage-Based Pricing
- Profit per Customer
- All definitions