Cost per Citizen Service Transaction
Average total cost of processing one citizen service request
What is Cost per Citizen Service Transaction?
Cost per citizen service transaction is the average cost of delivering each transaction in a public service, such as processing an application or renewing a licence. It shows how efficiently services are delivered.
It helps public bodies compare channels and justify investment in digital services.
How this KPI is measured
- Function
- Finance
- Sub-function
- Cost Efficiency
- Industry
- Government & Public Sector
- Type
- Lagging
- Impact
- Financial control
- Unit
- $
- Measurement frequency
- Quarterly / Annual
- Formula
- Total service delivery costs / Total service transactions processed
How to calculate it
Divide total service delivery costs by total service transactions processed.
For example, if a service cost 3,000,000 to run and handled 600,000 transactions, the cost per transaction is 5.
Compare by channel, such as online, phone and in person, and remember that some transactions are more complex than others.
Where it is used
Improving efficiency
Find savings.
Comparing channels
Shift to cheaper ones where suitable.
Justifying digital investment
Show savings.
How to improve it
Tips and common mistakes
- Lowest cost must not reduce access or fairness.
- Account for the complexity of transactions.
- Include all overheads consistently.
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