Entitlement
An entitlement is a specific right a customer has purchased, seats, usage volume, feature access, service level, expressed structurally rather than in contract prose.
Entitlements are the bridge between what was sold and what is delivered. When they exist as structured data, provisioning, support tiering, usage enforcement, overage billing and expansion triggers all derive from one source. When they exist only in the contract PDF, each of those systems carries its own approximation.
The operational test is whether a support agent, a billing run and a CSM would all give the same answer about what an account is owed. Divergence there is not a process problem; it is missing structure.
Where it breaks
Custom terms negotiated at signature never reach the systems that must honor them.
Related terms
- Offer structure
- Offer structure is the decomposition of what a company sells into priceable, deliverable, and governable components.
- Quote to cash (QTC)
- Quote to cash is the end-to-end chain from configured quote through contract, order, invoice and collection, and the point where sales structure meets financial truth.
- Renewal management
- Renewal management is the governed process by which a contract term ends and a new one begins, with the renewal treated as a forecastable pipeline event.
- Deal desk
- A deal desk is the control point where non-standard commercial terms are reviewed, approved and recorded before they become contractual obligations.
Field notes on this
- Read NRR with GRR
NRR can combine base retention with concentrated expansion. Pair it with GRR and a cohort bridge, then investigate the causes separately.