An effective SLA (Service Level Agreement) is one of the most critical success factors about customer service-focused centres for customer satisfaction and operational efficiency. SLAs outline expected standards of service, performance metrics, and accountability to your customers.
One of the most overused targets we hear from clients is, “We are currently at 60% and want to be at 80/20!” That’s great, but why? What is it that we want to achieve?
At GlobalStep, we work with our clients so that you will not just be chasing a goal for the sake of sticking to an outdated rule of thumb. Times have changed and so have customer expectations. We are here to help.
Here’s what to consider when choosing the right SLA for one’s customer service center.
1. Understand the Customer’s Expectation
To begin with, in the establishment of an SLA, it is very important to identify what customers exactly expect about the experience. Conduct surveys and focus groups or interviews to understand customer preferences for response time, resolution times, and communication channels. If most of the customers reach out via social media, for instance, then the SLA needs to meet that timing in providing responses on that platform. This understanding helps in framing the SLA in a way to address the needs of the customers, and it also builds satisfaction.
For instance, if your customer satisfaction score is low and your current service level is averaging 70% in 20 seconds, do you really believe that answering 10% more of your contacts in 20 seconds or less will truly improve your customer satisfaction? Probably not!
2. Analyze Current Performance Metrics
When you have tons of data, review and analyze the existing performance data and correlate it back to indicating metrics to gauge how well the customer service center is currently meeting expectations. Metrics such as average response time, first contact resolution rate, and customer satisfaction scores provide a benchmark for developing the SLA. Analyzing this data can reveal gaps in service delivery and areas for improvement, enabling the company to set realistic and achievable targets.
3. Define Clear Objectives
An effective SLA should have clear, measurable objectives. These objectives can include metrics like response time (e.g., 90% of inquiries answered within one hour) and resolution time (e.g., 80% of issues resolved on the first contact). Ensure that these objectives are aligned with overall business goals, such as improving customer retention or enhancing brand loyalty. Objectives should also be specific to groups and segments of your customers. If you are in the financial sector, for example, should your fraud alert segmentation be measured with the same level of service as balance transactions?
4. Consider Resource Allocation
Implementing SLAs requires assessing the resources available to the customer service center. Consider factors like staffing levels, technology, and budget constraints. If the company cannot meet the desired service levels with current resources, it may need to invest in additional training, hire more staff, or implement new technologies. Balancing customer expectations with available resources is key to setting achievable SLAs. There are many pulleys and levers that can be used to strive toward objectives at any budget if it aligns with the company goals. Ensuring that you have the analytics and capability to deliver is key.
For example, leveraging AI chat bots can be a great use of technology to deflect volume, which improves service levels; but should it and can it be implemented across all the contact types? Do you want your high-ticket sales volumes to be handled by a bot? Should a customer who just bought a $2,500 airline ticket and had their flight delayed be assisted by a bot? These situations would likely create very negative customer loyalty scores despite having very high service levels.
5. Allow for Flexibility
While it’s essential to set firm SLAs, the agreement should also allow for some flexibility. Customer needs and business environments can change rapidly; therefore, the SLA should be periodically reviewed and updated. This adaptive approach ensures that the company can adjust to new challenges, emerging technologies, and shifting customer expectations. Understanding your seasonality, sales cycle and contact reason types and aligning your targets appropriately is key.
How Can GlobalStep Help?
Creating a service level agreement for a customer service center involves careful consideration of customer expectations, performance metrics, resource availability, and industry standards. By following a structured approach that incorporates flexibility and clear communication, companies can establish SLAs that enhance customer satisfaction while driving operational efficiency. Ultimately, a well-defined SLA not only sets the foundation for customer interactions but also serves as a critical tool for continuous improvement in service delivery.
At GlobalStep, we’ve implemented a workforce management structure across all sectors and industries for over two decades. We work closely with clients to understand their culture and goals, ensuring our solutions align with their objectives. Our management team continuously monitors data trends — hourly, daily, and weekly — analyzing how each metric impacts customer loyalty. We make real-time adjustments to meet both operational budgets and customer expectations.
How is your company measuring service levels? If you’re still using the static 80/20 rule and anything in this article resonates with you, let us help — just as we’ve successfully done for many of our clients.
https://globalstep.com/about-globalstep/client-testimonials/
Contact us for more information https://globalstep.com/contact-us/
