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Home | Contact Center Metrics | What is a Service Level Agreement (SLA) in a Contact Center?
Home | Contact Center Metrics | What is a Service Level Agreement (SLA) in a Contact Center?

What is a Service Level Agreement (SLA) in a Contact Center?

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Service Level Agreement

Are you struggling to maintain high levels of customer satisfaction in your contact center? Do you find it difficult to meet the service expectations of your customers? If so, you may want to consider implementing a Service Level Agreement (SLA) into your contact center.

An SLA is a crucial tool for establishing clear expectations between a service provider and a customer. Therefore, we will discuss the importance of SLAs in contact centers, the different types of SLAs, and much more.

By the end of this post, you will have a better understanding of how an SLA can help you improve communication, customer satisfaction, and service delivery in your contact center.

So, let’s dive in!

What is a Service Level Agreement (SLA)?

A Service Level Agreement (SLA) is a crucial document that outlines the expectations and responsibilities of both parties involved in a service agreement. 

 

In essence, it serves as a legal contract between a service provider and its customer that defines:

  • The level of service to be provided by the former
  • The responsibilities of the service provider
  • The remedies or penalties for not meeting the agreed-upon level of service

 

The SLA usually covers various aspects of the service, including, but not limited to:

  • Uptime guarantees 
  • Response times
  • Issue resolution procedures 
  • Performance metrics

 

It is important to tailor the SLA to meet each customer’s unique needs and requirements, as their expectations and priorities may vary.

Types of SLA

There are different types of SLAs that are used to meet the needs of different customers and organizations. The three main types of SLAs are:

  1. Customer-based SLA

This type of SLA is designed to meet the specific needs of a particular customer. It outlines the services that you will provide to that customer and the level of service that will be delivered.

This type of SLA is important because it helps to ensure that customers receive the level of service that they need and expect.

  1. Internal SLA

This SLA refers to an agreement between different departments or teams within the same organization, outlining the level of service that one department must provide to the other. 

This type of SLA plays a crucial role in promoting collaboration and efficiency across various departments with the aim of achieving shared objectives.

  1. Multi-level SLA

This type of SLA is used when a service provider offers multiple services to a customer. It outlines the level for each service and the overall service level for the customer.

This SLA ensures that customers receive the right level for each service they get and the expected overall level from the provider.

What should be included in an SLA

What should be included in an SLA?

In order to ensure that the SLA is comprehensive and effective, it should include the following:

  • Scope: It defines what is included in the SLA and what is not. It is important to clearly define the scope so that both parties have a clear understanding of what is covered by the agreement.
  • Services or products being provided: This section outlines the specific services or products that will be provided by the service provider. 

It should include details such as the expected quality of the service or product, the timeline for delivery and any other relevant information.

  • Expected level of service: It refers to the level of service that the service provider is expected to provide. This could include metrics such as uptime, response time and resolution time.
  • Performance metrics: This section outlines the specific metrics that will be used to measure the level of service provided by the service provider. 

These metrics should be measurable, objective and relevant to the services being provided.

  • Responsibilities of each party: This specifies the responsibilities of both the service provider and the customer. Clear definition of responsibilities is crucial to ensure that both parties understand what is expected of them.
  • Procedures for reporting and resolving issues: This section outlines the procedures that will be used to report and resolve issues that may arise during the course of the agreement. 

This could include things like escalation procedures, response times and communication protocols.

  • Duration of the agreement: This section defines the length of the agreement, including any renewal options.

Including all of these elements in an SLA ensures that both parties understand and meet each other’s expectations. This helps prevent misunderstandings and ensures that the customer’s needs are met.

What are the benefits of having an SLA?

An SLA has several benefits, and it is a crucial tool for establishing clear expectations between a service provider and a customer.

  • An SLA provides a clear framework for service delivery. An SLA establishes clear expectations for both parties by outlining specific services or products provided and the expected level of service. 

This can lead to improved communication and a better understanding of what is expected from each party.

This can help to identify areas for improvement and ensure that the service provided meets the needs of the customer.

  • An SLA can help to establish clear procedures for reporting and resolving issues. This can help to prevent misunderstandings and ensure that issues are resolved in a timely and effective manner. 

By providing clear escalation procedures, response times, and communication protocols, an SLA can help to ensure that issues are resolved quickly and efficiently.

How often should contact center managers revise an SLA

How often should contact center managers revise an SLA?

It is recommended that contact centers review the SLA at least annually, or more frequently if significant changes occur in the business or in the scope of customer needs. 

Regularly reviewing SLAs is important to ensure that they reflect changes in business processes, customer needs and market conditions. This can include revising SLAs when:

  • Introducing new products or services 
  • Implementing staffing changes
  • Complying with regulations or standards

Also, you should:

  • Consider external factors such as natural disasters, pandemics, or other crises that may affect service delivery.
  • Update the SLA to reflect changes in service expectations or to account for disruptions to service delivery.

Review and revise SLAs as needed based on the organization’s unique needs, considering factors such as:

  • Contact center size 
  • Service complexity 
  • Customer demand

Regularly reviewing and revising the SLA can maintain its relevance and effectiveness in maintaining high levels of customer service and satisfaction.

In Conclusion

An SLA is vital for creating clear expectations between a service provider and a customer. It outlines the level of service that will be provided, the responsibilities of each party and the remedies or penalties for not meeting the agreed-upon level of service. 

Both parties can understand each other’s expectations by including all necessary elements in the SLA.

Regular review and revision of the SLA are crucial to ensure that it remains relevant and effective. Contact center managers should regularly review and revise the SLA to maintain high levels of customer service and satisfaction.

For a full-featured call center software that covers inbound and outbound calls, self-service, AI, and can help you meet your SLA goals, check out Call Center Studio. Our software offers tools and features to improve service delivery, monitor performance, and meet service level objectives. 

Contact us today to learn more about how we can help you achieve your call center goals.