What is Service Level Agreement?

A Service Level Agreement (SLA) is a commitment made by a contact center to maintain a certain level of service. This typically involves handling a specified percentage of contacts (calls, emails, chats, etc.) within a predetermined period of time. For example, an SLA might state that 80% of calls will be answered within 30 seconds.

How to Calculate Service Level Agreement

To calculate SLA, use the following formula:

SLA = (Number of Contacts Handled Within Target Time / Total Number of Contacts) x 100

For example, if a contact center receives 1,000 calls in a day and handles 850 of them within the target time, the SLA would be (850 / 1000) x 100 = 85%.

Why Service Level Agreement Matters

SLAs are important because they:

• Ensure Consistent Service Quality: Help maintain a standard level of service, ensuring customers receive timely responses.
• Enhance Customer Satisfaction: Meeting SLAs can lead to higher customer satisfaction and loyalty.
• Provide Performance Benchmarks: Offer measurable targets for evaluating the performance of the contact center.
• Drive Operational Efficiency: Encourage efficient use of resources to meet service targets.

Factors Influencing Service Level Agreement

Several factors can influence SLAs, including:

• Call Volume: Higher call volumes can make it challenging to meet SLAs.
• Agent Availability: The number of available agents directly impacts the ability to meet SLAs.
• Technology: Efficient call routing and handling systems can improve SLA performance.
• Training and Skills: Well-trained agents are more likely to handle contacts efficiently and meet SLAs.

Strategies to Improve Service Level Agreement

To improve SLAs, consider the following strategies:

• Optimize Staffing Levels: Ensure adequate staffing during peak times to handle higher volumes.
• Enhance Training Programs: Provide ongoing training to improve agent efficiency and effectiveness.
• Implement Advanced Technologies: Use technology like automated call distribution (ACD) and interactive voice response (IVR) systems to streamline contact handling.
• Monitor and Analyze Performance: Regularly review performance data to identify areas for improvement and adjust strategies accordingly.

Related Terms

• First Call Resolution (FCR): The percentage of contacts resolved on the first interaction without the need for follow-up.
• Average Handle Time (AHT): The average time taken to handle a contact, including talk time and after-call work.

Conclusion

Service Level Agreements are crucial for maintaining consistent service quality and customer satisfaction in a contact center. By understanding and improving SLAs, organizations can ensure they meet customer expectations and operate efficiently.