How to Measure Call Center Service Level

In the fast-paced world of call centers, understanding how well your team is performing is crucial. Metrics like "How quickly are we answering calls?" and "What percentage of queries are resolved on the first contact?" provide vital insights into the efficiency and effectiveness of your service.

The concept of call center service level is central to these metrics. It goes beyond just handling a high volume of calls; it’s about ensuring each interaction is timely and satisfactory.

However, measuring service level isn't straightforward. Different industries and businesses may adopt varied approaches, leading to some confusion about the best methods to use.

This blog will delve into the essentials of call center service level — defining it, exploring the nuances of its calculation, identifying common challenges, and offering strategies to maintain and improve it.

What is call center service level?

Call center service level is a key performance metric that measures the efficiency and effectiveness of a call center's operations. It typically refers to the percentage of calls answered within a specified time frame, providing a snapshot of how well the call center meets customer expectations.

Service level agreements (SLAs) play a crucial role in defining these performance expectations for enterprise customers. SLAs are formal agreements that outline the expected service standards, including metrics such as response time, resolution time, and other critical service parameters. These agreements ensure that both the service provider and the customer have a clear understanding of the performance benchmarks to be met.

· Response time: This metric measures how quickly calls are answered by agents. A shorter response time generally indicates a higher service level, as customers spend less time waiting.

· Resolution time: This refers to the time taken to resolve customer queries or issues. Faster resolution times contribute to higher customer satisfaction and demonstrate the efficiency of the call center.

· Other service metrics: These can include factors like call abandonment rates, first call resolution rates, and customer satisfaction scores, all of which provide a comprehensive view of the call center's performance.

The impact of maintaining high service levels is significant. High service levels lead to improved customer satisfaction, as customers receive timely and effective support. This, in turn, enhances customer loyalty and can positively affect the company's reputation. Operationally, adhering to SLAs helps streamline processes, reduce bottlenecks, and improve overall efficiency within the call center.

Key components of call center service level agreements

Call center service level agreements (SLAs) are crucial for setting clear expectations and performance standards between service providers and enterprise customers. Here are the essential elements typically included in a call center SLA:

Customer response time: This metric measures how quickly calls are answered by agents. From an enterprise customer's perspective, a shorter response time means that their customers experience minimal wait times, leading to higher satisfaction and a positive perception of the company's customer service.

First call resolution (FCR): FCR refers to the percentage of customer issues resolved on the first call without the need for follow-up. High FCR rates are critical for enterprise customers as they indicate efficient problem-solving, reducing the need for repeat contacts and enhancing customer satisfaction.

Service availability: This component defines the percentage of time the call center is operational and available to handle calls. High service availability ensures that customers can reach support whenever needed, which is vital for maintaining trust and reliability in the eyes of enterprise customers.

Call abandonment rate: The abandonment rate measures the percentage of callers who hang up before reaching an agent. A low abandonment rate is important for enterprise customers because it indicates that their customers are not left waiting too long, which can prevent frustration and potential loss of business.

Average handling time (AHT): AHT tracks the average duration of a call, including hold time and after-call work. For enterprise customers, managing AHT is essential to balance efficiency and quality of service, ensuring that calls are handled promptly without compromising on the thoroughness of support.

Customer satisfaction (CSAT): CSAT scores are derived from customer feedback and measure overall satisfaction with the service provided. High CSAT scores are a direct indicator of successful interactions and are crucial for enterprise customers to gauge the effectiveness of their call center operations.

Call quality: This metric assesses the quality of interactions between agents and customers, often through call monitoring and evaluations. High call quality ensures that enterprise customers' brand reputation is upheld through professional and effective communication.

Service level: This is the percentage of calls answered within a predefined time frame, such as 80% of calls answered within 20 seconds. Maintaining a high service level is important for enterprise customers to ensure that their customers receive timely assistance.

Each of these components impacts business operations significantly. By clearly defining and adhering to these metrics, enterprise customers can ensure that their call centers operate efficiently, provide high-quality service, and maintain customer satisfaction. This, in turn, supports business growth and strengthens customer loyalty.

How to calculate call center service level (+Formula)

To calculate call center service level efficiently, first determine the percentage of calls answered within the set goal.

Method #1

The most common formula for calculating service level is:

Here's a breakdown of the components of this formula:

Number of calls answered within the service level goal: This is the number of calls that are answered by a call center agent within the predefined time frame.

Total number of calls received: This represents the total volume of incoming calls received by the call center during a specific period.

Example: Suppose you manage a call center that receives 600 calls in a specific period. Your service level goal is to answer 80% of these calls within 30 seconds. Now, let's calculate the basic service level for this scenario.

Here's the data:

Number of calls answered within the goal time of 30 seconds: 480

Total number of calls received: 600

Let's apply the service level formula to calculate the service level:

Service Level = (480 / 600) X 100 = 80%

So, the service level in this example is 80%. This means that 80% of calls were answered within the 30-second goal, meeting the service level target set by the call center.

Method #2

Call centers often struggle with abandoned calls — instances where customers disconnect before reaching a service representative. These abandoned calls are usually the result of long wait times, frustration with automated systems or unexpected interruptions on the customer's end.

Call centers need to have a clear idea of the call abandonment rate as it helps them evaluate the effectiveness of their operations and pinpoint areas for improvement. The abandoned call rate is typically expressed as a percentage and is calculated using the following formula:

Understanding and monitoring the abandoned call rate helps call centers assess customer satisfaction, optimize call center workforce management and refine call routing strategies. A high abandoned call rate may indicate issues with service quality, which means you might need to adjust your staffing, technology or customer support processes.

Let's consider a scenario where a call center receives 1,000 calls over a given period, and on 50 of these calls, customers disconnect before reaching a representative. To calculate the abandoned call rate, use the formula:

Abandoned call rate = (1000 / 50) × 100 = 5%

Here, the abandoned call rate is 5%, indicating that 5% of incoming calls were abandoned by customers. Call center managers can use this information to determine the impact of abandoned calls and find ways to minimize it.

Top 8 call center service level standards and targets for enterprises

Setting clear service level standards and targets is essential for ensuring high-quality customer service in large organizations. Here are some of the most important call center service level standards and their typical targets for enterprise customers:

1. Response time

· Standard Target: 80% of calls answered within 30 seconds.

· Explanation: Quick response times are crucial for minimizing customer wait times and enhancing satisfaction. By aiming to answer the majority of calls within 30 seconds, enterprises can ensure that customers receive timely assistance, reducing frustration and improving the overall customer experience.

2. First call resolution (FCR)

· Standard Target: 80% FCR rate.

· Explanation: FCR measures the percentage of customer issues resolved on the first call. A high FCR rate indicates efficient problem-solving and reduces the need for follow-up calls, which can save time and resources while boosting customer satisfaction.

3. Service availability

· Standard Target: 99% uptime.

· Explanation: Service availability refers to the percentage of time the call center is operational and able to handle calls. High availability ensures that customers can reach support whenever they need it, which is critical for maintaining trust and reliability.

Must Read: Important Call Center KPI Benchmarks by Industry

4. Abandonment rate

· Standard Target: Less than 5%.

· Explanation: The abandonment rate measures the percentage of callers who hang up before reaching an agent. Keeping this rate low is important to ensure that customers are not left waiting too long, which can prevent frustration and potential loss of business.

5. Average handling time (AHT)

· Standard Target: 4-6 minutes per call.

· Explanation: AHT tracks the average duration of a call, including hold time and after-call work. Balancing AHT is essential to ensure that calls are handled efficiently without compromising the quality of support provided.

💡 Do you know: Modern conversational AI platforms offer a conversational interface designed to empower your business with swift and personalized customer interactions, including complex scenarios, without the need for live agent intervention. By significantly reducing wait times, you can meet and exceed customer expectations, amplifying satisfaction levels.

6. Customer satisfaction (CSAT)

· Standard Target: 85% or higher.

· Explanation: CSAT scores are derived from customer feedback and measure overall satisfaction with the service provided. High CSAT scores indicate successful interactions and are crucial for gauging the effectiveness of call center operations.

7. Call quality

· Standard Target: 90% or higher quality score.

· Explanation: Call quality assesses the quality of interactions between agents and customers, often through call monitoring and evaluations. High call quality ensures that the enterprise's brand reputation is upheld through professional and effective communication.

Read More: Learn Everything About Call Center Quality Management

8. Service level

· Standard Target: 80/20 rule (80% of calls answered within 20 seconds).

· Explanation: This is a common industry standard that helps ensure timely assistance for customers. Maintaining this service level target helps enterprises provide consistent and reliable support.

Also Read: Top 17 Call Center Best Practices for Great Customer Service

By adhering to these service level standards and targets, enterprises can ensure that their call centers operate efficiently and provide high-quality customer service at scale. These targets help in setting clear performance expectations, improving operational efficiency, and ultimately enhancing customer satisfaction and loyalty.

How do large companies communicate SLA expectations with BPOs?

Effective communication of service level agreement (SLA) expectations is crucial for ensuring that business process outsourcing (BPO) providers meet the performance standards required by large companies. Here’s how top companies typically manage this process:

1. Establish clear, measurable targets

Large companies start by clearly defining the key performance indicators (KPIs) that will be used to measure success, such as response time, first call resolution (FCR), service availability, abandonment rate, average handling time (AHT), customer satisfaction (CSAT), and call quality. Each metric should have a specific, quantifiable target, like "80% of calls answered within 30 seconds" or "85% customer satisfaction score," providing a clear benchmark for performance.

2. Formalize expectations in SLAs

All expectations and targets are documented in the SLA, which serves as a formal agreement between the company and the BPO provider. This document should be comprehensive, covering all aspects of service delivery and performance measurement. Both parties should review and agree on the SLA terms to ensure mutual understanding and commitment.

3. Regular performance reviews

Regular performance reviews are scheduled, often monthly or quarterly, to assess how well the BPO provider is meeting the SLA targets. These reviews involve analyzing performance data, discussing any issues, and identifying areas for improvement. The BPO provider is typically required to submit detailed performance reports that highlight their achievements against the agreed-upon metrics, forming the basis for the performance reviews.

4. Open channels of communication

Maintaining open and continuous communication is essential, with regular meetings, calls, and updates to ensure both parties are aligned and can address any issues promptly. Establishing feedback mechanisms allows the BPO provider to receive constructive feedback and make necessary adjustments, including formal feedback sessions, surveys, or direct communication channels.

5. Collaborative problem-solving

When performance issues arise, companies and BPO providers work together to develop action plans to address the problems. This collaborative approach ensures that both parties are invested in finding solutions. Emphasizing a culture of continuous improvement helps BPO providers strive for excellence. Regularly updating SLAs to reflect changing business needs and incorporating lessons learned from past performance reviews can drive ongoing enhancements.

6. Incentives and penalties

To motivate BPO providers, companies may include performance-based incentives in the SLA, where achieving or exceeding targets can result in bonuses or other rewards. Conversely, failing to meet SLA targets can result in penalties, which are clearly defined in the SLA and serve as a deterrent against poor performance.

By following these practices, large companies can effectively communicate their SLA expectations with BPO providers, ensuring that performance standards are met and high-quality customer service is delivered consistently. This structured approach fosters a strong partnership, driving both parties towards shared success.

5 Challenges to maintain good service levels in call centers

Maintaining good service levels in call centers can be challenging due to various factors. Here are five main challenges and best practices for creating an effective call center SLA:

1. High call volume

Managing a high volume of calls can overwhelm agents, leading to longer wait times and reduced service levels. Implement workforce management tools to forecast call volumes and schedule the right number of agents. Use call routing and automated systems to handle routine inquiries efficiently.

2. Agent performance and training

Inconsistent agent performance and inadequate training can negatively impact service levels. Provide ongoing training and development programs to ensure agents have the necessary skills and knowledge. Regularly monitor performance and offer feedback to help agents improve.

3. Technology and infrastructure

Outdated or unreliable technology can cause disruptions and affect service levels. Invest in modern, reliable call center technology and infrastructure. Ensure regular maintenance and updates to minimize downtime and technical issues.

💡Good to know: Advanced workforce management software empowers you to predict future case volumes, handling times and SLAs accurately across all channels using historical data. Its added flexibility allows you to model events as adjustments, optimizing staffing levels for short, mid and long-term goals. Planning in advance not only aids in the hiring process but strategically reduces labor costs.

4. Customer expectations

Rising customer expectations for quick and efficient service can be difficult to meet consistently. Set realistic service level targets that align with customer expectations. Use customer feedback to continuously improve service quality and address any gaps.

5. Scalability and flexibility

Scaling operations to handle peak times or unexpected surges in call volume can be challenging. Design flexible SLAs that can adapt to changing business needs. Consider using temporary or part-time staff during peak periods and leverage cloud-based solutions for scalability.

By addressing these challenges and following best practices, call centers can maintain good service levels and deliver high-quality customer service consistently. This approach helps in building strong customer relationships and achieving operational excellence.

Final thoughts

The quest for an optimal call center service level is constant in the intricate customer service landscape. The demand for swift, personalized interactions and the need to navigate the delicate balance between efficiency and customer satisfaction can be overwhelming.

This is where Sprinklr Service comes in.

Sprinklr's comprehensive product suite integrates seamlessly with your existing operations and gives you consistent, round-the-clock support that delivers high-quality services even during high-demand periods. Here is how you can excel with Sprinklr Service:

· Improve FCR rate: Leverage automated routing software to efficiently direct cases to the most adept agents, minimizing the time agents spend deciphering the context for each case.

· Streamline agent handling times: Harness the power of Sprinklr AI+ to optimize each agent's capacity in managing fluctuating caseloads.

· Elevate CSAT and bolster agent efficiency: By unleashing real-time conversation analytics, you can automate quality monitoring, gain performance insights, and meticulously track service levels and customer satisfaction (CSAT) metrics.

For more information on how Sprinklr Service optimize call center service level for every business need, request a demo today!