Developing SLAs

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How to Develop Service Level Agreements

Many companies (including large ones) do not have existing Service Level Agreements (SLAs). A service level agreement is a standard measure that provides customers (internal or external) a timeframe in which to expect contact or resolution. Companies frequently fear implementing SLAs, not wanting to make promises that they cannot keep.

Why do I need SLAs?

Every company who provides a service to customers should have established SLAs.

  1. Set expectations with your customers - when frustrated with an existing issue, not knowing what to expect can cause a customer to take an immediate dislike to your support process. Even if they don't like the answer, customers will frequently respect the honesty and can make alternative plans if necessary.
  2. Set expectations with your employees - rather than having to make personal interpretations of what is most important, your support personnel can immediately prioritize issues and resolve them in the correct manner.
  3. Consistent delivery of support - rather than providing the best service to the "squeaky wheel", you can provide consistent service to all clients. Catering to those who complain the most at the expense of others can cost you valuable business.

Implementing SLAs

SLAs are generally set up by Priority level. I would recommend starting with four buckets - Priority 1, 2, 3, and 4. Consider your most common service requests and assign them a priority level. Priority 1 would be your most urgent requests and should be dealt with immediately. Priority 4 requests would represent your least urgent requests, those you might look at and say, "when we get around to it".

Once priorities are assigned, determine what reasonable expectation your customers should have regarding communication and resolution. Some businesses may be able to look at Priority 1 issues and confidently promise resolution within 2 hours. In other businesses, it may not be realistic to promise specific resolution times for these types of issues. In those cases, think about what type of communication your customer should expect. Is it reasonable to provide a phone call follow-up within 2 hours? 6 days? Remember, depending on the criticality of the issue, your customers will expect to know what is going on and will need to be assured that it is being actively addressed.

Finally, communicate these Service Level Agreements throughout your organization. Not only within your Customer Support group, but allow your Marketing and Sales staff to have the benefit of this knowledge when working with prospective customers. Customers value service and SLAs can give your customers the expectation that you intend to deliver with confidence.

Communicate SLAs to your Customers

Once you have determined what your SLAs will be, provide consistence communication and guidance to your customers. When a customer calls in a request, set an expectation immediately on communication and resolution (if available) timing.