What are the best practices for setting and measuring SLA and KPI metrics? (original) (raw)
Last updated on Jul 4, 2024
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Service level agreements (SLAs) and key performance indicators (KPIs) are essential metrics for contact center operations. They help you define, monitor, and improve the quality and efficiency of your customer service. But how do you set and measure them effectively? Here are some best practices to follow.
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As far as I know, setting and measuring SLA (Service Level Agreement) and KPI (Key Performance Indicator) metrics begins with understanding your goals. Clearly defining the requirements and expectations of both internal stakeholders and customers is crucial. This involves aligning metrics with strategic objectives to ensure they reflect the value and impact of customer service operations. Regularly reviewing and refining these metrics based on performance data helps maintain relevance and effectiveness. By focusing on clear goals from the outset, organizations can better track progress, drive improvement, and ultimately deliver exceptional service outcomes.
Don’t get fixated on SLA ( as in 80/20) it’s an arbitrary number at best - know your customer! Engage your agents, balance outputs against customer, agent and business needs ( keep the FD happy) - not easy to get right and, certainly in a new centre will require monitoring and adaptation over time.
Alignment with Business and Company Goals: Ensure that SLAs and KPIs are aligned with overall business objectives. They should reflect what's critical for the business's success and customer satisfaction.
In ITIL Continual Service Improvement, best practices for setting and measuring SLA (Service Level Agreement) and KPI (Key Performance Indicator) metrics entail alignment with business goals and customer expectations to measure relevant outcomes. Clear definition is crucial, with clearly defined SLAs and KPIs, specifying measurable targets and acceptable performance levels for each service. Stakeholder involvement is key, with stakeholders being actively engaged in the development of SLAs and KPIs to ensure buy-in and relevance to business needs.
From my experience, selecting metrics like NPS, CSAT, ASA, AHT, FCR, and abandonment rate aligns with specific objectives of enhancing efficiency and productivity. It's crucial these metrics are not only meaningful but also achievable, reflecting the organization's service goals realistically. Regularly evaluating and adjusting these metrics ensures they remain relevant and contribute to continuous improvement in customer service operations.
One thing I've found helpful when choosing metrics is to focus on those that directly impact customer satisfaction and operational efficiency. prioritizing metrics like First Contact Resolution (FCR) and Customer Satisfaction Score (CSAT). These not only reflect a commitment to quick, effective problem-solving but also provide actionable insights for continuous improvement.
Use the metrics not just for monitoring but also for fostering a culture of continuous improvement. Encourage teams to use insights from metrics to refine processes and strategies.
The metrics should serve not only for monitoring but also foster continual service improvement. As soon as metrics have been defined, quality assurance practices (root cause analysis, PDCA, pareto analysis) can be implemented to uncover the issue, and corrective measures can be shared with teams during shift huddles. Over time, this approach is expected to notably reduce the SLA breach count and elevate the customer satisfaction rate.
Communicate and review your metrics
Your SLAs and KPIs are not static or isolated. They are dynamic and interrelated. You need to communicate and review them with your stakeholders, such as your agents, managers, and customers. You need to inform them about your metrics, their purpose, and their results. You also need to solicit and incorporate their feedback and suggestions. This will help you create a culture of transparency, accountability, and improvement.
- One practice I've always advocated for is regular communication of metrics across all levels of the organization. Its good practice to hold weekly 'metrics roundtables' where team leads and agents discuss performance data. This fosters a culture of transparency and collective responsibility, driving continuous improvement in our customer service operations.
Adjust and optimize your metrics
Your SLAs and KPIs are not fixed or final. They are flexible and adaptable. You need to adjust and optimize them according to your changing needs and circumstances. You need to evaluate and update your metrics periodically, based on your performance, feedback, and best practices. You also need to test and experiment with different metrics and targets, to find the optimal combination for your contact center.
- In my experience, the most successful contact centers are those that regularly adjust and optimize their metrics. At least once a year I like to conduct reviews of our SLAs and KPIs, adjusting them based on customer feedback and changing business needs. This flexibility allowed us to stay aligned with our evolving customer expectations and business goals.
Here’s what else to consider
This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?
- One crucial aspect I've observed in my career is the importance of balancing quantitative metrics with qualitative feedback. While numbers are important, they don't tell the whole story. I like to complement our standard KPIs with regular customer interviews, all senior leadership spend some of their working time in the front-line assisting customer and agent feedback & shadowing sessions. This holistic approach ensures we're not just meeting targets, but truly delivering value to our customers and supporting our team members effectively.
Contact Center Operations
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