Skip to main content
ServiceXRG
  • Your Challenges
    • Overview
    • Self-Assessment
  • Our Solution
    • Overview
    • Achieving Service Success
    • Our Process
    • Service Success Framework
    • Membership
  • Why ServiceXRG
    • Overview
    • Capabilities
    • Clients
    • Team
  • Resources
    • Resource Library
    • Blog
  • Member Login
ServiceXRG
  • Member Login
  • Self-Assessment
  • Let’s Talk
  • Your Challenges
    • Overview
    • Self-Assessment
  • Our Solution
    • Overview
    • Achieving Service Success
    • Our Process
    • Service Success Framework
    • Membership
  • Why ServiceXRG
    • Overview
    • Capabilities
    • Clients
    • Team
  • Resources
    • Resource Library
    • Blog

Blog : Do You Need SLAs?

  • Previous Post
  • All Posts
  • Next Post

Do You Need SLAs?

By Tom Sweeny March 1, 2020

Every technical support organization should have service level guidelines as a basis for determining how to prioritize cases and allocate resources and for managing consistent expectations with customers. Introducing service level agreements with committed performance levels is only required when customers demand them, or it is necessary for competitive differentiation.

SLA Types

There are three primary types of service level agreements used within the technology industry.  The primary elements of the agreements include the committed or targeted level of performance, the conditions and definitions for how performance will be measured, and the provisions by which performance commitments will be enforced.  Typical technology service level agreement types include:

Agreements

Agreements state a committed level of service and the terms by which this service will be provided.  Service level agreements are typically enforced by some form of penalty when promised performance levels are not met.

Level of Performance: Performance commitments.

Conditions: Stringent definitions and conditions for determining SLA non-compliance.

Enforcement: Typically a penalty in the form of a rebate of service fees.

Firm Targets

Service level targets express a target level of performance for a particular service.  Targets are expressed in specific terms however there is no commitment or guarantee of performance or penalty imposed if not met.

Level of Performance: Specific performance targets.

Conditions: May vary by customer type, support program level or issue severity.

Enforcement: None.

Soft Targets

Service level targets may also be expressed in soft terms where a level of performance is suggested for some but not all situations.  When soft service level targets are missed there are no penalties.

Level of Performance: Performance ranges.

Conditions: May vary by customer type, support program level or issue severity.

Enforcement: None.

Why Use SLAs

Service level statements are used for a variety of reasons, most notably to establish differentiation from direct competitors or within a service offering to distinguish between program levels and tiers.  In some instances, customers will demand service level agreements as a prerequisite for doing business.  In all cases SLAs are effective for setting and managing customer expectations.  Well defined performance SLAs can prescribe how quickly to respond to issues, which issues to work on first, and who to get involved with issue resolution.

  • Set Customer Expectations
  • Competitive Differentiation
  • Service Tier Differentiation (within a Portfolio)
  • Prioritization and Resource Allocation

Do You Need SLAs?

Every technical support organization should have service level guidelines as a basis for determining how to prioritize cases and allocate resources and for managing consistent expectations with customers. Introducing service level agreements with committed performance levels is only required when customers demand them or it is necessary for competitive differentiation.

  • Do your customers expect them?
  • Do your competitors provide them?

If the response to either question is “yes” then you should be offering SLAs.

SUPPORT: The Essential Practices & Metrics Guide

Support is changing — Are you prepared?

Learn about the trends shaping Support and the best practices and performance metrics companies use to transform and optimize Support.

Download Now

Build the Right Service Capabilities with the Framework for Service Success

The ServiceXRG Framework™ sets the standard for the core capabilities that successful service organizations use to achieve better business outcomes with service.

Our Solution
  • Previous Post
  • All Posts
  • Next Post

How Effective Is Your Service Delivery?

Take the Assessment

Subscribe for even more resources and the latest in your inbox.

"*" indicates required fields

Name*

By clicking the "Submit" button you accept and agree to be bound by the Terms of Use and Privacy Policy.

This field is for validation purposes and should be left unchanged.

Related Posts

  • 5.2.23 Read Time: 2 Mins

    Service Win Backs

    If customers still use your product but have canceled their service contract, re-engage them through a win back program.

  • 4.26.23 Read Time: < 1

    Preparing For Next-Gen Service Technologies

    Service teams are shifting their focus to the attainment of strategic outcomes.

  • 4.20.23 Read Time: 3 Mins

    ChatGPT is Cool – Now, Let’s Make a Plan to Put It to Work.

    It’s time to move beyond the hype of advanced AI models like ChatGPT. This article introduces 4 practical steps to define future use cases for self-help and optimized digital customer …

ServiceXRG

© Service Excellence Research Group, LLC 2023. All Rights Reserved.

Website by Imagebox

Contact Info
  • Email: info@servicexrg.com
  • Phone: 800-475-0089
Quick Links
  • Your Challenges
    • Overview
    • Self-Assessment (Old)
  • Our Solution
    • Overview
    • Achieving Service Success
    • Our Process
    • Service Success Framework
    • Membership
  • Why ServiceXRG
    • Overview
    • Capabilities
    • Clients
    • Team
  • Resources
  • Let’s Talk
Social Media
  • LinkedIn
  • Newsletter
  • Twitter