Best Practices of Service Level Calculation in a Call Center

Service Level is a key metric in customer service that measures a call center's efficiency and responsiveness. It represents the percentage of calls answered live by agents within a specific timeframe, expressed in percentage terms.

For example, a service level of 80% indicates that agents answer 8 out of every 10 calls within the agreed time limit, such as 20 seconds. Industry best practices also recommend including abandoned calls in service level calculations to ensure a comprehensive analysis.

When consistently measured and clearly defined, service level metrics enhance agent productivity and confidence while enabling data-driven decision-making. However, many businesses face confusion around accurately calculating service levels.

This blog discusses best practices of service level calculation in a call center to help businesses address the challenges of calculating it while optimizing efficiency and enhancing customer satisfaction. 

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Investigate Causes of Service Level Decline

Steps to Create a Service-Level Calculation Strategy

Best Practices for Calculating and Managing Service Level

Below are some steps that businesses can take when measuring service levels for their call centers:

1. Classify Abandoned Calls Thoughtfully

Abandoned calls can skew service level metrics if not properly accounted for, giving a misleading picture of a call center's efficiency. Businesses must decide how to categorize abandoned calls—whether to include those dropped within a set threshold (e.g., within the first 5 seconds) or focus on those abandoned after longer wait times. 

Including all abandoned calls without considering thresholds may overestimate inefficiencies while excluding them entirely hides real challenges. By designing a formula aligned with business objectives, businesses can achieve accurate, transparent, and consistent service level calculations that reveal meaningful insights about customer experience.

2. Define Interval Time and Measurement Parameters

Interval time refers to the time frame in which the service level is measured. Defining this interval is essential for consistency and accuracy in metrics. The measurement process should start from a clearly defined event, such as:

• When the customer chooses the final IVR option and is routed to a specific queue.
• When the call enters the ACD system.
• When pre-queue greetings or wait-queue notifications end.

Frequent assessment and adjustment of interval definitions help align these measurements with actual customer service workflows. Keeping interval times dynamic allows businesses to adapt to changing operational needs, ensuring that staff allocation and service efficiency remain optimized.

3. Set Clear Service Level Objectives

Service level objectives should directly align with the company’s overarching goals, such as improving customer satisfaction, enhancing brand loyalty, or driving operational efficiency. For example, customers contacting an airline may tolerate longer wait times than those contacting an eCommerce company. 

Similarly, service expectations differ across communication channels; live chat users expect instant responses, while phone users might accept a short wait. Consider customer behavior, agent workload, budget constraints, and average call volume when setting objectives. Tailored service level goals ensure that customers and agents benefit, balancing efficiency and satisfaction.

4. Collect Data Across Departments

Call centers often handle various call types—billing inquiries, order tracking, complaints, etc.—and each type comes with different characteristics. For instance, billing-related calls may take longer than product inquiries. To calculate the overall service level accurately, it is critical to collect and analyze data from all departments. 

Tailored formulas should be developed for each call type to reflect their unique requirements. Comprehensive data collection not only improves accuracy but also helps managers identify which areas need improvements or resource adjustments.

5. Leverage Advanced Technology

Modern call center software applications simplify service level tracking by automating data collection and analysis. These tools provide real-time insights into key metrics such as call response times, abandonment rates, and agent performance. Advanced platforms often include features like predictive analytics, which enable managers to forecast call volumes and plan resources effectively. 

Automating service level tracking minimizes human errors, reduces the time spent on manual calculations, and empowers teams with actionable data for quicker decision-making. Leveraging such technology improves efficiency, transparency, and performance consistency.

6. Investigate Causes of Service Level Decline

Service level fluctuations are common but should never be ignored. Various factors, such as longer call durations, inaccurate scheduling, or spikes in call volume, can contribute to a decline. Managers should regularly monitor performance data to identify root causes and trends. 

For example, an increase in call length might indicate a need for agent training, while a mismatch between staffing and call volume points to forecasting or scheduling issues. Identifying these underlying causes allows businesses to implement targeted solutions that address inefficiencies and prevent further declines.

7. Share Performance Metrics Transparently

Transparency in performance metrics can significantly boost team morale and accountability. Display service-level data in real-time dashboards accessible to all agents and teams. Seeing their individual and collective performance encourages agents to take ownership of their roles and motivates them to improve during lags. 

Transparent communication fosters team collaboration, aligning everyone’s efforts to achieve organizational goals. This openness also builds trust among team members and strengthens their commitment to delivering better service.

8. Take Proactive Action on Data Insights

Analyzing service-level data is only half the battle; taking immediate and effective action on the insights is where the impact lies. For instance, if service levels drop during peak hours, businesses can reroute calls to remote agents, adjust agent break schedules, or implement overtime shifts temporarily. 

Managers can also invest in agent training to address recurring issues like long call durations or first-call resolution problems. Proactive measures ensure that service level disruptions are minimized, keeping customer satisfaction and operational efficiency intact.

9. Continuously Refine Processes

As business needs, customer expectations, and market conditions evolve, service-level strategies must adapt. Regularly review and update service level objectives and measurement criteria to reflect these changes. For example, if a business transitions to omnichannel support, service levels should account for metrics across all channels, such as live chat, email, and social media. 

Aligning service-level goals with the company’s overall objectives ensures they remain relevant and effective. A commitment to continuous refinement positions businesses to stay competitive and maintain high customer satisfaction levels.

Steps to Create a Service-Level Calculation Strategy

1. Identify Key Metrics: Determine the metrics you will use to calculate the service level, such as the percentage of calls answered within a set time, average response time, or abandonment rate. Ensure these metrics reflect both agent performance and customer experience.
   
   
2. Classify Call Types and Channels: Different channels (phone, email, live chat) and call types (billing, support, sales) may require distinct service levels. Analyze customer preferences and business needs to set specific benchmarks for each category.
   
   
3. Establish Time Intervals: Define the measurement interval for service level calculations. For example, choose whether to start measuring from when a call enters the queue or when it begins ringing. Maintain consistent intervals for accuracy.
   
   
4. Monitor and Adjust Regularly:
   Continuously evaluate your service levels and identify areas for improvement. Adjust your strategy as customer expectations evolve or operational challenges arise to maintain effectiveness.
   
   
5. Communicate and Train Teams:
   Share service-level goals and progress with your agents. Provide training and tools to help them achieve targets, fostering accountability and teamwork.

Conclusion

As customer expectations continue to evolve, businesses face increasing challenges in accurately calculating service levels in call centers. Advanced communication channels such as live chat, email, and social media complicate service level tracking, as traditional formulas may fail to account for multi-channel interactions. Fluctuating call volumes, caused by seasonal demand and unpredictable customer behavior, can lead to inaccurate forecasting and scheduling. Delegating call center operations to a specialized partner like Invensis can help overcome these challenges significantly as they bring expertise and established frameworks for service-level calculation. 

At Invensis, we help businesses by providing end-to-end call center outsourcing services to help them track accurate service levels across all channels. Our seasoned professionals ensure seamless operations, from precise forecasting and real-time monitoring to transparent reporting. This helps businesses focus on strategic goals while ensuring superior customer experiences and cost-effective solutions tailored to their unique requirements. Contact us now to track multi-channel interactions, predict call volumes, and optimize workforce scheduling while maintaining a competitive advantage and long-term success.