| John Spacey, December 22, 2015 updated on March 21, 2021
A service level objective is a criteria that is used to evaluate the performance of a business or technology service. In many cases, service level objectives are specified in a contract such as a master service agreement. Contracts may include penalties such as refunds for failure to meet a minimum service level. The following are common examples of service level objectives.
Availability Rate The percentage of the time that a service is up. It is common for cloud based software services to offer 99.99% availability.
Average Speed To Answer How long it takes a customer to get someone on the phone.
Call Abandonment Rate The number of customers who hang up prematurely after calling customer support.
Complaint Count The total number of customer complaints about a service for a period of time. Often categorized by ranking or severity.
Completion Time The average or total time to complete a particularly activity related to the service such as maintenance.
Conversion Rate The number of customers that actually buy something. Can be used to measure the quality of customer referrals, leads or web traffic.
Customer Satisfaction Rate How satisfied customers are with the service, often measured with a survey.
Defects Rate How often the service fails to meet a quality test such as a call quality test for voice communications.
Delivery Time The average or total time to physically deliver something. Applies to the service level for a delivery service.
Failure Rate Expressed as a failure count for a unit of time.
First Call Resolution Percentage of customer inquiries that are resolved within the first call.
Incident Count The total number of logged incidents for a period of time often categorized by severity.
Inventory Shrinkage A supply chain metric that measures the percentage of items that go missing.
Mean Time Between Failures The time that a service is available between failures.
Mean Time To Repair Measures the time to fix failures.
Network Capacity The capacity of a network such as average bandwidth.
Occupancy Rate The fill rate for a property used to evaluate hotel or property management services.
Problem Resolution Time The average or total time to resolve problems.
Provisioning Time The time to deliver an order. Originated as a telecom industry term.
Quality Scores The average score achieved according to a set of quality evaluation criteria.
Scalability Metrics The scalability of a service such as the availability of new instances on a cloud computing platform.
Security Incident Count The total number of security incidents for a service often categorized by severity.
Turnaround Time The time to complete a task or average time to complete a reoccurring task.
UptimeThe total uptime for a service for a period of time.
Wait Time The average time customers spent waiting after calling customer service.
|Definition||A set of criteria that are used to evaluate the performance of a business or technology service.|
|Value||Service levels are used to provide a guarantee to customers of services. Such guarantees are often an important part of a sales value proposition. In some cases, a superior service level is considered a competitive advantage.Service levels may also be used internally by businesses as measurements that are used to improve processes, practices and procedures.|
|Related Concepts||Key Performance Indicator|
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