Service Level Calculator

| Added in Business Finance

What is Service Level and Why Should You Care?

Ever wondered how efficient a call center is at picking up your calls? This is where the concept of Service Level comes in. Imagine you call a customer service hotline and wait for what feels like an eternity before someone answers. Service Level is essentially a metric that measures the efficiency of call centers in answering calls within a specified time frame.

So, why should you care? If you're running a call center, maintaining a high service level keeps your customers happy and coming back for more. It's a key performance indicator (KPI) that can set you apart from competitors. And as a customer, higher service level means less time spent on hold!

How to Calculate Service Level

Calculating the service level is pretty straightforward. Here's the formula:

[\text{Service Level} = \left( \frac{\text{Calls Answered within Time}}{\text{Total Calls Offered}} \right) \times 100]

Where:

  • Calls Answered within Time is the number of calls answered within a predefined acceptable time frame
  • Total Calls Offered is the total number of incoming calls to the call center

With just these two numbers, you can calculate how effectively a call center meets its call answering goals.

Calculation Example

Let's break this down with an example:

  1. Determine the time frame: Suppose we want to measure all calls answered within 30 seconds
  2. Count Calls Answered: 120 calls were answered within 30 seconds
  3. Count Total Calls Offered: The total number of calls offered was 200
  4. Calculate:

[\text{Service Level} = \left( \frac{120}{200} \right) \times 100 = 60%]

So, our fictitious call center has a service level of 60%. Some companies aim for an 80% service level within 20 seconds, while others might have different standards.

Frequently Asked Questions

A common industry standard is 80/20, meaning 80% of calls answered within 20 seconds. However, targets vary by industry and company goals.

Service level is a key performance indicator that measures customer experience. Higher service levels typically mean shorter wait times and happier customers.

You can improve service level by optimizing staffing, improving call routing, reducing average handle time, and using workforce management tools.