Service Level Objective: A Customer Service KPI

Service Level Objective (SLO) is a crucial Key Performance Indicator (KPI) within the Customer Service KPIs category. It quantifies the level of service or performance that a customer service team aims to provide over a certain period. SLOs are typically expressed as a percentage and serve as targets for service delivery.

Overview

In the context of customer service, a Service Level Objective is a goal that an organization sets for the quality of service it strives to provide to its customers. It's a critical indicator of an organization's commitment to its customers and profoundly impacts the customer experience.

High SLO attainment reflects excellent service delivery, leading to increased customer satisfaction and loyalty. Conversely, consistently missing SLOs may suggest systemic issues in your customer service delivery that could lead to customer dissatisfaction and churn.

Calculating Service Level Objective

SLO is typically a predetermined metric, set by the organization based on the desired level of service quality. It's expressed as a percentage. For example, an organization might set an SLO stating that "90% of customer inquiries should be resolved within one business day".

The formula for tracking achieved SLO could look like this:

Achieved Service Level = (Number of Inquiries Resolved Within Target Time / Total Number of Inquiries) * 100

Explanation of the variables:

• Number of Inquiries Resolved Within Target Time: This is the count of customer inquiries that were resolved within the target time set in your SLO.
• Total Number of Inquiries: This is the total count of customer inquiries received within the same period.

By monitoring and striving to meet the Service Level Objective, organizations can ensure they maintain a high level of service quality, leading to increased customer satisfaction and potentially driving business growth.