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6 Reasons You Need an SLA for Customer Service

6 Reasons You Need an SLA for Customer Service

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To have a successful business, you have to satisfy customers’ expectations. Which means that first, you have to make it clear what your customers can expect of you. In this blog, I am going to explain why a formal SLA is necessary to your company’s customer service operations.

Reasons You Need an SLA for Customer Service

What is SLA?

SLA is an acronym for service-level agreement. It is an agreement between a company and its customers on what products or services the company will provide them and the quality they can expect. It’s a contract with a particular set of standards concerning the service, as well as what happens when those standards are not met. A service-level agreement can also be used internally in a company, such as between departments. With an SLA, everyone knows what to expect, what is expected of them, and how to remedy the situation if those expectations fall short.

Components of SLAs

The following are some of the common components of SLA,

Agreement overview

The agreement overview includes details such as the groups involved, dates, and the general terms of the contract.

Agreement overview for SLA
Agreement Overview

Service terms

The service terms are details of the services to be provided by and for whom, when, and under what circumstances. They can also include the details for services that won’t be provided. They set the responsibilities for all involved parties. These services also include details like security measures all signatories of the contract must take.

Performance measurements

With the terms of service set, there needs to be an agreed-upon way to measure whether or not the parties involved are meeting those terms. Usually, this involves metrics and consensus on how and where they will be tracked and reported.


Now that the expectations for and of all parties are written out, the consequences of not meeting those expectations need to be detailed. This might include compensation and discounts. There also need to be plans for exceptions laid out for unforeseeable circumstances that may prevent one side or the other from meeting their obligations.

Review and termination

Agreements for review and termination specify how and when your agreement will be modified, if necessary, as well as how the agreement may be terminated. The latter includes natural expiration and situations in which early termination is acceptable, as well as the processes for both.

Reasons you need an SLA in customer service

An SLA lays a solid foundation for your growing business. The following are the most important reasons why you need an SLA in your customer service system.

1. Clarify expectations

SLAs help in defining clear expectations for performance and relationships in quantifiable and reliable terms. Additionally, SLA helps keep the all parties accountable for delivering on their contracts, so there are no surprises.

Clarify expectations
Expectation Clarification

2. Define customer service needs

An SLA defines your client’s customer service and support requirements. Your teams can better understand the client’s priorities and expectations, thus helping you to plan effectively when problems arise.

3. Track performance goals

SLAs define and track performance standards with metrics based on your current level and goals. Agents know where they stand and what level of performance is expected of them. Team leads can set realistic goals and communicate more accurate timelines to customers when issues arise. An SLA specifies the frequency and types of reports tracked.

Tracking SLA performance goals
Track Performance Goals

4. Outline solutions for underperformance

SLAs include penalties for failing to meet expectations. Additionally, the agreements made with your clients offer solutions if either of you fall short, thus defining dispute resolution processes.

5. Build trust

By clearly defining your obligations to your clients in a SLA, you can engender confidence among both current and potential customers and demonstrate your dedication to meeting their needs. An SLA is your company’s commitment to accountability, giving your clients peace of mind. They have faith in your dependability because the signed agreement specifies the penalties for breaking your (and their) ends of the deal.

6. Create new business opportunities

All clients need a good relationship with companies with which they do business. In most cases, clients switch companies if their needs are unmet and they do not get enough personal attention. These agreements can be powerful tools for eliminating bad feelings in your customers caused by ambiguity in the service and attention they can expect. By sticking with your agreement terms and creating transparency in your client relationships, you build a reputation for accountability and reliability in the market.


In summary, an SLA is a tool you can use to help deliver the best customer experience. By adhering to a well-defined SLA, your company’s reputation becomes stellar, which attracts more customers, thus helping your business to grow.

Check out BoldDesk to see how you can use an SLA in your customer support services. You can also try a 15-day free trial on BoldDesk.com. For more information, contact BoldDesk support.



  1. Miloni Salot
    December 5, 2023 at 11:56 am

    ” Excellent insights into the importance of having an SLA for customer service! The article effectively highlights key reasons businesses should consider implementing an SLA to enhance their customer support strategies. It’s crucial to set clear expectations and standards for service delivery, and this piece does a great job of explaining how an SLA can contribute to improved customer satisfaction.

    i also covered it in detail on blog here https://t3planet.com/blog/why-your-business-need-sla/. It provides additional valuable information that aligns with the points discussed in this article.

  2. zoritoler imol
    October 21, 2022 at 1:27 pm

    Glad to be one of several visitors on this awesome site : D.

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