Call Center Service Level: How to Calculate & Improve It?

The call center service level is a matrix that measures how effectively a call center meets its goals in handling incoming customer calls. It’s often expressed as a percentage, indicating the number of calls answered within a specific timeframe. For example, if a call center aims for a service level of 80/20, it targets to answer 80% of incoming calls within 20 seconds.

Measuring the service level is crucial because it reflects the efficiency and responsiveness of the call center. High service levels typically indicate that customers get quick responses or assistance.

There are two main methods for calculating service level in call center: Measuring Received calls and abandoned Calls.

To measure the call center service level from received calls, you need to calculate the number of calls answered within the specific timeframes and the total number of calls received. Using this method will give you insight into how quickly the call center answers customer calls. Following are the two formulas that you can use to calculate service level in a call center by evaluating received calls: 
 

Formula 1

This is the most common and straightforward formula used to calculate call service level, which is written as,

Service level: (The total number of call answers within the specific period / Total number of calls received) * 100

Formula 2

This formula calculates the call center service level, which focuses on treating abandoned calls as a negative factor. The formula is written as,

Service Level = Total Calls Answered Within Threshold / (Total Calls Answered + Total Calls Abandoned) × 100%

Call center service level from abandoned calls is determined based on customer calls hanging up before being answered. It will help determine the wait time before the call is answered and evaluate how well a call center serves customers. 
 

Formula:

Service level = Total calls answered within threshold +calls abandoned within threshold/ total calls answered + total calls abandoned * 100%

The most popular service level standards and benchmarks for a call center are explained below:

The 80/20 rule is a popular service level standard that aims to answer 80% of incoming calls in 20 seconds. Using this rule, the call center can set a clear response time target, which helps measure the abandonment rate.

Many businesses rely on this benchmark to enhance customer satisfaction but may adjust their goals based on customer feedback. It emphasizes the importance of balancing quick response times with overall customer experience.

The 90/10 is the modern service level benchmark for a call center, which suggests that 90% of customer calls should be answered in 10 seconds. Call centers prioritizing rapid response times to improve customer service often set this standard. While this may require more resources or staffing, achieving this level can significantly boost customer satisfaction and reduce frustration, especially for time-sensitive inquiries.

First Call Resolution (FCR) measures the call center's performance during call interaction and checks whether the issues are solved on the first call. Using this standard service rate helps eliminate the follow-up needs.

A high FCR rate indicates that the call center effectively addresses customer needs quickly and accurately. This metric is crucial because it improves customer satisfaction and reduces operational costs, as fewer follow-up calls are needed.

To improve and maintain the call center's service level, you need to implement a clear strategy. First, set a clear service level objective and then invest in staffing and training to meet it.

Define Clear Service Level Objectives: Setting clear service level objectives helps manage the establishment of particular goals within a specific time. For example, businesses can set the 80/20 rule, which allows call center employees to know what is expected and provides a standard to measure performance.

Implement Optimal Staffing Strategies: Implementing optimal staffing strategies means planning the staffing level according to the estimated call volume. You can manage the staffing level by analyzing previous call data, ensuring enough employees even during the busiest times.

Invest in Agent Training: Regular training on product knowledge, communication skills, and problem-solving techniques helps agents handle customer inquiries more efficiently. It helps to improve customer satisfaction and leads to better resolution.

Enhance Technology Integration: Several advanced tools can improve efficiency and service quality. These include automated call distribution, interactive voice response, and customer relationship management systems.

Enhance Communication Channels: Various communication channels, such as phone, live chat, and email, allow customers to reach them in multiple ways. Offer your customers various options to communicate. It helps to cater to different preferences and increases accessibility.

Monitor Key Performance Indicators (KPIs): Regularly track metrics such as Average Speed of Answer (ASA), Average Handle Time (AHT), and First Call Resolution (FCR) rates. Monitoring these KPIs helps identify areas needing improvement.

Improve Customer Feedback Mechanisms: Collect customer feedback through surveys, feedback forms, or follow-up emails asking for their opinions. By collecting feedback, organizations can better understand customer preferences.

Real-Time Management Tools: Managers can monitor what‘s happening in the call center and take immediate action. It helps them manage activity by shifting staff to different tasks or helping agents who may be struggling.
 

The service level of a call center is an important performance matrix that reflects the center's efficiency and responsiveness to customer inquiries. Managers can measure the call center's performance by using various benchmarks, including 80/20 and 90/10 rules. Moreover, ensuring optimal staffing, training your agent, and using real-time management tools ensure consistent performance.

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The common service level target is 80/20, which many call centers use to ensure services are delivered efficiently. With this target, the businesses aim to answer 80% of calls within 20 seconds.

Monitoring service levels is important to meet customer expectations. It ensures that the business delivers services on time and keeps customers happy.

Low service levels can lead to unhappy customers, loss of business, and damage to the company's reputation.