Service Level Agreement (SLA)

Business

Definition

A contract defining expected service standards, response times, and remedies for non-compliance.

Detailed Description

SLAs establish measurable service commitments between providers and customers, typically covering response times, resolution times, uptime guarantees, and performance standards. These agreements include penalty clauses for non-compliance and often define escalation procedures. SLAs help manage customer expectations, drive operational performance, and differentiate service offerings. They require careful drafting to balance customer needs with operational capabilities and profitability.

Frequently Asked Questions

What metrics should be included in an SLA?

Common metrics include response time, resolution time, uptime percentage, first-time fix rate, and customer satisfaction scores.

How do you set realistic SLA targets?

Analyze historical performance, consider resource availability, account for geography, factor in equipment criticality, and benchmark against industry standards.

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Used In

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Additional Resources

Conclusion

Understanding Service Level Agreement (SLA) is essential for effective field service management. This business concept plays a crucial role in maintaining profitability and customer satisfaction in field service operations.

Explore our comprehensive glossary to deepen your understanding of field service management terminology and discover how Aiventic's AI-powered solutions can help optimize your field service operations.

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