Detailed explanation of the best formulas, methods and recommendations for the contact center computing service level

In fact, calculating the service level of a contact center is straightforward, but there is often confusion about how to accurately measure it. The formula for service level is as follows:

This gives you a service level expressed as a percentage. It's really simple. For example, if a company aims to answer 80% of calls within 20 seconds, the service level threshold is set at 20 seconds. The data used in these calculations can typically be obtained from the contact center’s Automatic Call Distribution (ACD) system. If that fails, Call Detail Records (CDRs) can be used instead. Number of calls answered within the service level threshold = 136 Number of calls offered during the service level threshold period = 170

Each new reporting cycle should recalculate the service level. Most contact centers perform this calculation every half hour if not done in real time. This helps them monitor whether they have the right number of agents to handle varying call volumes throughout the day. Should calls abandoned within five seconds be excluded? In some systems, calls that are abandoned before a certain threshold—like five seconds—are not counted. Dave Appleby, an experienced resource planner, explains, “People may have dialed the wrong number and hung up immediately. This can be configured on many ACD systems.” This is generally considered acceptable. He adds, “These calls don’t even last as long as a single ring cycle. Some ACDs might not even route them to the queue if the customer hears the ring.” Therefore, excluding short abandonments leads to a more accurate service level calculation, as shown in the revised formula below:

But should all abandoned calls be excluded? The answer is no. An abandoned call is one that was offered by the ACD and had a chance to be answered. However, the so-called "abandonment rate" can vary depending on the type of call. The chart below highlights this variation.

Since most types reach around 80%, it’s no surprise that this has become the industry standard. Service level time usually starts after the IVR selection. Generally, the timer begins after the customer has navigated through the Interactive Voice Response (IVR). The service level measures “how many of the calls were answered within X seconds?” Dave Appleby says, “I haven't seen it done that way before. Service level is based on the number of calls answered, not just the total calls.” However, recording abandoned calls separately is still an effective way to assess the accuracy of service level metrics. Carefully using ACD statistics is essential. On some ACD systems, the displayed service level can be misleading. For instance, if your goal is 80% of calls answered within 20 seconds, the ACD might show 100% service level, which actually means 100% of the 80% target was met—not 100% of all calls. Similarly, 80% service level could mean only 64% of calls were answered on time. This can confuse many people. To avoid confusion, it's safer to display only the percentage of calls answered within the specified time. Do you have to follow industry-standard service levels? As mentioned earlier, most contact centers adhere to the 80/20 standard. However, recent trends show some relaxation. According to a white paper, professionals believe service levels have dropped from 70% to 62.7% in just 12 months. Some argue that focusing more on first call resolution (FCR) than strict service levels can lead to higher customer satisfaction.

This table shows that as long as the issue is resolved, the queue time doesn’t significantly impact customer satisfaction. While this is a good point, service levels remain an important part of workforce management in many contact centers. How do people manipulate service levels? As with any metric, once it becomes important, people tend to find ways to influence the results. Here are three common methods: 1. Excluding abandoned calls The easiest way is to leave out the number of abandoned calls from the calculation. For example, Cisco Contact Center software offers different ways to compute service levels. Some treat abandoned calls negatively, others ignore them, and some even count them as answered to improve the numbers. 2. Changing the goal temporarily I’ve heard of supervisors changing the service level goal from 90/15 to 80/20 just to make it easier to meet. 3. Creating a phone screening team Some companies use a screening or classification team to quickly answer calls before routing them to the right department. This can artificially boost service level metrics without improving actual performance. In conclusion, while service levels are a useful metric, they must be interpreted carefully and not manipulated. Understanding the true meaning behind the numbers ensures better decision-making and improved customer experience.

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