value insights

What’s the difference between SLO vs. SLA?- Valutrics

Benchmarking SLO metrics for optimal results

Besides understanding how to establish and enforce SLAs, customers need to determine appropriate SLA benchmarks based on industry standards for success. This may mean deciding between 99.9% or 99.999% application uptime, for example, or between 20% first-call resolution or 60% first-call resolution.

Establishing benchmarks is a key step in creating an SLA because without them, customers may be asking for too little or too much from their service providers. Oftentimes, customers don’t have data on their current performance if they haven’t outsourced that particular function before. Or, they may be dissatisfied with their current outsourced results, if they’re using SLAs with subpar performance metrics. Customers who are most satisfied with the performance of their suppliers are those that understand what the market will bear regarding SLA performance.