What is a Service Level Agreement

       3 min read

In this article I’m going to explain exactly what a service level agreement is and why service level agreements between sales and marketing are critical to your company.

Make sure you stick around to the very end because I’m going to share 3 service level agreement examples you can leverage at your company today!

So today's topic is service level agreement - or S-L-A.

What is a Service Level Agreement?

At its core, a service level agreement is a contract between two entities.

Most often it’s between a service provider - either internal or external - and the end user.

An S-L-A defines the level of service expected from the service provider. S-L-A’s are output-based in that their purpose is specifically to define what the customer will receive.

You can use S-L-A’s at all levels of your company. One great place is between a marketing and sales team. 

Why are Service Level Agreements Important for Your Company?

We all want our companies - whether we’re an owner or a team member - to be successful.

Getting to the wins usually means having a plan. Part of a plan should be an agreement between teams. No more “unwritten rules.” After all, what gets measured, gets better.

Let’s look at some service level agreement best practices and how you can use an SLA for focused growth at your company.

SLA's for Quality & Quantity Lead Control

Marketing agrees to quality and quantity of leads going to sales. Also, a specific quality - whether through scoring or simply certain key performance indicators like website visits, conversions, that kind of thing. 

SLA's for Sales Close Rate

Sales agrees to close leads at a certain rate. Along with that, sales agrees to reaching out to leads in a specific time frame and with so many contact points.

This way all stakeholders involved agree to the kinds of communication going on so there’s never any assumptions.

Cuz you know what THAT does! 😱

SLA's for Better Reporting

Reporting. Leadership needs to see numbers, and SLA’s help keep everyone on the same page, including leadership.

Turn the KPI’s in your agreements into a dashboard to show leadership progress from the point where your brand is found all the way through to where your revenue sees the benefit.

The key here is that you can look at the numbers in the service level agreement, and take on issues, not people.

If sales says they aren’t getting enough leads, you can see if that’s right. Or if marketing says no leads ever get closed, you can tell if that’s true.

Then you can improve what’s getting measured and what’s been agreed on ahead of time!

Now that you know what a service level agreement is and why service level agreements are important, make sure you are implementing them for your company’s success.

Make sure you're being happy and helpful, human along the way and let us know how you are using service level agreements at your company.

Topics: What Is