Service Level Agreement (SLA)
A contract that defines the level of service a client can expect, including response times, availability, and performance standards. SLAs set clear expectations and protect both agency and client.
Definition
Related Terms
Retainer Agreement
A contractual arrangement where a client pays a recurring fee (typically monthly) to retain your agency's services, usually for a set number of hours or specific deliverables. Retainers provide predictable revenue and stronger client relationships.
Agency of Record (AOR)
The primary agency relationship where a client grants exclusive or preferred status for a service category. AOR relationships provide significant revenue and strategic importance.
Account Management
The function responsible for maintaining and growing client relationships. Account managers serve as the primary client liaison, ensuring satisfaction, identifying opportunities, and managing the overall client experience.
Related Resources
Frequently Asked Questions
What should an agency SLA include?
Agency SLAs typically include response time commitments (when you'll acknowledge and respond to requests), turnaround times for deliverables, availability expectations, and sometimes quality or performance metrics. Terms should be measurable and realistic.
When do agencies need SLAs?
SLAs are most common in retainer relationships, ongoing support agreements, and managed services where clients need assurance of consistent service levels. Project-based work may have milestone dates rather than SLAs, though some clients expect response time commitments.
What happens when an agency misses an SLA?
SLAs often specify remedies for breaches—service credits, escalation procedures, or other consequences. Even without formal remedies, consistently missing SLAs damages trust. Track compliance and address breaches proactively to maintain client relationships.
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