Cyara Blog

    How Much Does a SEV1 Cost Your Organization?

    Posted by Kelly Zunker

    January 21, 2015

    shutterstock_145464745The answer is, it depends. The cost of a SEV1 depends on many factors including when the error is discovered and how difficult it is to diagnose and repair. But first, what is a SEV1?

    Almost every organization has its definition for a SEV1, which is shorthand for a Severity 1 error and also for ‘something is very wrong'. Severity 1 is the highest severity, and in a contact center it is typically used when key functionality is not working or an entire application is failing. It is also used when software performance is so significantly degraded that it seriously impacts production. In almost all instances of a SEV1 software defect, no workaround is readily available. As I said, something is very wrong.

    Two examples of a SEV1 defect in the contact center could be software, such as the CRM system used by agents, operating too slowly to be effective, or an error in the IVR that sends a significant number of additional calls directly to the agents. In the latter case, the IVR might not be responding appropriately to callers, and this may cause large numbers of additional callers to exit the self-service functions in the IVR. This type of an error condition can have a very negative impact on caller hold times, customer satisfaction and, depending on how long it takes to resolve the condition, even result in unplanned agent overtime.

    The Cost of a SEV1

    Let's take a look at what an SEV1 can cost your organization. Extended caller hold times can result in additional telephony costs as well as lost sales. Lost sales may occur if your customers can't get through and have to try again later, or perhaps try another vendor to get what they want. Typically, there are plenty of reports in a contact center that include telling averages for these costs, and any negative sales impact will certainly be headline news at tomorrow morning's management meeting.

    Customer satisfaction may be harder to quantify in real dollars, but with the competitive climate most companies operate in today, there are likely metrics for that too. Negative customer experiences may show up in a declining Net Promoter Score (NPS) or, unfortunately, it may already be posted on the latest social media board as another example of a company with poor service.

    Unplanned agent overtime is an area that you can easily quantify. Even with consistent, reliable statistics it can be difficult to accurately forecast the number of agent hours needed to handle contact volumes. Depending on agent utilization rates (the effective amount of time that agents are busy dealing with calls, chats or e-mails), there is usually some buffer for minor upticks in volume. When those upticks become major, such as when experiencing a SEV1, they can rarely be absorbed within that buffer. Scheduling then becomes impossible. That is when agents already on shift are asked to stay longer, and additional agents are asked to log in or arrive early for their shifts. That is an expensive proposition in all cases, not to mention the additional drain on the contact center management team.

    There are certainly other costs associated with SEV1, but we can already begin to see the answer to our question just by adding up those three. A SEV1 can quickly add up to the tens or hundreds of thousands of dollars, and in some cases, it can reach even the millions. That is why SEV1 error conditions should be avoided with thorough end-to-end testing throughout the software innovation cycle.

    The Role of Testing

    Now, everyone tests, right? Right, but finding the error earlier in the innovation cycle (design, development, testing, deployment, and production) lowers the impact of that error on production and the cost of the error. We have already looked at the related costs if a SEV1 error occurs when the application is already in production, but what if the SEV1 appears during final load testing of the application? While not as costly as an actual production error, an error found while load testing can still impact production and accumulate significant costs. In contrast, an error found earlier in the innovation cycle may not incur any incremental costs. That is why a testing solution that can span the entire innovation cycle is necessary, and it can often be justified based solely on avoiding the costs of potential errors in production.

    Even with end-to-end testing, errors can still occur in production, especially if tests were not performed at a high enough level to simulate actual production loads across all systems. That is why you also need to perform continuous proactive monitoring of the related systems. Continuous proactive monitoring is the best way to provide early detection of errors in contact center systems – before the negative effects escalate. There are plenty of solutions out there to monitor individual components of technology within the contact center infrastructure, but very few of these applications can monitor the entire customer experience from the carrier to the agent. The breadth of the monitoring is key because, remember, degradation of system performance can also result in SEV1's. Monitoring individual components may not expose a combination of errors that together add up to a SEV1 and the associated costs.

    Cyara, Your Answer for Testing and Monitoring

    Cyara is the world's fastest growing provider of an omni-channel customer experience testing and monitoring platform. The single platform allows customers to have a comprehensive suite that provides coverage for the entire innovation cycle. Installation is non-invasive and very fast. Cyara customers innovate faster and more predictably saving time and money in the process.
    Cyara offers its customers both end-to-end testing and proactive monitoring for an expanding number of contact channels including voice, chat and email. These solutions have been proven to result in improved contact center performance at some of the largest companies in the world. For more information, visit www.cyara.com. Or, you can wait until you get that email asking for an answer to the question for tomorrow morning's management meeting, "How much does a SEV1 cost?"