Penalty Clause

[LoyaltyManager]

Hi All,

I have been observing this form for some time now and finally I have a question that is not answered.

We are a Loyalty Management Consultancy and presently working on a client who wish to outsource their Member Service centre (customer contact centre). The question that I have is with regards to the Service Levels.

We need to insert penalty clauses as part of the contract to ensure service levels are adhered to however are unsure of how this works, what percentage of penalties should the service providers be liable for if they drop on service level std. what should be the margin allowed (-ve) to deviate from the service level due to justified causes.

Your responses will be highly appreciated.

Thanks