Receiving repeated calls from a customer about the same issue can be frustrating for both parties, as this is the first indicator of poor customer service.
So is there a way to measure and improve contact center performance? What should companies do to eliminate repetition and ensure that customer inquiries are resolved on the first call? The answer is FCR—First Call Resolution—a metric that can significantly improve Customer Experience (CX), boost contact center agents’ productivity, and achieve operational excellence. How does it work? Let’s explore together!
What is First Call Resolution (FCR)?
First Call Resolution, as the name suggests, is all about resolving a customer’s concern or inquiry during the initial interaction. Whether it is a phone call, an email, or a chat session with a support team, FCR indicates the efficiency level of your organization and its being customer-centric.
The percentage expression below will help you understand this metric:
High FCR rates illustrate a seamless and efficient customer experience when there is no need for additional follow-ups, while low rates suggest there are areas for improvement in processes, training, or tools.
Why is First Call Resolution an Important Metric?
According to statistics, on average, each time a customer needs to call back regarding the same issue, customer satisfaction drops by 15%.
The importance of FCR directly impacts customer loyalty and operational efficiency. It reflects two main features: the quality of support provided and the effectiveness of internal processes within an organization. If you ask a customer what made them switch to another service, the majority will point out poor experience. Happy customers are even ready to spend more money if and when they get outstanding customer service.
Another reason is that FCR helps improve your agents’ performance, i.e., they are equipped with all the necessary tools and skills to resolve the customer queries upon the first interaction, thus eliminating the possibility of returning to the same issues again. FCR reflects the competency of the agents and, as a result, contributes to the business's success.
Benefits of Tracking FCR Rate
Let’s check the tangible benefits of FCR for both organizations and customers.
Reduced Operating Costs
The average cost per call ranges from about $3 to $6. Higher FCR rates save time and money. Customer dissatisfaction like further follow-ups or repetitive calls requires additional resources and increases operational costs.
Improved Customer Satisfaction
A 1% increase in FCR improves customer satisfaction by 1%. Quick resolutions during the first contact meet customer expectations, fostering positive experiences and loyalty.
Increased Customer Retention
The previous point brings us to the loyalty factor. When you can provide quick solutions, you change the status of a customer from dissatisfied to loyal which in turn ensures 75% customer retention. A high FCR rate shows customers that their time is valued, reducing customer outflow and boosting retention rates.
Improved Agent Engagement
Good FCR maximizes agents’ productivity in terms of providing the support staff with all the tools and training to resolve issues effectively. This results in job satisfaction and reduces turnover rates.
Brand reputation
Accurate support drives word-of-mouth experiences. This ensures customers are more likely to recommend the brand and continue using its services in the future.
How to Measure First Call Resolution (FCR)?
Did you know that, for example, Amazon uses smart CRM systems and real-time data analytics to measure FCR? Customer feedback and AI-driven insights allow this customer-oriented company to ensure the resolution of most queries during the first interaction.
The practices below can provide accurate FCR measuring:
Define what you are measuring: Whether your agent contacts the customer again via a different channel or escalates the issue to senior staff, you should clearly define what is considered FCR. Minimize exceptions to avoid confusion and track customer satisfaction.
Mark the issue as resolved only after the customer says it is: Premature ticket closure results in frustration on the customers’ part and reopened tickets, which affects FCR rates.
Track reopen rates: This will display your FCR more accurately. Reopened tickets from the same customers indicate the inability to resolve the query during the first contact. It is recommended to set a 24-48-hour window from the initial call before counting your FCR as successful.
Study the full customer journey: Sometimes customers have minor requests like instructions for a password reset, for example. These cases cannot be considered as the first contact for your support team and may skew your FCR rates artificially.
What Is a Good First Call Resolution Rate?
In fact, the FCR rate varies across industries and depends on the complexity of customer issues. Thus, for example, the FCR rate in retail reaches 78%, while the healthcare industry performs at 72% and tech support shows the lowest FCR rate (61%–65%). In general, according to the Service Quality Measurement (SQM) Group, the standard FCR rate is between 70% and 79%, meaning that approximately 30% of tickets may require follow-up. On the other hand, complaint issues are the most difficult to resolve in a single call, with an FCR of 47%.
How to Improve First Contact Resolution
Improving FCR requires a strategic approach. Let’s take a closer look:
Empower Your Team with Agent Training
Equip agents with the knowledge and skills to handle diverse queries confidently. 38% of contact centers report improved FCR after regular agent training. To ensure better outcomes, Integrate training sessions that focus on communication, problem-solving, and product knowledge. Diligent training will provide agents the authority to make decisions without managerial interference for every resolution, reducing unnecessary escalations.
Use Self-Service to Improve FCR Customer Support
Although most customers prefer interaction with real agents to resolve their queries, however, 39% of customers agree that they can get a faster resolution through a smart self-service system. Options like FAQs, chatbots, and interactive voice response features enable customers to find answers independently, reducing ticket volumes and improving FCR rates.
Make Customer Information Accessible with a CRM
Create customer profiles by classifying them according to several criteria. These data should be accessible for agents in real time through a centralized CRM system, fostering quicker and more accurate resolutions.
Use a Skill-Based Routing Strategy
Categorize your agents according to their skills and the best capacity to handle certain inquiries. Customers value being redirected to the most competent agents anticipating faster resolution. This will increase both customer satisfaction and FCR rates.
Monitor Performance Metrics
Tracking such customer satisfaction metrics as FCR rate, Average Handle Time (AHT), and Customer Satisfaction Score (CSAT) allows companies to identify trends and areas for improvement.
Improve Your First Call Resolution Rate with Hector AI
Hecttor AI is the world’s first speech-speed-adapting solution that enables contact centers to address common industry challenges in real time. By using advanced analytics and AI-driven insights, Hecttor AI equips agents with all the necessary tools for delivering exceptional customer experiences. Its voice boost technology seamlessly integrates with any existing system and provides clearer customer-agent communication in terms of fast-paced speech. This amazing tool is developed to improve FCR and reduce AHT by 30% by eliminating operational failures of contact center activity.
Conclusion
As you can see, First Call Resolution is not just another metric. It is the key to better customer experience, employee satisfaction, and operational productivity. Improving FCR is critical for companies that thrive on delivering exceptional customer service and care about loyalty and brand reputation. Prioritizing your company's FCR means investing in agent training, leveraging technology, and monitoring feedback. All of these will help you stay competitive in the marketplace and achieve customer service success.