First Call Resolution (FCR) refers to the ability to resolve a customer’s issue during their initial contact with your support team, removing the need for follow-ups or escalations.
Achieving high FCR rates is important for businesses that want to improve their customer service.
FCR is an important aspect of contact centre customer engagement, supported by the tools, technologies, and practices of effective customer relationship management.
More in This Guide:
- Why Is First Call Resolution Important?
- Pros and Cons of Monitoring First Contact Resolution Rate
- How to Calculate FCR
- How to Improve FCR
- What Is a Good FCR Rate?
- Looking to Improve Your FCR?
Why Is First Call Resolution Important?
First Call Resolution (FCR) is a metric that offers valuable insights for improving your customer experience.
It also highlights how responsive a business is, both in service delivery and operational costs.
FCR strongly influences other service-related metrics like Customer Satisfaction scores (CSAT), Customer Effort Score (CES), frequency of customer interactions, and even average customer spend.
As we are sure you can agree, people much prefer to have their issues resolved quickly, without the need for follow-ups.
A smooth first interaction creates a better experience overall for the agent and the customer. The less time agents spend on the same issues, the less operational costs are incurred and the more productive the agents can be.
Ultimately, first call resolution contributes to better customer satisfaction and retention. When customers know they can count on fast, effective support, they’re more likely to stay loyal to your brand.
Pros and Cons of Monitoring First Contact Resolution Rate
|
Pros |
Cons |
|
Improves Customer Satisfaction: Helps identify issues resolved on first contact. |
Difficult to Measure Accurately: Definitions of “resolution” can vary across teams and channels. |
|
Highlights Operational Efficiency: Reveals how well agents handle issues. |
Doesn’t Capture Complex Cases: Some issues naturally require multiple contacts and shouldn't count against FCR. |
|
Helps Reduce Repeat Contacts: Lowers workload and operating costs. |
May Encourage Rushed Calls: Agents might focus on closing calls quickly rather than fully resolving the issue. |
|
Drives Training and Process Improvements: Identifies gaps in agent skills or internal processes. |
Can Be Misleading if Isolated: FCR alone doesn't give a full picture of customer experience or agent performance. |
|
Correlates with Other Metrics: Strong FCR often leads to better CSAT, NPS, and retention. |
Hard to Track Across Channels: Consistency across email, chat, and calls is challenging without the right tools. |
To help keep your customers and employees happy, remember the above information when taking steps to improve your FCR.
How to Calculate FCR
Calculating FCR is straightforward, but it can vary depending on your company’s definition of “resolved.” A simple formula to calculate your FCR rate is:
For example, if your call centre handles 1,000 calls in a week, and 700 of those were resolved on the first call, your FCR rate is:
FCR Rate = (700 ÷ 1000) × 100 = 70%
Calculating an FCR can get tricky because what constitutes a resolved call might vary among contact centres.
It can also be difficult to track whether a customer's issue has been truly resolved if they do not follow up within a set period.
To overcome these challenges, consider using post-call surveys or AI software to accurately measure FCR.
How to Improve FCR
If your first call resolution rates are lower than you’d like, here are a few strategies to improve them:
Offer Agent Training
Train agents so that they know how to fix a range of issues without needing to escalate calls. Giving agents the tools and authority to resolve problems on the spot increases FCR.
Provide Agents with Knowledge Management Tools
If agents have access to good knowledge management software, it will help them answer customer queries quickly and accurately.
Simplify Internal Processes
Reduce unnecessary transfers between departments and reduce hold times to improve FCR rates. A smoother internal workflow translates to quicker resolution times for customers.
Use Automation Tools
Support agents in delivering faster, more accurate responses. Technologies like interactive voice response (IVR) systems are becoming more advanced thanks to improvements in artificial intelligence (AI) and voice recognition, making them a valuable asset in handling customer inquiries efficiently.
Gather and Act on Feedback
Use customer surveys after each interaction to track FCR and gain insights into areas where improvements can be made.
Adopt Generative AI
Take advantage of generative AI. As generative AI continues to develop, it’s proving valuable in improving First Call Resolution rates.
According to a 2024 Customer Contact Week report, 86% of contact centre leaders believe the technology improves speed and efficiency.
What Is a Good FCR Rate?
According to the Service Quality Measurement (SQM) Group, the industry standard for a good FCR rate falls between 70% and 79%.
There is no one-size-fits-all benchmark for FCR, but industry standards give a rough idea of what a good rate looks like. Here’s a breakdown by industry:
- Retail & E-commerce: 65–75%
- Telecoms & Utilities: 60–70%
- Financial Services: 70–80%
- Healthcare: 65–75%
Aim for an FCR rate above 70% for strong performance. Anything lower than 60% suggests there’s room for improvement.
Looking to Improve Your FCR?
Improving FCR is an excellent way to improve customer satisfaction and assess the performance of your call centre operations. However, it’s only one aspect of the broader customer experience.
To really boost customer satisfaction and agent productivity, you need to go beyond just this metric.
Contact MaxContact today to discover how our contact centre technology can help your team improve FCR and create a better customer experience.
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