What is First Call Resolution (FCR)? A Complete Guide
- Last Updated: 01 Dec 23
- 9 min read
Have you ever imagined a world where customer issues are resolved right out on the first interactions? No more callbacks and delays only left with satisfying interaction, and that’s the magic of First call resolutions( FCR).
FCR is not just a number but solves a customer’s problems immediately. It is a roadmap guiding your business to make your customer satisfied,
In this article, we’ll explore what FCR really means, why it is important for customer satisfaction, and why it is crucial for making everything run smoothly behind the scenes.
So, let’s delve deeper into the world of FCR and know why it is a game-changing tool in the customer world.
What is First Call Resolution (FCR)?
First-call resolution, also known as first-contact resolution, is an essential metric that is used to measure the effectiveness of customer service interactions.
The first call resolution also implies how customer services are able to address and resolve issues effectively and efficiently without needing a follow-up call.
FCR describes the percentage of customer inquiries that are resolved on the first call with a representative. In order to calculate FCR, you will need to determine how many issues have been resolved and how many customer interactions have taken place. The formula to calculate FCR is as follows:
FCR = (Number of resolved issues on first attempts / Total number of customer interactions or cases) × 100%
For instance, if your contact center gets 800 customer queries in a day and 685 of them are resolved on the first call, your FCR rate for that day will be 85.62%.
What is a Good FCR Rate?
A high FCR rate is generally considered a good indicator of customer service effectiveness. It states that the company is able to handle customer inquiries efficiently, provide accurate information, and resolve issues quickly, leading to a more satisfying experience for customers.
However, the specific FCR rate, which is considered good, varies depending on the industry and the level of complexity being handled. The following are some general considerations for FCR rates in different industries:
- Energy, financial, and call centers: 71%
- Tech support: 65%
- Retail: 78%
- Insurance: 76%
In addition, it is essential for companies to compare their FCR rates to their competitors so they can identify the areas where they can improve.
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Why is First Call Resolution (FCR) Important?
Having a high FCR indicates that the organization solves customer issues quickly and satisfactorily. So here are several convincing reasons why First Call Resolution (FCR) is so important in customer service, which are explained below:
1. Increase in customer satisfaction
Since FCR mostly depend on inbound call, the customer will likely expect a quick and efficient resolution of customer issues. Resolving issues can lead to an increase in customer loyalty and a higher level of customer satisfaction.
2. Improved employee productivity
Utilizing software and tools, employees can quickly resolve issues. It helps them to focus on new issues and handle more calls rather than spending a lot of time on recurring problems. Overall, it can lead to improved productivity of the customer support teams.
3. Reduce operations costs
You can reduce operating costs by avoiding follow-up calls and additional resources by resolving issues. Therefore, it helps to save costs for business organizations through the reduction of call volume, decreasing handling time, and lowering operational expenses.
4. Improve brand reputation
A company having a higher FCR rate is likely to be considered as one that values its customers and provides excellent customer service. Customers who have experienced issues resolved quickly are likely to share positive feedback with their friends and family, where word of mouth can gain new customers, increasing their customer base.
5. Increase customer loyalty
Customers who are satisfied with the business services will likely engage with the company. The first contact resolution can help increase customer satisfaction by ensuring customers have a positive experience. So, offering quick and effective solutions plays a vital role in helping customers perceive the company positively.
How to measure First Call Resolution?
As FCR becomes a center point in providing exceptional customer service, organizations should know how to measure their FCR to position themselves as industry leaders, leaving a lasting impression on customers. Here are some pinpoints to measure First Call Resolutions.
1. Defining clearly FCR for your business
Clearly defining the conditions for considering a customer issue resolved in the first interaction. This helps keep things consistent when keeping track and reporting.
2. Gathering data
Collecting data on the number of your customer interactions and issues resolved on the first contact, this data can be obtained from call center records, CRM systems, or other relevant resources.
3. Utilizing the FCR rate formula
By applying the FCR formula, you can collect data on the number of customer interactions and the number of issues resolved on the first contact. This data can be gathered from call center records, CRM systems, and other relevant sources.
4. Monitoring and analyzing FCR trend
Measuring the effectiveness of improvement efforts and setting targets for future performance by tracking FCR rates over time. Using tools and software to automate data collection, reporting, and calculations can make your FCR monitoring more efficient and reliable
5. Segmenting FCR data
You can set a target market by many factors such as product line, customer segment, and issue type to identify room for improvement and set your strategies accordingly.
6. Involving agents in FCR tracking
You can encourage agents to contribute to FCR tracking by accurately classifying issue resolutions and offering feedback.
7. Reviewing and updating
By tracking and updating the details of resolved issues on a regular basis, consistency can be ensured with ever-changing customer expectations and industry standards.
Best Practices and Tips for Improving First Call Resolution (FCR)
To get the best practices and tips for improving FCR in your organizations, you can follow these points:
- Defining and setting clear goals and making sure that everyone is aware of the expectations and held accountable for meeting them
- Ensuring that agents are trained in product knowledge and have effective problem-solving techniques. Provide them with training on all the skills like technical expertise and customer service skills.
- Providing agents with the necessary tools and resources so that they can work effectively so that they can find solutions quickly and accurately.
- Using advanced technology to automate tasks frees up your agents so that they can focus on other issues. Also, using CRM systems can assist agents in managing and resolving customer issues more efficiently you can also use phone test tools for call quality.
- Tracking and measuring results can help you identify room for improvement and monitor the effectiveness of your efforts. It also identifies the patterns in customer issues and calls data.
- Collecting feedback from customer about their experience of using your product and see if there are any areas for improvement and make changes if needed.
- Rewarding customer support agents who consistently achieve high FCR rates and showing appreciation for their work motivates them to boost their morale and encourage continuous improvement.
Common Mistakes to Avoid When Improving First Call Resolution (FCR)
Getting a high FCR is vital for enhancing customer satisfaction, reducing operational costs, and increasing customer support agents’ efficiency. However, when improving FCR, it’s important to avoid the following mistakes:
1. Lack of clear goals
Without having a clear goal, all your efforts can be ineffective. So, setting clear FCR goals for agents and supervisors creates a roadmap for success and helps to achieve its common objectives. Without clear goals, efforts may be uncertain and ineffective.
2. Insufficient resources and training
In order to provide effective customer service, agents must be highly trained and have access to the necessary resources so they can use them effectively to enhance performance. This includes product knowledge, technical expertise, customer service skills, and access to relevant tools and information.
3. Lack of empathy
Nowadays, interactions with customer service are not just about resolving issues but also about building relationships through empathy. So, to show genuine care for their satisfaction, Agents should actively listen to customers, acknowledge their concerns,
4. Ignoring feedback and data
Analyzing customer feedback and agent performance data regularly can provide valuable insights into areas for improvement. Ignoring this feedback, you cannot identify and address the underlying issues that negatively impact FCR.
5. Ignoring root cause analysis (RCA)
In order to resolve immediate problems, it’s crucial to identify and address the underlying root causes of problems. It is important to conduct RCA to avoid repeating issues and to improve FCR in the long run.
6. Neglecting customer self-service options
The self-service options for customers, such as FAQs, knowledge bases, and chatbots, can empower them to resolve simple issues independently, reducing the volume of contacts and giving agents more time to handle more complex inquiries.
First call resolution(FCR) is a critical metric in the world of customer service, representing the efficiency and effectiveness of resolving customer issues during their initial contact with support.
By prioritizing FCR, business organizations can build long-lasting customer relationships and gain a competitive edge, thriving in a business environment where exceptional customer service is crucial to success.
Hence, by benchmarking your first call resolution against industry standards, competitor averages, or even your past performance, you can take action to improve your FCR rate and surpass these standards.
What are the challenges of improving FCR?
There are many challenges to improving an FCR some of them are :
- Inefficient knowledge management
- High agent turnover
- Inadequate self-service options
- Ineffective performance metrics
- Complex customer issues
What do I need to achieve for FCR?
Here, you can focus on the key components to achieve FCR:
- Empower and train customer support agents
- Implement self-service solutions
- Streamline customer interactions
- Analyze and improve processes
- Foster a customer-centric culture