If there’s one thing you want to get right the first time, it’s customer support. The faster and more effectively you can solve problems, the more satisfied your customers will be. Ideally, your support team can remedy the client’s concerns within the first call—otherwise known as first call or first contact resolution (FCR). This not only boosts customer satisfaction but also can amplify your bottom line.
According to SQM Group, an organization specializing in call center quality assurance, a 1% increase in FCR amounts to nearly $300,000 in savings for an average call center. Read on to learn how to calculate your current FCR rate, identify improvement opportunities, and deliver top-notch customer service at the first—and maybe only—opportunity.
What is first call resolution?
First call resolution is when the same representative who answers a customer service call also solves the customer’s inquiry. This is done without transferring them to a different department, dropping the call, or needing follow-ups. It is measured as a percentage rate reflecting how many calls were resolved on the first try.
A high first call resolution percentage shows your customer service team can handle problems efficiently on first contact. Customers generally don’t get passed around or disconnected from a call, having to start the process over again. High FCR rates help you gain a competitive edge by establishing your company as reliable and trustworthy on the first interaction.
Why is first call resolution important?
Striving for a high FCR rate is practical for several reasons, such as:
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Increasing customer satisfaction. A customer whose problem is solved in the first interaction with a support team won’t experience the frustration of one who has to call multiple times. This can lead to improved satisfaction and customer retention.
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Reducing operating costs. A resolved call on the first contact avoids the need for a second call. This lets you handle more customer service calls in a shorter span of time, reducing operating costs.
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Improving employee experience. High first call resolution shows your systems are working well on the back end—such as proper training, easily documented answers, and effective methods for handling requests.
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Finding areas for improvement. Examining areas that drive repeat calls and fail to achieve your FCR goal can help you pinpoint problems, such as a flaw in product design or a lack of established protocols in a call center.
How to measure first call resolution
To determine your first call resolution rate, take the number of incidents resolved on the first call and divide it by the total number of calls, then multiply that by 100 to convert the figure to a percentage. For example, let’s say you resolved customer complaints on the first call in 43 out of 50 total calls. The calculation would be:.
43 / 50 = 0.86
0.86 x 100 = 86%
In other words, you handled 86% of customer inquiries on the first call. FCR performance varies by industry, but a benchmark FCR rate is between 70% and 79%, according to call center quality specialist SQM Group. Anything below 70% needs improvement, while an FCR between 80% and 100% is known as a world-class rate.
Tips to improve first call resolution
Strategies for improving first call resolution include:
Analyze FCR failures and collect customer feedback
Study issues that weren’t solved on first contact to identify patterns. Let’s say you run an ecommerce apparel company selling custom-made knitwear. After cataloguing your FCR, you notice a pattern of calls related to return requests for a line of hats.
From there, you might take a two-pronged approach: First, it seems your return policy isn’t clear enough. Since customers need to reach out for guidance on returns, there’s information missing. Consider reviewing your self-service support options, FAQ pages, and return policy.
On the other hand, there may be an issue with your product. Gathering customer feedback can help you improve your product itself, reducing the need for returns.
Improve customer service agent training
Your support agents act as your company’s frontline to solving customer problems in real time, and the best way to improve FCR is to make sure you have effective customer service training. Proper training involves ensuring representatives thoroughly understand company policies. It also involves keeping agents abreast of any company or product change, so they can be best informed when advising customers.
Customer service training methods might include small-group role playing, conversation flow-charts, mock customer calls, and reviewing recorded calls to identify successes and areas for improvement. You might hold live demonstrations, host lunch and learn training, or offer opportunities to shadow senior support team members.
Maintain customer knowledge and databases
Developing a 360-degree view of customer data provides customer service with relevant context around each customer’s purchase and support history. If a returning customer calls with a question, a customer service agent should be able to quickly access their past orders. A unified commerce platform like Shopify, for instance, eliminates data silos by storing customer information from online, in-store, and marketing touchpoints in a unified customer profile.
Let’s say an item was delivered to the wrong address. With the right data and customer service management platform, a rep can quickly confirm the incorrect location, ship a replacement product, and waive the cost. The more targeted data a rep has, the faster they can address customer needs.
First call resolution FAQ
What is FCR, and how do you calculate it?
FCR stands for “first call resolution” or “first contact resolution.” It measures the percentage of customer inquiries a contact center or customer service agents resolve on the first call. To identify your FCR, you take your number of resolved incidents on the first call and divide it by your total number of incidents, then multiply the result by 100 to convert the figure to a percentage.
What is AHT and its relation to FCR?
FCR differs from customer resolution rates, which provide a more holistic overview of how often customer service team members generally solve issues, but not necessarily on the first call. Both are important to customer relationship management, and in an ideal world, you want a 100% resolution rate of all phone calls.
What is AHT and its relation to FCR?
AHT stands for “average handle time.” It refers to the average amount of time it takes to complete a customer service call from start to finish, and is often used to measure customer service efficiency. AHT and FCR are both key performance indicators that work in tandem to improve customer experience and customer satisfaction.
What are some phrases often used by agents in first call resolutions?
Language that builds trust and rapport may help de-escalate the initial tension, even if it doesn’t increase FCR directly. Common phrases include “I can help you with that today” and “Let me look into that for you.” You could also say, “I completely understand why that’s frustrating,” “Thank you for explaining that so clearly,” and “I’ve fixed that for you and it won’t happen again.” .
