The First Call Resolution Advantage: Everything You Need to Know

Table of Contents

1. Defining First Call Resolution

2. The Significance of First Call Resolution

3. Simple Steps to Improve First Call Resolution

4. Ready to unlock the power of FCR and transform your customer support?

5. Frequently asked Questions

There’s nothing more frustrating for a customer facing an issue than being told by a support agent that it’s fixed, only to have to call back because the problem persists. Don’t believe me? Let me give you an example.

20 minutes into ordering your favorite meal, you realize the restaurant or the delivery agent messed up your order. The food that you received is not what you ordered. You call support, and they assure you that you will get a full refund for the order in your wallet instantly. But even after waiting for half an hour, you don’t get a refund or an update. You call them back, and you are now, AGAIN, waiting in line to talk to an agent.

This scenario is not only an example of what inefficient customer support looks like but also an indication of the need to monitor how efficiently agents are resolving customer concerns. One tool that businesses can leverage is a metric called First Call Resolution (FCR) to gain valuable insights into their performance and customer satisfaction levels.

Defining First Call Resolution

First Call Resolution (FCR), also commonly referred to as First Contact Resolution, is an important contact center metric. It helps monitor customer satisfaction by measuring how effectively customer issues are resolved during the first interaction. This includes queries addressed through calls, emails, chats, and social media platforms. Having a good FCR rate shows the company’s ability to handle customer queries from multiple platforms efficiently, without having the customer call back.

FCR also play a significant role in achieving a Good Net Promoter Score (NPS). When issues are resolved in the first interaction, it leaves you with a satisfied and loyal customer. And a loyal customer is likely to promote your brand to friends and family. This in turn increases your NPS. The co-relation and impact of having a good FCR rate is evident across customer support functions.

The Formula to Success

The formula to determine the FCR rate is straightforward. First, identify the number of customer interactions where issues were fully resolved on the initial contact, regardless of channel (phone, email, chat, etc.). Then, find the total number of customer interactions received within a specific timeframe (week, month).

Finally, divide the number of successfully resolved first contacts by the total interactions and multiply by 100 to express your FCR rate as a percentage.

A First Call Resolution (FCR) rate of approximately 90% is widely regarded as high and effective, while a rate around 40% is typically considered low and indicates room for improvement. The average FCR rate typically ranges between 72% and 76%, though this can vary across different industries.

The Significance of First Call Resolution

Customer support plays a crucial role in the growth of any business. Being at the front end, helping your customers resolve their issues and queries, customer support teams have the ability to make or break your brand image. Consequently, their ability to resolve issues in the first interaction can be a game-changer for your business. This is where a metric like First Call Resolution can come in handy. It allows businesses to: 

1. Enhance Customer Satisfaction

The primary purpose behind tracking First Contact Resolution (FCR) rates lies in assessing the number of customer inquiries that are definitively addressed and resolved during the initial point of contact. For a customer who is reaching out to a support team with a misplaced order, having an agent who is equipped and efficient enough to resolve the issue immediately is a huge plus point.

Customers experiencing immediate resolution of their issues are likely to be satisfied with the service, consequently being prompted to make repeat purchases and providing positive word-of-mouth referrals.

Even when people love a company or product, 59% will walk away after several bad experiences, 17% after just one bad experience.

Source

2. Improve Operational Efficiency

The operational impact of having a high FCR extends beyond customer support teams and positively influences overall business performance. Having a high FCR means a majority of the customer support queries received are dealt with in the first contact itself, reducing follow-up calls and escalations. This gives agents the ability to handle a higher volume of tickets and more time to deal with complex issues more effectively.

3. Drive Business Success

The financial impact of a high FCR cannot be overlooked. Given the scenario that customer complaints are resolved in first contact, it will directly contribute to lower operational costs due to decreased call volumes and shorter handling times. This efficiency can translate into significant cost savings for the business. Furthermore, satisfied customers are more likely to be converted into repeat buyers and advocates for the brand, driving revenue growth.

4. Boost Employee Satisfaction

Agents who are equipped to resolve issues on the first call often experience higher job satisfaction. They can see the direct impact of their work on customer satisfaction, which can be very rewarding. Additionally, reducing the need for follow-up calls can decrease the stress and frustration associated with handling repetitive issues, leading to a more positive and productive work environment.

These factors directly impact customers and employees. Your customers feel heard and valued and your employees can see the direct impact of their work which is bound to improve their motivation. What better way to improve your brand image?

Simple Steps to Improve First Call Resolution

Having discussed what FCR is and why it is important, it is imperative we deal with the how. How can you improve your FCR?

The following are some best practices to improve FCR:

1. Comprehensive Training Programs

Investing in comprehensive training programs is the first step to optimizing agent performance. A comprehensive training program must cover all aspects of the job, including product knowledge, communication skills, and problem-solving techniques. Agents who are well aware of the product and process will be able to deal with customer concerns more efficiently. It will also ensure that the agents are not overwhelmed or caught off-guard by the questions that customers pose. 

2. Empower Agents with the Right Tools

The next step is to ensure that your agents are equipped with the right tools to handle customer issues. This includes access to Customer Experience (CX) systems like Kapture, troubleshooting guides, and real-time data analytics. This will ensure that the agents have access to the information they require to  quickly identify issues and provide a solution.

3. Knowledge Management System

A Knowledge Management System allows agents to have access to a centralized repository of information. Information they can revisit whenever they are stuck with a process. This repository can include FAQs, guideline documents, troubleshooting steps, and best practices. This will save the agent the they time spend in researching an issue, further being able to resolving issues quickly, and improve FCR.

4. Analyze and Address Common Issues

Organizations that already use FCR as a metric to track agent performance will also have to review recurring issues and provide apt solutions. This not only ensure that your agent’s performance will increase but also, make sure the same mistakes are not repeated. Some of the ways you can prevent recurring mistakes is by updating your training documents to provide accurate information, improving documentation, and providing additional training.

5. Enhance Communication Channels

Enhancing communication channels is a non-negotiable in the digital era. Customers today opt to raise their issues not only via mail or call but social media channels as well. Making sure this process is streamlined can help address customer issues on time. Additionally, using the help of AI powered bots to resolve common issues can save the agent’s time and help them focus on more serious issue that require their attention.

6. Set Clear Expectations and Follow Up

It is important to acknowledge that not all issues can be resolved in the first contact or call. A few issues are complex and will require more time and follow ups. Clearly communicate to agents the issues that can be resolved in the first contact. The process to be followed to resolve there issues should be set in place. Additionally, following up with customers to ensure their issue was effectively resolves can improve customer satisfaction.

7. Use Customer Support Automation Platforms

Top business leaders and contact centers that have good customer relations have a robust CX system like Kapture in place. Leveraging our automation platform can streamline the resolution process. With the use of artificial intelligence (AI) and machine learning to assist agents by providing real-time recommendations, automated responses, and predictive analytics the process of resolving tickets can be simplified. Automation can handle routine inquiries, allowing agents to focus on more complex issues, thereby improving FCR.

Ready to unlock the power of FCR and transform your customer support?

Contact Kapture today! Our robust CX platform empowers agents, streamlines processes, and delivers exceptional customer experiences. Let’s work together to elevate your FCR and achieve outstanding business results.

Frequently Asked Questions