Learn more about our services

Customer Experience

What is First Call Resolution (FCR): A Complete Guide

first call resolution definition

First Call Resolution (FCR) is one of the most important performance indicators for call and contact centers. Think of this content as a complete guide to understanding FCR. You will learn about its history, the formula for measuring FCR, and how to enhance FCR in a contact center.

For those looking for additional contact center performance indicators, we propose our article “Key Call Center KPIs.” But first, let’s look at First Call Resolution and its significance.

First Call Resolution: Definition and Brief History

First Call Resolution (FCR) is the percentage of customer issues resolved during the initial engagement with a contact center. Simply said, this metric measures the proportion of client inquiries or problems that are resolved without the need for additional calls or the transfer of the case to another agent.

When addressing FCR, the focus is mostly on agent and contact center efficiency—how successfully customer concerns are addressed at the first encounter without the need for follow-up calls or call transfers.

An Example of Solving a Problem on the First Call

Consider this scenario: a consumer calls a mobile service provider’s contact center because they are having problems with 4G internet access on their phone. The agent listens carefully, asks clarifying questions, and gives guidance on what to do. The customer follows these directions, their 4G internet begins to function, the problem is rectified, and the customer is satisfied. No more calls needs.

Evolution and Adoption of the FCR

The notion of FCR became popular in the late 1980s and early 1990s. Previously, most contact centers focused on measures such as Average Handling Time (AHT), Call Volume (the number of incoming calls), and Hold Time (the time a caller waits while the agent looks for information). These measures indicated efficiency but did not necessarily result in a comprehensive resolution of the customer’s problem.

As customer service quality became a competitive advantage for firms, the emphasis shifted to outcomes-based metrics such as customer satisfaction and loyalty. Companies and outsourced contact centers began to focus results-oriented metrics.

FCR in the 1990s and 2000s

Businesses began measuring complicated performance indicators such as FCR in the 1990s, as CRM systems and data-driven decision-making gained prominence. The broad use of this statistic occurred when firms learned that resolving customer complaints on the first engagement resulted in decreased operational costs and greater customer loyalty, as seen by the then-emerging Net Promoter Score.

Gartner, a major research firm, was instrumental in formalizing metrics like FCR in the early 2000s, encouraging firms to prioritize this KPI as part of larger initiatives to improve customer service and operational efficiency.

How to Measure First Call Resolution Rate

Formula for calculating FCR:

FCR = (Number of issues resolved in a single call) / (Total number of inquiries) * 100%

Example of FCR Calculation

Let’s assume that a contact center received 1,000 calls in a month. Out of these, 800 issues were resolved during the first interaction with the customer. The FCR would be calculated as follows:

FCR = (800 issues resolved in one call) / (1,000 total inquiries) * 100% = 80%

This means that 80% of all customer inquiries were resolved during their first call to the contact center.

How Do I Know If an Issue Was Resolved on the First Call?

Most contact centers think that tracking repeat calls within two weeks of the initial inquiry is necessary for effectively assessing FCR. For example, if a consumer does not call the center again within 7-14 days, the issue is deemed fixed on the initial try.

A frequent way for determining FCR is to survey clients immediately following the call. Post call survey can be accomplished using IVR surveys, in which the consumer receives an automated call asking, “Was your problem resolved?” SMS surveys, email surveys, and live chat surveys are all widely used.

What constitutes a good or bad FCR rate?

It’s worth noting that FCR rate differ depending on the contact center, the type of question (billing, complaints, orders, technical issues), and the industry or business sector.

The average FCR rate in contact centers is around 70%. This means that 30% of customers must call again with the same issue or problem.

Industry FCR norms range between 39% and 91%. Industries with simpler calls typically have the greatest FCR rates. For example, a retail company’s contact center frequently handles regular inquiries such as orders, product returns, and consultations, which are usually resolved without the need for a follow-up call.

On the other side, industries with more complicated questions typically have lower FCR rates. For example, an insurance company’s contact center processes requests like calculating insurance payouts, issuing policies, and modifying contract terms. These are complex processes that necessitate extensive study of each situation and frequently involve follow-up calls or forwarding the call to another professional.

Why is the FCR metric important?

No other indicator provides a more thorough understanding of a contact center’s performance than FCR. A high FCR score shows that customers are getting prompt answers to their queries and efficient resolutions to their problems, which improves the overall customer experience and helps the contact center run more efficiently. Increasing FCR levels has positive implications in numerous important areas:

  • Reduces operational costs: By resolving issues on the first contact, businesses can reduce the time and resources spent on handling customer inquiries.
  • Decreases customer churn: Satisfied customers are more likely to remain loyal to a company.
  • Improves customer satisfaction: Quick and efficient resolution of issues leads to higher customer satisfaction.
  • Creates more opportunities for upselling: Happy customers are more open to purchasing additional products or services.
  • Increases Net Promoter Score (NPS): A higher FCR typically correlates with a higher NPS, indicating that customers are more likely to recommend the company to others.

It’s worth noting that FCR (First Call Resolution) is directly related to CSAT (Customer Satisfaction). When a customer can resolve their issue in one call, it significantly increases their satisfaction with the service, as they don’t waste additional time or become frustrated due to the need for repeated contacts. A high FCR level is frequently associated with an increase in CSAT, as consumers receive quick and effective service, increasing their loyalty to the organization. Thus, enhancing FCR has a direct impact on improving CSAT, resulting in a pleasant customer experience.

How to Improve First Call Resolution in a Contact Center?

To improve the First Call Resolution (FCR) rate in a contact center, several effective strategies can be implemented:

Enhance Technology and Optimize the Work Environment

Equip contact center agents with efficient tools to resolve customer issues. This includes internal knowledge bases, CRM systems, and co-browsing tools. Cloud-based contact center platforms like Global Bilgi’s Sirius offer comprehensive solutions.

Enhance Agent Capabilities through Training and Coaching

Agent training programs should focus on enhancing their capacity to answer client questions on the first call. Agent feedback and regular coaching assist in identifying shortcomings and improving performance.

Ensure Agents Align with Company Standards

HR teams should prioritize recruiting personnel with strong communication skills in order to provide excellent customer service. When hiring contact center agents, modern firms prioritize emotional intelligence and soft skills, which improve FCR and customer satisfaction.

Implement Automated Call Distribution Systems

Automatic Call Distribution (ACD) systems connect clients to agents whose abilities best match their request. Automated call routing reduces the need for transfers inside the contact center, allowing agents to resolve client issues quickly.

Quality and Performance Management System

FCR measurements should be an essential component of agent performance evaluation and reward programs. Regular monitoring of service quality and post-call surveys enables rapid adjustments to contact center operations as well as FCR enhancements.

FCR: Key Takeaways

Improving the FCR rate is a top priority for any contact center. Equipping agents with the required tools and skills, together with ongoing improvement of customer service operations, can result in high levels of customer satisfaction and increased company productivity.

A strategic approach to improving FCR involves investing in employee training, implementing modern technologies, and continuously monitoring key performance indicators.

If you want to provide an amazing customer experience, consider outsourcing contact center services with Global Bilgi. We will verify that all essential contact center metrics are in line with your business objectives.

About author

Фахівець з маркетингу компанії Global Bilgi
Related posts
Customer Experience

How to Choose an Outsourced Contact Center: Avoiding Common Mistakes

Customer Experience

How to Maximize the Benefits of Customer Feedback in a Call Center?

Customer Experience

How to Reduce Call Volume and Improve Customer Experience

Customer Experience

How Outsourcing Your Contact Center to Global Bilgi Can Improve Your HoReCa Business

Sign up for our Newsletter and
stay informed