First Call Resolution: learn more about this key indicator in customer service

First Call Resolution: learn more about this key indicator in customer service

Customer service is a top concern for managers because it is the central point of contact with consumers. First Call Resolution (FCR) is an important metric that measures the effectiveness of customer service.

Read this article to learn more about this indicator and how you can use it to improve customer service.

What is FCR?

First Call Resolution, or FCR, is an indicator that measures the percentage of customer issues that are resolved on the first call or contact with a company’s customer service.

This metric evaluates the quality and operational efficiency of customer service agents. When agents manage to resolve a customer’s issue without requiring follow-up, the indicator is positive.

However, when the company is unable to solve a customer’s problem in the first interaction, this index is low. Therefore, FCR shows the team efficiency and the effectiveness of processes in the department. 

It also helps identify bottlenecks and then offer team training, map frequently asked questions, and reformulate processes that impact customer service.

Why is FCR so important?

First Call Resolution measures the efficiency of customer service based on the percentage of problems resolved on the first call. It improves the customer experience and optimizes the company’s resources. 

By closely monitoring this metric, you can identify unnecessary expenses and even the opportunity – or need – to implement a customer service management system. 

This way, companies can improve their operational efficiency. First Call Resolution is also important to confirm that processes are well aligned and defined.

It is also an excellent thermometer that shows the resolution level of your customer service. This is a critical element in building a good relationship between your company and your customers, increasing the chances of loyalty. 

How is First Call Resolution calculated?

To calculate the FCR, divide the number of issues resolved on the first contact by the total number of interactions. Then multiply by 100. 

Example: if a company received 1,000 calls in one month, but only 300 were resolved on the first contact, then FCR is equal to 0.3 or 30% (divide 300 by 1000 and multiply by 100).

However, to achieve excellent results, it’s important to consider only integrations in which customers seek to resolve a problem or answer a question. It can be assessed using a customer satisfaction survey sent immediately after the integration. In this case, the survey should assess whether or not the problem has been resolved.

How to analyze the FCR rate?

The First Call Resolution rate varies according to the technology used, the customer service model, the type of business, and the calculation method. Then, although the general guideline considers that three quarters (¾) of all requests should be resolved on the first contact, you need to consider that:

  • Companies that provide solutions to more complex problems tend to have lower FCR rates;
  • Companies that handle calls with issues that are easy to solve tend to have higher FCR rates.

Factors affecting First Call Resolution

First Call Resolution can be influenced by different factors that may cause a positive or negative impact, including:

  • Knowledge, technical skills, and experience of agents;
  • Customer wait time;
  • Complexity of the problems reported; 
  • Company’s policies and procedures;
  • Tools and access to information;
  • Agent turnover rate;
  • Complexity of the product or service offered;
  • Type of interaction;
  • Knowledge of the product or service;
  • Lack of autonomy to solve the problem.

Benefits of high FCR rates

The First Call Resolution analysis is important to show whether the service team is prepared to resolve issues on the first contact or whether they need to make improvements to their process. 

It provides a number of benefits:

  • Increases customer satisfaction and loyalty;
  • Reduces customer wait time;
  • Reduces the number of repeated calls, which minimizes customer frustration and saves time and resources;
  • Increases operational efficiency.

Improving the FCR rate of your customer service

In order to improve First Call Resolution, you can adopt some practices that will help you resolve customer issues quickly and efficiently, including the following:

  • Provide team training

Team training is essential so that customer service agents are prepared and confident to resolve different situations independently. It prevents customers from contacting your service more than once.

  • Map customer issues

Track call center interactions and understand the issues, complaints, and queries of customers, prioritizing unresolved cases to better understand the bottleneck in the operation.

  • Promote internal communication

Communication between departments is essential for good customer service. For this reason, we suggest the adoption of an integrated customer service system that allows you to effectively manage all customer support channels with your company.

  • Select a good customer service management software tool

Finally, it’s important to ensure that all customer data are centralized and accessible, so that critical information is not lost in emails, chats and unresolved issues.

Milvus, for example, gathers all customer information in one place and integrates all customer service channels, so that interactions can be stored and accessed by agents quickly and accurately.

Challenges related to FCR

The main challenges in measuring and monitoring First Call Resolution rates are:

  • Calculating and analyzing if the value is adequate for the company; 
  • Determining when a request is resolved; 
  • Establishing criteria used to define the end of a service.

To avoid these problems, it is recommended to set criteria that define the end of a service; for example, set the deadline of 15 or 30 days for the customer to call back.

Learn about Milvus – the most comprehensive service desk system

Now that you know what FCR means, you can use a service desk management software tool like Milvus to monitor all the work performed by the customer service team. This way, you can track and manage the FCR rate and make call control much more visual and appropriate to priorities.

To learn more about our platform and system features, contact us now for a free trial.

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