What Is FCR: Methodology for Measuring First Call Resolution

In the call-center industry, customer service plays a key role in achieving success. One of the important service quality metrics is First Call Resolution (FCR), a metric that makes it possible to evaluate a call center’s ability to resolve customer issues on the first call. In this article, we will look at the methodology for measuring FCR and its significance for call centers.

FCR measurement methodologies and their application

First Call Resolution is the percentage of customer inquiries in which their questions or problems are fully and correctly resolved on the first call. The goal of FCR is to minimize repeat customer contacts.

FCR is an important call-center performance metric because it reflects service quality and the ability of agents to solve customer problems quickly and efficiently. The higher the FCR level, the more satisfied customers are and the greater their loyalty to the company.

Below are recommendations that will help improve the efficiency and quality of handling customer inquiries, as well as optimize the FCR metric.

• Identifying the types of inquiries that require FCR measurement: To begin with, it is necessary to analyze and determine the types of inquiries that are most important to customers and require a high level of resolution within a single interaction. 

In the contact center of one internet service provider, the following inquiry types were identified: technical support, billing questions, service change requests, and complaints.

• Determining the optimal FCR target for each inquiry type: For each inquiry type, an optimal FCR target should be set that aligns with best practices and customer expectations. 

For technical support, an FCR target of 80% may be considered optimal, while for billing questions it may be 90%.

• Determining the share of inquiries by type: Analyze the data and determine the percentage breakdown of inquiries by each type. 

Find that 30% of all inquiries relate to technical support, 20% to billing questions, etc.

• Assessing the potential impact of a drop in FCR: When analyzing FCR, it is important to evaluate what benefits can be achieved by reducing this metric. This will lead to fewer inquiries and faster handling of requests. It will also positively affect service quality and customer loyalty. 

If the FCR level drops from 70% to 60%, this may lead to a 15% reduction in inquiries and a 20% increase in customer loyalty.

• Providing agents with access to customer inquiry history: An important aspect of effective FCR management is giving agents access to the customer’s full inquiry history regardless of the communication channel. 

If a customer previously reached out via chatbot and is now calling, the agent should be able to review previous interactions in order to provide a higher-quality and more timely response.

• Investigating the causes of low FCR: In cases of low FCR, an analysis should be carried out to identify the reasons for the situation. A low FCR often indicates an inefficient business process setup or poor automation. 

Creating a ticket that cannot be resolved within a single interaction because of long time frames. Try to redesign the process so that the customer’s question can be handled in one contact.

• Informing the customer of the exact time when the result will be ready: To keep customers satisfied and prevent repeat contacts, it is important to give them accurate information about when they will receive the result. It is also necessary to provide information about the communication method. 

You can tell the customer that their issue will be resolved within 24 hours and offer to send a notification about the response to their email.

Implementing these recommendations in a contact center will help improve the efficiency of handling customer inquiries, enhance FCR, and increase customer loyalty, which in turn will positively affect the company’s success.

The benefits of using FCR 

Measuring FCR and working to improve it brings a number of benefits for contact centers:

1. Improved customer experience: Thanks to a high FCR level, customers get fast and high-quality solutions to their problems, which increases their loyalty.
2. Fewer repeat contacts: By resolving issues on the first call, the contact center reduces the number of repeat customer contacts, making it possible to optimize resources and lower service costs.
3. Better reputation: A high FCR level indicates strong contact-center performance, which helps strengthen the company’s reputation and attract new customers.

Using FCR is important for contact centers that aim to provide a high level of customer support, optimize processes, and strengthen their market reputation.

Recommendations for improving FCR 

If your contact center is looking to increase its FCR level, here are a few recommendations:

1. Provide agent training: Give your employees the necessary skills and knowledge to effectively resolve customer issues.
2. Optimize workflows: Analyze current work processes and identify opportunities to reduce wait times and improve service quality.
3. Use technology solutions: Consider implementing a CRM system or other tools that will help improve inquiry handling and give agents the information they need to resolve customer issues.

FCR is an important service quality metric in contact centers. Measuring it and working to improve it allows contact centers to enhance the customer experience, reduce costs, and resolve customer issues on the first contact.

Read more about contact center performance evaluation, the WFM system, and call-center KPI on our blog.

FCR calculation methods 

There are several approaches to calculating FCR, and each contact center can choose the one that suits its needs. One common method is to calculate the percentage of inquiries in which customer issues are resolved without the need for repeat contacts within a certain period of time.

Example: Suppose 100 inquiries came into the call center over the course of a week. Of those, 80 were successfully resolved without additional contacts. Then FCR is 80%.

Measuring and analyzing FCR play an important role in improving customer service quality in contact centers. A high FCR level indicates that agents are able to resolve customer issues effectively and correctly at the very first stage of the interaction.

Example: If a contact center achieves a high FCR level, for example 90%, that means most customers receive a complete and correct solution to their questions without the need for repeat calls or contacts. This creates a positive service experience and increases customer loyalty.

Challenges in calculating First Call Resolution

Despite its importance, FCR can involve several challenges in calculation, which we will look at now:

1. Defining FCR: How do you define a successful resolution of a customer issue on the first try? Many factors can affect the customer’s perception, and they may return later with the same question. Excluding such situations from FCR calculations can be a challenge.
2. Tracking the issue: To calculate FCR, you need to track every incoming request and determine whether the customer’s issue was fully resolved. However, with a high volume of calls or contacts, this can be difficult. How can accurate tracking be ensured in all cases? One solution may be to use modern CRM systems that help automate the tracking process and provide accurate data for FCR calculation.
3. Challenges in assessing customer loyalty: Loyalty assessment can be subjective and depend on each customer’s preferences. How do you know whether the issue was resolved from the customer’s point of view? The only way is to ask them. There can be several ways to do this: an automated IVR survey, an outbound call, or a chatbot in chat. 

Example: Imagine that you are a customer and have contacted your internet provider’s support team because you are having connection issues. If they helped resolve the issue during the call itself, you would be satisfied, and this would count as a successful FCR. However, if the issue came back a few days later, it may mean that FCR was not achieved, even though it initially seemed that way.

Although calculating FCR can involve several challenges, it is important to understand that it is a key indicator of support team performance. To improve FCR, attention must be paid to defining a successful issue resolution, accurate tracking, and assessing customer loyalty. Using modern tools will help simplify the process and improve service quality. Only then can organizations strengthen their reputation and customer trust in the long term.