In a world where customers expect immediate access and resolution to every inquiry, being able to measure whether someone’s problem was addressed the first time they reached out is essential to customer retention. All customers want helpful agents, 24/7 support, and perfect first call resolution (FCR) rates.
If you run a contact center as a service (CCaaS), you must measure FCR to understand whether you are truly putting customers first and supporting the customer experience with timely answers. Any business can improve customer retention with first call resolution (FCR); that is if they have the right tools.
This blog will describe the ways in which first call resolution directly impacts customer retention, and how you can implement the right FCR systems to set your agents up for success.
What is First Call Resolution?
First call resolution is a metric used to gauge how swiftly a customer’s inquiries or concerns are successfully resolved. It is a common term in the call center industry and can be used to assess individual call center employee performance and the overall efficiency and effectiveness of a call center.
FCR is an important metric to monitor, as it indicates whether call centers are adequately equipped to deal with incoming customer calls, emails, or other communications.
First Call Resolution is sometimes called First Contact Resolution. This is to allow for the fact that call centers are now handling not just phone calls but emails, chats, messaging, etc.
In all contexts, the concept applies to resolving a customer’s needs the first time they make contact, whether by a call or other means.
What is a Good FCR Rate for a Call Center?
First call resolution rates can vary from very low (40% or less) to very high (85% or more). A myriad of factors impacts what FCR a single company can aim for, including the volume and complexity of incoming requests. An ambitious goal would be to shoot for between 65-75%.
How well a call center, and individual employees, score for FCR is an important performance indicator. Here’s why:
Reasons for a Low Call Center FCR
A low FCR would be cause for alarm, as it could point to a few key issues:
- Customers are experiencing technical difficulties or are having trouble reaching the right person
- Customers are calling into the wrong department or area, requiring multiple redirects or are even unable to find the right person
- The daily call volume is too high and the number of agents to support call volume is too low
- Agents aren’t informed, empowered, or trained to provide resolution to common customer inquiries or issues
Reasons for a High Call Center FCR
A high FCR is a good sign that the call center is operating effectively:
- Customers have an easy time dialing into the call center
- Customers have an easy time finding the right person to assist them
- Call center agents are informed and know how to help customers
You can see that some of the issues that could impact FCR are inherently technical. A customer that has to wait too long to be assisted may hang up. Agents that are ill-equipped will get frustrated and simply schedule a call-back or otherwise fail at resolving the issue during the first call. All of this is ameliorated with a top-notch call center system, which is essential to providing the customer experience people have come to expect. If you suspect your call center is failing at FCR for any of the reasons above (or, really, any reason at all), it may be time for an upgrade.
How Does FCR Impact Customer Retention?
Customers don’t want to work hard to get the help they need. The overwhelming expectation of customers nowadays is to receive personalized, speedy service. In fact, research shows that:
- 93% of customers have the expectation of first call resolution
- For every 1% increase in FCR, there is a 1% increase in measured customer satisfaction
- FCR impacts the Net Promoter Score of a company, which is a marketing metric directly tied to the value of that customer
CCaaS Tools from Evolve IP
FCR can be measured in numerous ways: agent logging, quality monitoring, reopened issues, counting repeat call volume, post-call surveys, and more. FCR is ultimately decided by the customer: do they feel that their issue was completely resolved during the first call? Tracking this is becoming mission-critical and, as a result, more companies are upgrading their technology and systems to better monitor and support their customer service.
According to the Journal of Database Marketing & Customer Strategy Management, two factors are immensely important in achieving high customer satisfaction and high first call resolution rates:
- Knowledge management
- A technology-based system
If your call center FCR rates have fallen or are at risk of falling; if you feel you are not offering customers cutting-edge, frictionless experiences; it’s time to look to the future. The tech exists to make CCaaS a heavyweight performer in your business, so leverage it. After all, your customer expects it, and your agents need it to succeed.
If you want more info and actionable tips on how to improve first call resolution, read this next — 9 Ways to Help You Improve First Call Resolution.
Do you have questions about the Evolve IP products that support CCaaS? Visit our CCaaS product page to learn more.
