Running a call center presents constant challenges. Not only do you face higher-than-typical staff turnover rates, which can average 30-40%, but you also have to ensure every agent is well-trained and aims to improve metrics and KPIs in every area of their work.
The list of those metrics and KPIs can seem never-ending at times, from first response time (FRT) to customer satisfaction scores. One of the main metrics that call center managers look at is first call resolution (FCR). What is first call resolution, and, more importantly, how can you improve your contact center’s figures?
What is first call resolution?
First call resolution (FCR) refers to the number of calls where an agent resolves a customer’s issue or query on the first call to the contact center. Managers look to have a high first call resolution rate as it not only means that their customer service agents are well-trained and knowledgeable but eliminates the need for a follow-up call from the customer.
If managers see a low FCR rate combined with low average talk time rates, it’s usually a sign that calls are not being handled satisfactorily. A higher FCR rate may be accompanied by higher average talk times, but this can be an acceptable trade-off as it can mean customer satisfaction levels will also be higher.
If you operate an omnichannel business, you may look at your first contact resolution rate as well as first call resolution. This secondary metric looks at customer issues and queries resolved on the first contact, whether contact has come by phone, SMS texting, email, live chat, or via your social media platforms.
Some customer issues are complex and take more than one call to resolve, but you should be aiming for the industry average of around 70% first call resolution rate.
Calculating your FCR rate is straightforward:
First Contact Resolution (FCR) = Your total number of resolved cases / your total number of cases
Why is first call resolution important?
FCR is directly linked to your organization’s customer experience (CX), with a high FCR implying strong CX. In many ways, it validates the training you give your agents and shows that they have a strong and relevant knowledge base. It can also make you more cost-effective if agents resolve a lot of customer calls on first contact.
You will find that many KPIs (key performance indicators) and metrics are closely entwined and one can dramatically affect the other. With FCR, high rates can drive positive scores when it comes to your customer satisfaction scores, as it’s a natural connection for a quickly-resolved issue to lead to higher customer satisfaction. It also means that customers have to put in less effort, leading to a good customer effort score (CES).
From a different perspective, low FCR rates can indicate that further training is needed and that some agents may need one-on-one coaching. Identifying any weak links in your customer support chain can rectify issues and bring the center up to expected performance levels.
While you may think of FCR as purely a call center metric, it can be applied to any business offering customer support by phone. Even an SME (small and medium enterprise) using a VoIP business phone service should examine its FCR rates to ensure it has a good customer service team.
What challenges do you face in improving FCR?
It’s not just a case of saying to your agents, “Resolve every issue on the first call.” There may be inherent challenges that your agents – and your customers – are facing which significantly hinder resolving a call:
- Long waiting times. This can be especially challenging during busy periods.
- Staff turnover. With high turnover rates, onboarding and training can pose a challenge when it comes to ensuring your agents are properly trained.
- IVR (interactive voice response) menus. These can be overly complex at times, causing customers to be connected to the wrong department.
- Poor knowledge base. Your agents should have access to a good knowledge base, including an effective CRM (customer relationship management) system. If there are gaps in the knowledge available to them, then FCR is unlikely.
- No authority. Resolving a call sometimes takes something extra. For example, if a customer is unhappy about something, offering a discount or free shipping on their next purchase may improve their experience.
How to improve your first call resolution rates
So, FCR can be a good indicator that your business is providing a positive customer experience. But what happens if you see several successive reports where your first call resolution rates are lower than expected? How do you address the issues causing those low rates and see an improvement in your FCR rates?
Identify the cause
If you’re experiencing low FCR rates, the first thing to do is find out why they are happening. After all, you can’t solve a problem unless you know the root cause of that problem. You should look at the following questions and apply them where necessary until you can highlight the cause (or causes):
- What was the nature of the call?
- If the customer was not satisfied, why?
- If the issue was left unresolved, why?
- Is there an issue with the channels? If you offer contact across different channels, is there a problem with how you do it?
- If a call was transferred, why and who was it transferred to?
- If the call went to the wrong team or department, why did it happen? Was it the fault of a complicated IVR system?
To answer those questions, you can look at different sources of information. You can use analytics on the data collected to identify where the issues happened. Call centers keep recordings of calls, so listening back to agents with particularly low FCR rates can pinpoint if further training/coaching is needed.
Another good source of information is customer feedback (and sometimes reviews, too). These can give you the perspective of the customers as to what the issues might be. And, of course, you can simply ask agents what they feel is the problem. Your analyses should be cyclical and ongoing in an effort to improve all your relevant metrics.
Analyze customer behavior
Whether you operate a traditional model or a call center as a service model, customer behavior will have identifiable patterns. By identifying and understanding those patterns, you can better anticipate the types of calls most commonly received and prepare for them.
For example, if you run a tech company, you might identify that a large percentage of calls received are technical support calls, mainly set-up queries or troubleshooting. By knowing the FAQs (frequently asked questions), you can ensure that your agents are able to answer nearly every question.
Build a comprehensive knowledge base
Agents are only human and can’t know the answer to every question they are asked. But you don’t want them to have to transfer calls to answer a query. They will get a lot of customer-related information from your CRM, but that won’t hold all the solutions they need. Having a good knowledge base they can refer to can help them answer those difficult questions.
Additionally, maintaining an updated inventory checklist can ensure agents have immediate access to information about available products or services, enhancing their ability to resolve queries efficiently and boost FCR.
A great knowledge base is not just for agents, though. With around 73% of customers wanting to solve problems themselves, providing them with a good knowledge base and other self-service options can mean they do not need to call at all. Have your customer knowledge base contain FAQ sections, how-to tutorials and videos, and any other information relevant to your business that can help solve common issues.
Review your agent training and coaching
Your agents are only as good as the training they have received. By ensuring your training is excellent, you can boost your FCR rate. Managers and team leaders should also look at offering good coaching using effective coaching tools and should listen in on calls by poorly-performing or new agents. This means they can directly address any knowledge gaps or other issues causing low FCR rates.
If you have different teams with different skills, calls may sometimes be directed to the wrong team. Introducing cross-training can mean that each team has agents who can cover different areas. If you frequently change the products/services you offer or the processes you use, have regular training sessions.
For example, if you have a new campaign where you want calls to generate leads for your sales team, having dedicated sessions on how to create a lead magnet can help with this goal and teach agents new skills.
Use specialist processes
Time is often a factor when it comes to a positive customer experience. You want customers directed to the right call center agent or team the first time, especially if they’ve faced a lengthy wait. If you want to improve your FCR rates, consider the following options:
- Voicemail options. If customers face a long wait, offer a voicemail option so they can receive a callback.
- AI and IVR routing. Use technology and automation to ensure that a call goes to the agent best equipped to handle it. There are many benefits of artificial intelligence in healthcare, eCommerce, recruitment, sales, marketing, and so much more. Take time to explore how it can speed up resolution rates for your industry, business, and customers.
- Omnichannel routing. You can avoid multiple calls that will damage your FCR by offering the channels that customers prefer. If possible, use channels such as social media or call apps to handle issues.
- Skills-based routing. This can be especially useful when complex issues arise. It can connect customers with agents who are best equipped to deal with their call in a timely and effective manner.
Provide authority
As mentioned earlier, if an agent lacks the authority to make offers that can resolve a call, your FCR may suffer. You can grant some authority to agents and provide authority to team leaders for higher-level offers if your support center operates with distinctive teams. This means it can be easier to resolve a problem for dissatisfied customers at the first attempt and boost your FCR rate.
Some of the things you can allow agents to decide without recourse to a manager include:
- Adjusting billing cycles and payment-due dates.
- Offer discounts (you can consider limiting how much they can offer).
- Remove or reduce any applicable shipping costs.
- Agree to refunds and/or returns (within your terms and conditions that apply to returns and refunds).
Use technology
Technology can immensely help resolve calls at the first attempt and improve your FCR rates. Look at what existing tools can be utilized for collaboration and communication or what new tools would benefit your contact center. Cloud platform integration can help bring different tools and data repositories together, such as:
- CRM. This can hold a lot of essential data to help an agent resolve a call.
- Unified agent desktop (UAD). This is a centralized interface that can bring together the different tools, info sources, and applications you may be using.
- Instant messaging (IM). Rather than transferring a call, IM means that an agent can message another agent or manager while still talking to the customer.
- Chatbots. You could use simple or complex chatbots to handle basic queries or to ensure that a question is fully understood and the customer is connected to the right agent.
Employee satisfaction
While you want to ensure customer satisfaction and a positive experience, it’s just as important to have happy employees. Not only will this reduce the likelihood of high staff turnover rates, but it can also mean that the agents are more invested in their work. And, of course, a happy employee can help make a happy customer, too.
By motivating your agents and focusing on quality rather than quantity, they will be more likely to maintain a high level of service and try to resolve queries on that first call. Listen to employee feedback, provide bonuses and perks where applicable, and ensure your company culture is inclusive and fosters employee engagement.
The takeaway
You want your customer service effectiveness to be at a high level. Poor customer service will adversely affect both your FCR and customer loyalty. It’s not just about customer retention though, it’s about providing a positive customer experience that will have a knock-on effect on everything from your FCR to your CSAT.
Contact center software is great for collecting and analyzing relevant data to identify issues. It also helps to maintain agent efficiency and identify skills and knowledge gaps, both of which can contribute to low FCR rates. Even a small business will have some form of customer support team to handle customer inquiries and will want a high FCR rate.
