What is First Contact Resolution (FCR)?
First contact resolution, or FCR (also called first call or first touch resolution) is the percentage of support tickets that agents (or bots!) successfully resolve on their first attempt. This includes instances like resolving an issue through a single phone call, chat session, or email reply.
Great, but what does this actually mean in real life terms? Consider this example: you ordered a new phone and are super excited to use it. Unfortunately, it's been 16 days since your order has shipped but it still hasn't arrived. Frustrated, you contact customer support. The agent pinpoints your package location and tells you it was held up at customs but thankfully has been released this morning and should be on its way to you within 4 days. Aha! Problem solved.
Obviously this hypothetical store could do even better - if they offered a self-serve platform with detailed tracking info, you wouldn't even have waited for the agent to begin with. But that's a topic for another post!
Benefits of high First Contact Resolution
1. Enhanced Customer Satisfaction
Apart from the usual customer support metrics, achieving a high FCR is strongly correlated with high customer satisfaction. Microsoft's State of Global Customer Support report points out that 28% of customers worldwide think that having their issue resolved in a single interaction is “the most important aspect of a good customer service experience.” Conversely, when a customer is dissatisfied, 9 out of 10 times it is because FCR did not occur (Service Quality Management (SQM) Group report).
When customers have their issues resolved quickly and efficiently, they are more likely to have a favorable view of the company. This satisfaction can lead to increased customer loyalty and positive word-of-mouth referrals.
Everyone appreciates it when their time is valued. We often contact customer support expecting the worst—a chatbot that gives you the runaround, long wait times. But when CX is able to resolve our concerns within a single interaction, we end up feeling genuinely appreciative for the help we received.
This is why resolving your customers' concerns on the first contact differentiates a business from its competitors and enables you to foster long-term relationships with your customers.
2. Cost Efficiency
High FCR rates can lead to substantial cost savings for businesses. The SQM study suggests that "for every 1% improvement in FCR, you reduce your operating costs by 1%."
By resolving issues in a single interaction, companies can reduce the need for additional resources, such as follow-up calls or emails, which can be costly and time-consuming. This efficiency allows support teams to handle more inquiries without increasing operational costs.
Moreover, reducing the number of repeat contacts can decrease the workload on customer service agents, allowing them to focus on more complex issues that require their expertise. This can lead to better resource allocation and improved productivity across the team.
3. Improved Employee Satisfaction
Achieving high FCR not only benefits customers but also positively impacts employee satisfaction. When agents are empowered to resolve issues effectively on the first contact, they experience a sense of accomplishment and job satisfaction. This empowerment can lead to higher morale and lower turnover rates within the support team.
Additionally, by reducing the number of repeat interactions, agents can avoid the frustration of dealing with unresolved issues, leading to a more positive work environment. This can enhance team dynamics and contribute to a more motivated and engaged workforce.
What is a good First Contact Resolution rate?
The Service Quality Management (SQM) Group indicates that an FCR rate between 70-79% is good and above 80% is world class. In that study, retail peaks at 88% FCR in the best of cases.
How to improve your First Contact Resolution rate?
1. Implement a self-service portal
When a customer has a fairly straightforward issue or question, direct them to your help center where they can find a solution to the problem they're facing. Chad's help center, for instance, offers the following built-in features that resolves these routine support problems:
- FAQ page - answers questions like, "What is your return policy?"
- Order tracking - answers the question, "Where's my stuff?"
- Address editing - solves the problem, "I made a mistake with my ZIP code, can I change it before my order ships?"
- Item swapping - solves the issue, "I accidentally ordered Medium instead of Large"
By empowering customers to solve their own issues instead of making repeat support email queries, you drastically improve on your FCR.
2. Training your agents via roleplay
Investing in comprehensive training programs for customer service agents is crucial for achieving high FCR. Training should cover product knowledge, communication skills, and problem-solving techniques to equip agents with the tools they need to resolve issues effectively. Ongoing training and development opportunities can help agents stay updated on new products and services, ensuring they have the knowledge required to assist customers.
Role-playing scenarios and real-life case studies can be valuable components of training programs, allowing agents to practice handling various customer inquiries and challenges. This hands-on approach can boost their confidence and competence in resolving issues on the first contact.
3. Setup a shared CRM and knowledge database
Providing customer service agents with the right tools and technology is essential for achieving high FCR. This includes access to a robust customer relationship management (CRM) system, knowledge bases, and collaboration tools that enable agents to find information quickly and efficiently. By streamlining access to relevant data, agents can resolve issues more effectively and reduce the need for follow-up interactions.
Additionally, integrating artificial intelligence and automation can assist agents in handling routine inquiries, allowing them to focus on more complex issues that require human intervention. This can enhance the overall efficiency of the support team and contribute to higher FCR rates.
4. Implement monitoring and feedback mechanisms
Implementing monitoring and feedback mechanisms is crucial for continuously improving FCR rates. Regularly reviewing customer interactions and gathering feedback can provide valuable insights into areas for improvement. This feedback can be used to identify common issues, streamline processes, and enhance training programs.
Encouraging open communication between agents and management can also foster a culture of continuous improvement. By involving agents in the process of identifying challenges and solutions, businesses can create a more collaborative and proactive support environment.
Conclusion
First Contact Resolution is a vital metric that reflects a company’s commitment to providing efficient and effective customer service. By prioritizing FCR, businesses can enhance customer satisfaction, reduce operational costs, and improve employee morale. Implementing best practices, such as comprehensive training, empowering agents with the right tools, and fostering a culture of continuous improvement, can help companies achieve high FCR rates and deliver exceptional service to their customers.
While challenges such as complex issues and inadequate resources may arise, businesses that invest in the right strategies and resources can overcome these obstacles and achieve success in their customer service operations. Ultimately, focusing on first contact resolution can lead to a more satisfied customer base, a more efficient support team, and a stronger competitive advantage in the marketplace.