What is first call resolution and how can you improve it?

May 26, 2023

What is first call resolution and why is it critical for business growth? Read our full guide to this contact center metric, how to improve it and tips for creating a customer-centric approach to resolving calls.

What is First Call Resolution (FCR)?

The first call resolution (FCR) or first contact resolution metric is a contact center measure that gauges how many customer calls or contacts are resolved on the first interaction. Ideally, customers only have to get in touch once to solve a problem or answer a query – any more than that and your cost to serve increases.

It’s a great way of measuring how efficient your contact center is, and for tracking your agents’ efficacy at customer relationship management. It’s no wonder it’s considered one of the key call center metrics to monitor.

First call resolution is measured with a calculation of your first call resolution rate. First call resolution is the action of resolving a query on the first interaction with a customer; a first contact resolution rate is the percentage of customers who experienced first call resolution.

What’s the difference between call resolution and first call resolution (FCR)?

Call resolution measures the number of customer inquiries or support requests that are resolved in general. First call resolution is a more in-depth measurement that can help you to understand multiple facets of your contact center, from customer satisfaction to your customer service team’s skills.

Why is a good first call resolution rate vital for business success?

It protects your bottom line

The SQM Group’s 2021 research has found that for each 1% improvement in first call resolution rate, the operating costs for your contact center reduce by 1%.

It increases customer satisfaction

Similarly, for that same 1% rise in first call resolution, there is a 1% increase in customer satisfaction.

It improves customer experience (and generates revenue)

Providing quick solutions to customer inquiries can transform a negative customer experience into a positive one. Resolving a customer’s issue can be the difference between at-risk customers staying or leaving, making it a vital part of the customer retention process.

It provides a better experience for your customer service team

Tracking first contact resolution rates and addressing issues can help to provide a better employee experience.

How to measure first call resolution

The first call resolution (FCR) formula

To work out the percentage rate of first contact resolution, you need the number of interactions that resolved a customer query on the first contact, divided by the total number of interactions you’ve had. Multiply this by 100, and you have your first call resolution rate.

What’s a good first contact resolution rate?

Here are some first contact resolution rate benchmark examples:

The SQM group’s 2021 research found that the retail industry has the best performance for first call resolution, standing at 78%. The healthcare industry (specifically health insurance) follows closely behind at a 72% first call resolution rate. Tech support (65%) and telco (61%) have the lowest first call resolution rates listed.

How to improve your first call resolution rate

To improve first-call resolutions rates, first you’ll need to pinpoint why customers are calling more than once.

Here are some common issues:

• The type of call made (complaint, account admin etc.) and complexity of the query
• A product or service issue that’s too complex for one call to resolve
• Transferral to the wrong department or an unavailable person
• Long hold times

Gather continuous data and break down information silos

To help you understand where the customer journey or experience is failing, you’ll need as much data as possible.

Tackle the underlying reasons for customer calls

To ensure that you’re able to head off issues and queries and reduce the total calls made, you first need to understand how customers have arrived at the decision to call.

Provide multiple avenues for resolution

Rather than relying on calls specifically to resolve issues and queries, it’s best to provide multiple avenues for customers to find their answers.

Empower your customer service support team

Your frontline support team are often the only source of a back-and-forth interaction with your brand that your customers will have. Empowering your team can often help to improve your first call resolution rate dramatically.

3 proven tips for improving first call resolution

1. Focus on customer experience

The ideal customer interaction should be a smooth experience, and low on customer effort.

2. Introduce empathy

Empathy, in this case, can be as simple as support agents repeating the issue in a summarized way back to customers to ensure they’ve understood, or apologizing for negative experiences.

3. Close the loop

Closing the loop after a call can help to reduce further calls by providing further information, directing customers to other resources or flagging that their concerns have been addressed.

Improve your first call resolution rate with Qualtrics

The first contact resolution rate formula is a simple method of measuring first call resolution. However, there are other ways to monitor your agents’ performance, customer satisfaction and more.