FCR: Percentage of Issues Resolved on First Contact

What is FCR

FCR (First Contact Resolution) is a metric used in customer service management that indicates the percentage of customer issues resolved during the first interaction, without the need for follow-up contacts or escalations. This metric is important because it is directly linked to customer satisfaction and support team efficiency.

Why FCR Is Evaluated

FCR evaluation serves several purposes aimed at improving service quality and operational efficiency in customer-facing organizations. Key reasons for using FCR include:

1. Increasing customer satisfaction. Successfully resolving issues on the first contact leads to higher customer satisfaction and loyalty. Customers who receive quick and effective solutions are more likely to stay with the company and recommend it to others.
2. Reducing operational costs. Fewer repeat contacts reduce the workload on support teams, lowering service costs. This allows more efficient resource allocation and shorter wait times for other customers.
3. Optimizing internal processes. FCR analysis helps identify service process inefficiencies, skill gaps among agents, or needed policy changes — enabling improvements in overall performance.
4. Improving products and services. Understanding the most common customer issues allows businesses to enhance products and services to better meet customer needs and expectations.
5. Strengthening brand and reputation. A high FCR contributes to a positive brand image, as customers associate the company with effective, high-quality support.
6. Strategic planning and decision-making. FCR insights support long-term strategies to improve service quality and customer satisfaction at the organizational level.

How FCR Is Calculated

FCR is calculated as the ratio of customer issues resolved on the first contact to the total number of inquiries within a given period. It is usually expressed as a percentage. Note that what qualifies as a "resolved" issue may vary depending on company policy and the nature of the service.

FCR formula:

FCR = (Number of issues resolved on first contact / Total number of issues) × 100

Example:

Suppose the support team received 1,000 inquiries in a month. Of those, 800 were resolved on the first contact.

Then FCR would be calculated as:

FCR (%) = (800 / 1000) × 100 = 80%

This means 80% of all support inquiries were successfully resolved without the need for a follow-up or escalation.

General Methodology for FCR Surveys

The general methodology for FCR surveys includes a series of steps designed to collect and analyze data on how effectively customer issues are resolved during the first interaction. Key steps include:

1. Clearly define what you want to measure and what improvements you hope to achieve. This helps in designing the right questions and selecting the target audience.
2. Create an effective questionnaire focused on whether the customer's issue was resolved during their first contact. The questions should be clear, specific, and easy to understand.
3. Choose the most suitable data collection method for your audience, such as phone surveys, emails, SMS, web forms, or a combination.
4. Determine who will be surveyed. The sample can be random or targeted, depending on your objectives. Ensure the sample is representative of your customer base.
5. Conduct the survey according to your plan, ensuring participant anonymity and data confidentiality.
6. Gather and analyze the responses. Calculate the FCR rate and assess other service-related factors based on customer feedback.
7. Prepare a report with the survey results, insights, and actionable recommendations for improving service quality and FCR performance.
8. Implement improvements based on the findings to enhance customer service processes and increase the FCR metric.
9. Continue to monitor FCR after changes are implemented and conduct follow-up surveys as needed to measure impact.

What Is Considered a Normal FCR

A "normal" FCR rate can vary widely depending on industry, service type, support channel, and customer base characteristics. However, in many industries, a typical FCR rate ranges between 70% and 90%.

Ultimately, what is considered a “normal” or “acceptable” FCR depends on each company’s operational context and service goals. Every organization should aim to improve FCR within the framework of its unique challenges and capabilities.

How to Improve the FCR Metric

To improve FCR, consider the following strategies:

1. Provide regular training to employees to enhance their skills and problem-solving abilities.
2. Ensure support agents have access to comprehensive knowledge bases and internal resources to resolve issues quickly.
3. Implement CRM and case management systems to efficiently track and manage customer inquiries.
4. Use automation tools like chatbots and self-service platforms to resolve common issues faster.
5. Improve internal communication between departments to provide quick access to necessary information.
6. Regularly gather and analyze customer feedback to identify problem areas and improvement opportunities.
7. Monitor key performance indicators (KPI) related to FCR to evaluate performance and identify areas for development.
8. Introduce incentive and recognition programs to motivate employees who excel at resolving issues on the first contact.
9. Periodically review and streamline customer service processes to eliminate unnecessary bureaucracy and simplify resolution paths.
10. Personalize customer support by considering interaction history and preferences for faster, more accurate resolutions.

By following these strategies, organizations can boost their FCR rates, improve customer satisfaction, and enhance the overall efficiency of their support operations.