In customer service, one metric rules them all. That’s First Contact Resolution (FCR).
It’s the magic that turns good into great. But what is FCR, and why should you care? Let’s get into it.
What is First Contact Resolution?
First Contact Resolution (FCR) means a customer service team can resolve a customer’s issue or answer their question in the first interaction without the need for follow-ups or escalations. It’s a simple concept with big implications for customer satisfaction, operational efficiency, and business success.
“Put simply, First Contact resolution is about engaging and solving a customer query in the first contact, and ideally quickly as well so that they don’t have to reach out multiple times”
-Colin Mann- Enghouse interactive
Think about it: When was the last time you contacted customer support and got your issue sorted out immediately? How did that make you feel? Probably pretty impressed and left with a good impression of the company. That’s FCR in action.
Why First Contact Resolution Matters
1. Higher customer satisfaction
Customers who get their issues sorted out quickly are more likely to be happy with the service. According to SQM Group, for every 1% improvement in FCR, there’s a 1% improvement in customer satisfaction.
2. Lower operational costs
Resolving issues on the first contact means fewer follow-up calls, emails, or chats, which means lower operational costs for your support team. The same SQM Group study found that a 1% improvement in FCR leads to a 1% reduction in operating costs.
3. Employee satisfaction
When agents can resolve issues quickly, they feel more empowered and happy. It also means lower turnover and a more motivated support team.
4. Customer loyalty
Customers who experience quick problem-solving are more likely to stay loyal to your brand. A Forrester report found that 73% of customers think valuing their time is the most important thing a company can do to provide good service.
5. Competitive advantage
In today’s competitive and crowded market, good customer service can be a big differentiator. High FCR rates can be your USP.
I once ordered a set of automobile spare parts from an online supplier. When I received them, half of them were the wrong size. I reached out to their support team, who, after verifying my purchase, immediately confirmed that I’d receive replacement parts within a couple of days. I had my query resolved within a minute-long phone call, which led me to continue purchasing from the same supplier to this day.
From my above-mentioned experience, it’s clear that having a good FCR score means having satisfied and loyal customers. Which in turn provides you with an advantage over your competitors.
5 Practical Tips to Improve First Contact Resolution
Now that we understand why FCR is important, let’s discuss some practical tips for improving your First-Contact Resolution rates.
1. Equip your agents with the right tools and information
A well-equipped and knowledgeable support team is the foundation of high FCR rates. Your agents need access to customer information and the tools to resolve issues quickly.
That’s where a good customer service solution like LeadSquared’s Service CRM can make a big difference. LeadSquared gives you a 360-degree view of customer data including interaction history across leads, opportunities, activities and tickets. This gives agents context to the customer and can provide better solutions.
“Using Leadsquared’s Service CRM gives you an omnichannel, integrated 360° view of customer profile including previous interactions, products purchased and past issues; helping agents resolve issues faster and more efficiently. This has proven effective in improving FCR rates.”
-Sachin Agrawal- Senior Director – Product Management-LeadSquared
Pro Tip: Have a knowledge base that’s easily accessible to your agents. Update it regularly with common issues and their solutions so agents can resolve them faster.
2. Smart routing and assignment rules
Getting the customer to the right agent the first time is key to FCR. Implement intelligent routing systems that consider agent skills, availability, and the type of issue the customer is facing.
LeadSquared’s Service CRM has intuitive and automated ticket assignment features. These features direct customer queries to the right agent, increasing the chances of resolving first-contact issues.
Pro Tip: Review and update your routing rules based on performance data and team changes.
3. Omnichannel support
Customers today expect service across multiple channels. Omnichannel support not only improves customer satisfaction but also increases the chances of first-contact resolution.
LeadSquared’s Service CRM is an end-to-end omnichannel customer support platform. It offers native real-time chat support and easy telephony integration, allowing your team to provide consistent, high-quality support across multiple channels.
Pro Tip: Train your agents to handle queries across all supported channels.
4. Set Service Level Agreements (SLAs)
Setting and following SLAs can dramatically improve FCR rates. SLAs set expectations for response times and resolution timelines and push teams to resolve faster.
With LeadSquared’s SLA Policies feature, you can define the time at which tickets need to be resolved. This keeps your team accountable and focused on quick resolution.
Pro Tip: Review your SLAs regularly and update them based on team performance and customer feedback.
5. Use analytics for continuous improvement
Data is your best friend when it comes to FCR. Analyze your support metrics regularly to find trends, bottlenecks and areas of improvement.
LeadSquared’s Service CRM has advanced dashboards and analytics to track your key metrics and make data driven decisions to improve your FCR.
Pro Tip: Schedule regular review meetings with your team to discuss FCR performance and brainstorm solutions.
FCR Challenges
- Complex issues: Some issues are too big to solve in one interaction. In such cases, we set clear expectations with the customer about the resolution process and keep them informed at each step.
- Agent knowledge: Continuous training is key. Have a robust onboarding program and regular refresher courses for your agents.
- System limitations: Invest in a full-fledged customer service solution like LeadSquared’s Service CRM that has all the tools and information in one place.
- Customer verification issues: LeadSquared’s Customer Verification feature can help with this and security without compromising on speed.
- Speed vs quality: FCR is important but shouldn’t come at the cost of service quality. Use LeadSquared’s Customer Satisfaction surveys to see if your FCR efforts are actually improving customer experience.
4 Important Metrics to Improve FCR
To truly master First Contact Resolution, you need to measure it. Here are the key metrics to track:
- FCR Rate: Percentage of customer issues resolved on first contact.
- Average Handle Time (AHT): Time taken to resolve an issue.
- Customer Satisfaction (CSAT) Scores: To see if FCR is improving overall customer experience.
- Repeat Contact Rate: Percentage of customers who have to reach out again for the same issue.
Let’s discuss these metrics in detail.
1. FCR Rate
FCR Rate is the percentage of issues resolved on first contact. It’s the most direct measure of your FCR and should be your customer service north star.
How to calculate:
Why it matters:
A high FCR Rate means your support team is efficient, knowledgeable and well equipped to handle customer issues. According to The Ascent Group, companies that measure FCR for a year or more see an average 30% improvement in FCR.
How to improve this metric:
- Make sure your agents have access to up-to-date info.
- Use LeadSquared’s automated ticket assignment to route queries to the right agent.
- Give your agents the skills to handle all types of issues.
Pro Tip: Don’t just measure FCR across all channels – break it down by channel (phone, email, chat) to see which channels are performing best and where you need to focus your improvement.
2. Average Handle Time (AHT)
AHT is the average time to resolve an issue, including talk time, hold time, and after-call work.
How to calculate:
Why it matters:
According to Callcenterhelper, over 50% of customers abandon the service call once their wait time crosses 45 seconds, meaning over 50% of customers had their issues unresolved and were left unsatisfied with the service provided. A low AHT can mean higher efficiency but you need to balance speed with quality. Rushing to resolve issues can mean incomplete solutions and customer dissatisfaction. According to
How to improve this metric:
- Streamline workflows to eliminate unnecessary steps.
- LeadSquared’s Customer 360 View gives agents access to all customer data so they don’t have to search for it.
- Make sure calls are routed to the right agent from the start.
Pro Tip: Use LeadSquared’s analytics to see patterns in high AHT interactions. This will help you identify complex issues that need more agent training or updated knowledge base articles.
3. Customer Satisfaction (CSAT) Scores
CSAT scores measure how satisfied customers are with the service they receive. It’s key to make sure your FCR efforts are actually improving the overall customer experience.
How to calculate:
Why it matters:
High FCR rates should equal high CSAT scores. If they don’t then it means while issues are being resolved quickly the quality of the resolution or the customer experience is lacking. According to Zendesk 60% of consumers have purchased from a brand solely based on the service they expect to receive.
How to improve this metric:
- Use LeadSquared’s Customer Satisfaction feature to get feedback after every interaction.
- Review CSAT scores and comments regularly to see where to improve.
- Give them permission to go above and beyond for customers.
Pro Tip: Don’t just look at overall CSAT scores. Look at scores by agent, issue type, and channel to get a deeper understanding of customer satisfaction.
4. Repeat Contact Rate
The Repeat Contact Rate measures the percentage of customers who have to contact again for the same issue. It’s a key metric that can reveal what’s hidden in your FCR strategy.
How to calculate:
Why it matters:
A high repeat contact rate means issues may seem resolved on first contact but will actually resurface later. This not only impacts your true FCR rate but also customer frustration and support costs. According to Gartner, a low-effort resolution experience reduces customer disloyalty by 61%.
How to improve this metric:
- Use LeadSquared’s automation to send follow-up surveys a few days after the first contact.
- Identify the common issues that lead to repeat contacts and fix them at the source.
- Focus on problem-solving skills so issues are fully resolved upon first contact.
Pro Tip: Set up alerts in LeadSquared for customers who contact support multiple times in a short period. This will help you to identify and fix recurring issues faster.
The FCR Dashboard
To manage these metrics effectively create an FCR dashboard using LeadSquared’s advanced analytics. This dashboard should show real time data on FCR Rate, AHT, CSAT Scores and Repeat Contact Rate so you can spot trends and make data driven decisions fast.
Remember, these metrics are connected. A change in one affects the others. For example, pushing too hard to improve AHT might negatively impact your CSAT scores. The key is to find the balance that optimizes all four at the same time.
Use these four metrics and LeadSquared’s Service CRM to build your FCR strategy and get happier customers and a more efficient support.
The FCR Journey
First Contact Resolution is a journey, not a destination. It requires continuous effort, analysis, and adaptation. But with the right strategies, tools, and mindset, you can improve your FCR rates and, in turn, your customer satisfaction and loyalty.
Every interaction is an opportunity to amaze your customers. By resolving their issues quickly and efficiently, you’re not just solving problems. You’re building relationships and creating brand advocates.
Ready to take your customer service to the next level? LeadSquared can help. With its full feature set, including 360-degree customer views, automated ticket assignment, omnichannel support, and advanced analytics, LeadSquared will help your team master FCR.
