First Contact Resolution Rate

What is your First Contact Resolution Rate?

Your First Contact Resolution (FCR) Rate is a measure of your ability to resolve the issues that your customers face in their very first interaction with you. 

It is the percentage of support requests across all channels & touchpoints that your agents managed to resolve in the very first interaction, without making your customers wait for you to get back to them at a later time.

How do you calculate your First Contact Resolution Rate?

Your first contact resolution rate is calculated by dividing the number of support requests that your agents resolved in the very first interaction, by the total number of customer support requests that you received during a certain period of time.

First Contact Resolution Rate = [(Number of cases resolved in the first interaction)/(Total number of cases)] x 100

Why is it important to have a high First Contact Resolution Rate?

Your first contact resolution rate is an indicator of your efficiency is resolving customer issues. It is also tied very closely to your CSAT score. Customers are impatient beings. They want answers immediately. The higher your first contact resolution rate, the greater your customer satisfaction levels tend to be.

Usually, a first contact resolution rate near 90% is considered high, while 74% is considered average and anything below 40% is considered rather low. But, these numbers tend to vary according to industry.


The advantages of a high first contact resolution rate

1. Increases retention

Substandard customer service is a major cause for customer churn. Solving their issues in the very first interaction will create a better customer experience, cause your customers to stick with your business for a longer period of time.

2. Revenue growth

When you resolve customer issues in the first interaction consistently, your customers will trust you more. It would even be easier to upsell and cross-sell, while increasing retention, thus increasing your customer lifetime value and your revenue.

3. Reduction in cart abandonment

According to Forrester, 53% of customers abandon their carts because they do not receive immediate answers to their questions. A high first contact resolution rate would help you save a vast portion of the carts that would otherwise be abandoned.

4. Increases agent productivity

When your agents resolve issues the first time around, they won’t have to worry as much about followups and repeat requests. This allows them to take care of more customers than they could if each issue took multiple conversations to be resolved.

First Contact Resolution Rate best practices

Here are a few things you could consider doing to improve your first contact resolution rate:

1. Effective routing

Route queries to agents who are equipped to deal with them. This saves you the effort of sending them through multiple agents and departments till they reach someone who can actually handle them.

Engati Live Chat routes conversations based on context to the agents which are best suited to handle them.

2. Empower your agents

You can’t expect to have a high first contact resolution rate if your agents allows need to seek permission from their managers before committing to a solution.

The Ritz Carlton puts a number on this. Their employees are allowed to spend upto $2000 to solve customer issues and create great experiences for them, without needing to ask their managers.

While $2000 dollars an incident would be unrealistic for many businesses, they could still set reasonable limits, giving their agents a fair amount of leeway.

3. Train your agents

To have a high FCR rate you need to train your agents effectively. They need to understand your product so well that the need to escalate the call to a subject matter expert is minimized.

About Engati

Engati powers 45,000+ chatbot & live chat solutions in 50+ languages across the world.

We aim to empower you to create the best customer experiences you could imagine. 

So, are you ready to create unbelievably smooth experiences?

Check us out!

First Contact Resolution Rate

October 14, 2020

Table of contents

Key takeawaysCollaboration platforms are essential to the new way of workingEmployees prefer engati over emailEmployees play a growing part in software purchasing decisionsThe future of work is collaborativeMethodology

What is your First Contact Resolution Rate?

Your First Contact Resolution (FCR) Rate is a measure of your ability to resolve the issues that your customers face in their very first interaction with you. 

It is the percentage of support requests across all channels & touchpoints that your agents managed to resolve in the very first interaction, without making your customers wait for you to get back to them at a later time.

How do you calculate your First Contact Resolution Rate?

Your first contact resolution rate is calculated by dividing the number of support requests that your agents resolved in the very first interaction, by the total number of customer support requests that you received during a certain period of time.

First Contact Resolution Rate = [(Number of cases resolved in the first interaction)/(Total number of cases)] x 100

Why is it important to have a high First Contact Resolution Rate?

Your first contact resolution rate is an indicator of your efficiency is resolving customer issues. It is also tied very closely to your CSAT score. Customers are impatient beings. They want answers immediately. The higher your first contact resolution rate, the greater your customer satisfaction levels tend to be.

Usually, a first contact resolution rate near 90% is considered high, while 74% is considered average and anything below 40% is considered rather low. But, these numbers tend to vary according to industry.


The advantages of a high first contact resolution rate

1. Increases retention

Substandard customer service is a major cause for customer churn. Solving their issues in the very first interaction will create a better customer experience, cause your customers to stick with your business for a longer period of time.

2. Revenue growth

When you resolve customer issues in the first interaction consistently, your customers will trust you more. It would even be easier to upsell and cross-sell, while increasing retention, thus increasing your customer lifetime value and your revenue.

3. Reduction in cart abandonment

According to Forrester, 53% of customers abandon their carts because they do not receive immediate answers to their questions. A high first contact resolution rate would help you save a vast portion of the carts that would otherwise be abandoned.

4. Increases agent productivity

When your agents resolve issues the first time around, they won’t have to worry as much about followups and repeat requests. This allows them to take care of more customers than they could if each issue took multiple conversations to be resolved.

First Contact Resolution Rate best practices

Here are a few things you could consider doing to improve your first contact resolution rate:

1. Effective routing

Route queries to agents who are equipped to deal with them. This saves you the effort of sending them through multiple agents and departments till they reach someone who can actually handle them.

Engati Live Chat routes conversations based on context to the agents which are best suited to handle them.

2. Empower your agents

You can’t expect to have a high first contact resolution rate if your agents allows need to seek permission from their managers before committing to a solution.

The Ritz Carlton puts a number on this. Their employees are allowed to spend upto $2000 to solve customer issues and create great experiences for them, without needing to ask their managers.

While $2000 dollars an incident would be unrealistic for many businesses, they could still set reasonable limits, giving their agents a fair amount of leeway.

3. Train your agents

To have a high FCR rate you need to train your agents effectively. They need to understand your product so well that the need to escalate the call to a subject matter expert is minimized.

Share

Continue Reading