First Contact Resolution (FCR)

What is FCR?

The abbreviation FCR (First Contact Resolution, formerly also First Call Resolution) describes the ability of a company to fully resolve customer concerns or problems at the first point of contact. This is usually done via customer service, such as call centers or contact centers.

A high FCR value is an indicator of the efficiency and quality of customer service. As a rule, high customer service quality leads to high customer satisfaction and customer loyalty. FCR is therefore an important indicator for all companies that offer customer service.

It therefore makes sense to aim for a high First Contact Resolution Rate. A high FCR value leads to:

• Reduction of costs: by reducing repeated inquiries, companies can lower their operating costs.

• Increase customer satisfaction: Customers appreciate it when their problems are solved quickly and efficiently, which leads to greater loyalty.

• Improving corporate image: Outstanding customer service can have a positive impact on a company's image and serve as a competitive advantage.

Implementing and promoting an effective First Contact Resolution strategy is therefore crucial to a company's long-term success in customer service.

How is the FCR calculated?

The FCR rate is calculated by dividing the number of queries resolved on first contact by the total number of queries. The formula is:

FCR rate = (number of solved requests at first contact / total number of requests) x 100

What is a good FCR rate?

A good FCR rate is usually between 70 percent and 90 percent. This means that between 70 and 90 out of 100 customer inquiries can be resolved on the first contact and no further contact with customer service is necessary.

Industry-leading companies often aim for values of 85 percent or higher to ensure high efficiency and customer satisfaction.

How can FCR be improved?

Employee training

• Regular training for customer service employees can train and improve their problem-solving and communication skills. To this end, it is a good idea to analyze the communication of customer service employees and identify sources of error. Specialized software, such as VIER Interaction Analytics, can help here.

Ensure quick access to information

• Ensure that employees have quick access to relevant information and resources to resolve customer issues efficiently. To this end, corresponding third-party applications can be linked to the ACD, e.g. the company's internal knowledge database or CRM.

Use of AI technology

• Use AI technology to optimize the flow of information and provide assistance to customer service employees. Such AI tools can, for example, provide the appropriate information about the customer or even the content of the conversation, e.g. the status of the delivery or cancellation, for every customer dialogue. The VIER engage ACD solution offers VIER Copilot, a corresponding AI software to help customer service agents.

Obtain customer feedback

• Encourage customers to provide feedback in order to identify weak points in the process and make targeted improvements. Software such as VIER Voice of the Customer also helps here to conduct automated customer surveys.