We all would agree on the fact that the most crucial part of any business is to satisfy the customer. It results in customer loyalty, positive word of mouth, and return on investment. First Call Resolution (FCR) has been a metric to drive customer satisfaction.
What is FCR?
When I call a company’s call center and get my issue resolved in that one call. That is FCR.
Also, it includes the technical support and resolution of my problem? It might be when one goes to the website first, has a web chat and gets what one needs. Now I escalate to a phone call. While the call is for the first time, but the user has actually used two touch points to solve the issue.
The point is that it’s up to you as to how you define it. What’s of primary importance is that you are consistent in your definition, as well as your measurement. If you measure starting today, choose your intervals and benchmark against yourself. Notice the gaps and take action to remedy them.
FCR has the most impact on customer satisfaction and thus, on customer loyalty. In a recent study, one fifth of all callers hung up with their issue unresolved. Of those customers that didn’t have their issues resolved, 68% are at risk of defection, 43% said they’d definitely defect, and 25% weren’t sure.
It’s been reported that for every 1% improvement in FCR, you get 1% improvement in customer satisfaction. Additionally, if a customer’s inquiry or problem were resolved in the first call, only 3% of those customers would be at risk of switching to a competitor.
When you have a repeat call, you incur a price. .
A $5 cost/call would incur a cost of $600,000/quarter due to repeat calls followed by possibility of losing a customer.
The challenge still exists of how to define and then measure FCR accurately, effectively, and efficiently.
Some companies allow agents to determine if a customer’s issue was resolved on first contact. Surely, it can be subjective. Rest use QA (Quality Assurance) to confirm whether calls were resolved on first contact. Also, post-call surveys and direct interviews are common ways to determine the above issue. Generally, one should take into consideration the perception of the customer.
Improving First Call Resolution (FCR) is crucial for companies to keep their operational costs low and enhance customer experience. Organizations always measure FCR from a contact center’s metric point of view, however it is equally important to measure FCR from customers’ perspective. FCR as a metric is directly linked with customer satisfaction and its poor performance can lead to a significant rise in customer dissatisfaction and churn rate. Irrespective of the channel customers choose to contact, they always want their issue to be resolved the first time they connect.
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