First contact resolution (FCR): What it is and how to improve it

Everyone has experienced reaching out to a company, waiting for a response that never comes, and then calling—only to find the agent has no record of the initial contact. Frustrating, right?

Ideally, agents can resolve customer issues the first time they reach out. Contact center managers should measure their rates of first contact resolution (FCR), as this metric serves as a proxy for customer satisfaction overall.

This guide explains how to achieve high FCR rates through an omnichannel contact center strategy, where agents are equipped with the knowledge they need to resolve issues in the first interaction as often as possible.

What is first contact resolution (FCR)?

First contact resolution (FCR) measures a company’s ability to resolve customer issues during the first interaction, whether it’s over the phone, email, or chat.

The goal is simple: solve the problem on the spot so customers don’t have to reach out again. When issues are resolved quickly, customer frustration decreases, and the workload for support teams is lighter.

To calculate a contact center’s FCR, take the number of issues resolved in a single interaction (email, phone call, chat, etc.) and divide it by the total number of received interactions:

FCR = (Total number of issues resolved on first contact ÷ Total number of interactions) x 100

Contact center managers can monitor this rate through post-interaction surveys, agent notes, and case resolution data making it easy to identify areas for improvement.

How to improve first contact resolution rates in contact centers.

Improving first contact resolution rates requires a combination of smart strategies and smart tools. Below are key steps that contact centers can follow to increase FCR and deliver better customer experiences.

1. Understand the root causes of low first contact resolution rates.

To improve first contact resolution, identify why issues aren’t resolved during a customer’s initial contact. Common causes could include incomplete information, miscommunication, or inefficient processes. Customer experience analytics tools can help by analyzing call recordings, chat transcripts, and data from various channels. These insights make it easier to spot patterns and pinpoint areas for improvement in a contact center, allowing contact center managers to focus on addressing the right issues.

2. Invest in AI quality management tools.

Supervisors are key to maintaining high first contact resolution rates, but without full visibility into agent-customer interactions, they may miss critical issues. AI-powered quality management tools solve this problem by automatically scoring interactions and highlighting areas where agents may need extra support or training. With these insights, supervisors can provide targeted feedback, helping agents improve their skills and resolve more issues on the first contact.

3. Power up your knowledge base system with AI.

A well-organized knowledge base can significantly boost FCR, but traditional systems often slow agents down as they search for information. The Talkdesk AI-powered knowledge base management system addresses this issue, providing recommended responses based on the customer’s query. With this tool, agents can find the right answer quickly and reduce the time spent on each query.

4. Provide customers with AI chatbots and self-service options.

Customers expect fast, efficient service, and AI chatbots can help deliver it. By handling simple inquiries, chatbots free agents to focus on more complex issues, reducing average handling time and improving FCR rates. Also, self-service options like a comprehensive FAQ section or a user-friendly customer portal empower customers to resolve common issues on their own, enhancing their overall experience and increasing first contact resolution.

5. Streamline internal processes.

When agents have the freedom to handle issues independently, their actions can significantly improve first contact resolution rates. They can remove late fees, issue refunds, adjust billing cycles, or manage returns on their own, resolving customer issues at faster rates and decreasing repeat interactions.

6. Route customers to the best agent to resolve their query.

One of the keys to achieving high FCR rates is connecting customers with the agent best equipped to resolve their issues. For instance, some agents may be more experienced in handling billing issues, while others might excel at troubleshooting technical problems. Categorizing agents based on their expertise and using intelligent routing tools means callers can reach the best agent for their needs.

7. Invest in omnichannel solutions.

The frustrating scenario from the introduction—where an unanswered email leads to a difficult phone call—could have been avoided with an omnichannel solution. Omnichannel customer experience systems track and manage customer interactions across all platforms, whether it’s social media, email, or phone. This ensures that agents have a full view of the customer’s journey, no matter how many channels they’ve used.

With all interactions recorded, agents can provide a seamless experience and resolve issues more efficiently. The Talkdesk omnichannel engagement solution is a great example of how this approach integrates all customer touchpoints for a smoother resolution process.

The benefits of achieving high first contact resolution rates.

Achieving high first contact resolution rates is not just a metric for measuring contact center performance—it has far-reaching benefits for customers, employees, and the business. Below are a few key benefits of maintaining high FCR rates:

• Reduces customer effort and improves satisfaction. Resolving issues on the first contact minimizes customer effort, leading to increased satisfaction and loyalty.

• Improves employee satisfaction. Agents feel more accomplished when they resolve issues quickly, boosting their morale and job satisfaction.

• Cuts down contact center costs. Fewer interactions are needed to resolve issues, reducing operational costs and additional staffing needs.

• Increases customer retention. High FCR rates lead to stronger customer loyalty and improved long-term retention.

• Enhances overall efficiency. Agents can handle more inquiries in less time, increasing productivity.

• Boosts company reputation. Consistently resolving issues on the first contact improves the company’s reputation for delivering excellent customer service.

In short, achieving high FCR rates boosts the customer and employee experience while improving cost and operational efficiencies.

Improve the performance of your contact center today.

Improving first contact resolution (FCR) rates can have a huge impact on customer satisfaction and operational efficiency. By addressing the root causes of low FCR, investing in AI-powered tools, enhancing knowledge base systems, and implementing omnichannel solutions, companies can elevate their customer service and see meaningful results.

The impact of these strategies is evident in real-world cases like Xenial, a customer-centric company that struggled with disjointed customer experiences and low FCR. After implementing the Talkdesk cloud contact center platform, Xenial increased its FCR by 17x. With features such as an AI-powered knowledge base and omnichannel engagement, Xenial’s customers are routed to the right agent at the right time, resulting in more seamless, efficient service.

Take the next step to improve contact center performance and enhance first contact resolution rates. Learn more about Talkdesk AI contact center solutions.