How to Calculate First Contact Resolution (2022)

Calculating First Contact Resolution (FCR) can be straightforward, once you have the required information, but collecting the data is the tricky part when formulating it.

With this in mind, we will guide you through using the basic FCR calculation and the five ways to collect the data required and ask if there is a better way to measure first contact success.

First Contact Resolution FCR Formula

When you measure FCR, you calculate a percentage using the FCR formula below:

First Contact Resolution FCR (%) = Resolved Incidents on First Contact ÷ Total Incidents × 100.

How to Calculate First Contact Resolution (1)

For more on First Contact Resolution, read this article for the definition and expert best practices.

FiveMethods to Collect Data

Whilst we have heard of other methods to collect the data required to put into the formulas above, including using management intelligence information, as well as speech and data analytics, these are five conventional methods of doing so.

1. Asking the Customer on the Call

This method is perhaps the most basic way for how to calculate FCR, as you simply get advisors to ask customers at the end of each call a question along the lines of: “Did the advisor resolve your call satisfactorily?”

Advisors would then record yes or no answers into a database and you would then plug the results into one of the first call resolution formulas above.

2. Customer Feedback

There is a range of customer feedback methods, such as mystery shopping, post-call structured telephone interviews and email surveys, which ask a similar question to that above in order to gather data.

Using these approaches will give you a more accurate picture of what is happening, as the customer may not want to tell the advisor that they haven’t resolved their call directly. But it will be difficult to gather enough data to measure at agent level.

Take a look at this article for17 Tips for Collecting Customer Feedback.

3. No Repeat Calls in a Given Timeframe

This approach makes the assumption that if a customer has not phoned back within a certain time period, which may typically be ten days, their query has been resolved.

(Video) First Contact Resolution | Managing Metrics

So, the number of customers that only call once within the designated space of time would be divided by the total number of calls and then multiplied by 100, as the first formula outlines.

According to our poll, which is shown below, this is the most popular method of calculating FCR.

4. Repeat Contact Reasons

The final traditional method involves pulling repeat contact reasons from your CRM system and then creating individual FCR scores for each reason.

So, once a customer calls about a issue that you are looking to target, you can either ask them if their query has been resolved or measure repeat contacts, to create that individual FCR score that is different from the overall rate.

This approach can be helpful as you can really notice the impact on FCR when you make changes to different process and systems that address the repeat contact reason.

Also, targeting repeat reasons allows you to identify whether the problem is with advisor training or if there is a systemic problem instead of making generalisations based on a generic score.

Confused at the Difference between First Contact Resolution and Repeat contacts? This article explains the similarities and differences between the two metrics.

5.Using a Dashboard Process

According to Mike Allen, the Founder of Bouncepreneurs, the debate about which way you should collect data is outdated and “now, the debate is what is the right process.”

How to Calculate First Contact Resolution (3)

(Video) First Call Resolution - definition, benefits, measurement, and tips for improving it.

Mike Allen

The process that Mike recommends starts by “identifying your top ten repeat contact reasons, which you can tackle one at a time, focusing on one every two months and then mock up dashboards.”

To dashboard the data in terms of call flows, channel flows and call volumes, Mike advises using a platform such as Alteryx, Tableau or Crowdtech.

These platforms can “create a map around specific contact reasons, picking data up from the customer database, customer mining resources, the company’s website, mobile apps, social media and wherever it is and create an understanding of those individual contact reasons.

“Once this is working, you can plug it into the dashboard, which can run in a liquid form, so the dashboards become real time and live, spanning across all the systems that you have in your business.”

This means that your FCR rates run automatically, with real-time updates, and are more accurate as you are measuring whether the customer has another repeat contact with the business through other means, e.g. social media, logging into an account, etc.

What to Watch out for? –The Pitfalls of First Contact Resolution

Whilst there are many pros to using FCR as a metric over others, including the notion that it can reduce call volumes if addressed correctly, there are several pitfalls that you should be wary of before you put it into practice. Here are five such pitfalls.

1. Don’t Pay Advisor Incentives Based on FCR results

Many businesses ask the question: “Did the advisor resolve your call satisfactorily?”, or words to that effect, to collect data to calculate FCR rates. They would then pay the advisor a bonus based on the customer’s response.

This is a very dangerous thing to do as you are linking your advisor’s pay with systemic failure, which could well be considered ethically incorrect, as you are conflating advisor performance with inherent call resolution failure. Read this article to find out how to use incentives linked with performance.

2. Don’t Set a Timeline When you Measure Repeat Reasons

Each repeat reason has a specific timeline, so don’t set a general timeline to measure the alteration in FCR, as when you make changes to processes, it could take longer to have an impact on FCR rates.

For example, don’t set a 30-day timeline for a monthly statement, as many of the contacts will come after the customers have received their statement, so you won’t be able to record any real change.

Have a read of this article to find out What Is the Best Way to Measure First Contact Resolution?

3. Don’t Benchmark your FCR Against Others

According to Mike, “inter-organisational FCR comparison, even with those in the same line of business as you, cannot be done accurately.”

(Video) How to Calculate First Contact Resolution

This is because, “as soon as you get a slight difference in channel mix (which will vary across all contact centres) FCR goes out of the window, as you have a whole new set of circumstances.”

Also, as there are many ways to gather data for calculating FCR, rates are going to change radically from business to business.

For example, if you ask the caller if their query has been resolved they may say yes but then call back a couple of days later, realising that they forgot to mention something. So, if you calculate FCR by repeat calls, the query would be viewed as unresolved, but it would not be if you went from the question alone.

Make sure you aren’t making other benchmarking mistakes in your contact centre by reading this article.

4. Don’t Link FCR to Customer Satisfaction

Often, contact centres will link metrics in an attempt to gain an overall picture of their performance. However, this cannot be done with customer satisfaction (CSAT) and FCR as there is little correlation between the two.

According to Mike, “We often have organisations who measure around customer CSAT, with over 90-95% sometimes, whose operational performance KPIs are showing that more than half of the people who ring them are not being served right first time.

“So, despite having repeat contacts, there is no correlation, and the data proves this, between CSAT and FCR.”

Instead, Mike notes that “the data is building month after month, suggesting that CSAT depends a lot on the company’s history, whilst FCR rates do not.

“So, if you have a long-established, loved brand, in a business that people have grown up with, they will actually give a high CSAT score, even though the organisation isn’t servicing their needs very well.”

5. Don’t Hide FCR Rates from Your Contact Centre Team

Whilst it might make sense to monitor Average Handling Time (AHT) behind the scenes, so advisors are less tempted to compromise service to meet their targets, FCR rates should be published around the contact centre, says Mike.

This is because FCR measures customer service success and that “should be incentivised and advisors should be made aware of it.”

If you are not doing so, and are instead targeting them on other metrics such as AHT, this could be misconstrued by advisors as not putting quality service first.

Read this article for22 Ways to Improve First Contact Resolution.

(Video) First Level Resolution Rate (FLR) vs. First Contact Resolution Rate (FCR) What's The Difference?

6. Don’t Forget “Downstream Issues”

According to the Harvard Business Review, one of the main pitfalls with FCR is that companies with high FCR rates fail to recognise that 22% of repeat callers engage again due to downstream issues from that of the original call.

It’s important for businesses to remember that the customer journey refers to all the interactions a customer has with a brand.

How to Calculate First Contact Resolution (4)

Frank Sherlock

Some services, such as arranging for cable, setting up medical tests or taking out a mortgage, typically take multiple calls to complete.

Anticipating “next steps” and providing guidance on a current call is an excellent way to reduce callbacks for downstream issues.

– Thanks to Frank Sherlock at CallMiner

How People Manipulate First Contact Resolution

Often, as a metric starts to become central to a contact centre’s operations, businesses will begin to manipulate their results, and FCR has one common manipulation.

This manipulation involves the scenario of when a caller is passed through to another advisor. Is this still a first contact because it is the same call? Or is it a second, due to the fact that the customer is speaking to a second advisor?

Whilst many believe that the second notion is correct as it would be the second advisor that the caller was contacting, many companies will record this as the first contact nonetheless.

So, if the second advisor resolves the call this would still equate to a first contact resolution.

Find out how to improve your FCR rate by reading our article: 20 Tried and Tested Tips to Improve First Call Resolution (FCR)

(Video) Call Center Management - FCR (First Call Resolution) Overview

For more on First Contact Resolution, read our pages on:

  • What Is First Contact Resolution? – With a Definition, Formula and Expert Best Practices
  • 20 Tried and Tested Tips to Improve First Call Resolution (FCR)
  • Podcast: How can you boost First Contact Resolution in your Contact Centre

FAQs

How do I find my first contact resolution? ›

First Call Resolution Formula

To calculate this number, you divide the number of cases resolved first time by the number of cases handled by agents in total. You can multiply the number by 100 to get a percentage. For instance, if 150 calls out of 400 were handled first time, your FCR rate is 37.5%.

How do you calculate first level resolution? ›

If you had 4,000 total tickets last month and 3,000 were determined to be Level 1 Resolvable, and of those, Level 1 did in fact resolve 2,800 tickets, your net FLRR is 2,800 ÷ 3,000, or 93 percent.

What is first contact resolution rate? ›

First contact resolution rate (FCR) is a critical customer service metric that measures the number of customer contacts that are resolved on the first interaction with the customer. If a customer's issue can be resolved on the first contact, it eliminates the need for either the agent or the customer to follow up.

How do you calculate resolution rate? ›

You can use a simple formula to calculate your first contact resolution rate: simply divide the number of support issues resolved on first contact by the total number of FCR-eligible support issues.

What is FCR in a call center? ›

First call resolution (FCR) is when customer service agents properly address a customer's needs the first time they call. By doing this, there is no need for the customer to follow up with a second call. FCR is a part of customer relationship management (CRM).

How is FCR calculated in Servicenow? ›

First call resolution metric calculates the customers needs addressed in the first call. It is calculated by an OOTB integer field called reassignment count which increases by 1 when ticket is passed to other teams. If the ticket is resolved with no reassignments it is called First call resolution.

What is FCR and FLR? ›

First level resolution (FLR) is a measure of a service desk's ability to resolve tickets at Level 1. First contact resolution (FCR) is the percentage of contacts that are resolved by the service desk on the first interaction with the customer.

What is first call resolution in ITIL? ›

First contact resolution is the percentage of incoming service calls or requests that are resolved during the first interaction with the customer, eliminating the need for the customer or IT Support to follow up with a second contact. FCR is one of many IT support metrics organizations can track.

How are contact rates calculated? ›

To determine the rate, we divide the number of live person contacts by the total leads on the list. For example, using this contact rate formula: 20 people pick up the call / 200 leads = a contact rate of 10%.

What is the industry standard for FCR? ›

What exactly is a good FCR rate? According to a range of reports, the industry standard is between 70 to 75%. This means that 25-30% of all customer communications you receive are repeat calls about the same issue. In general, the higher your FCR rate, the better.

Why is FCR so important? ›

With FCR, you gain valuable insight into how customers perceive your organization. You can see whether you are resolving concerns or causing unwanted frustrations. FCR also affects other critical call center metrics. Improvements in FCR have proven correlations to gains in operational costs, churn and sales.

What is changing with FCR? ›

Founded in 2005, FCR is changing the face of the CX industry, one call, email, instant message, text, and video conference at a time. To learn more about the company, visit www.gofcr.com for further information. Corporate Contact: 2525 West Harvard Ave.

What is the resolution rate? ›

Resolution Rate refers to the rate at which your company fulfills service requests. It's worth noting that customers may have different resolution expectations depending on the channel they use to contact you with a service request.

What does resolution rate mean? ›

Resolution rate is a metric that compares the number of tickets assigned to an agent or organization to how many are solved within a certain period of time. The resolution rate formula looks like this: solved tickets / received tickets x 100 = resolution rate.

What is the highest resolution of a video? ›

Called 4K and marketed often as UHD (ultra-high-definition television), this resolution is technically 3840 x 2160 pixels. It looks quite similar to 2K to most viewers but gives filmmakers more room to zoom in and edit.

What is First Person resolution? ›

The organization extended the usual definition of first contact resolution to first person resolution, where not only is the goal to resolve the customer's issue on the customer's first call to the organization, but the issue is also resolved by the first person who receives the call.

What affects first call resolution? ›

What affects first call resolution? First call resolution may be affected by many factors, such as the efficiency of call routing systems or long hold times. Also, it is important to factor in the complexity of the company's products or services - dealing with complex issues may require more escalations and follow-ups.

How do you measure performance in a call center? ›

To measure agent productivity and performance, call center directors should keep track of these seven key metrics to see where agents need to improve and where they thrive.
  1. Average handle time. ...
  2. Quality monitoring. ...
  3. Customer satisfaction. ...
  4. Schedule adherence. ...
  5. Dial transfer rate. ...
  6. Unavailable time. ...
  7. Agent occupancy.
27 Jul 2021

What is FLR service Desk? ›

First level resolution (FLR) is a measure of a service desk's ability to resolve tickets at level 1, without having to escalate the ticket to level 2 (desktop support), level 3 (internal IT professionals in applications, networking, the data center, or elsewhere), field support, or vendor support.

What is queuing in call center? ›

Call queueing allows calls to be placed on hold without handling the actual enquiries or transferring callers to the desired party. While in the call queue, the caller is played pre-recorded music or messages. Call queues are often used in call centres when there are not enough staff to handle a large number of calls.

What is resolution BPO? ›

The Call Resolution KPI measures the outcome of each call handled by your agents to monitor how well customer issues are being resolved. The objective of your service center is to quickly resolve calls to meet service level agreements and deliver a high quality of service.

What is the meaning of contact rate? ›

The contact rate is measured as follows: the number of contacts obtained from one hundred opportunities generated. The contact rate is a very important metric in the digital field since it makes it possible to determine if the campaigns, actions and sales techniques are performing well.

What is contact to order ratio? ›

The contact to order ratio is a measure of the number of contacts received versus the number of orders received and is particularly important in the retail and eCommerce sector.

How do call centers increase contact rates? ›

Here are six tips for improving your call center's contact rates.
  1. Avoid Any Decreases in Your Contact Rate. ...
  2. Choose the Right Dialer. ...
  3. Use Lead Scoring. ...
  4. Check if Mobile Numbers are Active. ...
  5. Choosing the Right Phone Numbers. ...
  6. Use Enhanced Caller ID. ...
  7. Don't Dial Customers From "Bad" Numbers. ...
  8. Final Word.
25 Nov 2020

What is FCR research? ›

The Field Citation Ratio (FCR) is a citation-based measure of scientific influence of one or more articles. It is calculated by dividing the number of citations a paper has received by the average number received by documents published in the same year and in the same Fields of Research (FoR) category.

Why is it important to resolve a customers issue within the first contact? ›

Gain Customer loyalty: Resolving customers issues and concerns in the first call goes a long way. Customers feel they are being acknowledged and valued by the organization, eliminating the thought of switching companies. This improves customer retention and repeat businesses.

How is feed conversion ratio calculated? ›

Feed conversion efficiency or ratio is a fairly simple calculation to perform. The total weight of feed is divided by the net production (final weight minus starting weight) to obtain the feed conversion.

What is FCR in poultry? ›

In the United States and Canada, the poultry industry's standard performance measurement is the feed conversion ratio (FCR). Calculating FCR is as simple as taking the total amount of feed consumed by the flock and dividing it by the amount of weight gained or the number of eggs produced.

Why is First Contact Resolution important? ›

With FCR, you gain valuable insight into how customers perceive your organization. You can see whether you are resolving concerns or causing unwanted frustrations. FCR also affects other critical call center metrics. Improvements in FCR have proven correlations to gains in operational costs, churn and sales.

What is average resolution time? ›

Average resolution time (ART) is a live chat metric that is the average time it takes an agent to resolve a customer conversation, most commonly a customer service query or an inbound sales conversation.

What is FLR service Desk? ›

First level resolution (FLR) is a measure of a service desk's ability to resolve tickets at level 1, without having to escalate the ticket to level 2 (desktop support), level 3 (internal IT professionals in applications, networking, the data center, or elsewhere), field support, or vendor support.

What is AHT and how will you calculate AHT? ›

Average handle time (AHT) is the amount of time it takes to help a customer in a call center. Average handle time is tracked in your call center software, and is one of the most analyzed KPIs in the call center industry to measure efficiency.

What is FCR research? ›

The Field Citation Ratio (FCR) is a citation-based measure of scientific influence of one or more articles. It is calculated by dividing the number of citations a paper has received by the average number received by documents published in the same year and in the same Fields of Research (FoR) category.

What is changing with FCR? ›

Founded in 2005, FCR is changing the face of the CX industry, one call, email, instant message, text, and video conference at a time. To learn more about the company, visit www.gofcr.com for further information. Corporate Contact: 2525 West Harvard Ave.

What is the importance of this metric FCR? ›

FCR not only helps gauge customer satisfaction – the higher your first-call resolution rate, the more satisfied your customers tend to be – and, as a result, drive customer loyalty, but also measures your agents' efficiency and, ultimately, acts as an important factor in contact center profitability.

What is the resolution rate? ›

Resolution Rate refers to the rate at which your company fulfills service requests. It's worth noting that customers may have different resolution expectations depending on the channel they use to contact you with a service request.

What is Resolution SLA? ›

Resolution SLA is calculated from the time the incident is created till the time the incident is resolved. In short, time taken to resolve the incident. So if the ticket is breached and after that they assigned it to another team, the breached sla will not continue. A new will start.

What is average first response time? ›

In terms of industry benchmarks, customers contacting you by email generally expect a response within 24 hours. For social, the recommended benchmark is to respond in 60 minutes or less. For phone, the generally accepted response time is three minutes.

What is FCR and FLR? ›

First level resolution (FLR) is a measure of a service desk's ability to resolve tickets at Level 1. First contact resolution (FCR) is the percentage of contacts that are resolved by the service desk on the first interaction with the customer.

How is SLA calculated in BPO? ›

FAQs
  1. The most common formula used by the call center industry to calculate Service Level is:
  2. Number of calls answered within time period/ total number of call answered X 100%
  3. This is based on the objective of X% of calls answered with Y seconds.

What does 80/20 mean in a call center? ›

Updated: Nov 30, 2021. An 80/20 service level for a contact center means that the objective in place is 80% of the calls are answered in 20 seconds or less.

What is the shrinkage formula in BPO? ›

The Shrinkage Formula. The contact centre shrinkage formula is calculated by adding the total hours of external shrinkage and the total hours of internal shrinkage, then dividing this by the total hours available, before multiplying the result by 100. Shrinkage is normally expressed across a complete 12-month period.

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