How to Improve First Call Resolution Rate: 5 Strategies

First Call Resolution (FCR) rate is a critical performance metric for contact centers.

When FCR rates are high, operational efficiency and customer satisfaction increase.

On the flip side, a low FCR rate leads to frustrated customers, overworked support agents, and higher costs.

With this in mind, it’s imperative that call centers prioritise this metric - and take steps to optimise it.

In this article, we’ll explore how to do just that We’ll cover:

• What is first call resolution rate?
• Why is first call resolution rate important?
• How to improve FCR rate: 5 strategies
• The benefits of improving first call resolution rate

TL;DR: 5 strategies to improve FCR rates...

1. Leverage voice AI solutions: Replace outdated IVR systems with AI-driven call routing and voice AI automation, ensuring quicker and more accurate resolutions.
2. Empower Support Teams with Better Training: Provide agents with comprehensive training on product knowledge, decision-making, problem-solving, communication skills, and time management to handle inquiries more effectively.
3. Improve Agents’ Access to Information: Use tools like AI copilots to provide agents with instant access to resources. This reduces delays, improves service consistency, and ensures agents can resolve issues quickly during interactions.
4. Identify Root Causes of Repeat Calls: Analyse data to uncover patterns in recurring calls and address underlying issues, such as recurring customer pain points or gaps in agent resources and training.
5. Reduce Overall Call Volume: Minimise call volume by leveraging self-service (e.g AI chatbots), diversifying contact channels, proactively communicating with customers, and addressing recurring issues to free up agents for more complex inquiries.

What is first call resolution (FCR) rate?

First call resolution rate is one of the most important customer service metrics for businesses and call centers.

It measures the percentage of customer calls that are completed without the need for any follow-up contact.

This means the customer’s query or problem is fully and successfully resolved during the first interaction.

A high FCR rate is ideal because it minimises your cost to serve and keeps customers happy.

It also indicates that your contact center is performing optimally and delivering a positive customer experience.

Low FCR rates often indicate underlying issues with your customer service operation.

These might include burnt-out agents, a lack of resources, or overly complex processes and workflows.

To calculate FCR rate, a simple formula is used:

FCR Rate = (Number of Calls Resolved on First Contact / Total Number of Calls) x 100

For example, if a contact center received 1,000 calls in a given period and 800 of those were resolved on the first call, the FCR rate would be (800 / 1000) x 100 = 80%.

This provides a snapshot of the call center’s efficiency in resolving customer issues.

By consistently monitoring FCR, you can gain insights into areas needing improvement and implement strategies to enhance customer service.

First Call Resolution vs. First Contact Resolution

First call resolution rate and first contact resolution rate are similar contact center metrics but they differ in scope.

First call resolution is narrower as it only covers customer phone calls.

First contact resolution, by contrast, encompasses all your communication channels.

These include phone, live chat, video calls, social media, messaging, email, etc.

Put simply, first contact resolution rate measures the number of issues resolved during the initial customer interaction regardless of the channel used.

This provides you with a broader, more comprehensive view of service efficiency across your entire support system.

First call resolution rate, on the other hand, allows you to focus exclusively on phone support which is a primary channel for many contact centers.

For the purposes of this blog, we’re concentrating on first call resolution - but both metrics are important for monitoring contact center performance.

Why is first call resolution (FCR) rate so important?

First call resolution rate is a crucial key performance indicator because it has a huge impact on customer satisfaction.

In fact, 86% of customers expect their issue to be resolved in the first call - for every follow-up call required, CSAT drops by 15%.

When customers have to reach out or be contacted repeatedly for the same issue, it’s perceived as poor customer service.

This often causes frustration and erodes trust in your business.

By contrast, a strong FCR rate fosters brand loyalty, leading to stronger customer relationships and increased customer retention.

From an operational perspective, FCR rate is important because it directly affects call center efficiency and cost-effectiveness.

When agents resolve issues on the first call, there’s a reduction in follow-up interactions and repeat requests.

This is significant because repeat calls account for 23% of the average call center’s operating budget.

FCR also decreases call volumes and reduces the workload for your support team, enabling them to assist more customers in less time.

This not only improves productivity and efficiency but also reduces the resource costs associated with handling multiple calls for the same issue.

How to improve first call resolution rate

Now that we understand the importance of this metric, let’s dive into how you can improve your first call resolution rate.

Below, we’ll cover 5 strategies that’ll help you maximise FCR.

1. Use voice AI to automate & route customer calls

Traditionally, contact centers relied heavily on IVR (Interactive Voice Response) systems to route calls.

While IVR systems provide some level of automation, they're often clunky and frustrating for customers to navigate, with complex menus and limited functionality.

This often leads to callers bouncing between different teams, having to repeat themselves, or even being transferred to the wrong department.

The result is a poor user experience and a low chance of a first call resolution.

AI-powered call routing offers a more advanced, customer-friendly solution.

Voice AI chatbots can analyse natural language and customer intent to automate call routing seamlessly and intelligently.

Unlike static IVR menus, AI allows customers to explain their situation in their own words rather than pressing buttons or using pre-set statements.

In turn, the AI can identify the customer’s issue and match them with the best agent or support team for their needs.

What's more, voice AI systems can handle many routine inquiries independently.

Routine queries can vary from providing product/service information to booking appointments, troubleshooting common issues, and more.

By leveraging natural language processing (NLP) and generative AI, voicebots can understand and automate many of these common requests.

They can also be integrated with your knowledge base, giving them access to a wealth of information about your business, products, services, and processes.

This enables the AI to become a brand-trained expert capable of answering countless customer questions.

By intelligently routing calls and automating a range of queries, voice AI ensures customers get the information or support they need quickly and efficiently.

This boosts FCR rate by connecting customers with the right resources from the start.

It also reduces manual work and the need for human intervention, giving agents more time to dedicate to each call - further increasing the chance of a first call resolution.

2. Empower your customer service team with better training

In order to achieve first call resolution, agents must be equipped with the skills, knowledge, and confidence required to resolve customer issues efficiently.

This means effective and comprehensive training is essential, as it lays the foundation for high FCR rates.

The following are some key components to include in agent training when you’re aiming to improve FCR:

• Product/service knowledge: Equip agents with a deep understanding of your products and services so they can answer questions accurately and provide relevant solutions.
• Decision-making: Empower agents with strong decision-making skills and decision-making authority so they have the ability to make appropriate choices on the spot, reducing the need for escalations and enabling them to resolve issues independently.
• Problem-solving techniques: Teach agents how to think critically and approach complex issues creatively, enabling them to resolve uncommon issues quickly and effectively.
• Communication skills: Training on communication and active listening helps a call center agent build rapport and fully understand customer needs, which is crucial for effective resolutions and customer relationship management.
• Use of support tools: Familiarise agents with the tools and resources available to them so they can locate answers and information efficiently during calls (more on this below).
• Time management in call handling: Teach agents how to balance speed and accuracy during calls, ensuring they resolve issues thoroughly and quickly without sacrificing service quality.
• Performance monitoring: Monitor live calls to identify gaps in agent performance related to FCR, and provide coaching sessions focused specifically on improving these areas.

By covering these core areas, call centers can empower agents to resolve more queries, minimise the need for follow-ups, and provide a better customer experience overall.

That said, achieving these high standards of training can be challenging for call centers.

Especially as they often grapple with time/resource constraints and high staff turnovers. 

A practical solution to this issue is to improve agents’ access to information during customer interactions...

3. Improve agents’ access to information

Providing agents with seamless access to information is imperative for first call resolution.

During customer interactions, agents often need to retrieve detailed or technical company knowledge.

Examples include product/service specifications, troubleshooting steps, or company policies.

If agents are unable to find this information during calls, it can lead to delays and incomplete resolution.

Having a comprehensive knowledge base is a good start, but searching through these databases manually can be cumbersome.

That’s where agent copilot tools like Talkative’s Navi come into play.

Navi is an internal-facing AI chatbot designed to act as a brand-trained virtual assistant for agents.

Integrated with your knowledge bases, Navi can retrieve any relevant company information instantly.

This empowers your agents to access knowledge and find effective solutions more quickly and efficiently.

It also allows them to focus more on the customer rather than manually searching for answers.

During calls and other digital customer interactions, Navi can...

• Answer agent questions and retrieve information/resources directly from your knowledge bases.
• Recommend the next steps or further actions the agent should take to resolve the customer’s issue efficiently.
• Summarise the customer journey, including details like the web page they’re currently viewing or their interaction history.

This means your agents will have all the information they might need at their fingertips, enabling faster and more accurate resolutions.

This not only helps FCR rates but also improves call handling times and the customer service experience.

4. Identify root causes of repeat calls

Analysing the reasons behind follow-up calls is vital for improving first call resolution.

It’s essential because it allows call centers to address the underlying issues causing delayed resolutions and a low FCR rate.

To achieve this, you need to conduct a thorough examination of your first call resolution data and uncover patterns in repeat/follow-up calls.

These patterns might include customer queries or pain points that consistently require follow-up contact or areas where agents frequently lack the resources to execute a resolution.

Conducting regular reviews and root cause analysis helps identify these recurring issues.

Once you have this information, you can make targeted improvements to customer support processes, agent skills, and resources.

These might include enhancing agent training on certain topics, updating a problematic product feature, or improving access to information.

By proactively eliminating the common causes of repeat calls, you can boost FCR rates and strengthen the overall effectiveness of your customer service strategy.

5. Reduce overall call volume

High call volumes have a significant negative impact on first call resolution.

When agents are overwhelmed with calls and high workloads, they often feel pressured to complete interactions quickly.

As a result, they have less time to fully understand and resolve customer issues during the initial contact.

This hurried approach leads to incomplete problem-solving, misunderstandings, or even errors, which necessitate follow-up calls.

Additionally, the strain of managing high workloads often results in burnout, reducing agents’ ability to think critically - a crucial component of successful resolutions.

By reducing contact center call volume as much as possible, you’ll be able to allocate resources more effectively and reduce the strain on agents.

In turn, your agents will be better equipped to provide excellent support during the initial call - leading to increased FCR rates.

Here are some actionable steps you can take to reduce overall call volume:

• Leverage self-service options: Empower customers to resolve issues independently without picking up the phone or contacting you at all. Use advanced self-service tools like AI-powered chatbots to automate common requests (e.g. booking appointments), provide instant answers/information, and guide users through troubleshooting processes.
• Diversify your contact channels: Implement alternative support channels such as live chat, messaging, video calls, social media, and email to spread the volume of customer inquiries across multiple platforms and touchpoints. This reduces the burden on phone lines and ensures customers can choose the most convenient way to get support.
• Use proactive customer communication: Keep customers informed about account updates, service interruptions, or known issues through SMS, social media, email, or in-app notifications. Proactively addressing potential concerns reduces the need for customers to contact your call center for updates or clarification.
• Monitor recurring issues: Use analytics to identify patterns in customer calls and address the root causes of frequent problems. Whether it’s updating product documentation, refining processes, or fixing bugs, resolving these recurring issues will reduce the volume of calls over time.

Overall, a well-balanced call volume creates the ideal environment for delivering quality service and ensuring customer issues are resolved the first time around.

Benefits of improving first call resolution (FCR) rate

By improving first call resolution rate (with the help of the above strategies), you can enjoy the following benefits…

Improve customer satisfaction

When customer inquiries are resolved on the first call, it creates a significantly better customer experience.

Consumers appreciate fast and effective service because it saves their time (as well as yours) and shows that their custom is valued.

Plus, a first call resolution means no follow-up contact is required.

This means less hassle for customers who are often frustrated by slow resolutions and the need to re-explain their issue.

It’s for this reason that high FCR rates are linked to increased customer satisfaction (CSAT) scores.

Case in point, research by SQM Group found that for every 1% improvement in first call resolution rate, there’s a corresponding 1% improvement in customer satisfaction.

In turn, satisfied customers are more likely to recommend your business to others, positively impacting brand reputation.

Increased productivity & efficiency

A high FCR rate means your customer service team members are resolving issues promptly and successfully.

In turn, call center agents can move on to assist other customers instead of repeatedly handling the same support requests.

This leads to a more efficient and streamlined operation, as well as increased productivity.

It also lightens agent workloads by reducing repeat calls and the stress of dealing with frustrated customers.

It’s why employee satisfaction increases by 2.5% for every 1% improvement in first call resolution.

Fewer escalations

In addition to decreasing follow-up contact, first call resolution also reduces the need for internal escalations.

When agents resolve more customer interactions independently, fewer cases are transferred to team leaders or supervisors.

This reduces bottlenecks and maintains a more seamless and efficient customer support process.

It also allows senior staff to focus their time and attention on strategic improvements and complex or high-priority cases.

Lower operating costs

By minimising the number of repeat calls and follow-ups, first call resolution can substantially lower operating costs.

In fact, a 1% improvement in FCR equates to annual savings of $286,000 for the average midsize call center.

When agents resolve customer problems on the initial call, contact centers experience a reduction in the total number of phone calls.

This reduces staffing needs and the costs associated with higher volumes of customer interactions.

It also allows you to serve the same number of customers with fewer resources.

Ultimately, this translates into a lower cost per contact and a more cost-effective call center overall.

The takeaway

First call resolution goals are vital for any contact center that wants to ensure customer satisfaction, increase efficiency, and minimise costs.

By applying the strategies outlined in this article, you can optimise FCR rates while also enhancing service quality and the customer experience.

That said, achieving the best results with these tactics also requires the right tools and technology to support them.

That’s where Talkative comes in.

As we’ve covered, our solution offers various features that can help improve first contact resolution - from voice AI and intelligent routing to AI-powered assistance for agents.

Our platform also provides a complete suite of customer contact channels and seamless integrations into leading contact center systems and CRMs, including Salesforce and Mitel.

You can even pick and choose the channels/features/integrations you need, allowing you to tailor our contact center software to your specific needs.

Want to learn more? Book a demo with Talkative today, and check out our interactive product tour.