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First Contact Resolution

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What is First Contact Resolution (FCR)?

First Contact Resolution (FCR) is an essential metric in customer support and service domains. It signifies the percentage of customer queries or issues resolved during the first point of contact. In other words, FCR gauges the efficiency of your service team in addressing client concerns without requiring follow-up interactions.

Especially in the Professional Service Automation (PSA) realm, this metric can significantly influence customer satisfaction and operational efficiency.

Importance of FCR

FCR serves as a pivotal metric for several reasons:

  • Customer Satisfaction: A high FCR rate indicates that client issues are promptly addressed, leading to happier clients.
  • Operational Efficiency: Resolving queries during the initial interaction reduces follow-up, saving time and resources.
  • Cost Savings: Fewer repeat calls or contacts mean decreased operational costs.
  • Performance Metrics: FCR can guide managers in training or refining the skills of the service team.
  • Enhanced Revenue: Satisfied customers are more likely to engage in repeat business or provide referrals.
First Contact Resolution

Importance of FCR

Calculating FCR

The formula to calculate FCR is:

FCR (%) = (Number of issues resolved on first contact/Total number of issues received) × 100

Example: Let’s say a PSA company receives 200 customer issues in a day, and 160 of them are resolved in the first contact. The FCR would be:

FCR = (160/200) ×100=80%

FCR vs Other Related Metrics

It’s crucial to distinguish FCR from other service metrics to appreciate its unique value:

1. FCR vs Average Handling Time (AHT): While FCR emphasizes resolution during the first contact, AHT focuses on the average time taken to address a client issue, irrespective of the number of interactions.

2. FCR vs Customer Satisfaction (CSAT): CSAT measures the overall happiness of clients with the service they received. Although a higher FCR can correlate with higher CSAT, they aren’t the same metric.

3. FCR vs Net Promoter Score (NPS): NPS evaluates the likelihood of clients recommending your service. A high FCR can contribute to a positive NPS but is only a piece of the bigger picture.

Metric Description Relation to FCR
FCR (First Contact Resolution) Measures the percentage of issues resolved during the first contact. Main metric under consideration
Billable Utilization The percentage of total worked hours that can be billed to clients. A higher FCR can lead to better billable utilization as less time is spent on rework or handling client issues multiple times.
Customer Satisfaction (CSAT) Measures the satisfaction level of clients with the service provided. Higher FCR often correlates with higher CSAT as clients are generally more satisfied when their issues are resolved quickly.
Time to Resolution (TTR) The average time taken to resolve client issues or requests. Effective FCR strategies can reduce TTR as issues are resolved in the initial stages.
Project Margin The profit percentage after accounting for all project-related costs. Efficient issue resolution (high FCR) can lead to reduced costs and increased project margins.
Revenue Leakage The lost revenue due to unbilled services or other inefficiencies. High FCR can reduce revenue leakage as issues are addressed promptly, ensuring billable tasks aren’t overlooked.

Utilization of FCR

FCR finds its applications in:

  • Performance Benchmarking: Companies use FCR to measure the proficiency of their service team and set performance standards.
  • Training Modules: By analyzing instances where FCR wasn’t achieved, companies can train their team to handle similar future situations better.
  • Strategic Planning: Organizations can align their support strategy based on FCR trends, either by allocating more resources or adopting advanced ticket management strategies.
  • Improving Client Relationships: With a high FCR, organizations can ensure that their clients’ concerns are addressed promptly, leading to trust-building.

Ready to Optimize Your FCR?

When aiming to optimize FCR, employing the right tools becomes indispensable. KEBS offers a comprehensive solution tailored for PSA:

KEBS platform efficiently categorizes and routes tickets to the right team members, ensuring faster resolution. This ensures that there are clear lines of communication and tasks don’t fall through the cracks. Using KEBS resource management software, managers can allocate the right resources based on the nature of the client issue, improving the likelihood of first-time resolution.

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KEBS Helpdesk

Ready to elevate your FCR with Professional Service Automation? Contact KEBS today or get a first-hand experience with a demo.

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