What Is First Call Resolution? Why It Matters + How To Improve It

It may seem counterintuitive, but to truly delight your customers, spend less time on customer calls.



How can minimizing customer contact lead to happier customers? The key lies in optimizing the first call resolution (FCR).



Customers are happiest when you resolve their issues quickly and smoothly in a single call.



12%  of Americans rate their highest frustration with customer service as “lack of speed”. At the same time, reaching a business via the phone remains the most popular customer service channel.



This is exactly what first contact resolution focuses on. It reduces customer hassle and delivers the fast, seamless experiences today’s consumers expect.



In this article, we’ll explore this customer service metric  in detail and how improving first call resolution rates benefits both your customers and business. We’ll also give you tips to improve your FCR performance.



You’ll get to customer issues quickly, save your customer service team time, and create satisfied customers who feel valued and heard.



Consumers pay more for positive customer experiences. Source: PwC



What Is First Call Resolution (FCR)?



First call resolution (FCR) is a customer service metric that businesses use to assess whether a customer’s issue is fully resolved during the first contact customers make with them.



FCR assesses how well customer support agents resolve customer problems the first time they reach out without escalating, transferring the call, requesting a callback, or creating a help desk ticket. It’s a widely used  call center metric to gauge a customer service team’s efficiency. 



High FCR rates indicate good call center performance.



Companies often set first contact targets or goals on a monthly, quarterly, or annual basis to improve FCR and to identify areas for training, policy change, or technology investments.



Of course, first call resolution is just one important call center KPI. Others like first response time, customer effort score (CES), customer satisfaction scores (CSAT), and net promoter score (NPS) also provide insights into the overall customer experience.



Optimizing across key metrics leads to higher FCR and improved customer satisfaction.









Why Is FCR Important?



A good FCR rate translates to better customer support. Tracking and improving FCR is a key part of efficient  contact center management .



Here are some key reasons why achieving a high first call resolution rate is important.




Improves  customer satisfaction .  Customers like having their issues resolved in one interaction. A high FCR shows that you understand customer needs and solve their issues faster. Customers appreciate that you value their time.



Reduces average handle time ( AHT ).  Agents spending less time per customer interaction is a sign of efficiency. They can handle more customer inquiries without compromising quality.



Lowers  operational costs .  Fewer callbacks, transfers, and escalations mean lower labor costs and overhead for your customer service. Achieving FCR reduces spend on managing additional contacts.



Boosts agent morale.  Support agents feel motivated when they resolve customer issues independently. This leads to higher job satisfaction.



Provides  metrics  and insights.  FCR rate is a key KPI that offers insights into how robust your knowledge base, tools, and training are.



Enhances  customer retention .  Customers are more loyal to companies that make service frictionless. FCR minimizes customer effort and cements satisfaction.



Drives continuous improvement.  Identifying gaps through FCR reporting allows you to improve processes, tools, and training to further optimize the customer experience .




How To Measure First Call Resolution



The formula for calculating your FCR rate is:



Number of issues resolved on first contact / Total number of customer contacts x 100



This gives you the percentage of inquiries resolved completely on the first interaction.







Another option is to divide issues resolved on the first calls by the total first calls received.



Here are the main methods companies use to measure first call resolution rates:




Customer surveys.  Taking customer feedback if their issue was resolved on the first contact through post-call surveys or emails. Easy to set up but can have sampling bias.



Call tracking.  Using call center software to track if calls are closed/resolved on the first contact, get escalated, or are marked as needing follow-up. Requires call tagging protocols.



Quality assurance review.  Quality analysts listen to call recordings and score if agents fully resolve the customer inquiry on the first call. Manual process but detailed insights.



Repeat call  analysis.  Examining call records to evaluate the frequency of repeat calls related to similar issues as a sign of unresolved calls. The focus is on call types rather than individual cases.



Customer callbacks.  Proactively contacting a sample set of serviced customers within a few days to confirm if their issue has remained resolved or if they need to call back. Direct but labor intensive.




The most effective approach is combining metrics from call tracking tools, quality assurance tagging, and targeted customer surveys/callbacks to get a balanced perspective on true first call resolution rates.



When evaluating your FCR metrics, set a target benchmark but be prepared to adjust if call volumes spike. Tracking FCR over time helps identify causes of repeat contacts so you can improve knowledge bases, agent training, and products.



What’s a good FCR rate?



A good FCR target rate depends on your industry, but a range of 70-75% is the industry standard for strong call centers. This means approximately 3 in 4 issues should be handled in one contact.







That said, there’s no single “good” first contact resolution rate that applies universally, as the target can vary by company size, support channels, and the recency of the product/service.



Here are some general FCR rate benchmarks:




World-class customer service:  80%+



Strong performance:  70-79%  



Average:  60-69%



Needs improvement:  Under 60%




The key is to compare your FCR rate to past performance, not industry averages. Focus on continuous improvement vs. chasing static targets.



Key Benefits of First Call Resolution



FCR provides a multitude of benefits that positively impact customers, employees, costs, and overall customer service quality.



Reduced operating costs and improved efficiency



With an FCR strategy in place, your support team spends less time handling repeat contacts, callbacks, and transfers. They also resolve a higher number of issues per day. This reduces backlogs across support channels as issues are handled faster.



At the same time, minimizing total handle time allows businesses to serve more customers without inflating staffing costs. FCR improves agent utilization and containment rates. 



Higher resolution rates on the first contact also lower IT costs as fewer systems and resources are needed for subsequent contacts.



Improved customer journey



First call resolution boosts customer satisfaction scores. Customers appreciate fast, one-and-done service.



FCR minimizes customer effort by reducing repeat explanations and follow-ups. This positive experience enhances brand perception.



FCR directly correlates with quick resolution, minimal wait times, and single points of contact. Time after time, the numbers speak for themselves. Customers love FCR, and the results benefit a company’s bottom line. 







But what about the frontline employees, your call center agents serving your customers?



Better employee performance and morale



With fewer repeat contacts, agents gain confidence in their ability to independently resolve issues. This drives job satisfaction. The support team can properly diagnose and address complex issues and their expertise and capabilities grow. 




“If you handle 1,000 interactions per week, and your average first contact resolution rate is 70%), that means that 30% of your tickets require multiple responses. Increasing your typical first contact resolution rate by just ten points to an 80% success rate means you’ll send at least 300 fewer emails per week or 15,600 per year.”

Len Markidan
Ex Marketing Head at GrooveHQ






Insight for continuous improvement



FCR metrics highlight knowledge gaps and pain points, so you can develop additional training, documentation, and tools to improve your customer service capabilities. This helps you identify processes, policies, or product issues that need addressing and ensures support standards don’t slip.



First Call Resolution Challenges



First call resolution doesn’t happen in a vacuum. Something as simple as the level of your agent’s knowledge can impact FCR. Or how many staff you have working on a given day.



That said, measuring FCR isn’t without its challenges.



When setting FCR goals, account for these challenges to accurately and reliably measure your support performance:



FCR could impact other metrics



Pushing for higher FCR could temporarily increase talk times, as agents take extra steps to solve issues on the first contact.



Wait times may also initially rise, as agents consult with other departments to find solutions without transferring clients.



However, as your service team becomes more skilled at end-to-end problem-solving, these metrics should improve. Don’t mistakenly see short-term increases as overall inefficiency. 



FCR does not account for all channels



Typically, FCR only measures resolutions on the first phone call, excluding other channels like email, chat, and self-service.



There’s also the question of whether routing to other agents counts against FCR — they may be considered one call from the company’s view, but from the customer’s perspective, being transferred still represents repeat effort and explanation.



How to overcome these challenges?



To get an accurate FCR rate, clearly define the scope and rules — which channels and outcomes count as resolution, do transfers count against it, etc. Be prepared to adjust definitions as needed when new products or services are launched.



How To Improve First Call Resolution



So how do contact centers improve their FCR?



It starts by understanding that the most efficient support channels for your business may not align with customer preferences. Customers highly prefer phone support, so you need to first optimize this channel for straightforward, efficient service.







Step 1: Define FCR success



Determine what outcomes actually constitute a successful first call resolution in your  contact center .



Does simply answering the customer’s question count or do you require the issue to be fully resolved in one interaction? Should transfers to other departments or agents count against first call resolution rates?



Align your FCR definition with customer expectations rather than internal policies to measure success more meaningfully.



As technology evolves and customer habits/preferences change over time, reevaluate assumptions and historic thresholds about what constitutes a satisfactory first call resolution.



Leverage data from   customer satisfaction surveys , call records, and quality assurance notes to map current customer needs rather than use legacy call center practices.






Step 2: Analyze the causes of repeat calls



Organize call data, case notes, and customer profile information to identify patterns, common issues, or trends behind repeat calls.



For example, are repeat calls tied to certain products, agent groups, or contact center policies? This type of analysis reveals where to focus process improvements and training for quicker issue resolution.



Step 3: Identify weak spots



Look at the wider business context to determine if customer-impacting policies, outdated documentation, or cross-department communication issues often drive repeat calls and hinder first-contact resolution. Adress these root causes in-depth rather than applying superficial quick fixes.



Step 4: Create an improvement strategy



Once you identify common issues, develop a targeted improvement strategy to boost first call resolution rates.



Consider changing agent call handling scripts , expanding knowledge base content, customizing training programs, and streamlining customer-facing processes to move the needle.



Set measurable goals and timelines for testing proposed solutions. Also, communicate FCR progress, wins, and best practices across the contact center to motivate agents around resolution rates.









Step 5: Invest in your agents



Ensure agents adhere to proven customer service best practices in communication, personalization, ownership, and documentation. This helps them confidently address customer issues and provide effective resolution with minimal disruption.



Empower agents with internal expertise and resources to resolve recurring issues.



Step 6: Sustain ongoing improvement



Avoid complacency even with high first call resolution rates. Continually set new optimization goals by comparing your performance against industry benchmarks.



Use automation like artificial intelligence (AI)and voice analytics to scope out improvement opportunities. Sustained incremental gains come from both better-enabling agents and addressing root cause issues.



First Call Resolution Best Practices



Following  call center best practices optimize efficiency, improve customer satisfaction, and boost FCR metrics.



Here are some key best practices to create those aha moments for customers:




Train your team on products, services, systems, and soft skills like active listening and empathy so they can handle a wide range of customer issues.



Equip agents with knowledge management tools like searchable databases, tutorials, FAQs, call scripts, and AI-powered chatbots to access information quickly during calls.



Empower your support team to own issues from start to finish rather than transferring customers. Have subject matter experts and mentors assist them throughout the customer journey.



Set first call resolution targets . Track performance at the agent and department level to identify gaps and opportunities.



Proactively inform customers and keep them updated on support requests to reduce back-and-forth. 



Follow up to ensure customer problems were fully solved. Seek feedback on agent performance.



Cross-train agents across departments to expand expertise. For example, buddy them up with sales reps so they can learn about customer relationship management and managing customers and CRM systems better. The more issues an agent can handle, the higher FCR rates will climb.



Ensure consistent experience across communication channels, including email, social media, chat, self-service, and phone. Align knowledge management across the channels.



Foster a customer-focused culture across the organization. First call resolution should be a shared priority at all levels.



Use conversational intelligence like interactive voice response (IVR) for effective call routing so the calls don’t go to the wrong department and leave customers feeling frustrated.




First Call Resolution Made Simple



To improve FCR, it helps to have  call analytics   on board. Nextiva has voice analytics capabilities to make tracking and reporting easier so you can get to work on the optimizations. 









Our   cloud-based call center  provides you with key resources as you embark on your FCR journey.



You can take more calls with fewer agents, automate multichannel customer support and self-service options, and equip your agents and supervisors with dashboards and reporting that provide real-time control and uncover hidden business insights.
The post What Is First Call Resolution? Why It Matters + How To Improve It appeared first on Nextiva Blog .