First Contact Resolution – Getting it right the first time

By Joe Doyle, Marketing Executive, EMEA

Profitable and satisfied customers should be the primary goal of every customer service executive. The challenge contact centre professionals face is determining which metrics should be measured to realise if they’re striking the right balance of happy customers with a cost effective service.

At a fundamental level there is one golden rule that gets to the heart of this paradox: Resolve the customer's issue the first time they contact you as efficiently as possible, and not only will you improve your good standing with that customer, you will do it at lowest possible cost to your organisation.

The cost of a negative customer experience

85% of consumers report that if customer problems are resolved in their very first interaction with an agent there is only a 3% risk of a caller switching to a competitor[1]. By contrast, 85% of consumers report that having a negative customer service experience which may drive them to switch providers[2].

This data underscores the importance of clearly focusing on the overall experience you are providing for your customers. Customer service executives must be confident that their agents possess the appropriate skills and knowledge, and are set to meet their customers' needs.

Research shows that the majority of the time when a customer has to contact a company twice or more, the reason for the repeat action is based on actions taken by the agent. In fact, 65% of all repeat contacts are the result of agent error[3]. Why might an agent be unable to resolve a customer's issue the first time? There are a variety of causes that are usually within the contact centre's control.

• Misrouted Calls - This is often a major cause of customer and agent confusion and ultimately their dissatisfaction. Misrouted calls can be caused by internal company segmentation, coupled with poor coordination or planning.

• Agent Inability - Agents are incapable of resolving customer issues based on training skill-sets. Agents are bound to fail when contact centre executives have failed to equip their teams with the necessary skills and training.

• Data - Like training, if agents are not equipped or lack access to the appropriate information channels, the customer experience will fail to resolve the issue and the potential value of the customer interaction will be missed.

• Work Flow Errors - Overly complex processes and onerous business rules extend the agent learning curve and increase the chances for error.

• Authority - Agents who lack the authority to do what is necessary to alleviate the customer's concern upon the first contact.

• Measurement - Not collecting and/or measuring data as needed can result in less accurate and misleading results.

Implementing an effective FCR strategy

No matter what approach taken to resolving the challenges listed one cannot underestimate the importance of a highly-trained and prepared workforce. The most successful FCR improvement plans are focused at agent level. This means starting with high calibre employees, equipping them with the necessary knowledge and skill-set to understand customers' needs and imbuing them with both the confidence and authority necessary to resolve queries the first time.

Agent workshops provide excellent forums for agents to compare their individual FCR scores, to discuss results from individual customer surveys, and to determine what is working, and what is resulting in customer 'dissatisfaction.' Rewards for achieving high FCR scores can also be worked into compensation and incentive plans.

When implementing your strategy, the three key statistics you should take away are:

• Irrespective of which measurements are used to collect data on FCR, the results will only be as good as the agent leading the customer interaction.

• There is no set approach to achieving it - the needs and product offering of each individual client determines how contact resolution is best measured.

• Distinguishing your company by achieving FCR is perhaps one of the most important business decisions you will make as an outsourcing contact centre executive.

The FCR 'Process' for unlocking customer value

The more times a customer repeatedly interacts with an agent in order to resolve an issue, the less likely it is that the experience will yield a satisfactory result. And since customers can easily switch from one brand to the next, it is imperative that your contact centre strives to deliver the best possible customer service at all times. 

Moreover, customer service has five times more impact upon customer satisfaction scores than any product or price1. Achieving FCR also increases the potential for cross-selling and up sell opportunities until the customer concern is resolved, the agent cannot move into a selling capacity1.

Industry average FCR rates hover at around 70%. This means that 30% of the time, callers must interact with a contact centre agent more than once to have an issue or complaint resolved. Customer satisfaction scores drop 15% on average, after the first call back and continue to decrease with each subsequent contact centre interaction. Measuring and improving FCR is no easy feat. It is a subjective metric that relies upon customer response and agent feedback.

One of the fundamental difficulties of obtaining an accurate FCR measurement is that customers' are the ultimate judge, not the customer service agent, supervisor or contact centre executive. Some studies have shown that contact centres tend to report a 20% higher FCR rate than that of their customers. As a result, it is best to use multiple measurements to arrive at an overall FCR score. Some of the most common measurement tools include:

• Live Customer Survey
• E-mail Survey
• Post Call IVR Surveys
• Agent Logging
• Call Recordings
• CRM Case Management
• Repeat Call Tracking

Conclusion

FCR is a complex metric that can - and should - be measured in a variety of ways. Although at first it may appear to be a challenging undertaking, making FCR a priority will yield numerous rewards for both your business and your customers.

Customers who have issues resolved on the first contact report higher customer satisfaction ratings and are less likely to defer to a competitor. Achieving high FCR scores can benefit your bottom line as a reduction in contact volumes means significantly reduced costs. Working with an experienced outsourced BPO provider can pay huge dividends in achieving FCR.

[1] SQM Group

[2] Amdocs

[3] Encarta