There are many ways to measure customer service within your call center; customer satisfaction, net promoter score and word of mouth index are all metrics that have been used as evidence of the customers voice, and therefore the success rate of the call center. But one metric that can give the clearest measurement in the simplest way is the measurement of First Call Resolution (FCR).
Customer Satisfaction Correlation
Customer satisfaction, call center customer satisfaction and ease of effort (how easily a call is resolved) has been found in research undertaken by the SQM Group to highly correlate with first call resolution. Showing that this metric can give a wide range of results when looking at the different ways a customer is satisfied when calling.
There are many things that we know irritate a customer when calling;
- Having to call repeatedly
- Being put on hold
- Being transferred to a different CSR
All of the above irritations have a further affect on first call resolution and call resolution. SQM found that overall there is a 14% drop in customer satisfaction each additional call required to solve a customer enquiry, results dropping significantly from 86% of customers being satisfied on the first call to only 44% being satisfied on the fourth call. The research also found that call resolution is 10% lower for a customer that is put on hold, and astonishingly 41% of customers that call are put through this process! Furthermore 19% of customers that call are transferred from one CSR to another, this usually entails some issue with IVR routing, resulting in FCR being 14% lower and call resolution being 4% lower. All of these issues have an impact on FCR and ultimately customer service, customer satisfaction and repeat custom.
How then do we know FCR has a direct result on customer satisfaction?
SQM has found that First Call Resolution and customer satisfaction have a trending relationship, measuring the affect they had on each other over two years within 250 different organizations. They found that the average for most of the two years for FCR was 73% and customer satisfaction 75% over the duration of the two years there is never anymore than a four point gap, for the last 22 months only a two point gap was found.
How does this trending relationship affect business?
When FCR was received 73% of customers said they ‘definitely would’ continue to do business, showing to have 14% of customers saying they would continue with the business than those customers that didn’t receive FCR. It was also found that customer advocacy improved alongside the rate of customers that received FCR, 72% of the FCR customers speaking positively of the business after the call as apposed to 22% of those with unresolved calls.
What are the cost Implications?
SQM found that the bottom CSR’s have 8% of customers say they have intent to defect over any of the above issues, whereas the top 15% only have 4% of customers review this. Over the 250 organizations the average call cost $7.54 it was found that the best 15% of CSR’s average call cost $9.80 and the worst 15% would cost the business $12.06. Showing that it is more cost affective to train CSR’s to better their call resolution in order to ultimately save the business money.
How do you implement the measurement of FCR?
SQM found that it was much more affective to judge the resolution of the customers call through a post call survey rather than through internal judgment from the organization, as 13% of customers said they felt their call was not resolved when the business deemed it to be, showing how important it is to let the customer have the voice when it comes to reviewing how their own experience was.
How can PSS help with First Call Resoultion ?
As an independent integrator of contact center technologies, PSS is able to provide an objective view of business strategy and cost-benefit analysis of technology change. PSS is motivated by customer service, not by selling upgrades or new technology. We pride ourselves on giving you the best advice for your business.
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