What is First Call Resolution (FCR) and How to Improve it

Celia Cerdeira at Talkdesk explores how to measure, benchmark, and improve first call resolution, including how AI-powered solutions can help increase resolution rates.

First call resolution (FCR) tracks whether a customer’s issue is fully resolved during their first interaction, no follow-up required.

It’s a critical metric that reflects how well your support team delivers fast, effective help, directly influencing customer satisfaction and overall contact centre performance.

Even with the growth of digital channels, many customers still turn to phone support for more complex or time-sensitive concerns.

When those calls don’t result in immediate answers, frustration builds and trust erodes. A high FCR rate, on the other hand, signals a smooth, efficient experience that leaves customers feeling heard and helped.

What is First Call Resolution (FCR)?

First call resolution (FCR) measures how often a customer service team resolves issues in the first contact. More than just a performance stat, first call resolution reflects great customer relationship management.

Resolving issues on the first try builds trust and loyalty, showing customers that their time is respected and their concerns matter.

First Call Resolution vs First Contact Resolution: What’s the Difference?

While the terms first call resolution and first contact resolution sound similar – and are often used interchangeably – they refer to two distinct metrics. Let’s start with a quick definition of each.

First call resolution (FCR) refers specifically to phone interactions. On the other hand, first contact resolution takes a broader view.

It tracks the percentage of customer issues resolved during the first interaction across any channel – whether it’s a phone call, live chat, email, SMS, or social message.

Both metrics aim to measure efficiency and customer satisfaction, but contact resolution gives a more complete picture of how well a company handles inquiries.

How to Measure First Call Resolution Rate

A company can calculate first call resolution using this formula:

• Divide the number of customer issues resolved on the first call by the total number of customer issues.
• Multiply the answer by 100% to achieve a percentage.

The way a company defines “resolved” can impact results. For example, it can adjust FCR calculations to exclude reopened cases, where customers call back about the same issue within a set timeframe.

Tracking these cases separately helps identify recurring issues, assess agent performance, and refine resolution strategies.

What is a Good First Call Resolution Rate?

Studies show that a good industry standard for first call resolution rate is above 70%. Improving FCR delivers tangible benefits, including:

• Lower operational costs – Fewer repeat calls mean less time and fewer resources spent resolving the same issue more than once.
• Higher customer satisfaction – Fast, one-touch resolutions make for happier, more loyal customers who are more likely to recommend your company.
• Boosted agent morale – Agents feel more productive and less frustrated when they can successfully resolve issues without escalation.
• Greater capacity – With fewer follow-ups clogging the queue, teams can handle a higher volume of unique customer interactions.
• Improved first impressions – Resolving problems on the first call builds immediate credibility and reinforces your company’s reliability.
• Better data quality – Efficient resolutions tend to generate cleaner, more accurate documentation, which supports long-term insights and continuous improvement.

A company should track FCR as part of a wider set of vital metrics for customer success. Some good KPIs to monitor for customer satisfaction include:

• Net promoter score (NPS) measures customer loyalty through the likelihood they’ll recommend a service to others. Happy customers are often the best marketers.
• Customer satisfaction score (CSAT) describes how happy customers are with specific interactions, like a technical support phone call. The data is usually gathered by post-interaction surveys and scores.
• Customer effort score (CES) reveals how hard a customer has to work for a solution. The easier a solution, the less effort a customer spends on it, and the happier they are likely to be.

Each of these metrics contributes to overall customer sentiment. By prioritizing these KPIs, companies can drive noticeable improvement in the quality of their customer experience.

How to Improve First Call Resolution Rate

The key to achieving high FCR lies in well-trained agents, AI-powered support, and smart call routing. Let’s look at some of the steps a contact centre can take to improve FCR.

Train Agents to Resolve Issues Efficiently

Training equips contact centre agents with the knowledge and skills to solve the issue on the first contact and improve customer satisfaction.

Agent training should emphasize active listening, problem-solving, and deep product knowledge to improve issue resolution. AI-powered learning systems can personalize training based on agent performance, while real-time AI recommendations help agents during live calls.

Deploy Agent-Assist AI That Makes Agents Even More Effective

AI-driven solutions boost FCR by providing agents with faster, more accurate insights during live calls, ensuring they have the right information at the right time. AI-powered agent assistants can improve FCR in several ways:

• Automatic knowledge retrieval instantly surfaces relevant content, articles, and solutions to better assist agents during communications.
• Customer interaction history provides agents with a complete history of a customer’s previous interactions across all available communication channels. This also enables agents to provide a more personalized customer experience, referencing previous discussions or talking points if useful.
• Customer sentiment analysis gauges customers’ emotional tones during conversations and makes suggestions on how to handle the situation, enabling agents to empathize with customers.
• Next-best action suggestions proactively give agents the next-best action recommendations for each stage of the conversation.
• Automated follow-ups and feedback surveys confirm issue resolution.

Connect Customers to Agents Skilled in Specific Areas

Intelligent call routing connects customers with agents best equipped to handle their specific issue, reducing transfers and improving first call resolution rates.

By analyzing previous interactions and intents, AI-powered routing determines whether to direct a caller to a specialized agent or a self-service tool for faster resolution.

Beyond improving FCR, intelligent routing also enhances:

• Average handle time (AHT) – Delivering calls to the most appropriate agents cuts the need for multiple transfers.
• Customer service level (CSL) – Handling calls quickly and efficiently usually leads to happier customers. A high level of successful service is essential to driving customer satisfaction and loyalty.

Develop a Deep Knowledge Base of Common Customer Issues and Resolutions

A knowledge base serves as a central repository of information about products, services, and common customer issues.

Giving agents access to this library allows them to quickly find accurate solutions to customer questions, significantly increasing FCR performance.

An AI-powered knowledge base goes one step further by making real-time suggestions to agents during calls. By analyzing the conversation, AI can surface answers from the knowledge base or point agents to useful information, like previous successful fixes or a troubleshooting manual.

Companies can build powerful knowledge bases by collecting data from customer interactions, agent feedback, and product teams.

The most effective knowledge base solutions share features, such as:

• Search functionality – This allows agents to intuitively find solutions using natural language queries.
• Categorization – Organizing and tagging information makes it easier to group related content and guides for simple navigation.
• Version control – Track updates and monitor changes so documentation and information stay current, or previous iterations can be returned to if required.
• Language support – Many companies do business globally. Multilingual support can benefit agents and customers in multinational organizations.
• Analytics – Analytical data on most-viewed articles or commonly asked questions can help a company understand the problems customers are facing and turn those learnings into actionable insights.
• Customization – These tools enable an out-of-the-box knowledge base solution to be rebranded with company colors or logos.
• Omnichannel integration – Many customers use multiple communication channels to interact with a company, such as social media pages or live chat. Ensure any knowledge base is accessible through or interacts with multiple platforms.
• Internal collaboration – Employee collaboration ensures staff across the company can lend their expertise to building out information sources.

A well-maintained knowledge base not only empowers agents to resolve issues more efficiently but also forms the foundation for self-service options that further improve the customer experience.

First Call Resolution Best Practices

Improving FCR starts with the right strategies, tools, and team mindset. Here are some best practices to help contact centres consistently resolve issues on the first try:

• Enable cross-functional collaboration – Make it easy for agents to connect with other teams (like tech support or billing) in real time when a case needs extra input.
• Leverage CRM and call history tools – Give agents context from previous interactions so customers don’t have to repeat themselves.
• Encourage active listening – Teaching agents to fully understand the issue before jumping to solutions helps prevent misunderstandings and repeat calls.
• Use AI-powered suggestions – AI tools can help deliver real-time next-best-action recommendations and call scripting guidance.
• Identify repeat call drivers – Regularly analyze common reasons for follow-up calls, like billing issues, unclear instructions, or shipping delays, to proactively address and reduce them.
• Establish clear escalation procedures – Define when and how agents should escalate issues to ensure efficient handoffs and minimize repeat contacts.

This blog post has been re-published by kind permission of Talkdesk – View the Original Article

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Call Centre Helper is not responsible for the content of these guest blog posts. The opinions expressed in this article are those of the author, and do not necessarily reflect those of Call Centre Helper.

Author: Talkdesk
Reviewed by: Jo Robinson