Zingtree Tags: call center metrics

How Connected Are Customer Satisfaction and FCR?

customer satisfaction and FCR

Did you know that, for every 1% improvement in first call resolution rate, contact centers will see a 1% improvement in customer satisfaction rates and a 1-5% improvement in employee satisfaction?

The opinion that your customers hold of your company, its employees, and its goods and services, has a direct and profound impact on the long-term health of your business. Simply put, if your customers aren’t happy, you need to make some drastic changes before it digs your company into a hole you can’t get back out of.

Customer Satisfaction also plays a huge role in how many other customer service metrics are measured; this includes First Contact Resolution (FCR), the percentage of reported issues or support tickets that are resolved on the very first interaction with the customer. However, it’s important to have an understanding of the connection between the two metrics in order to effectively track and improve over time.

In a recent article from ICMI, the author discusses how FCR is measured, why it’s so critical, and how customer satisfaction is a key driver in promoting a better FCR. With this information under your belt and the right tools to help you tackle it all, you can more actively take the steps you need to start tracking and improving these important metrics. Here’s just a segment of the article:

For a contact center, FCR is the percentage of contacts that are resolved on the first interaction with the customer. For live calls or web chats, this means that the customer’s issue is resolved before they hang up the phone or end the chat session. Calls or chats that require a customer callback or are escalated to another source of support do not qualify for first contact resolution. For emails and web submitted tickets, which now account for a significant percentage of all customer contacts, the de facto standard emerging in the industry is that resolution within one business hour of receiving a customer email or web ticket counts as FCR.

FCR is typically measured in one of two ways:

1. The agent checks a box on the trouble ticket at the conclusion of the call or chat session to indicate if the interaction was successfully concluded on the initial contact.

2. Customers are asked in follow-up customer satisfaction surveys whether their call or chat was resolved and concluded on the initial contact with the service desk.

The first method requires periodic audits to ensure that agents are accurately reporting FCR on the tickets they handle. This is done by reviewing a representative sample of tickets each month to determine if the tickets designated FCR by an agent are, in fact, being resolved on the first contact with the customer. Neither method of measuring FCR is perfect, but it is one of the most important KPIs to track and trend.

Why It’s Important

A high FCR is almost always associated with high levels of customer satisfaction. FCR is a measure of how effectively your contact center conducts its business and is a function of many factors, including the complexity and types of transactions handled, the experience of your agents, the quality of agent training, and tools such as knowledge management and remote control. The metric is most often measured monthly because a monthly timeframe is long enough to provide statistical significance. But it can also be measured annually, weekly, daily, or even hourly.

The figure below shows the relationship between FCR and customer satisfaction for a representative cross-section of service desks worldwide. This strong cause-and-effect relationship should come as no surprise. As stated above, we all want closure on the first contact with our service providers!

customer satisfaction and FCR

Key Drivers of FCR

As shown above, FCR is a key driver—in fact, the most important driver—of customer satisfaction. But what drives FCR?  If a contact center wants to improve FCR, how would they go about doing it?  If we go back to our cause-and-effect diagram for service desk KPIs, we can see that agent training hours are the biggest driver of FCR.

customer satisfaction and FCR

 

Read more about the link between customer satisfaction and first contact resolution on the ICMI blog here >> 

Here at Zingtree, one of our primary areas of focus is to provide a platform where customers can help themselves with self-service support, helping to improve first contact resolution and, ultimately, customer satisfaction. Additionally, with standardized and perfected agent scripts in place, agents and representatives can quickly match customers to the right solution through an interactive guide, making it much more simple to improve these key metrics over time.

For more on using decision trees to improve call centers:

How to Reduce Agent Turnover in Call Centers

Is Your Customer Service Working? How to Audit & Improve Your Strategy

These 5 Simple Call Script Techniques Can Easily Win New Customers

Can Agent Scripting Improve Your Call Center KPIs?

 

Want to hear more about how interactive decision trees and call scripts help improve FCR and customer satisfaction every day? Get in touch with our team, and check out our example decision trees for call centers and support teams

How Do You Measure Success in BPO Call Centers?

BPO (Business Process Outsourcing) is an industry experiencing rapid growth, with predictions that it’ll reach $3 billion in the next few years. Rather than host a call center in-house, a BPO can take over many tasks for larger organizations, at a fraction of the cost. BPO’s allow for organizations with call centers to be more flexible, available, and more.

While there are many advantages for businesses, a BPO call center needs to perform a few key functions, like fast onboarding, agent monitoring, and data measuring, in order to truly be effective. BPO call centers using Zingtree experience the benefit of rapid training and onboarding of new agents, a consistent customer experience, active performance tracking, and analytics and reports that help to identify success and failure points. But, what else should an outsourced call center be keeping in mind?

A recent article from Call Centre Helper dives into the four critical measurements that should be monitored and analyzed consistently in order to determine the effectiveness of a BPO call center.

1. Service Level

As any contact center manager knows, service level is a metric composed of a pair of numbers: a percentage value and a time value in seconds. While many BPOs adopt an 80/20 service level (as somewhat of an industry standard), a Folono post on finding the right service level suggests that management should think otherwise.

2. Agent Turnover

Statistics show agent attrition rates can be as high as 20–30% annually. While the outsourced contact center can reduce agent turnover (by virtue of customer service representatives being able to work from home), it’s nonetheless important for managers to keep an eye on attrition rates. Since agents are on the front lines interacting with customers, it’s also important for managers to consider the ways agents will represent the company, motivate other agents, and regularly strive to improve their performance.

3. Performance

Getting agents to address a particular area of weakness (e.g., script compliance, product knowledge, etc.) is one thing. But the question is: How can BPOs motivate agent teams to improve their performance on an ongoing basis? A big part of this comes down to managers growing and supporting the team over time, helping them to cultivate skills, identify and execute professional development opportunities, and more.

4. Process Adherence

Today’s customers are busy and, when they encounter problems, they want them resolved quickly. So what can BPOs do to ensure that agents are handling customer concerns as swiftly and efficiently as possible? It all comes down to process.

 

Read the rest of the article on Call Centre Helper’s website here.

When you consider these key success measurements, customers will receive the best experience possible and agents will see marked improvements in performance. Companies and BPO call centers using Zingtree decision trees, agent scripts, and interactive process guides have seen a dramatically positive shift in training, onboarding, performance, and improving key call center metrics.

Ready to get more from your call center BPO? Sign up or log in and build your first interactive call center agent script!