The Most Important Metric to Gauge Customer Service Success (or Failure)

Updated: November 22, 2010

Enkata's white paper (2009 www.enkata.com) reports that only 40% of contact centers are measuring First Call Resolution (FCR), SQM Group puts the percentage at 50% (SQM's World Class Call Center Book excerpt, p. 1), yet less than 20% are measuring FCR for all of their calls according to a study by ICMI (International Customer Management Institute).

BenchmarkPortal.com reports best practices at 86%. My question is what about the 14% that are calling you more than once, more than twice? This not only frustrates your employees and yourselves, but your customers as well. Repeat calls are costly not only to operations and the bottom line, but they negatively impact customer service success.

It was further noted that 65% of all repeat calls are the result of agent errors. For instance, if an agent:

  1. Doesn't give a confident answer
  2. Doesn't set the proper expectations
  3. Doesn't follow through on a commitment
  4. Simply gives the wrong answer

A typical customer will not call back. Not only does this keep costs high, but it decreases customer loyalty and increases turnover. In addition, SQM Group suggests there is a 20% point drop in customer satisfaction for each additional call required to resolve the customer call. (SQP Group, FCR 2008, p. 3) Additionally, customers who did not get their call resolved are 5 times more likely to defect than those who had their call resolved (p. 5).

On the other hand, improving FCR can:

  1. Reduce overall customer calls
  2. Decrease rework
  3. Improve service
  4. Enhance customer satisfaction
  5. Up-sell and cross-sell opportunities
  6. High value customer interactions
  7. Take customers from satisfied to loyal
Featured Research
  • 15 Tools for Managing Remote Call Center Agents

    Together, technology and the connective power of the internet are making drastic changes in what a typical work setting looks like today, and many companies are beginning to rely more upon a remote workforce. In fact, according to Global Workplace Analytics, “regular work-at-home, among the non-self-employed population, has grown by 105% since 2005.” more

  • 2017 Contact Center Software Trends

    Did you know that, according to Forbes, 86 percent of customers will pay more for a better customer experience? Customer satisfaction is always a worthy business pursuit, but to identify customer preferences and exceed expectations, you must keep pace with innovations in the technology your customers are using. more

  • How to Select Contact Center Software in 9 Steps

    Your choice of contact center software will affect the future success of your business. Don’t leave this important decision to chance. This guide provides nine actionable steps for the selection process. more

  • Hidden Costs of Contact Center Software

    Creating a great customer experience for each person who reaches out to your customer support center is vital to developing a loyal and ravenous customer base for your business. In fact, according to Walker Information, Inc., “By 2020, customer experience will overtake price and as the key brand differentiator.” more

  • Top 11 Contact Center Vendors in 2017

    With the ever-proliferating number of contact center software vendors, it can be difficult to determine which software application is right for your business. This guide for 2017 includes information about eleven top contact center vendors, including information on pricing, features, and strengths and weaknesses. more