First Call Resolution Formula (Free Excel Template)

First Call Resolution Calculator Excel Tool

Measure and Forecast Cost Savings Attributable to Increases in First Call Resolution

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As First Call Resolution, or First Contact Resolution (FCR), rate improves, the overall cost of providing support decreases. It is calculated using the following formula:

FCR percentage

Number of Incidents Closed at First Contact
/
Overall Number of Tickets
X
100

Industry analysts estimate the mean cost to resolve a service request on level one to be about $32. The mean cost to resolve an escalated service request is about $60. In an environment averaging 4000 calls per month, improving FCR from 50% to 75% reduces the number of service requests requiring escalation by 1000 per month. The total cost to support those service requests is commensurately reduced yielding an estimated savings of $28,000 per month, based on the averages.

The direct benefit of improved FCR rate is significant cost savings. Although hard to quantify, the indirect benefits are equally compelling:

Mean time to resolution is decreased, improving end-user productivity
Customer satisfaction increases
Up-tier resources can concentrate on higher level tasks, optimizing system performance and speeding other projects to ROI and completion
Job satisfaction improves for both Level 1 and Level 2 engineers
Relations between teams improve
Level 1 credibility builds, increasing utilization and opening the door for additional first contact resolution rate improvement opportunities

Giva's First Call Resolution Excel template calculator tool allows CIOs and VPs of Customer Service to accurately forecast the cost benefits of programs to increase First Contact Resolution rate such as using a knowledge base, investing in level 1 training, hiring more skilled level 1 personnel, etc.

Comparing First Contact Resolution Rates to Costs

Using metric data for you Service Desk you can see the relationship between your current FCR rate and your costs. You can then adjust the figure for your current FCR up and down to see how it impacts costs. Increasing FCR saves costs on a per incident basis.
Finding FCR Saving Based Upon Incident Costs

Since Level 1 resources are less expensive than Level 2 or Level 3 resources, your cost per incident increases as an incident is escalated to higher tier level. By increasing the number of incidents resolved at Level 1 and reducing those escalated to level 2/3, you will reduce incident support costs.
Finding FCR Savings Based on Productivity Improvements

A call resolved over the phone by level 1 takes minutes while it may take a Level 2/3 resource hours before they have time to visit the end user. By resolving incidents more quickly at Level 1, end users suffer less down time and more time doing their jobs.

Giva First Call Resolution Calculator Tool

Download the Tool

First Call Resolution Formula (Free Excel Template)

Measure and Forecast Cost Savings Attributable to Increases in First Call Resolution

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