Average Handle Time (AHT) often takes center stage in contact centers, and for good reason. It's directly tied to financial outcomes, operational costs, agent productivity, and customer satisfaction (CSAT). Many executives and call center managers are eager to reduce AHT, drawn by the undeniable potential cost savings.
But there's a catch: blindly targeting the time your customer support agents take to resolve inquiries can seriously undermine the overall goals and objectives of your contact center.
When optimizing for Average Handle Time, balance is vital.
You'll need to consider all aspects of the contact center: from high-performing and engaged employees to proper training, while keeping an eye on metrics like NPS, CSAT, and Service Level. Industries, verticals, and departments all have different AHT benchmarks.
The question of how to optimize AHT (with and without technology) varies greatly depending on these factors. That's exactly what we're unpacking in this article. We're diving into the details of Average Handle Time, what it really means, how to calculate it accurately, and most importantly, how to optimize it without sacrificing customer experience.
Our team at AmplifAI has spent over two decades transforming contact centers, both pre and post AI. We've witnessed firsthand the tug-of-war between efficiency and quality when it comes to metrics like Average Handle Time.
In this article, we'll unpack:
- What is Average Handle Time (AHT)?
- How to Calculate Average Handle Time
- Factors Affecting Average Handle Time
- Impact of AHT on Customer Experience
- Best Way to Measure and Track AHT
- AHT Benchmarks By Industry
- How to Improve AHT in Your Call Center
- Common Average Handle Time Mistakes
- Technology to Improve AHT in Your Call Center
What is Average Handle Time (AHT)?
Average Handle Time a.k.a. AHT is a key performance indicator in call centers that measures the average duration of a complete customer interaction. Average handle time consists of three main components, talk time, hold time, and post-call work. Together these components of AHT capture the entire service process from start to finish.
The core components of Average Handle Time
Talk Time
This is the actual duration of conversation between the agent and the customer. It's a direct measure of how long an agent spends addressing the customer’s concerns.
Hold Time
This refers to the periods during a call when the customer is on hold. Efficient management of hold time is essential for maintaining customer satisfaction and reducing overall call duration.
Post-Call Work
This encompasses all the tasks an agent performs after a call is concluded. It includes updating customer records, processing requests, or any administrative work related to the call.
We'll be using these three components to calculate our Average Handle Time.
Why is AHT Important to Your Call center?
Average Handle Time (AHT) is a strong indicator of your call center's overall efficiency and effectiveness in handling calls in a prompt manner. Monitoring and optimizing for Average Handle Time is important because shorter, high-quality interactions lead to improved customer satisfaction, better resource utilization, and overall operational efficiency.
By keeping AHT part of your call center's core KPI's you can identify opportunities to enhance service delivery without compromising quality.
Average Handle Time Impacts on Your Call Center
Operational Efficiency
Trimming the fat from each call, agents can handle more interactions in their shift.
Cost Optimization
Optimized AHT means better agent utilization. You might find you can maintain service levels with a leaner team, reducing overall costs.
Agent Empowerment
When agents learn to manage their time effectively, it boosts their confidence. They're not racing against the clock – they're mastering the art of efficient, high-quality customer service.
Customer Satisfaction
Contrary to popular belief, shorter calls 'can' lead to happier customers – if done right. Quick, effective resolutions mean less time on hold and more problems solved on the first try.
Competitive Edge
In an industry where every second counts, optimized AHT will set your brand apart. It's not just about being faster on the call – it's also about being smarter in how you use your time.
Even though an important one, Average Handle Time is just one piece of the puzzle. Balancing it with other metrics like First Call Resolution (FCR) and Customer Satisfaction (CSAT) is the key to truly elevating your contact center's performance.
How to Calculate Average Handle Time
The formula to calculate AHT is:
(Total talk time + Total hold time + Total post-call work) / Total number of calls = AHT.
Each component of AHT (talk time, hold time, post-call work) is integral in understanding how agents are spending their time during customer interactions to .
Example of the Average Handle Time Formula
In June, Company A's total interaction time was 12,000 minutes for 2,500 calls, resulting in an AHT of 4.8 minutes.
On the other hand, Company B spent 18,200 minutes on 3,500 calls, leading to an AHT of 5.2 minutes.
Factors Affecting AHT
As we discussed earlier, Average Handle Time benchmarks can vary significantly based on several key factors. When optimizing for AHT these factors will greatly impact the time an agent needs to spend on a call to effectively deal with a customer issue.
Call Complexity
The nature and difficulty of customer issues directly impact Average Handle Time. Complex problems typically require more time to resolve.
Agent Experience and Training
More experienced and well-trained agents usually handle calls more efficiently.
Type of Contact Center
Different industries and services have varying baseline AHTs. For example, technical support may have longer AHTs compared to retail customer service.
Customer Demographics
Factors like age, tech-savviness, and language proficiency of customers can influence AHT.
Time of Day or Season
Call volumes and types can vary based on time, potentially affecting AHT.
Available Technology and Tools
The efficiency of systems and tools agents use can significantly impact AHT.
First Contact Resolution (FCR) Rate
Higher FCR rates often correlate with lower AHT in the long run.
Queue Wait Times
Longer wait times may lead to more complex or emotional calls, potentially increasing AHT.
Product or Service Complexity
More complex products or services typically require longer explanation or troubleshooting times.
Company Policies and Procedures
The steps required to authenticate customers or process requests can affect AHT.
Understanding these factors helps call centers identify areas for potential AHT optimization while maintaining service quality.
Impact of AHT on Customer Experience
Managing Average Handle Time is a delicate balance for your customers. They appreciate swift resolutions, but they don't want to feel rushed or that their concerns are being overlooked.
Overall, a carefully managed AHT can benefit customer satisfaction in many ways:
- Customer Time-Savings: Quick yet effective resolutions lead to less time spent on hold or in conversation.
- Enhanced Customer Loyalty: If customers consistently receive prompt and satisfactory support, they are more likely to remain loyal to your company.
- Better Customer Experience: An optimized AHT means efficient problem-solving, leading to a satisfying overall experience without making customers feel hurried.
The Best Way to Measure and Track AHT
Not every call center adequately tracks AHT. Consistent and precise methods for tracking talk time, hold time, and post-call work are a priority here.
Effective Average Handle Time measurement and tracking can be facilitated in the following ways:
Data Collection
Begin by capturing all relevant data for each call. This includes the total time from the moment a call is answered to its conclusion, encompassing hold times, transfer times, and talk time.
Segmenting Data
Break down AHT by different categories like agent, shift, call type, or issue. This will provide deeper insights into specific areas that may need attention.
Regular Coaching
Schedule regular coaching sessions to discuss AHT metrics. This fosters continuous improvement and keeps the team aligned with efficiency goals.
Analyzing Trends Over Time
Don't get bogged down by daily fluctuations. Instead, analyze AHT trends over weeks or months to get a holistic view of performance.
Use Call Center Software
Invest in advanced call center software that can automatically record and calculate AHT. Automation ensures precision and saves manual effort.
Balance with Quality
A lower AHT is might sound like a great idea, but not at the expense of service quality. Regularly check customer feedback and satisfaction scores to make sure AHT isn't overshadowing CX, or CSAT.
When it comes to AHT, it's important to measure and track it against metrics like CSAT, Service Level, Net Promoter Score, and Quality Management, striking a balance between cutting costs and stellar customer service.
AHT Benchmarks by Industry
There isn't a one-size-fits-all benchmark for Average Handle Time. AHT is dependant on industry, product specifications, and also the type of contact center.
For example, 2024 data shows healthcare AHT should aim for 3 minutes and 28 seconds, while telecommunications AHT is closer to 2 minutes and 36 seconds.
We've included a chart below with the Average Handle Time across various sectors.
Average Handle Time benchmarks table
Data Source: Hubspot
How to Improve AHT in Your Call Center
Improving Average Handle Time (AHT) is a delicate balance between efficiency and quality assurance. While technology can enhance these efforts, there are several manual strategies that can significantly impact AHT. Here are six key steps to optimize AHT using traditional methods:
6 Steps to improve Average Handle Time
1. Quality Training
Equip agents with effective coaching. Coaching effectiveness is the top way to improve Average Handle Time and all other call center performance KPI's. Focus on role-playing exercises and sharing best practices from top performers. A well-prepared agent will naturally resolve issues faster.
2. Accessible Knowledge Bases
Create and maintain a comprehensive, easy-to-navigate knowledge base. Ensure agents have quick access to a knowledge base software for frequently asked questions, product information, and troubleshooting guides. Regularly update this resource based on common issues and agent feedback.
3. Empower with Tools
Provide agents with essential tools like detailed call scripts, decision trees, and quick reference guides. These resources will streamline conversations and reduce time spent searching for information during calls.
4. Regular Feedback Sessions
Schedule frequent one-on-one sessions to review call recordings with agents. Provide constructive coaching feedback, identifying areas where time can be saved without compromising quality. Encourage peer-to-peer learning by having top performers share their techniques.
5. Automate Routine Tasks
Streamline your manual processes. Create templates for common emails, standardize note-taking procedures, and develop efficient handoff processes between departments to reduce after-call work.
6. Set Clear Expectations
Clearly communicate AHT goals to your team, but emphasize that quality should never be sacrificed for speed. Develop a balanced scorecard that considers AHT alongside other crucial metrics like customer satisfaction and first-call resolution.
By adopting these strategies, you can improve AHT without compromising the quality of service. The goal is to enhance efficiency while maintaining high standards of customer care.
These foundational practices can be further amplified when combined with technological solutions we discuss at the end of this article.
Common Average Handle Time Mistakes
These common AHT mistakes lengthen call times and compromise service quality.
Avoid these 7 Average Handle Time mistakes
1. Prioritizing Speed Over Quality
While a low AHT is desirable, it should never come at the cost of excellent service.
2. Neglecting Agent Training
Cutting corners in agent training might seem like a cost-saving measure, but it will inflate AHT in the long run.
3. Ignoring Customer Feedback
Customer feedback can be a goldmine of insights into where time is unnecessarily spent during calls.
4. Overburdening Agents
Assigning excessive tasks outside of call handling leads to fatigue and increased AHT.
5. Failing to Update Technology
Outdated software or tools will cause unnecessary delays. Regularly review and update your call center tech stack as required.
6. Not Reviewing Call Data
Overlooking contact center analytics data is a missed opportunity. Analyzing this data will reveal insights and patterns, helping managers to address specific behaviors and actions that are impacting AHT.
7. Setting Unrealistic Expectations
Pushing agents to achieve an unrealistically low AHT will seriously stress them out. Expect rushed interactions setting up a scenario for lowered CSAT and ultimately a higher call center turnover rate. Set attainable targets that balance efficiency with quality.
Technology to Improve AHT in Your Call Center
While the manual methods we've reviewed will improve Average Handle Time, modern contact centers have advanced to a place that demands a technological approach.
Technology now offers comprehensive solutions to optimize AHT while enhancing overall contact center performance.
Here's how software like AmplifAI is being leveraged by brands and BPO's to transform manual Average Handle Time optimization:
Data-Driven Decisions: Make the right move every time by ingesting all of your contact center data. Software like AmplifAI analyzes it to provide instant insights to executives, managers, team leaders, and quality trainers.
Data-Driven Personas: AmplifAI's algorithms identify specific skills or knowledge gaps that may prolong call durations. With this insight, supervisors know the Next Best Action for every agent and the targeted training they need to address these areas.
Role-Based Performance Intelligence: If you can't see it, you can't coach it. Software like AmplifAI takes all of your data, synthesizes it, and makes all of your contact center KPIs available in one dashboard.
Data-Driven Coaching Effectiveness: Effective coaching is the surest way to lower AHT in your call center. AmplifAI is the only AI tool that enables coaches with Next Best Actions, and measures the effectiveness of coaches.
Data-Driven Gamification: Creation of tailored games and leaderboards, fostering healthy competition and rewarding efficiency.
Automated QA: With tools like Auto QA, Auto Call Scoring, and Speech Analytics, AmplifAI automatically scores calls based on predefined criteria, including factors that influence AHT.
Implementing call center performance management software like AmplifAI doesn't just optimize AHT—it's offers a holistic approach to true contact center transformation.
Ready to see how AmplifAI can supercharge your AHT and overall performance?
Schedule a Demo today!
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