Average Handle Time: Definition, Formula & Ways to Improve it

Ever waited in line at a grocery store, only to have the cashier fumble through their checkout process, slowing down the entire queue?

That frustrating experience can be multiplied in a call center when customer service representatives take too long to handle inquiries.

Average Handle Time (AHT) is an important call center metric that directly impacts customer satisfaction, operational efficiency, and overall business performance.

In this blog post, we’ll explore AHT, its formula, and how to reduce it in your call center.

What is Average Handle Time (AHT)?

Average Handle Time is a key call center performance metric that measures the average duration an agent spends handling a customer interaction. This includes the time spent talking with the customer and any follow-up work related to the call.

AHT helps evaluate agent efficiency and productivity, but it must be balanced with quality of service to ensure customer satisfaction is not compromised.

How to Calculate Average Handle Time (AHT)?

You can calculate AHT using the following formula:

AHT = (Total Handle Time) / (Number of Calls Handled)

Steps to calculate AHT:

1. Calculate Total Handle Time:

Total Handle Time = Talk time + Hold time + After-call work

2. Count the Number of Calls Handled:

Count the total number of calls made during the measurement period.

3. Divide:

Divide the total handling time by the number of calls handled to get the AHT.

Example:

If an agent spent 300 minutes (about 5 hours) handling 100 calls, the AHT would be:

AHT = 300 minutes (about 5 hours) / 100 calls = 3 minutes per call.

What is a Good Average Handling Time?

A good average handle time varies by industry and the complexity of the calls, but generally, it ranges from 4 to 6 minutes for most call centers.

An AHT closer to 4 minutes may be ideal for simpler inquiries, while more complex issues may warrant a longer handling time.

The key is to balance efficiency with the quality of customer service, ensuring that agents adequately address customer needs without rushing the interaction.

Why is it Important to Calculate Average Handle Time (AHT)?

1. Efficiency Measurement

AHT serves as a key indicator of how effectively agents manage customer interactions. By tracking AHT, you can identify which agents are performing well and which may need additional training or support.

A consistently high AHT might indicate that agents are struggling with certain support issues, allowing for targeted coaching to enhance their skills and efficiency.

2. Resource Allocation

Understanding AHT allows you to optimize staffing levels based on predicted call volume. By accurately forecasting AHT, you can schedule the right number of agents to handle incoming calls, minimizing customer wait times and ensuring service levels are met.

This proactive approach helps you prevent both overstaffing and understaffing, leading to better overall operational efficiency.

3. Cost Management

A lower AHT can directly contribute to cost savings by helping handle more calls within a given timeframe and optimizing operational costs associated with labor and resources.

However, it’s essential to balance this with quality, as overly aggressive AHT goals can lead to rushed interactions that may harm customer relationships and lead to increased call backs.

4. Customer Satisfaction

While AHT is an important efficiency metric, it must be balanced with the quality of service provided. Customers appreciate timely responses, but they also value thoroughness and attentiveness.

Monitoring AHT helps ensure that your agents are not pressured to rush through calls at the expense of a positive customer experience.

5. Performance Benchmarking

AHT provides a standardized metric that benchmarks agent performance against industry standards or internal goals. Analyzing AHT data allows you to identify trends and patterns over time, facilitating data-driven decision-making.

This benchmarking helps set realistic performance targets and motivates agents to improve while aligning individual goals with overall organizational objectives.

7 Tips to Reduce Average Handle Time

1. Offer Training Programs

Comprehensive training equips agents with the skills to handle customer inquiries efficiently. By focusing on product knowledge, communication techniques, and troubleshooting, agents can quickly identify solutions without toggling between the screens in the search for the answer.

Continuous training and refreshers also help agents stay up-to-date on new product features and policies, which minimizes handling time during calls.

2. Utilize Knowledge Bases

Implementing a well-organized knowledge base allows agents to access information swiftly. The knowledge base includes frequently asked questions (FAQs), troubleshooting steps, and product details, reducing the time spent on each call.

When agents can quickly access the right information, they can resolve issues faster, leading to shorter call durations and improved call quality.

3. Leverage Call Scripting

Providing agents with call scripts can help streamline interactions by guiding them through common scenarios. Scripts ensure that agents cover essential points without going off-topic, leading to more focused and efficient conversations.

This structured approach reduces the likelihood of lengthy back-and-forth discussions, allowing agents to resolve issues more quickly.

4. Encourage Efficient Call Handling

Training agents to quickly identify the root cause of customer issues is crucial for reducing AHT. Techniques such as active listening and effective questioning enable agents to get to the heart of the problem faster.

Agents can resolve calls swiftly by encouraging a solution-oriented mindset, minimizing unnecessary talk time and expediting the overall process.

5. Implement Advanced Technology

Utilizing advanced call management systems and AI tools can significantly reduce AHT. Automated systems can handle routine inquiries, freeing agents to focus on more complex issues that require personal attention.

Additionally, features like call routing and customer information pop-ups help agents access relevant data quickly, leading to faster resolutions.

6. Monitor Performance Metrics

Regularly analyzing AHT alongside other performance metrics allows you to identify trends and areas of improvement.

By understanding where bottlenecks occur—whether in specific agents or types of calls—strategies can be implemented to address these challenges directly.

This data-driven approach fosters a culture of continuous improvement, ultimately leading to reduced AHT.

7. Solicit Customer Feedback

Gathering customer feedback about call experience can uncover insights into common pain points and areas for improvement.

Understanding customer frustrations allows you to identify training opportunities for agents, leading to more efficient interactions.

When agents are better equipped to address customer needs, call times can be reduced, enhancing both AHT and customer satisfaction.

By focusing on these strategies, you can effectively reduce AHT while maintaining high service quality.

Reduce Your AHT With Knowmax

Knowmax is an AI-powered knowledge management platform that helps agents to reduce AHT.

By integrating Knowmax with your call center tech stack, agents can easily respond to their customers’ queries.

Knowmax reduces Average Handling Time (AHT) by providing a centralized knowledge base that allows agents to quickly access information, minimizing search time.

Its guided workflows streamline common queries, while AI-powered suggestions help agents respond more efficiently. Our platform also accelerates training for new agents and offers self-service options for customers, lowering call volumes and enabling agents to focus on complex issues.

Additionally, Knowmax delivers insights into call patterns for better resource allocation and integrates seamlessly with existing CRM systems, simplifying workflows.

Want to know more, you can book a call with our consultant at sales@knowmax.ai