The blink of an eye—that's how long, it often seems, we have to stop and think to solve customer queries efficiently. But when enterprise customer service is concerned, those scant moments are critically important and bear a lot of weight: they determine everything from profitability margins to employee productivity.

Average handle time—often shortened to AHT—is the metric that business owners look at for insight into whether or not their customers' experience with their companies is swift, satisfactory, and cost-effective.

Here, we will help you understand how average handle times impact your company’s success rate and give you the necessary tools for improvement.

What is average handle time?

Components of AHT

How to calculate AHT

Why average handle time matters

Factors affecting average handle time

What is a good AHT?

How to reduce average handle time

For contact center solutions, average handle time (AHT) serves as a key call center metric that has the power to change how an organization’s customer interactions are managed. AHT refers to the average amount of time a call center agent or support team spends handling a customer phone call. This includes talk time, hold time, and after-call work (ACW) time. It’s a vital indicator of agent performance and overall contact center efficiency.

To gain a comprehensive understanding of AHT, we need to delve into the key components contributing to overall handling time when dealing with customer calls.

1. Talk time

Talk time refers to how long an agent actively engages in conversation with the customer. It includes providing information, resolving queries, and addressing concerns. Efficient communication and active listening skills are crucial in optimizing average talk time.

2. Hold time

Hold time encompasses the average duration customers are placed on hold to consult supervisors, gather information, or transfer the call to another department. Minimizing hold time is crucial in preventing customer frustration and ensuring a smooth and seamless experience.

3. After-call work (ACW) time

ACW time refers to the period after the call ends, during which agents complete necessary tasks related to customer interaction. This may include updating customer records, documenting call details, and scheduling follow-up time and activities. Effective time management and streamlined processes can significantly reduce ACW time.

Calculating AHT involves a straightforward formula: the total handle time divided by the total number of calls.

By analyzing AHT, contact centers can identify areas of improvement, set benchmarks, and make informed decisions for optimizing their operations. Additionally, AHT can be tracked in real-time so supervisors can provide immediate feedback to ensure call center agents adhere to desired performance standards.

In incorporating AHT as a key performance indicator (KPI), businesses can measure and monitor their customer support call volume, evaluate agent efficiency, and enhance the overall customer experience. It is vital to streamlining operations, improving agent training programs, reducing wait times, and meeting customer satisfaction targets.

Average handle time (AHT) is an important metric because it directly impacts operational efficiency, customer satisfaction, and resource allocation within a contact center.. Let's explore why AHT matters and how it impacts customer satisfaction, service level agreements (SLAs), and the business’ bottom line.

• Impact on customer satisfaction

Efficient handling of customer interactions is directly linked to customer satisfaction. When customers reach out to a contact center for support or assistance, they expect their needs to be addressed promptly and effectively. High AHT can lead to customer frustration, as it prolongs the time they spend on the phone, waiting for their issues to be resolved.

Reducing AHT allows contact centers to significantly improve customer satisfaction. When agents spend less time on each call, customers experience shorter wait times and faster issue resolution.

• Relationship between AHT and service-level agreements (SLAs)

SLAs are contractual agreements between a service provider and a customer that defines the expected level of service quality that will be provided. AHT plays a crucial role in determining whether SLAs are met. SLAs often include targets to ensure efficient handling of customer interactions.

Failure to meet AHT targets can have a detrimental impact on SLA compliance, leading to dissatisfied customers and potential penalties for the contact center.

• Cost implications for businesses

Inefficiencies in handling customer interactions can result in increased costs for businesses. AHT directly impacts agent productivity and resource utilization. When agents spend excessive time on each call, it reduces their capacity to handle more interactions.

By reducing AHT, contact centers can optimize agent productivity, allowing them to handle more calls within a given timeframe.

When it comes to average handle time (AHT) in contact center solutions, several factors that can significantly impact the duration of customer interactions come into play.

• The complexity of customer issues

The complexity of customer issues affects AHT significantly. Some customer inquiries or problems may be straightforward and require minimal time for resolution, while others may be more intricate and demand in-depth analysis and troubleshooting. Agents must possess the skills and knowledge to address various customer issues effectively.

• Agent knowledge and training

Agent knowledge and training are also directly linked to AHT. Employees with deep knowledge of products, services, and company policies can swiftly and accurately address customer inquiries. In contrast, insufficient training or gaps in knowledge can lead to inefficiencies, longer call durations, and frustrated customers.

• Efficiency of technology and tools

The efficiency of technology and tools employed within the contact center plays a significant role in AHT optimization. Advanced call routing systems (typically in the form of automatic call distribution) can help streamline the process by directing calls to the most suitable agent based on their expertise. This reduces the time spent on call transfers and increases first contact resolution rates.

• Quality of call scripts and documentation

Clear and concise call scripts and documentation are essential for reducing AHT. Well-crafted scripts guide agents in handling common customer issues, ensuring consistency and efficiency in their responses. Documentation should be comprehensive, up-to-date, and easily accessible, allowing agents to find relevant information quickly.

When measuring average handle time in contact centers, one question arises: what is considered a good AHT? While there is no one-size-fits-all answer, understanding the factors influencing AHT and industry benchmarks can help determine what constitutes a good Average Handle Time for your business.

A good Average Handle Time can be defined as the optimal balance between efficiency and quality. It’s the sweet spot where customer inquiries are handled both swiftly and accurately, ensuring a positive customer experience without compromising the quality of service.

It's generally agreed upon that the standard AHT is 6 minutes and 10 seconds. However, it isn’t always uniform across businesses and can vary for different sectors.

Efficiency and effectiveness are key goals for any contact center looking to enhance customer satisfaction and optimize operations. One crucial aspect of achieving these goals is reducing average handle time (AHT). Contact centers can streamline processes and quickly resolve customer inquiries by implementing strategic approaches and leveraging innovative solutions.

1. Implement interactive voice response (IVR) systems

Utilizing IVR systems can significantly reduce AHT by automating initial customer interactions. Callers are guided through a series of self-service options, allowing them to quickly find the information they need without agent assistance. By utilizing IVR, contact centers can route callers to the appropriate department or provide relevant information upfront, saving valuable time and reducing the load on live agents.

2. Optimize staffing and call routing

Efficient staffing and call routing are essential to reducing AHT. Ensure that your contact center has the right number of agents available to handle the expected call volume. Implement intelligent call routing systems that direct callers to agents with the appropriate skillset and knowledge for handling their specific inquiries. This ensures that callers are connected to the right person from the start, minimizing transfer and hold times.

3. Leverage omnichannel communication

Expand your customer service channels beyond voice calls by integrating omnichannel communication options like chat, email, and social media. Offering alternative channels allows customers to choose their preferred method of interaction and can significantly reduce AHT. Agents can handle multiple inquiries simultaneously, leading to faster response times and more efficient handling of customer interactions.

4. Streamline processes and documentation

Evaluate your processes and documentation to identify areas of improvement and streamline them for efficiency. Simplify call scripts and ensure they provide clear guidance to agents without being overly restrictive. Implement an easy-to-navigate internal knowledge base that agents can access quickly in order to find accurate information. Efficient processes and easily accessible documentation empower agents to handle calls swiftly, reducing AHT.

5. Set AHT benchmarks and provide training

Establish AHT benchmarks based on industry standards and monitor agent performance regularly. Provide training programs focused on enhancing agent efficiency and time management skills. This includes techniques for active listening, effective questioning, and quick issue resolution. Empowering agents with the right skills and knowledge equips them to handle customer interactions efficiently, ultimately reducing AHT.

6. Use speech analytics and apply quality assurance

Leverage speech analytics tools to gain insights into customer interactions and identify opportunities for improvement. Analyze calls to identify patterns, common customer issues, and customer needs where AHT can be further reduced. Implement quality assurance programs to monitor agent performance and provide feedback and coaching to enhance efficiency and effectiveness.

7. Measure and improve customer satisfaction (CSAT)

While reducing AHT is crucial, it should not come at the expense of customer satisfaction. Monitor (CSAT) customer satisfaction scores alongside AHT to ensure that efficiency improvements do not compromise the quality of service. Continuously seek customer feedback and adapt processes to strike the right balance between AHT and customer satisfaction.

If you're ready to optimize your contact center's performance, deliver exceptional customer experiences, and achieve a good average call handle time (AHT), look no further than 8x8's industry-leading contact center solutions. You can elevate your customer service with our advanced solutions tailored for enterprises.