Understanding common key performance indicators (KPIs) in a contact center is the first step toward effectively measuring success in your organization. Average handle time (AHT) is a common contact center performance metric that measures the length of a customer service interaction from start to finish.
In this blog, we'll examine what AHT means, how it's calculated, its importance in contact centers, and strategies to enhance performance across your business.
What is average handle time (AHT)?
AHT, or average handle time, measures, the average total length of a customer interaction. There are several components of AHT (we’ll get into this next!) and this metric can provide important insights in customer experience.
AHT can be measured on an individual basis per agent or even for your entire contact center. A good AHT typically balances fast resolution time with quality service.
Benchmark metrics vary depending on industry, but a good AHT ranges from 4-6 minutes. Industries like healthcare and technology sectors may have higher AHT benchmarks, as customer concerns may be more complex and have longer resolution times.
Components of AHT
AHT doesn’t just include the amount of time a contact center agent is actively assisting a customer. AHT includes:
- Talk time (actual conversation with customer)
- Hold time (when customer is placed on hold)
- After-call work time or follow-up time (post-interaction documentation)
- Transfer time (if applicable)
Average handle time components may slightly differ by communication channel, since calls, live chats, emails, and other channels have their own typical durations.
How to calculate AHT
AHT can be calculated for individual agents or your entire contact center over a specific time period. You can collect, calculate, and analyze AHT daily, weekly, or monthly—depending on your business analysis needs.
Here’s the most common way to calculate AHT:
(Hold time + Total talk time + after-call work time + transfer time)/ Total number of calls
Why does AHT matter in contact centers?
Average handle time is a key indicator of efficient contact center performance. Along with other KPIs like CSAT and NPS scores, AHT is an important metric for measuring and improving performance and workforce success.
Here are several key reasons why AHT is important and should be prioritized in your contact center.
AHT impacts customer satisfaction
Today’s consumers expect quick yet high quality customer service. Longer average handle times often reflect complex service interactions, inefficient processes, or calls with difficult resolutions. Tracking AHT will provide insight into potential gaps in quality service, finding better ways to improve customer experiences and satisfaction.
AHT reflects operational efficiency
A poor AHT metric is one of many indicators that contact center processes may need to be changed. Whether this is additional agent training, updated performance management software, or redistributed resources—AHT can reflect that change needs to be made to boost operational efficiency.
AHT can reveal staffing and scheduling challenges
Long average handle time, particularly with long hold times, can indicate a contact center is understaffed. Long holds can lead to increased abandon rates and unhappy customers. Prioritizing AHT can inform better scheduling practices for happier employees and happier customers.
AHT directly affects your bottom line
The cost implications of poor AHT can negatively impact contact centers, particularly if metrics are insufficient across a workforce. Lengthy, inefficient service interactions reduce the number of customers an agent can assist during their workday. This also leads to customer dissatisfaction, ultimately diminishing brand loyalty and revenue.
Factors affecting AHT
There are several factors that impact average handle time, including:
- Agent experience and training. A novice frontline agent may take longer to resolve a customer interaction, increasing AHT. Contact centers must prioritize the frontline agent experience through effective engagement and training practices.
- Call complexity. Complex customer interactions lead to longer handle times. A consistently high AHT across your organization may signal underlying complexities in your products or services that need evaluation.
- System efficiency. An inefficient tech stack can lead to long average handle times. Contact center software with effective omnichannel support options can improve handle times and customer experiences.
5 best practices for optimizing AHT
Optimizing average handle time in your contact center isn’t about rushing agents off the phone. Maintaining quality customer service with timely resolutions is key.
1. Focus on agent training and development
An agent's effectiveness in handling customer interactions directly depends on their training and experience. Contact centers must invest in employee development and ongoing training to ensure agents are best equipped to quickly assist customers.
2. Streamline processes
Utilize contact center software that effectively routes calls to the appropriate agent, ensuring a customer's journey is effective from the start. Additionally, streamline processes by simplifying resolution steps for standard service inquiries, making the interaction easier for agents and customers.
3. Implement new technology solutions
Consider implementing technology like chatbots or AI agents to assist customers with simple inquiries and routine tasks, freeing up time for human agents. AI solutions can also support better employee experiences, providing agents with relevant information to effectively assist customer and expedite resolutions.
4. Monitor interactions for quality
Effective quality management practices and tools can provide insights critical to improving AHT and customer experiences. Gather actionable insights from quality management software to provide agent feedback and adjust businesses processes as needed.
5. Equip and engage teams
In addition to effective employee training and development, contact center leaders must focus on engagement practices to encourage improving performance. Solutions like gamification tools can be utilized to enhance engagement and KPIs like AHT.
Common AHT mistakes to avoid
When analyzing AHT, you must look beyond surface-level numbers to understand the deeper story behind the metrics and identify comprehensive ways to improve performance.
- Fast service isn't always better service. Before encouraging employees to speed up service, be sure to consider whether this approach will negatively impact service quality. Finding the right balance between speed and great customer service is essential.
- Balance AHT with other KPIs. Don't heavily rely on AHT metrics as a single source of truth. Balancing insights from other KPIs across your organization can provide a holistic view and inform better decision making.
- Vet for manual error. AHT metrics can be skewed due to employee errors, so it's important to routinely verify data sources.
Improve average handle time with Aspect
Boost your contact center analytics with effective workforce engagement management solutions from Aspect. Featuring robust functionality for administrators and enhanced visibility for agents, Aspect WEM software improves employee experiences, customer experiences, and overall contact center metrics.
