Mastering Average Handle Time (AHT)

Coming up...

• What is Average Handle Time (AHT), Why Is It Important and How to Calculate...

• Real-Life Example: The Pitfalls of Mismanaging AHT

• Why AHT Needs to Be Balanced with Quality

• Tips for Optimizing AHT Without Compromising Quality

• The Impact of AHT on Customer Satisfaction and Business Success

What is Average Handle Time (AHT), Why Is It Important and How to Calculate...

Average Handle Time (AHT) is a crucial metric in customer service. It represents the average duration it takes to handle a customer interaction from start to finish. This includes the conversation time, hold time, and after-call work needed to resolve the issue. Maintaining an optimal AHT is essential for balancing operational efficiency with high-quality customer service.

According to a 2023 report by Call Centre Helper, the global industry standard for AHT varies, typically ranging between 6 to 10 minutes, depending on the complexity of issues handled. In high-performing sectors like telecommunications and finance, companies often strive to maintain AHTs below 6 minutes without compromising on the quality of customer service. Shorter AHTs reduce operational costs by allowing more interactions per agent and help minimize customer wait times, directly impacting customer satisfaction.

How do you calculate AHT? 

At first glance, calculating Average Handle Time (AHT) seems straightforward. The basic formula is:

(Total talk time + Total hold time + Total post-call work) / Total number of calls = AHT.

When using this metric, it’s important to consider each component—talk time, hold time, and post-call work—as they all play a crucial role in showing how agents utilize their time during customer interactions.

For example, in June, Company A had a total interaction time of 12,000 minutes across 2,500 calls. Using the AHT formula, we get an AHT of 4.8 minutes.

Understanding these numbers helps you gain insights into efficiency and identify areas for improvement in customer service operations.

Real-Life Example: The Pitfalls of Mismanaging AHT

Let’s consider a real-life scenario to understand the impact of AHT better. A major telecommunications provider, aiming to cut costs, directed its call center agents to reduce AHT by 20%. While the initiative did lead to shorter call times, the company soon noticed an uptick in repeat calls and unresolved issues, resulting in a 15% increase in call volume and a sharp decline in customer satisfaction scores.

Upon investigation, it was found that agents were rushing through interactions, often without fully understanding the customers' problems. This not only frustrated customers but also led to more calls for the same issues, negating the original goal of cost-saving. The company then shifted its focus to training agents on problem-solving and active listening, improving both AHT and customer satisfaction.

Why AHT Needs to Be Balanced with Quality

While reducing AHT is beneficial for operational efficiency, it must be balanced with service quality to ensure customer satisfaction. According to research from the International Customer Management Institute (ICMI), 62% of customers are willing to pay more for a better customer experience. This statistic highlights the importance of not just how quickly you resolve an issue, but how effectively.

Companies focusing solely on reducing AHT may risk cutting corners, leading to incomplete issue resolution and frustrated customers. An effective strategy involves equipping agents with the right training and tools to handle interactions efficiently while still delivering a quality experience. This balance ensures customers feel heard and understood, leading to higher satisfaction and loyalty.

Tips for Optimizing AHT Without Compromising Quality

Improving AHT while maintaining service quality requires a strategic and customer-centric approach. Here are some proven strategies:

• Invest in Comprehensive Training: Training agents not just on the technical aspects of customer service but also on communication, empathy, and problem-solving can significantly improve AHT and customer satisfaction (CX). For example, an agent trained to diagnose common issues quickly will handle calls more efficiently.

• Leverage Technology and Automation: Utilize customer relationship management (CRM) systems that provide agents with instant access to customer information and interaction history. Integrating AI-powered chatbots for initial query handling can also reduce AHT by allowing agents to focus on more complex issues. According to a Salesforce report, 79% of service professionals say using AI has enabled them to focus on higher-value work.

• Implement Intelligent Call Routing: Directing calls to the most appropriate agent based on the nature of the inquiry can significantly reduce handle times. For instance, routing billing queries directly to billing specialists can ensure faster resolution and reduce overall AHT.

• Optimize After-Call Work: Reducing after-call work (ACW) time through better note-taking systems, pre-filled templates, and automated follow-up processes can help bring down AHT without impacting the quality of service provided. ACW constitutes a significant portion of AHT, so efficient documentation processes can lead to notable improvements.

• Use Data to Monitor and Improve: Regularly track AHT metrics and use analytics to identify trends or recurring issues that could be streamlined. Analyzing call recordings and customer feedback can provide valuable insights into areas for improvement, enabling continuous process optimization.

The Impact of AHT on Customer Satisfaction and Business Success

Companies that effectively manage AHT while maintaining high service quality see a direct positive impact on customer satisfaction and loyalty. A study by CustomerThink found that companies prioritizing efficient call handling with high service quality experience a 26% increase in customer retention rates. This increase is significant, considering that retaining an existing customer is 5 to 25 times cheaper than acquiring a new one, according to Harvard Business Review.

Furthermore, optimizing AHT contributes to better employee satisfaction. When agents are not rushed and are empowered to resolve issues effectively, they experience less stress and burnout, leading to lower turnover rates. A happier, more engaged workforce results in better customer service, creating a positive feedback loop that benefits both customers and the company.