AHT is a key performance indicator (KPI) that can help you measure how efficiently your call centre is operating. In this article, we will show you how to calculate your AHT and provide some tips on how to reduce it. Keep reading to learn more!
What is Average Handle Time (AHT)?
In the customer service world, the term “average handle time” (AHT) is used to describe the average length of time an agent spends on each call or ticket they open. AHT is an important metric for call centres to track, as it can help them determine the average length of contact for a customer on a call. But AHT isn’t just limited to calls – it can also be used to measure chat and email queues as well.
While AHT is a useful metric for understanding call centre performance, it’s important to keep in mind that there are a variety of factors that can affect AHT. For example, if agents are taking longer calls, that will naturally increase the AHT.
But if they’re able to resolve issues quickly and efficiently, that will help lower the AHT. Ultimately, the goal is to strike a balance between providing excellent customer service and keeping AHT down to a manageable level.
Why Is It Important For Startups To Track This Metric?
Average Handle Time (AHT) is an important metric for startups to track because it reflects the efficiency of customer service operations. A high AHT can indicate that call centre agents are not able to handle customer inquiries quickly, which could lead to decreased customer satisfaction and increased operational costs.
Nearly 70% of consumers prefer to speak with customer service agents by phone, according to research. However, a 2021 TCN study revealed that 59% of customers cite the wasted time they experience while waiting for the resolution of their issues as their biggest complaint about call centres. Astonishingly, on average, people find excessive handling times more frustrating than being unable to have their issues solved.
Data provided by Ifbyphone indicates that 15% of customers will terminate their call within 40 seconds, regardless of whether they spoke with a live agent, interacted with an IVR menu, or waited on hold. A 2021 study conducted by TCN found that 34% of callers have a maximum wait time of 6 minutes before hanging up and 26% will end their call during the 2-4 minute waiting period. This implies that 75% of customers will hang up after being kept on hold for 6 minutes and may not call back.
Finally, Average Handle Time (AHT) is a solid marker of the quality of customer service your caller is receiving. It is a reliable metric to measure customer satisfaction. AHT can also be used to identify areas of improvement and inform decisions regarding staffing, training, and technology investments. By monitoring AHT on an ongoing basis, organizations can ensure they provide the best possible customer service experience.
How do you calculate Average Handle Time (AHT)?
Here’s the formula to calculate Average Handle Time:
(Total call time + total hold time + follow-up time) / No. Calls = Average Handle Time
To calculate your Average Handle Time, add together the total time spent on calls, the time customers spent on hold and the time spent following up with customers.
Then, divide that total with the number of calls in that same time period. Keep in mind that follow-up time should include the time it takes to get back to a customer if the case is not resolved on the initial call, even if that takes multiple calls. By monitoring your Average Handle Time, you can make sure your team is efficient and effective in resolving customer issues.
What factors affect Average Handle Time (AHT)?
Here are the factors that affect Average Handle Time (AHT):
Process Efficiency
This is a measure of how efficient each step of the process or task is, and whether any steps can be streamlined to save time. By improving the efficiency of processes, AHT can be reduced.
Technology
Automation tools such as AI-powered chatbots can help cut down on customer service times, as customers can be served quickly with automated responses. Additionally, customer service representatives should have access to the right tools and technologies to help them carry out their tasks quickly and efficiently.
Training
It’s important for customer service agents to have a thorough understanding of products, services, and troubleshooting processes so they can address customer issues quickly. Having well-trained agents is essential to reducing AHT.
Customer Volume and Engagement
The number of customers that need assistance and the level of engagement each customer requires will have a significant impact on AHT. If there are fewer customers, or if they require less engagement from customer service reps, it can result in lower AHT.
Customer Satisfaction
If customers are satisfied with the customer service they receive, they are more likely to complete the interaction quickly and move on to the next task. This can help reduce AHT by increasing customer satisfaction and, subsequently, reducing repeat interactions.
By understanding these factors, businesses can identify areas for improvement and take action to reduce Average Handle Time. With the right strategies in place, AHT can be effectively managed and optimized.
What are the effects of Average Handle Time (AHT) on a startup?
Here are the effects of Average Handle Time (AHT) on a startup:
Increased Efficiency
AHT can help streamline the customer service process, allowing employees to handle customer inquiries more quickly and efficiently. This can result in increased customer satisfaction, since they will be able to get the assistance they need faster.
Improved Cost Management
By reducing the amount of time spent on each customer inquiry, AHT can help startups keep their costs down by minimizing labor costs. This can be especially beneficial for smaller startups who may not have large budgets for customer support.
Increased Profitability
By streamlining the customer service process and reducing the amount of time spent on each inquiry, startups can increase their profits due to reduced operating costs. This can help startups remain competitive in their markets and position themselves for growth.
Improved Brand Image
AHT can also help improve a startup’s brand image by showing customers that they are willing to go the extra mile to give them a great experience. This can lead to increased customer loyalty, as well as more word-of-mouth referrals and positive reviews.
Overall, Average Handle Time can be beneficial for startups if managed correctly. It can lead to increased efficiency, improved cost management, increased profitability and improved brand image. With the right strategies in place, startups can use AHT to increase customer satisfaction while cutting costs at the same time.
What is a good Average Handle Time (AHT)?
The AHT benchmark varies from industry to industry. Statistics reveal that the average handle time (AHT) ranges between 6.46 minutes and 6.73 minutes, depending on the industry. However, 6.6 minutes is an average AHT which may not be suitable for every call center. According to research conducted by Cornell University and Kustomer, there are major discrepancies in AHT amongst different business sectors – indicating that a good AHT cannot be determined through a generalized approach.
| Sector & Company Size | Average Handling Time (Minutes) |
| Large Business | 8.7 |
| Telecommunications | 8.8 |
| Retail | 5.4 |
| Business & IT Services | 4.7 |
| Financial Services | 4.7 |
| Service Type | Average Handling Time (Minutes) |
| Delivery | 4.45 |
| Marketplace | 7.5 |
| Retail | 6.25 |
| Services | 8.7 |
Understanding the variables in AHT is essential for businesses of all sizes and industries. An Ifbyphone study found that small businesses (less than 500 calls during Q1) had an average hold time of 1 minute and 47 seconds, whereas midsize businesses (less than 1,500 calls during Q1) had an average hold time of 39 seconds. These statistics demonstrate the varying factors impacting AHT, such as hold times, average talk times, and percentage of calls sent to voicemail. Additionally, what counts as a “good” average call handle time will likely differ between businesses due to size and industry.
The results of the study revealed that small businesses had an average talk time of 3 minutes and 47 seconds, while larger businesses (with less than 10,000 calls during Q1) had an average talk time of 4 minutes and 35 seconds.
Average Handle Time Industry Standard
The Talkdesk 2021 Global Contact Center KPI Benchmarking Report provided data used by Krisp to calculate the industry average for talk time divided by hold time. It’s important to note, however, that this calculation excludes after-call work times. The table below shows the average talk/hold time ratios per industry.
| Industry | AHT |
| Consumer/Professional services | 3 minutes, 36 seconds |
| Financial services | 4 minutes, 5 seconds |
| Government & Public Sector | 4 minutes, 12 seconds |
| Healthcare | 3 minutes, 28 seconds |
| Hospitality | 3 minutes, 11 seconds |
| Manufacturing | 4 minutes, 13 seconds |
| Media & Communications | 3 minutes, 30 seconds |
| Retail, Ecommerce, and Consumer Goods | 3 minutes, 29 seconds |
| Telecommunications | 2 minutes, 36 seconds |
| Transportation and Logistics | 4 minutes, 8 seconds |
| Other | 1 minute, 21 seconds |
Average Handle Time Example
The following data can be obtained from the Automated Call Distribution (ACD) system of a contact center or, if not available, from Call Detail Records (CDRs). In this example, the data represents the total length of all calls made throughout one day in the contact center.
- Total Talk Time: 7 days + 17 hours + 36 minutes + 45 seconds = 668,205 seconds
- Total Hold Time: 1 day, 3 hours + 32 minutes + 33 seconds = 99, 153 seconds
- Total Wrap Time: 2 days, 7 hours +5 minutes + 6 seconds = 198,306 seconds
- Number of Calls Handled: 4311 calls
| Metric | Time | Time Secionds |
| Total Talk Time: | 7 days + 17 hours + 36 minutes + 45 seconds | 668,205 seconds |
| Total Hold Time: | 1 day, 3 hours + 32 minutes + 33 seconds | 99, 153 seconds |
| Total Wrap Time: | 2 days, 7 hours +5 minutes + 6 seconds | 198,306 seconds |
| Number of Calls Handled: | 4311 calls | |
| Average Handling Time | 224 Seconds | |
What are tips to improve Average Handle Time (AHT)?
There a few key things you can do to help reduce your Average Handle Time (AHT). First, make sure you are handling calls promptly and efficiently. If a caller is on hold for too long, they are likely to become frustrated and may hang up. Second, try to avoid transferring calls whenever possible. If a call does need to be transferred, make sure to do so quickly and clearly. Finally, take the time to wrap up each call in a professional and courteous manner. This will help to build goodwill with your customers and may encourage them to call back in the future. By following these tips, you can help to reduce your AHT and improve your overall customer service.
Conclusion
You now know how to calculate your AHT. The next step is to compare it against your company’s standard and see if you need to make any changes. If you want help reducing your AHT, contact us today. Our team of experts can help you create a plan that will increase efficiency and lower costs.