Average handle time (AHT): What it is and how to improve it

What is average handle time and why is it important?

Average handle time is a critical customer service metric in contact centers for several reasons.

First, it is a component of measuring the workload of a call center. The total workload of a call center is calculated by multiplying the volume of customer calls by AHT. Workload is a critical call center metric for determining general staffing requirements.

Second, it is an important metric required to calculate hourly -- or smaller -- agent staffing requirements. Along with call volume and shrinkage -- time out of office, training and meetings -- AHT is a factor included in determining the specific number of agents required to staff a phone queue for a given interval to attain a specific service-level goal. For example, a service-level goal might be answering 80% of incoming calls within 30 seconds.

Finally, it is a metric that measures the effectiveness of change. AHT is a metric that can be analyzed both before and after a change is made to a business process to determine the effect. In most cases, an improved business process helps reduce AHT.

How do you calculate average handle time?

Average handle time includes the following three components:

1. Total talk time. This is the amount of time an agent spends speaking with a caller during the phone call.
2. Total hold time. This is the amount of time an agent places a customer on hold during a phone call. For example, this occurs when an agent places a customer on hold while they perform research.
3. Total after-call work time. This is the amount of time an agent performs follow-up work on a call once the call has ended. An example is when an agent documents the conversation with the customer in case notes. Many times, this metric is also called wrap time.

The formula to calculate handle time for a single phone call is as follows:

handle time = talk time + hold time + after-call work time

The formula to calculate average handle time for a month of phone calls is as follows:

AHT = (total talk time + total hold time + total after-call work time) / total number of calls answered in the month

Businesses can use the same formula in other customer service channels, too -- such as email, chat and text -- but hold time isn't generally included in that equation. The formula to calculate AHT for other channels is as follows:

AHT = (total talk time + total after-contact work) / number of total contacts

What is considered 'good' AHT?

There is no specific number that can be classified as good average handle time.

"Good" AHT is one where the customer service agent resolves a customer's issue in an effective and efficient manner, driving an outstanding customer experience. Businesses also like to prioritize first-call resolution (FCR), where a customer's needs are addressed on the first call without need for follow-up. Low AHT combined with low FCR often means customer satisfaction is low, as their needs aren't being met. So, it's a delicate balancing act.

AHT can vary significantly among contact centers for several reasons, including the type of business a contact center supports and the amount of self-service a business offers to customers.

Some businesses, such as financial services, may have many simple calls from customers, such as, "What is the balance of my checking account?" Larger businesses, such as healthcare organizations, may get more complicated questions, such as, "Can you explain the results of this test?" Because of the nature of these calls, AHT of financial institutions is usually less than AHT of healthcare organizations.

Some businesses provide higher levels of self-service than others. Usually, self-service is more effective for handling simpler calls over more complicated calls. While self-service options reduce the workload agents handle, it does make AHT higher. This is because simple calls with low handle times are eliminated, as agents take calls that require more time.

Average handle time example

The following provides an example of the calculation of average handle time and identifies items that are both included and not included in AHT:

1. A customer waits in the phone queue for 1 minute before an agent answers the call -- this is not included in handle time. It is included in metrics such as queue time, average speed of answer and service level.
2. The agent speaks with the customer for 2 minutes and then places the customer on hold for 1 minute while conducting research. This is 2 minutes of talk time and 1 minute of hold time.
3. The agent takes the customer off hold and speaks with the customer for 3 minutes and then places the customer on hold for another minute while the agent speaks with their supervisor. This is 3 minutes of talk time and 1 minute of hold time.
4. The agent takes the customer off hold and speaks with the customer for 2 minutes concluding the conversation. This is 2 minutes of talk time.
5. After hanging up with the customer, the agent spends 2 minutes writing case notes in the customer relationship management system. This is 2 minutes of after-call work, or wrap time.
6. After completing the case notes, the agent takes a 10-minute break. This is not included in handle time.

In summary, the handle time for this customer phone call is 10 minutes and composed of the following:

• Total talk time: 7 minutes.
• Total hold time: 2 minutes.
• Total after-call work time: 1 minute.

Tips for improving AHT

There are several ways to reduce AHT that involve implementing specific initiatives that affect the three components, including the following:

Talk time

• Improve coaching. Agents should be coached on how to make customer interactions efficient, while still showing appropriate amounts of empathy and caring. It is fine for an agent to ask the caller if they had a good weekend, but the agent should not get into a detailed discussion of the caller's weekend.
• Reduce turnover. Reducing employee churn ensures there are more tenured agents in the call center who have a lower talk time than new hires due to their experience working with customers.
• Implement agent assist. Agent-assist technology monitors phones interactions between customers and agents. It provides real-time guidance, information and scripting to agents to help streamline conversation with customers.

Hold time

• Improve agent training. Agents should have continuous training so they become more proficient in handling customer interactions, including the ability to find information in an internal knowledge base without putting a caller on hold.
• Improve automation. Systems should be streamlined and have a logical flow so agents don't need to put customers on hold while they navigate the automated system.

After-call work time

• Implement speech transcription. Speech transcription transcribes a conversation between a caller and agent. This provides a written script of the call that can automatically be loaded into case notes instead of requiring that customer service agents type notes following a phone call.