Introduction

A call center is an important point of contact between businesses and customers, so evaluating if it functions seamlessly is essential. AHT is an important performance metric that helps you assess the operational efficiency of a contact center. However, many people don’t know about the AHT formula. Don’t worry! We’ve got you covered with a detailed guide on calculating AHT and tips to optimize it!

What Is AHT? Why Is It Important?

The AHT allows you to gauge call agents’ performance. Source: CCNull

AHT stands for average handle time, which refers to the average duration needed for a call agent to handle a call from beginning to end. This involves the call initiation, holding time, talking time, and time required for any post-call tasks. 

Knowing the average handle time in a contact center is important for several reasons:

  • Monitoring customer service: In the fast-paced life, most customers require quick or even immediate support. By understanding the AHT, your customer service team can reduce the resolution time to live up to customers’ expectations, fostering exceptional customer experience.
  • Identifying bottlenecks: The average handle time gives you an overview of the workflow in the call center, allowing you to pinpoint internal bottlenecks. Then, you can implement automation and cross-functional collaboration to streamline the process.
  • Assessing the product complexity: If you notice that it takes longer to handle a customer call, it might stem from product complexity or poor quality/insufficient resources. You can simplify the product’s messages and invest in additional training to improve this.
  • Redistributing or adding call agents: A high AHT can result from a lack of representatives or ineffective distribution. Based on the AHT, you can hire more call agents or reallocate their responsibilities to lower the handling time.

AHT Formula: How To Calculate AHT?

Formula

The average handle time formula is as follows:

AHT = (Talk time + Hold time + Follow-up time)/Total number of calls

In which:

  • Talk time: The total time that customers and call representatives are in active conversations.
  • Hold time: The total time that customers are waiting on hold.
  • Follow-up time: The total time that is spent completing after-call tasks.

Note: The above AHT formula is applied for phone calls; it can be slightly different for emails and live chats. These channels don’t have hold time, so the formula should be:

AHT = (Talk time + Follow-up time)/Total number of calls

The talk time here refers to the interaction time (live or non-live) between customers and agents.

Standard AHT For Different Fields

The AHT is different among industries. Source: Pexels

When calculating the AHT, you should take the industry into account. The field you are working in significantly influences the handling time. Below are the standard AHTs for different industries (not including follow-up time):

  • Financial services: 4 mins, 5 secs
  • Consumer services: 3 mins, 36 secs
  • Healthcare: 3 mins, 28 secs
  • Government & public sector: 4 mins, 12 secs
  • Manufacturing: 4 mins, 13 secs
  • Hospitality: 3 mins, 11 secs
  • E-commerce, retail, and consumer goods: 3 mins, 29 secs
  • Media & communications: 3 mins, 30 secs
  • Transportation and logistics: 4 mins, 8 secs
  • Telecommunications: 2 mins, 36 secs
  • Others: 1 min, 21 secs

Examples

Let’s take an example for a clearer illustration. Suppose a call center tackles 1,000 phone calls in a month. The agents spend 30,000 seconds talking to customers on the phone and 10,000 seconds supporting them with related after-call tasks. Customers are placed on hold for 5,000 seconds during that time.

The AHT is: (30,000 + 5,000 + 10,000)/1,000 = 45 secs.

This number is a great average handle time for a contact center, indicating that the agents resolve customer queries promptly.

What is a Good Average Handle Time?

There is no one-size-fits-all answer to this question because a good average handle time hinges on other factors like customer satisfaction and the industry. For instance, the healthcare or financial sector often faces more complicated issues than the hospitality industry. This calls for more time to address the client’s problems. 

In general, 6 minutes is considered a good AHT for most sectors. You can pitch your call center’s AHT against the industry average to gauge its performance. We aim at a lower or equal number compared to the standard.

6 Tips To Reduce AHT in Call Centers

Onboard And Continuously Train Agents

Proper training is the foundation for reducing AHT. New agents should undergo comprehensive onboarding to familiarize themselves with tools, processes, and customer interaction techniques. 

Beyond initial training, regular refreshers and workshops are essential to keep agents updated on new products, policies, and problem-solving methods. Role-playing scenarios and analyzing past calls can also help agents respond faster and more accurately to customer inquiries.

Provide Proactive Customer Service

Anticipating customer needs and addressing common issues proactively can reduce the time spent resolving problems. For instance, you can use email campaigns or knowledge bases to inform customers about updates or solutions to frequent customer queries before they even reach out. 

Proactive measures can limit the volume of complex calls, allowing agents to focus on high-value interactions and reducing the overall handling time. 
You need to closely monitor the customer service reps to step in at the right time, ensuring a seamless customer experience. StringeeX’s omnichannel contact center can assist you in this task. Our call center grants you complete control over all communication channels in one place. It records every single customer-agent interaction, allowing you to evaluate agents’ performance with ease.

 

Offer Self-Service Options

Self-service tools such as chatbots, FAQs, and knowledge bases enable customers to resolve simple issues independently. These resources reduce the need for live agent support, which can significantly lower call volumes.

For example, if a customer can find answers to common billing questions via a help center, they won't need to call in, freeing agents to handle more complicated problems.

Monitor Agent Performance

This metric helps monitor agent performance. Source: Flickr

Keeping track of agent metrics, including AHT, helps identify areas for improvement. Regular performance reviews and data analysis enable managers to spot patterns, such as agents struggling with specific tasks or types of queries. 

Targeted coaching sessions can address these challenges and help agents optimize their workflow, reducing call durations while maintaining service quality.

Leverage Call Scripting

Structured call scripts guide agents through conversations, ensuring they address customer concerns effectively without unnecessary delays. Scripts provide a framework for handling common scenarios, reducing the risk of lengthy, off-topic discussions.

Customize scripts based on typical customer inquiries and include prompts for upselling or additional support, keeping interactions efficient and goal-focused.

Use AI Tools And Automate The Process

Artificial Intelligence (AI) and automation can streamline many aspects of call handling. AI-powered tools like chatbots handle routine inquiries, while automated systems route calls to the right agents based on their expertise. 

Agents can also use AI suggestions for relevant resources during calls, speeding up resolution times. Automating repetitive tasks, such as after-call follow-ups or ticket generation, allows agents to concentrate on more complex issues, further reducing AHT.

Conclusion

We hope that you understand the AHT formula and know how to calculate the AHT of your call center. This key metric reveals a lot about call agents’ performance and effectiveness, enabling you to identify areas for improvement and implement proper strategies to improve it. 

An omnichannel contact center will be of great help in lowering the AHT. Reach out to StringeeX for more information!