Did you know that the average cost of a customer service call ranges from $5 to $12, depending on the complexity and industry?
Now imagine the financial impact of just a one-minute increase in Average Handle Time (AHT) across thousands of calls. For high-volume contact centers, inefficiencies in AHT can cost hundreds of thousands of dollars annually. Clearly, AHT is more than a number—it’s a critical metric that defines the financial efficiency of a contact center’s operations.
In fact, the contact center’s success is not measured by the number of calls (or not only by the number). Different components calculate performance and reveal what should be improved. In the case of AHT, it measures the total time it takes to handle a customer interaction, from the moment it starts to the end of any after-call work. It reflects not only the efficiency of agents but also how well tools and processes support them. Inefficiencies in AHT can lead to higher costs, frustrated customers, and increased agent workload.
Improving just one contact center performance component like AHT can significantly impact overall productivity, and that’s when Hecttor AI comes to redefine how organizations tackle AHT challenges. Its real-time speech processing and workflow optimization help contact centers reduce AHT while maintaining high-quality customer service.
Now let’s talk about why businesses should care about AHT and what are strategies to reduce it.
What is AHT in Contact Centers?
Average Handle Time (AHT) in customer service measures the average time required to resolve customer interactions from start to finish. It includes:
Talk Time: The time agents spend actively speaking with customers.
Hold Time: The time customers are on hold, including during transfers.
After-Call Work (ACW): Post-call activities such as logging notes or updating CRM records.
How to Calculate Average Handle Time?
To calculate AHT, sum the total talk time, hold time, and after-call work, then divide by the total number of calls.
Add Up the Total Times:
Total talk time
Total hold time
After-call work (ACW) time
Formula:
- Count the Number of Calls:
- Find out the total number of calls handled during the measurement period (e.g., a day, week, or month).
- Divide the Total Time by the Number of Calls:
- Divide the total time calculated in Step 1 by the number of calls from Step 2.
Formula:
Real-Life Scenario: Calculating AHT
Imagine a contact center agent named Sarah who handled 50 calls in a single day. Here is a breakdown of her time:
Total Talk Time: 300 minutes
Total Hold Time: 50 minutes
After-Call Work: 100 minutes
Using the formula Sarah’s AHT would be:
Total Time=300+50+100=450 minutes.
AHT=450 / 50 = 9 minutes per call.
This calculation demonstrates that Sarah’s average handle time for the day was 9 minutes. Managers can use such insights to optimize agent workflows and address inefficiencies.
What Is a Good Average Handle Time?
There is no golden rule and absolute AHT for all industries. Each industry and business may set its metrics and targets, and this number is set based on analytics. An optimal AHT depends on the industry and the complexity of interactions. For instance:
E-commerce: 4-6 minutes
Healthcare: 8-10 minutes
Technical Support: 10-15 minutes
Telecommunications: 8.8 minutes
Financial Services: 6-15 minutes
Technology and Software: 10-30 minutes
Understanding these benchmarks allows organizations to set realistic goals tailored to their specific customer needs. Moreover, to analyze contact center performance, businesses should not take AHT as a standalone metric but as one of the many metrics like CSAT (Customer Satisfaction Score) and FCR (First Call Resolution). For example, if CSAT and FCR are good and AHT is slightly high, there is no need to fix this number.
Factors That Influence AHT
- Complexity of Issues: Industries like technical support naturally have longer AHT due to the detailed troubleshooting required to resolve problems.
- Channels of Interaction: AHT varies depending on the communication channel. Phone calls often have longer AHT compared to chat or email, where responses can be asynchronous.
- Self-Service Options: If simpler queries are handled via self-service options, the remaining calls tend to be more complex, often increasing AHT.
Businesses can lower AHT in certain cases by cutting down on total talk time. This can be achieved through strategies such as better managing the speaker’s speech speed, optimizing processes, and providing agents with effective tools and training.
Why is Reducing AHT Important for Contact Centers?
Reducing AHT has a ripple effect across contact center operations, significantly impacting costs, efficiency, and customer satisfaction. Here are the key reasons why it matters:
Evaluate Performance
AHT is a core metric for evaluating agent efficiency. High AHT can signal training gaps, workflow bottlenecks, or inadequate tools, while low AHT may suggest rushed or incomplete resolutions. It means having a low AHT number is not an indicator of good performance but an indicator to do deeper research.
Minimize Cost Per Interaction
Call centers are often viewed as cost centers because every minute of a call directly translates to operational expenses. The longer the interaction, the higher the costs—making AHT a critical metric for cost control. In the case of Business Process Outsourcing (BPO) providers, the stakes are even higher: clients may impose penalties or chargebacks for exceeding agreed-upon AHT benchmarks.
By reducing AHT, contact centers can optimize agent productivity, lower resource usage, and handle a higher volume of interactions within the same operational framework.
Allocate Resources Effectively
A shorter AHT allows for better resource allocation, especially during peak periods. Agents can handle more inquiries, reducing wait times and improving overall service levels.
Optimize Processes
By analyzing AHT trends, organizations can identify inefficiencies, such as redundant steps or outdated technologies, and implement targeted solutions to streamline workflows.
Improve Customer Experience
Customers appreciate quick and effective resolutions. A balanced AHT ensures customers feel valued without being rushed, fostering trust and loyalty.
Studies show that 70% of customers are more likely to remain loyal to companies that resolve issues quickly (Zendesk).
Increase Efficiency and Cost Savings
Efficient AHT management minimizes operational costs, reduces the need for overtime, and increases the throughput of existing resources. Faster resolutions also lower repeat call volumes, further optimizing resource usage. For example, improving FCR (First Call Resolution) alongside AHT can reduce total call volume by 15-20%, creating significant savings.
Benchmarking Across Industries
As mentioned above, AHT benchmarks vary by industry. For instance, retail and e-commerce often aim for 4-6 minutes, while healthcare may require longer handling times (6-9 minutes) due to complexity. Understanding these benchmarks allows decision-makers to set realistic targets while keeping costs in check.
How is AHT Tied to Customer Experience?
AHT is a critical metric that directly influences customer satisfaction. Imagine a contact center agent keeping the customer on the call without providing a solution to their immediate issue or leaving the customer on hold for too long. Either way, AHT will be high and the satisfaction rate low. While long AHT may lead to frustration, excessively short AHT can result in rushed interactions that fail to resolve customer issues. Striking the right balance between speed and quality is essential to delivering a positive customer experience.
Additionally, AHT impacts the Customer Effort Score (CES), which measures how easy it is for customers to get their issues resolved. A low-effort interaction, supported by a well-managed AHT, builds customer trust and loyalty.
During employee simulation training, managers always calculate AHT and work on improving the result by reinforcing skills and better knowledge retention. Additionally, contact centers provide agents with tools and software that will help agents be faster.
6 Strategies to Reduce AHT in Contact Centers
Just like any other performance metric, AHP can be improved and these steps should be regularly revised and improved.
1. Ensure an Efficient Call-Routing Strategy
Implement intelligent routing systems that connect customers to the most qualified agents, reducing unnecessary transfers and delays.
2. Optimize Your Agent Onboarding and Training
Provide agents with comprehensive training and access to a centralized knowledge base to ensure they can handle inquiries efficiently.
3. Implement Real-Time Analytics
Use real-time data to guide agents during interactions. For example, live sentiment analysis can prompt agents to adjust their approach for better outcomes.
4. Choose the Right Contact Center Technology
Research and invest in advanced tools like Hecttor AI to streamline workflows, enhance agent comprehension, and eliminate unnecessary delays. Enhancing contact centers with technology is a long-term investment that will make businesses see performance increase immediately.
5. Reduce After-Call Work
Automate repetitive post-call tasks, such as CRM updates and follow-ups, to free up agents’ time for more interactions.
6. Monitor and Improve Call Complexity Management
Categorize calls by complexity and allocate resources accordingly. For example, simple inquiries can be resolved by chatbots, while complex issues are routed to skilled agents.
Reducing Average Handling Time with Hecttor AI
Hecttor AI transforms AHT management by addressing its root causes:
Real-Time Speech Adjustment: Helps agents process fast-paced conversations, reducing communication barriers.
Workflow Automation: Streamlines after-call tasks and integrates into existing CRM systems.
Actionable Insights: Provides analytics that helps managers identify and address inefficiencies, including AHT rate.
Conclusion
Every business decision is data-driven, and the AHT indicator is about data. Whether it is high or low, it indicates a certain condition: operational success or failure. By improving AHT while maintaining high-quality customer interactions, contact centers can achieve cost savings, improve agent productivity, and foster customer loyalty. With Hecttor AI’s innovative solutions, organizations can finally use the full potential of their contact centers.
Ready to transform your contact center? Discover how Hecttor AI can help you reduce average handle time and elevate customer experiences. Book a demo.