Average Handle Time (AHT) | Formula & Importance

What is AHT?

Average Handle Time or AHT  is a metric that summarizes the average duration required to resolve customer issues. These customer service interactions occur through various communication channels such as calls, live chats, emails, etc. AHT measures the compatibility and value of these interactions between the customer and the agent.

Thus, the Average Handle Time metric allows organizations to follow up and analyze KPIs (Key Performance Indicators) and gain a valuable understanding of their service quality.

Why Is It Important to Measure AHT?

Average Handle Time (AHT) plays an important role in customer service or call centers because it provides comprehensive benefits to both the company and the customers. Here are some of the key reasons for measuring AHT:

  • Meeting Customer Expectations: In today’s fast-paced world, time management is crucial. Customers expect immediate attention and responses to their concerns from representatives.
  • Recognizing Areas of Improvement: Average Handle Time helps monitor both individual agents’ performance and overall call center performance. Higher AHT can identify training requirements and areas where process improvements can be made for agents to work more efficiently.
  • Resource Planning: With AHT data, managers can better allocate resources if support is not meeting goals or not bringing positive results.

What is Average Handle Time formula?

The Average Handle Time formula is the “total talk time plus hold time of the call plus after-call work time or follow-up time of the call.” Then, all of this will be divided by the total number of calls, which helps track performance. However, the Average Handle Time formulas will differ depending on the communication channel, such as calls, email, messaging, and live chats.

  1. The formula for Call AHT:

 Total Talk Time + Hold Time + After the call or Follow-up Time ÷

Total Number of Calls 

  • Total Talk Time:  The time length of the active call, email or live-chat interaction between the agent and the customer/caller. 
  • Hold Time: The total time duration the customer spends while being on hold during a conversation with the agent. 
  • Follow-up time: Total time that the agent spends to settle any issues or requirements of the customer post-call.
  1. The formula for Email AHT: 

  Total Coversing Time + Hold Time + Wrapping up time or Follow-up Time ÷

Total Number of Emails/Tickets

  1. The formula for Live Chat AHT: 

Total amount of chat + Follow-up Time ÷ Total Number of Chats

What does a good AHT mean?

A good Average Handling Time is approximately 6 minutes. However, it differs based on various factors like the type of call center, the products and services offered, the approach to customer issues, the type of calls (e.g., sales or billing questions), and overall agent performance.

How can AI help reduce AHT in the customer service environment?

Artificial Intelligence (AI) is a fundamental tool that makes businesses efficient and responsive. AI enhances contact center productivity and provides better customer experiences. It helps generate routine tasks and relentless services, enabling faster responses to match customer satisfaction levels.

In the ever-evolving market, AI technologies offer a streamlined workflow with fewer steps in interaction handling, reducing Average Handle Time in customer service environments. Some of the foremost ways AI can contribute to this goal are:

Automated Response & Virtual Assistant:

Tools like AI chatbots and virtual bots can handle routine questions and queries without human interruption. Real-Time Agent Assist tools automatically recognize common, frequent issues and reduce the traffic of messages and calls handled by customer service agents.

AI-based Agent Coaching:

To reduce Average Handle Time (AHT), customer service agents should be proficient with the right knowledge and skills. AI-driven training programs like post-call speech analytics benefit contact service centers by providing agent performance details and customer experience insights. Additionally, managers can use AI-driven dashboards to analyze agent productivity and customize coaching for agents.

Conclusion

This blog gave a brief introduction to the importance of Average Handling Time. There are a few more key metrics used in customer service centers to gain meaningful insights and deliver service that meets customer expectations. Examples include First Call Resolution (FCR), Customer Satisfaction Score (CSAT), Net Promoter Score (NPS), and Service Level (SL).

#1 Product of the Day on Product Hunt is ConvoZen, a platform that helps manage Average Handling Time by highlighting areas needing improvement or additional support. It resolves and reduces AHT in the customer service environment with features like AI insights, key moment identification, conversation sentiment analysis, and auto-compliance audit. Embracing ConvoZen can transform customer service operations and drive improved productivity, bringing simplicity and intelligence to contact center operations.

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