What is Average Handle Time (AHT)?

Average handle time (AHT) is a key performance indicator (KPI) in customer service and support that measures the average duration of a single customer interaction. This metric includes the total time an agent spends handling a customer inquiry, from the initial call or chat to any follow-up work required after the interaction ends. It is a critical measure for contact centers, as it helps assess efficiency and customer experience.

Optimizing AHT is vital for delivering high-quality service while maintaining operational efficiency. This page will explore AHT’s definition, its components, why it matters, how to calculate it and strategies for improving it.

Why is average handle time important?

Average handle time is a cornerstone metric in contact centers because it provides insights into operational efficiency and customer satisfaction.

AHT impacts the balance between quality customer service and the efficiency of a support team. Lower AHT means that customer queries are resolved quickly, potentially leading to higher customer satisfaction. However, excessively focusing on reducing AHT might compromise the quality of service if agents rush through interactions. Striking the right balance ensures that customers feel valued while maintaining productivity in the support center.

For enterprises, AHT optimization can also reduce costs and improve agent utilization, making it a critical metric for scaling customer service operations effectively.

Components of average handle time

To fully understand AHT, it’s essential to break it down into its primary components:

Talk or chat time

This is the duration of the live interaction between the agent and the customer, whether over the phone or through a chatbot or live chat platform.

Hold time

This is the time a customer spends on hold while the agent retrieves information or consults with another team member.

After Call Work (ACW)

After Call Work includes all the tasks completed by the agent post-interaction, such as logging details, updating systems or sending follow-up messages.

Each of these components contributes to the overall AHT, giving organizations insights into where improvements can be made to enhance efficiency and service quality.

How to calculate average handle time

Calculating AHT is straightforward using the following formula:

AHT = (talk time + hold time + after call work time) ÷ total number of calls or interactions

For example, if a contact center records 1,000 total minutes of interaction (including talk time, hold time and after call work) across 200 calls, the AHT would be:

AHT = 1,000 ÷ 200 = 5 minutes

This calculation helps teams identify trends and areas where time can be better managed to improve performance and the customer experience.

Strategies to optimize average handle time

Improving AHT involves a balance of process optimization, technology and training. Here are some proven strategies:

Leverage AI and automation

AI-driven tools, like agent copilots that use conversational AI, can streamline workflows by providing agents with real-time guidance and answers. Uniphore’s real-time agent assist solution, U-Assist, for example, has been shown to reduce AHT by more than a third—all while maintaining high-quality customer service.

Enhance agent training

Training agents to handle common queries efficiently, manage systems effectively and maintain empathy during interactions can significantly impact AHT. For example, U-Assist has been shown to reduce agent training and onboarding time by as much as 50 percent.

Implement call routing

Intelligent call routing ensures customers are directed to the right agent or department, minimizing unnecessary hold times.

Analyze data

By tracking AHT trends and analyzing call recordings, businesses can identify bottlenecks and streamline processes to reduce inefficiencies.

Reduce after call work

Automating post-interaction tasks or streamlining documentation processes can significantly cut down on after call work time.

As alluded to above, artificial intelligence (AI) is transforming how businesses manage average handle time. From real-time agent assistance to predictive analytics, AI tools help streamline workflows, improve agent productivity and deliver a better customer experience.

For example, AI-powered chatbots can handle routine queries, freeing agents to focus on complex cases. Speech and text analytics solutions, like those from Uniphore, can provide insights into interactions, helping agents resolve issues faster and more effectively.

Balancing AHT and customer satisfaction

While reducing AHT is a priority, it’s essential not to lose sight of the customer experience. A focus solely on speed can lead to rushed interactions that leave customers dissatisfied. Enterprises should strive for a balance where interactions are efficient but also personalized and empathetic. Again, the use of AI and automation tools can help businesses rein in AHT without sacrificing the quality of customer care.

Learn more

Understanding average handle time and optimizing it can significantly improve your customer service operations. To discover how AI solutions can transform your approach to AHT, explore our homepage.

For more key terms and insights into enterprise AI, visit our glossary.