Average Handle Time: What AHT Means to a Company

Gladly Team

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5 minute read

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Modern customer service teams have a plethora of metrics to measure for a variety of uses: to keep track of customer communications, to improve on existing operations, and ultimately, to boost revenue and profitability. And with the rise of modern service platforms, teams now have access to more data than ever—but there’s one metric that continues to set the standard for customer service efficiency: AHT.

AHT (average handle time) is a KPI, or key performance indicator, that can tell you how efficiently and effectively your customer services operations are running. In this guide, Gladly dissects what AHT means, and explains how AHT is tracked, and the implications this crucial metric poses to support teams.

What is Average Handle Time?

Average handle time (AHT) is a time-based measure of how long it takes for a customer service representative to respond to a customer inquiry. It is measured from when the inquiry was submitted to its resolution, and can be calculated for different channels.

Along with average wait time (AWT), average handle time is one of the more traditional customer service metrics commonly tracked by teams.

AHT’s Meaning in a Broader Context

While AHT is a metric that can be applied across all channels of customer communication, it typically only refers to the process of handling customer inquiries over the phone.

Here’s what AHT takes into account when applied to a customer service phone call.

  1. Talk time – the number of minutes and seconds a customer service representative spends live on the phone with the customer, from pick-up to conclusion.
  2. Hold time – the number of minutes and seconds a customer spends on hold while the representative is solving their issue, transferring the customer to a more appropriate agent, or otherwise indisposed.
  3. Volume – the number of cases handled and customer issues resolved within a given time frame.

Your average handle time will be a mean of the above data points. Here’s how to calculate it:

How to Calculate AHT (Average Handle Time)

(Talk time + hold time) / number of calls = AHT.

Remember to standardize your units, and calculate time in either minutes OR seconds.

Why is average handling time so important?

Average handle time is valuable because it offers multiple uses for CX teams. By tracking AHT, customer service teams can reduce their tooling costs, efficiently plan staffing for peak or off seasons, and monitor employee performance over time.

Keep in mind: AHT can give you an idea of how fast your customer service is, but not necessarily how successful. When you start measuring your average handle time, review it side-by-side with factors like resolution and customer satisfaction reports for a more holistic picture.

What is a good average handle time?

There’s no one-size-fits-all answer. Different companies across different industries will have different responses, depending on their personal definition of quality service and how their service procedures are structured.

Obviously, efficient call handling times are ideal. But speed isn’t everything in customer service. Quality should always come before quantity when dealing with customer inquiries, and reps should never, ever rush a customer through a support interaction in the interest of lowering AHT.

Metrics watch to improve average handle time

While the exact measurements might vary for your organization, teams should keep an eye on the following metrics that may indicate improved AHT:

  • Minimized hold times. This means a fast first introduction, quick transfers, and as little dead air as possible.
  • Optimized talk times. This means effective conversation between rep and customer: good listening, comprehension, and desirable solutions.
  • Increased handling volume. This means your reps are taking care of an optimal number of customers within a given timeframe.
  • Improved customer satisfaction. This means consumers are happy with the support they receive while on the line with your reps. Customer satisfaction should be priority number one in all aspects of your consumer support strategy.

Reducing AHT for Improved Customer Satisfaction

It’s important to do your best to strike a balance between offering fast AND effective service to your callers. Optimal support is efficient without sacrificing efficacy. Here are a few best practices to follow to get your AHT down, while keeping your quality of service way, way up.

  1. Make sure your agents are trained effectively. They should be experts on your product, and fluent in compassion and empathy. Reps that don’t know what they’re doing can be a huge detriment to your team, so you should first and foremost make sure your agents know what they’re doing and are ready for any situation.
  2. Utilize knowledge management. Your reps should have easy access to the same self-service documents that your customers do. Help articles not only provide powerful training tools and quick-reference guides, but they also allow your agents to better understand the perspective of their customers.
  3. Monitor agent performance. If you want to stay on top of AHT and QC, pay attention to how your individual representatives are doing on the daily. Metrics such as longer hold times, a high volume of missed or declined calls, and abandonment of callers in queue can serve as warning signs and will let you know if someone needs a little extra help, or if your department as a whole needs an overhaul.
  4. Record calls to use in ongoing training. Theoretical scenarios are well and good as learning devices, but real-live customer interactions are the ultimate weapon in getting your agents prepped for any situation which may arise. You can even provide reps with recordings of their own calls to demo their own potential to succeed, or indicate situations where they may have slipped.
  5. Optimize call routing and internal communications. One of the major killers of AHT is inefficient routing systems. A customer will get sent to one agent first, who then will have to manually transfer them to the correct rep. The amount of time that tacks onto a call can be utterly mind-blowing. Get your phone tree running as smoothly as possible to make sure that customers are routed to the right agent as often as possible.

Gladly’s Role in Your Company’s AHT

Gladly’s radically personal customer service platform is designed for both efficiency and efficacy. The following features, all included in Gladly’s platform, help customer service teams measure and optimize their average handle times in a variety of ways:

Rich, full customer profile data
Knowing who a customer is within the first 5 seconds of a conversation allows reps to get straight to resolution, without hunting for basic details.

All channels included, out of the box
All communication channels are in-built to the program, so reps can help customers via call, email, social media, in-app chat, and instant messaging with ease.

An iMessage-like conversation history
Seamless transfers also mean that you can move from one channel to the next and never have the customer repeat themself.

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