Written by Eamonn Curley Updated on 3 May 2024 On this page What Is Call Handle Time? Why Is Average Call Handle Time Important? How To Calculate Average Call Handle Time 5 Tips To Improve Your Company's Average Call Handle Time Expand Our site is reader-supported – by clicking our links, we can match you with a potential supplier, and we may earn a small commission for this referral. One key factor in ensuring your team provides efficient, high-quality support is understanding and optimising your company’s call handle time. This metric, also known as average handle time (AHT), is a key performance indicator (KPI) when using call centre phone systems. It directly impacts customer satisfaction, agent productivity, and overall operational efficiency.In this guide, we’ll explore what call handle time is, why it matters, and how you can calculate and improve your company’s AHT. By the end, you’ll have the knowledge and tools needed to streamline your call centre operations and deliver the best possible experience for your customers. What Is Call Handle Time?Also known as average handle time (AHT), call handle time is a key performance indicator (KPI) that measures the time agents spend handling customer interactions, from the moment they answer the call to when they disconnect. This includes any hold time and after-call work.Call handle time provides valuable insights into your team’s performance and the overall customer experience. A lower average handle time generally indicates that agents are resolving issues efficiently, while a higher AHT may point to operational inefficiencies, knowledge gaps, or complex customer queries that require more time to address.Other metrics that often go hand-in-hand with call handle time include first call resolution (FCR), which measures the percentage of issues resolved on the first interaction, and customer satisfaction (CSAT) scores. Together, these KPIs paint a more complete picture of your call centre’s efficiency and effectiveness in meeting customer needs.By monitoring and optimising your average call handle time, you can identify areas for improvement, boost agent productivity, and ultimately deliver a better experience for your customers. ▶ Read more: Contact Centre Automation Why Is Average Call Handle Time Important?Average call handle time is a critical metric for several reasons:Customer SatisfactionOne of the primary reasons AHT matters is its direct impact on customer satisfaction. Customers appreciate quick, efficient service and don’t want to spend more time than necessary on the phone. By minimising average handle time, you can reduce customer frustration and improve their overall experience with your company.Agent ProductivityA lower AHT means your agents are handling calls more efficiently, allowing them to assist more customers in less time. This increased productivity can lead to cost savings as you may require fewer agents to handle the same call volume. It also frees up your team’s time to focus on other important tasks, such as training or quality assurance.Operational EfficiencyTracking and optimising average handle time can help you identify areas for improvement in your call centre operations. For example, if you notice a higher than usual AHT, it may indicate issues such as:Insufficient agent trainingLack of access to necessary resources or informationInefficient call routing or queuing processesComplex or recurring customer issues that require additional supportBy addressing these underlying problems, you can streamline your operations and reduce average handle time.Competitive AdvantageBy consistently delivering efficient, high-quality support with a low AHT, you can set your company apart from competitors and foster greater customer loyalty.Cost ManagementA higher average handle time can lead to increased costs for your call centre. Longer calls require more agent time and resources, which can impact your bottom line. By reducing AHT, you can minimise these costs and allocate resources more effectively. How To Calculate Average Call Handle TimeCalculating your call centre’s average handle time is a straightforward process. Most modern call centre phone systems and software solutions automatically track and report on this metric, making it easy to monitor your team’s performance. Still, it can be useful to understand how AHT is calculated so you can accurately interpret the data.The formula for calculating average handle time is:AHT = (Total Talk Time + Total Hold Time + Total After-Call Work Time) / Total Number of Calls HandledHere’s a breakdown of each component:Total Talk Time: The cumulative duration of all customer conversations during a given period.Total Hold Time: The total time customers spend on hold while agents look up information or consult with colleagues.Total After-Call Work Time: The total time agents spend completing related tasks after the customer has disconnected, such as updating the customer relationship management (CRM) software, filling out forms, or sending follow-up emails.Total Number of Calls Handled: The total number of customer interactions handled by your team during the specified time frame.For example, let’s say your call centre handled 500 calls in a day, with a total talk time of 2,000 minutes, total hold time of 500 minutes, and total after-call work time of 1,000 minutes. Your average handle time would be:AHT = (2,000 + 500 + 1,000) / 500= 3,500 / 500= 7 minutesIn this scenario, your call centre’s average handle time is seven minutes per call.What Is a Good Average Call Handle Time?According to a study by Call Centre Helper, the industry standard for average handle time is around 6 minutes and 10 seconds. However, note that what constitutes a “good” AHT can vary depending on your industry, the complexity of customer issues, and your business goals.As Shep Hyken, a customer service expert and bestselling author, states, “Don’t focus solely on handle time. Focus on the quality of the interaction and the resolution of the customer’s issue. A great customer experience is more important than a speedy interaction.” 5 Tips To Improve Your Company’s Average Call Handle TimeOptimising your call centre’s average handle time is an ongoing process that requires a combination of strategic planning, agent training, and technological solutions. Here are five tips to help you improve your company’s AHT:Provide Comprehensive Agent TrainingInvest in thorough, ongoing training for your call centre agents. Ensure they have a deep understanding of your products, services, and common customer issues. Provide them with the tools and resources they need to quickly access information and resolve problems efficiently. Well-trained agents are more likely to handle calls with confidence and minimise hold times.Implement Call Scripting and Knowledge Management SystemsDevelop a library of call scripts and knowledge articles that agents can reference during customer interactions. These resources should cover frequently asked questions, troubleshooting steps, and best practices for handling specific scenarios. By providing agents with easily accessible, up-to-date information, you can reduce the time they spend searching for answers and improve consistency across your team.Use Call Routing and IVR TechnologyImplement an intelligent call routing system that directs customers to the most appropriate agent or department based on their needs. This can be achieved through interactive voice response (IVR) menus, skill-based routing, or a combination of both. By ensuring that calls are efficiently routed to the right person from the start, you can minimise transfers and reduce overall handle time.Encourage First Contact ResolutionTrain your agents to prioritise first contact resolution (FCR) whenever possible. This means providing customers with a complete, satisfactory solution during their initial call, eliminating the need for follow-up interactions. Encourage agents to take ownership of issues and provide them with the authority to make decisions that benefit the customer. A higher FCR rate can lead to reduced call volumes and improved AHT.Analyze Call Data and Provide FeedbackRegularly review your call centre’s performance data, including average handle time, to identify areas for improvement. Analyse the root causes of longer-than-average calls and provide targeted coaching and feedback to individual agents. Celebrate successes and share best practices across your team to foster a culture of continuous improvement. Verdict By understanding and optimising your call centre’s average handle time, you can improve customer satisfaction, boost agent productivity, and streamline your overall operations.Implementing the strategies outlined in this guide, such as providing comprehensive training, using call routing technology, and encouraging first contact resolution, can help you strike the perfect balance between efficiency and quality.But remember, while reducing AHT is important, your ultimate goal should always be to provide the best possible experience for your customers. With the right approach, you can achieve both. Written by: Eamonn Curley Content Manager Eamonn is an experienced B2B writer and content manager, having managed and grown several B2B business blogs in the fitness and hospitality space.