Average Handling Time: A Key Customer Service KPI

In customer service, Average Handling Time (AHT) is a crucial key performance indicator (KPI) that measures the average length of interactions between service agents and customers. A well-managed AHT is vital for achieving operational efficiency, maintaining customer satisfaction, and ensuring a high-quality customer experience.

Overview of Average Handling Time

Average Handling Time represents the average time it takes for a service agent to handle a transaction from start to finish, including elements like talk time, hold time, and after-call work. This KPI gives an indication of the efficiency of a customer service team and its impact on customer satisfaction.

A lower AHT typically signifies high efficiency, potentially leading to increased customer satisfaction, as customers spend less time waiting for their issues to be resolved. Conversely, a high AHT might indicate inefficiency, complex procedures, or extensive issues, potentially leading to longer waiting times and decreased customer satisfaction.

Calculating Average Handling Time

To compute Average Handling Time, you add up the total time spent handling customers (including talk, hold, and after-call work time), and then divide that by the total number of handled calls. Here's the formula:

Average Handling Time = (Total Talk Time + Total Hold Time + Total After-Call Work Time) / Total Number of Handled Calls

For instance, if in a day, a service team spends 200 minutes talking to customers, 50 minutes on hold, and 100 minutes on after-call work, and they handle 50 calls, the AHT would be:

Average Handling Time = (200 + 50 + 100) / 50 = 7 minutes

Tracking and optimizing Average Handling Time is a critical task for any customer service team aiming to deliver efficient, effective service that satisfies customers and meets operational targets.