Average Handle Time (AHT): What It Is & How to Reduce It

Consistently monitoring call center analytics reveals trends in customer and agent behavior, insights into service and support quality, and the efficiency of current operations.

Average Handle Time (AHT) is one of the most important metrics, highlighting the specific aspects of your business processes responsible for common call center problems.

In this post, you’ll learn what Average Handle Time is and how to calculate it, best practices for reducing it, and the benefits of optimal AHT.

• Overview
• How to Calculate
• What is a Good AHT?
• Why AHT is Important
• What Influences AHT
• How to Optimize AHT
• Common Mistakes
• FAQs

What Is Average Handle Time (AHT)?

Average handle time (AHT) is a call and contact center metric measuring the average duration of a complete customer interaction–from the moment the customer reaches out to when both agent and customer agree the issue is resolved.

AHT encompasses every phase of the customer service and support process, not just the average amount of time an agent and customer speak on the phone (that’s Average Talk Time.)

Average Handle Time includes all time spent:

• Interacting with call menus: Listening to/interacting with IVR systems, auto attendants, IVAs, voicemail messages, pre-recorded automated greetings, etc.
• On hold: In a call queue, during the call transfer, call forwarding, or call routing processes, while an agent reviews customer data, listening to phone rings before a pickup, etc.)
• Talking to an agent 
• On Follow-Up Tasks: Scheduling callbacks or appointments, after-call work (call notes, call disposition, CRM data entry, etc.), making follow-up calls, etc.

Average Handle Time includes calls that are resolved during the first call/ first contact and calls requiring one or more follow-ups.

Some businesses may choose to define Average Handle Time on a “per-call” basis, meaning that while follow-up tasks like after-call work and CRM system updates are included in the AHT calculation, follow-up calls are not.

While Average Handle Time is most often used for phone calls, it also applies to other voice and digital communication channels used to manage customer service queries like live chat, SMS, and video conferencing.

Why AHT Matters to Call Centers

AHT is a key metric in call center operations as it impacts the following core fundamentals to a healthy call center operation:

• Customer Satisfaction: AHT directly correlates to response speed and service quality, influencing your customer’s perceptions and long-term loyalty to the brand.
• Operational Efficiency: A balanced AHT ensures optimal resource allocation and effective agent performance.
• Cost Management: Shorter handling times reduce overall labor costs while maintaining service effectiveness.

How To Calculate Average Handle Time

To calculate Average Handle Time, choose the length of time you want to measure and add up total talk time, total hold time, and total after-call work time for that period. Then, divide that sum by the total number of calls (or other customer conversations) that took place during the same time period to get your Average Handle Time.

For example, to find a daily Average Handle Time for a call center with:

• A total daily talk time of 1,500 minutes
• A total daily hold time of 2,200 minutes
• A total after call work time of 3,000 minutes
• 250 total daily customer conversations

Step One: Add: 1,500+ 2,200+3000 = 6,700

Step Two: Divide 6,700/250 = 26.8

Solution: The call center has an AHT of 26.8 minutes per call

What Is A Good Average Handle Time?

A good Average Handle Time is about 6 minutes per call or contact–but AHT isn’t as uniform as other popular call center metrics and varies greatly from one business to another. A higher AHT isn’t always a bad thing–in some cases, it indicates a better approach to customer care.

Instead of aiming for the 6-minute “industry standard,” business owners should determine an ideal AHT for their specific call center according to factors like:

Business Size and Industry

Small businesses and startups will have fewer call center agents than established, enterprise-level companies–meaning small businesses will have a higher AHT almost by default.

Local or new businesses also have a smaller customer base than nationwide corporations, which means they’ll have more time to dedicate to one-on-one, detailed, and personalized customer service–something many consumers value, but that also increases AHT.

Because enterprise-level companies have more available customer service and sales reps to meet the needs of a large customer base, they may have a lower call handling time. These large companies can also afford to hire additional agents and purchase contact center software with advanced automation and AI capabilities.

The specific industry your business operates in, and the corresponding products and services offered, also impact AHT.

For example, providing highly technical, multi-step customer support for software applications will take longer–and require more follow-up time–than scheduling a service appointment or placing a food order.

The below data from Cornell University and Kustomer proves Average Handle Time isn’t a “one-size-fits-all” service metric:

The most effective way to evaluate your business’s AHT is to compare it against performance metrics and benchmarks from your top competitors–those in the same industry and with a similar target market.

Customer Service and Support Strategy

Your business’s ideal AHT is also influenced by your approach to customer service and support.

Call centers that are heavily reliant on omnichannel, automated customer self-service via chatbots and IVR systems have a lower AHT than businesses that provide customer support via live phone call only.

Your AHT also fluctuates depending on whether a fast resolution process (a shorter AHT) or more personalized, relationship-based customer service (a longer AHT) is your main priority.

Industry Benchmarks and AHT Standards

AHT varies by industry. Below are some benchmarks:

Sources: Cornell University & Kustomer

Additional Call Center Analytics

Another way to determine if your target AHT aligns with your business goals is by examining other key metrics and call center analytics.

Doing so provides more context into the overall customer experience, as well as agent performance, support quality, and call center activity. This makes it much easier to determine if a higher AHT truly has a negative impact on your call center.

In addition to AHT, monitor Key Performance Indicators (KPIs) like:

• First Call Resolution (FCR) Rate
• Average hold and wait time
• Average talk time
• Average call queue length
• Cost per call
• Customer Satisfaction Score (CSAT)
• Net Promoter Score (NPS)
• Customer survey responses
• Number of missed calls
• Total call volume

Why Is Average Handle Time Important?

Understanding why AHT matters helps businesses balance fast resolutions with outstanding customer service. Below are key elements to explain its importance:

Operational Efficiency

AHT serves as a benchmark of how efficiently your call center handles customer interactions. Lower AHT tends to mean faster service, allowing agents to handle more customers in less time. This efficiency translates to:

• Lower operational costs
• Higher agent productivity
• Better resource allocation

However, be sure to balance efficiency with service quality. Over-prioritizing speed may lead to hasty, incomplete resolutions and poor customer experiences.

Customer Experience

Customers want timely service, but not at the expense of quality. AHT provides insights into how long customers are waiting on hold, interacting with agents, or completing post-call tasks.

Extended wait times or meandering conversations can lead to angry customers, while rushed conversations may leave issues unresolved leading to more calls. Tracking AHT assists businesses in striking the right balance between fast and effective service.

Cost Management

Higher AHT is commonly linked to increased labor costs, especially in larger call center operations. By optimizing AHT, businesses can:

• Lower the cost per interaction
• Reduce the number of agents required during peak hours
• Improve overall service capacity without hiring additional staff

Agent Performance and Training

AHT signals key areas where agents need additional training or support. Consistently high AHT may signal:

• Knowledge gaps
• Inefficient call handling techniques
• Poor call routing strategies

By analyzing AHT in tandem with other critical call center metrics like First Call Resolution (FCR) and Customer Satisfaction Score (CSAT), businesses create more personalized training programs.

Customer Retention

Fast and effective service encourages customer loyalty. When customers experience long wait times or frequent callbacks, their satisfaction drops. This makes them more likely to switch to competitors. Optimizing AHT helps improve customer retention rates by providing timely and helpful service.

Factors That Influence Average Handle Time

AHT will vary across industries, businesses, and customer interactions. We’ve outlined some of the critical factors behind AHT below:

Call Complexity

The complexity of customer inquiries has a direct impact on AHT. Some calls require minimal effort, while others demand extensive troubleshooting, verification, or escalation:

• Routine Inquiries: Simple requests like order updates, account balance checks, or password resets generally have a lower AHT since they require minimal back-and-forth.
• Technical Troubleshooting: Issues involving device configurations, connectivity problems, or software bugs tend to take longer as agents guide customers through step-by-step resolutions.
• Billing & Disputes: Financial-related concerns, such as incorrect charges or refunds, often require verification, reviewing past transactions, and sometimes manager approvals, increasing AHT.
• Customer Technical Knowledge: Customers who struggle to describe their issues or follow troubleshooting instructions may extend the handling time.

Agent Performance and Expertise

Experienced agents usually handle customer inquiries faster because they know their way around common issues and company policy. Investment in agent performance and knowledge can include:

• Ongoing Training: Regular training on new products, policies, and troubleshooting techniques keeps agents efficient.
• Knowledge Base Updates: A well-maintained internal knowledge base allows agents to quickly access accurate information.
• Performance Monitoring: Regular performance evaluations help identify areas where agents need improvement.
• Agent Specialization: Assigning agents to specific issue types (technical, billing, etc.) can reduce AHT by leveraging expertise.

Customer Behavior

Customer cooperation does play a big part with AHT. Some customers may provide incomplete information, others require more time to detail their issues or make decisions. Here are few ways customer behavior impacts AHT:

• Decision-Making Time: Some customers take longer to decide on solutions, increasing AHT.
• Technical Proficiency: Tech-savvy customers may follow troubleshooting steps faster, while less proficient ones may need additional guidance.
• Emotional State: Frustrated or distressed customers may require more time and reassurance before an issue can be resolved.
• Language Barriers: Communication challenges can slow down the resolution process.

Internal Communication

Agents might need to consult with supervisors and other departments to resolve customer issues. Here are some ways internal communication can work to lower AHT:

• Supervisor Consultations: Agents often need supervisor approval for exceptions or escalations, which can delay resolution.
• Department Collaboration: Resolving complex issues may require coordination with multiple departments.
• Instant Messaging and Collaboration Tools: Platforms like Slack or Microsoft Teams enable quick internal discussions, reducing wait times.

Customer Self-Service Options

Offering comprehensive self-service options through chatbots, accessible online knowledge bases, and well-calibrated IVR systems will shorten AHT for more routine requests. Other avenues of customer self-service include:

• AI-Powered Chatbots: Automating responses for routine inquiries can reduce call volume and AHT.
• Online Knowledge Base: A well-structured FAQ and troubleshooting guide empower customers to resolve issues independently.
• IVR Optimization: A properly designed Interactive Voice Response (IVR) system should guide customers effectively without unnecessary delays.
• Community Forums: User forums and peer-to-peer support can reduce the need for direct agent intervention.

Call Routing and Queuing Strategies

Sufficient call routing allows customers to be connected to the right agents on their first attempts. Here are call routing and queuing strategies to help reduce AHT:

• Skill-Based Routing: Ensuring calls go to the most qualified agents improves resolution speed.
• Predictive Call Distribution: AI-driven call routing based on past interactions can improve efficiency.
• Avoiding Unnecessary Transfers: Streamlining initial customer intake can prevent repetitive information requests.
• Call Prioritization: Urgent or high-value customer inquiries should be escalated to priority queues.

How to Reduce and Optimize Average Handle Time

Optimizing and reducing AHT offers major benefits like increased customer retention rates, decreased employee turnover, increased team productivity, and lower operating costs.

Below, we outline actionable tips to improve your AHT without overburdening call center agents or sacrificing customer service quality.

Identify the Root Cause of High AHT

As multiple factors influence AHT, it’s essential to consistently examine additional call center analytics over an extended period of time to identify the true root cause of high AHT.

To streamline the process, invest in Workforce Optimization and Workforce Management tools with features like trend forecasting, predictive analytics, and automated agent scheduling and staffing suggestions.

WFO and WFM solutions use Conversational AI, Speech Analytics, and Natural Language Processing to provide high-level insight into customer-agent conversations, common support requests, and agent performance.

Optimize Call Routing Strategies

When implemented effectively, call routing shortens AHT by:

• Connecting customers only to an available (ready to talk) agent, avoiding placing callers on hold/in call queues
• Connecting each caller to an agent with the necessary skill set and training to provide the best support possible

For best results, test out multiple call routing strategies and monitor them over time to determine which strategies are the most effective.

Skills-based, time-based, relationship-based, round robin, most idle, and list-based routing are some of the most popular strategies.

Expand Customer Self-Service Options and Communication Channels

Quality customer self-service cuts down customer callbacks, increased talk time, voicemail messages, follow-up conversations, and other factors known to increase AHT.

Interactive Voice Response (IVR) solutions provide automated, pre-recorded call menu options that answer common questions and allow inbound callers to complete basic tasks like checking order status, scheduling appointments, paying bills, or updating account information on their own schedules and without involving a live agent.

Especially if you’ve noticed a recent uptick in inbound customer calls, consider adding customer self-service channels like website chat, social media messaging, email, SMS texting, or an online support ticketing portal. Digital channels are ideal for entirely automated chatbot conversations, leaving agents free to assist with more complex customer service issues and dramatically lowering AHT.

Use Automation and AI to Boost Productivity and Performance

Call center automation shortens pre and post-call work time by automatically syncing customer data, conversation notes, and support ticket updates in CRM and call center software after every interaction.

Workflow automation eliminates the need for agents to spend time on basic, lower-priority, and repetitive tasks.

AI-powered automation, like in-conversation Agent Assist, uses Natural Language Processing, customer sentiment analysis, and Speech Analytics to recognize the customer’s issue and instantly provide relevant call scripts, canned responses, and next-step suggestions from your company's internal knowledge base.

Automation decreases AHT by ensuring agents have immediate access to CRM and wiki data, adjusting call queue assignments in real-time to keep pace with current call volumes, and streamlining after-call work (ACW) via automatic call dispositioning.

Update Agent Training and Provide Ongoing Agent Support

If call analytics indicate multiple instances of extended AHT related to specific customer queries or problems, it’s a clear sign you need to update employee training manuals.

Ask for employee feedback about gaps in training materials, schedule consistent team meetings to address recurring issues, and create SLA (service level) standards to ensure performance expectations are clear.

To maintain high-quality support and a lower AHT, call center managers must provide high-level ongoing employee support. In-call coaching, call whisper, agent interaction scoring, performance gamification, call recording, and individual agent activity monitoring keep employees engaged and improve the support process.

Streamline Internal Communications

Gaps in internal communications create information silos, lead to customer frustration, and extend AHT by forcing agents to put callers on hold (or schedule callbacks) while they search for relevant account data points and support information.

Team collaboration software features like instant chat messaging, task management, and agent presence let team members get support from each other during conversations with customers.

Unified Communications and collaboration tools include real-time file, support ticket, and task progress syncing to ensure all agents work from the same–and most current–customer data and ticketing updates.

Common Mistakes When Reducing AHT

Attempting to reduce AHT without a thoughtful approach can backfire. Below are common mistakes businesses make when trying to optimize AHT:

Prioritizing Speed Over Quality

One of the biggest mistakes is pressuring agents to resolve customer inquiries as quickly as possible at the expense of service quality. This approach can result in:

• Incomplete issue resolution, leading to higher repeat call rates
• Frustrated customers who feel rushed or unheard
• Lower Customer Satisfaction Scores (CSAT) and Net Promoter Scores (NPS)

Lack of Root Cause Analysis

Many businesses attempt to reduce AHT without understanding what’s driving high handle times. Simply instructing agents to work faster without addressing underlying issues may yield temporary results but won’t offer long-term improvements. Common hidden causes include:

• Poor call routing strategies
• Outdated technology
• Insufficient agent training

Over-Automating Customer Interactions

Automation can significantly reduce AHT, but relying too heavily on self-service options or chatbots without the human touch may frustrate customers. Customers with complex inquiries often prefer speaking to a live agent, and excessive automation can prolong issue resolution.

Ignoring Agent Training and Development

Agents who are not properly trained will naturally take longer to handle customer inquiries. Without regular training updates, agents may struggle to answer complex questions or navigate new technologies which leads to higher AHT.

Poorly Maintained Call Routing Systems

If customers are transferred between multiple agents or departments, AHT will naturally increase. This happens when businesses don't configure their call routing strategies properly or fail to update them as customer needs evolve.

Call Center Software Improves Average Handle Time

Quality call center software vastly improves Average Handle Time by offering features that shorten customer service call times, identify the root causes of high AHT, and provide insight into the customer and agent experience.

The top call center and CCaaS features that reduce AHT include:

• Live, historical, and AI-powered analytics
• Call flow design tools with real-time editing
• Call routing, call forwarding, and ring groups
• Call recording, call monitoring, call barge, and agent coaching tools
• Omnichannel customer self-service (IVR, IVA, chatbots, customer knowledge base)
• Automated CRM call pops, Agent Assist, Call Disposition, etc.
• Workforce Management and Workforce Optimization tools
• UCaaS and collaboration tools like team chat, video meetings, task management

AHT is far more than just a call center metric, it's a powerful indicator of how well your business balances speed, efficiency, and customer satisfaction. By understanding the factors behind AHT, implementing smart strategies, and avoiding common issues, businesses can transform their customer service operations. Whether you want to streamline operations or build customer loyalty, optimizing AHT is a vital step toward creating a smarter, customer-centric business.

FAQs

Below, we’ve answered some of the most common questions about Average Handle Time.