Managing time effectively is at the heart of any successful contact center. From resolving customer inquiries quickly to managing agent workload, time-based metrics provide crucial insights into your team's efficiency. One metric that stands out as a cornerstone of customer service analytics is average handle time (AHT). Understanding and optimizing AHT can have a direct impact on customer satisfaction, operational costs, and agent performance, with some companies using advanced analytics to reduce average handle time by up to 40% while improving customer satisfaction.

In this guide, we'll break down what AHT means, how it's calculated, and why it matters. You'll also learn actionable strategies to improve AHT without sacrificing the quality of service, and gain insight into tools that can streamline tracking and optimization efforts.

Average Handle Time Definition: Understanding the Basics

Average Handle Time (AHT) is the total time an agent spends on a customer interaction from start to finish. This includes talk time, hold time, and after-call work combined, then divided by total interactions handled.

Components of AHT calculation

AHT includes three core components:

• Talk time: Direct conversation between agent and customer

• Hold time: Time customer waits during the call

• After-call work: Post-interaction tasks like notes and updates

The formula to calculate AHT is: AHT = (Talk Time + Hold Time + After-Call Work) / Total Calls Handled

Industry standard benchmarks

Typical AHT ranges from 4-6 minutes, but varies by industry:

• Banking/Telecom: 5-7 minutes

• Retail/E-commerce: 2-4 minutes

• Technical Support: 7-10 minutes

• Healthcare: 8-12 minutes

AHT varies significantly across support channels:

• Phone support: Higher AHT due to real-time troubleshooting

• Email support: Longer processing time for research and detailed responses

• Chat support: Shorter AHT, but agents handle multiple chats simultaneously

• Social media: Quick responses expected, but balance speed with engagement

AHT Calculation: Essential Formulas and Metrics

Calculate AHT using this simple two-step process:

AHT Formula: (Total Talk Time + Total Hold Time + Total ACW) ÷ Number of Calls

• Step 1: Add all talk time, hold time, and after-call work

• Step 2: Divide by total calls handled in the period

Example:

If your team spends 600 minutes on talk time, 100 minutes on hold time, and 50 minutes on ACW across 100 calls, your AHT would be:

(600 + 100 + 50) ÷ 100 = 7.5 minutes.

Key variables in the formula

• Agent availability: More available agents reduce wait times.

• Call complexity: Complex issues take longer to resolve.

• After-call work policies: Streamlining ACW can improve AHT.

Common calculation mistakes to avoid

• Excluding hold time: Make sure all components are accounted for.

• Ignoring multiple channels: Measure AHT separately for phone, chat, and email to maintain accuracy.

• Inconsistent tracking: Use standardized time-tracking tools for precision.

Tools for tracking AHT

Popular tools for tracking AHT include CRMs like Salesforce, contact center platforms like Zendesk, and performance tracking software such as NICE CXone.

Average Handle Time Impact on Business Performance

AHT directly impacts three key business areas:

• Customer satisfaction: Faster resolution improves experience, but quality must remain high, as fully engaged customers can provide a 23% premium in profitability and revenue.

• Operational costs: Lower AHT reduces per-interaction expenses

• Team productivity: Optimal AHT prevents agent burnout while maximizing throughput, a critical goal when employees facing changing customer expectations are 57% more likely to "very often" or "always" feel burned out at work.

The key is balancing speed with quality to avoid repeat calls and customer frustration.

AHT Reduction: Proven Strategies and Best Practices

Reducing AHT doesn't mean cutting corners—it's about working smarter.

Agent training techniques

Comprehensive training equips agents with the skills they need to handle a variety of scenarios efficiently, which often consists of short-term on-the-job training that typically lasts two to four weeks. Training on soft skills can also reduce call times by minimizing misunderstandings.

Process optimization methods

Standardizing workflows—like using call scripts and templates—helps agents stay on track. Streamlining ACW by automating post-call tasks can also reduce AHT.

Technology implementation

Tools like AI chatbots or IVR (interactive voice response) systems can help offload routine inquiries, leaving agents to handle more complex tasks.

Knowledge base development

A well-maintained knowledge base reduces AHT by giving agents instant access to solutions, and when combined with other tools like analytics, this can help reduce average handle time by as much as 40 percent. This eliminates time spent searching for answers during calls.

Key benefits of knowledge base systems:

• Instant access: Verified information within agent workflow

• Reduced hold time: No switching between apps mid-call

• Accuracy: Up-to-date, trusted information every time

Platforms like Guru ensure agents have the right answers at their fingertips across all channels.

AHT Benchmarking: Industry Standards

AHT varies widely across sectors and regions.

Sector-specific averages

• E-commerce: 2-3 minutes

• Healthcare: 8-12 minutes

• Technology/IT support: 6-10 minutes

Regional variations

Regions with different cultural expectations or language barriers may experience longer AHT. For example, international support teams often report higher handle times due to translation or localization challenges.

Channel-specific benchmarks

Phone calls tend to have higher AHT than chats or emails. Chat support usually maintains an AHT between 3-5 minutes, while email responses can take hours or even a day.

Seasonal considerations

Peak seasons—like holidays or product launches—often see a spike in AHT as call volumes and inquiry complexity increase.

Average Handle Time Optimization Tools

Using the right tools can drastically improve AHT.

CRM systems

CRMs like Salesforce help agents access customer history instantly, reducing call times.

Automated support solutions

Chatbots and IVR systems automate routine inquiries, keeping AHT low by pre-qualifying or resolving issues.

Quality monitoring software

Tools like NICE or Five9 provide insights into agent performance, helping you identify areas to improve AHT.

Performance tracking platforms

Real-time dashboards help managers monitor AHT trends and address issues as they arise.

Common AHT Challenges and Solutions

Agent performance issues

Inconsistent agent performance can lead to fluctuating AHT. Regular coaching and feedback sessions help standardize performance across teams.

System limitations

Slow or outdated systems can increase AHT. Upgrading technology and ensuring seamless integrations can reduce delays.

Complex inquiry handling

For complex issues, empower agents to escalate efficiently rather than struggle through. Knowledge-sharing systems ensure agents always have access to the right information.

Training gaps

Ongoing training ensures agents stay up-to-date with new tools, products, and policies, reducing handle time across the board.

AHT Best Practices: Implementation Guide

Setting realistic targets

Set SMART goals (specific, measurable, achievable, relevant, and time-bound) to keep AHT improvement efforts focused.

Team communication strategies

Fostering open communication helps agents share tips and solutions, improving AHT across the board.

Performance monitoring methods

Use analytics to track AHT trends and identify patterns, such as peak hours or common bottlenecks.

Continuous improvement approaches

AHT optimization is an ongoing process. Regularly review performance and adjust workflows based on insights.

Future of AHT Management

AI and automation impact

AI tools like virtual assistants are reducing AHT by handling repetitive tasks efficiently.

Emerging technologies

New tools, such as voice analytics, offer real-time insights into call performance and areas for improvement.

Predicted trends

Expect to see more self-service options in the future, enabling customers to resolve issues without human interaction.

Evolution of customer service metrics

As technology evolves, metrics like first-contact resolution (FCR) will gain prominence alongside AHT in measuring efficiency.

Optimizing AHT with your AI source of truth

Optimizing average handle time requires balancing speed with quality. Agents inflate AHT when they spend valuable time searching for answers, putting customers on hold, or performing lengthy after-call work. The most effective way to reduce AHT is to give your team instant access to trusted, verified information right where they work.

Guru serves as your company's AI Source of Truth to solve this exact problem. We Connect all of your scattered information into a single, secure company brain. Your team can then Interact with this brain through a Knowledge Agent to get instant, permission-aware answers in Slack, Teams, or their browser. When knowledge needs an update, experts can Correct it once, and the right answer updates everywhere.

This approach directly reduces search, hold, and after-call work times, empowering agents to resolve issues faster and more accurately. It's the key to optimizing AHT while boosting both customer satisfaction and agent confidence. To see how an AI Source of Truth can help your team, Watch a demo.