Average handling time: what it is and when to lower it

Key takeaways

Average handling time (AHT) is the average time a team spends on one customer contact, including the conversation and the follow-up work. It drives how many people a service team needs. Lowering it saves money only when the customer's problem is still solved first time. A shorter contact that leads to a second one costs more, not less.

• AHT: talk or reply time plus hold time plus follow-up work.
• 1 minute off AHT on 2,000 contacts saves about 33 hours a month.
• Lower AHT by removing effort, not by rushing customers.
• Read AHT beside first contact resolution, never alone.

What is average handling time?

Average handling time is a customer service metric that measures the average duration of a contact from start to finish, including any work done afterwards to complete it. It began in call centres and now applies to email, chat and messaging as well.

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How do you calculate it?

For calls, add total talk time, total hold time and total after-call work, then divide by the number of calls handled. For email and chat, use the total time spent reading, replying and updating records, divided by contacts handled.

In an illustrative week, a team handles 500 calls with 2,000 minutes of talk time, 250 minutes on hold and 750 minutes of follow-up. AHT is 3,000 minutes divided by 500, or 6 minutes.

• Talk or reply time: 2,000 minutes.
• Hold time: 250 minutes.
• After-contact work: 750 minutes.
• AHT: 3,000 divided by 500 calls, 6 minutes.

• Cost baseline: measure today's cost before you change it

Why does a minute matter?

A minute matters because it is multiplied by every contact. On 2,000 contacts a month, bringing AHT from 6 minutes to 5 saves 2,000 minutes, about 33 hours. At a loaded £19.81 per worked hour, that is roughly £660 a month, or close to £7,900 a year.

The same arithmetic runs in reverse. A new step that adds a minute to every contact costs the same amount, which is why small process changes deserve scrutiny.

• Cost per contact: compare in-house and outsourced support

How do you lower AHT without harming service?

Lower AHT by taking effort out of the contact, not by hurrying the customer. Most wasted time is spent searching for information, typing things that could be templated, and updating several systems afterwards.

• Put customer and order details on one screen.
• Use tested replies for routine questions.
• Give handlers authority to resolve without referral.
• Cut after-contact work with simpler record keeping.
• Keep a searchable, current knowledge base.

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When is a low AHT a bad sign?

A low AHT is a bad sign when it is achieved by ending contacts before the problem is solved. Handlers targeted on speed learn to transfer, defer or give partial answers. The customer contacts you again, and two short contacts cost more than one thorough one. Complex or high-value queries should take longer.

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How should AHT be used with a provider?

With a provider, use AHT for planning capacity, not as a target for individuals. Agree it alongside quality and resolution measures, and review the three together. If you pay per hour, a falling AHT lowers your cost. If you pay per contact, check the provider is not shortening contacts at the expense of resolution.

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What does this look like in practice?

A pattern we see in small support teams: most of each contact is spent finding the order, not helping the customer. The handler opens three systems and asks the customer to repeat details. Bringing that information onto one screen shortens every contact, and customers experience it as better service.

• See client work
• BPO Solutions for UK businesses

AHT checklist

Use this before setting any handling time goal.

• Measure AHT by channel and query type.
• Include after-contact work.
• Find where handlers spend time searching.
• Template the routine replies.
• Track first contact resolution beside AHT.
• Never rank individuals on AHT alone.

• Cost reduction KPIs: the numbers that prove savings are real
• The tiered support model: send each query to the right cost

Next step

Tell us your contact volumes and roughly how long each takes. We will help you find where the time goes and what could come out without customers noticing.