Average Handle Time, or AHT, is a powerful indicator of your operation’s health, efficiency, and potential. Like a skilled diagnostician, AHT can reveal the strengths and weaknesses of your customer service, pinpoint areas ripe for improvement, and even offer insights into future customer satisfaction. By mastering AHT, you’re not just tracking numbers – you’re unlocking the key to elevating your entire customer experience.
Whether you’re a seasoned customer service pro or new to the game, this deep dive into AHT will change how you approach customer interactions. With LeadSquared Service CRM, you’ll be able to orchestrate a customer service symphony that’s both efficient and enjoyable.
Let’s get started.
What is Average Handle Time?
At its simplest, AHT measures the average duration of a customer interaction from start to finish, including any post-conversation tasks. It’s a simple concept with big implications for your customer service strategy.
Components of AHT:
- Talk time: The conversation between the agent and the customer
- Hold time: Time the customer is on hold
- After-call work: Time the agent spends wrapping up the interaction (e.g. updating records)
The formula for calculating AHT:
For example if an agent spends 500 minutes on calls, 50 minutes on hold and 100 minutes on after-call work across 50 calls in a day, their AHT would be:
AHT = (500 + 50 + 100) / 50 = 13 minutes
While this calculation is simple, the implications of AHT are big. According to McKinsey & Company, reducing AHT by 5% can lead to a 1% reduction in operating costs for large contact centres. This small change can add up to big savings and efficiency.
With LeadSquared CRM, tracking and analyzing AHT is a breeze. Its reporting and analytics features allow you to make customized reports to gain valuable insight from your AHT scores.
The Impact of AHT on Customer Experience
At first glance it might seem that shorter handle times are always better. After all, everyone wants their problem solved quickly. However, the relationship between AHT and customer satisfaction isn’t always that simple.
Think about this: a customer calls with a complex billing issue. An agent is under pressure to keep the call short, so he rushes through the explanation and doesn’t address all the customer’s concerns. The result? A quick call time but an unhappy customer who may have to call back and increase overall handle time and frustration.
On the other hand, when agents have the time to properly address customer issues it can lead to higher satisfaction rates and fewer repeat calls. Research by Gartner shows customer satisfaction scores can increase by up to 20% when agents are empowered to focus on resolution not just speed.
This is where LeadSquared CRM excels. By giving agents, a 360-degree view of the customer, including past interactions and preferences, LeadSquared allows your team to provide personalized and efficient service that gets to the root of the customer issue, not just the symptoms.
Industry Benchmarks: What’s a good AHT?
AHT is not one size fits all. Benchmarks vary across industries and even within departments of the same company. Here’s a snapshot of average handle times across different sectors:
- Retail: 3-5 minutes
- Financial Services: 4-6 minutes
- Technology: 8-10 minutes
- Healthcare: 6-8 minutes
These are general benchmarks. But remember your ideal AHT will depend on:
- Complexity of issues: Technical support calls take longer than simple order inquiries.
- Customer expectations: Some industries like emergency services prioritize speed above all else.
- Channel of communication: Chat interactions are shorter than phone calls.
Instead of focusing on industry benchmarks, focus on setting a baseline for your company and improving from there. This allows you to set realistic goals that are aligned to your business needs and customer expectations.
LeadSquared CRM helps you stay ahead of the curve by providing industry-specific insights and benchmarks. Its customizable dashboards allow you to track your AHT against industry standards, so you’re always competitive in the market.
Strategies to Reduce AHT
Now that we know the importance of AHT, let’s look at ways to optimize it without compromising on quality. Remember, the goal is to increase efficiency while maintaining or improving customer satisfaction.
Invest in agent training
Well trained agents are the foundation of good customer service. A study by the International Customer Management Institute (ICMI) found companies that invest in regular agent training see a 20% reduction in AHT on average.
Key training areas should include:
- Product knowledge
- Soft skills (empathy, active listening)
- Tool and system usage
- Common issue resolution paths
Develop a knowledge base
A centralised, easily accessible knowledge base can save agents a lot of time searching for information. According to Gartner, companies that offer self-service through a robust knowledge base can reduce call volumes by up to 70%.
Intelligent call routing
Sending customers to the right agent from the start can reduce transfer time and improve first call resolution. AI powered routing systems can analyse customer data and intent to make smart routing decisions.
LeadSquared’s intelligent routing ensures customers are connected to the right agent based on their history, issue type and agent expertise, reducing transfers and overall AHT.
Leverage technology and automation
Integrating the right technology can simplify processes and reduce AHT. LeadSquared CRM gives agents instant access to customer information, interaction history and solutions, so they spend less time searching and after call work.
Optimize Scripts and Workflows
Analyse your current scripts and workflows to identify areas of inefficiency. Often small changes can add up to big time savings. For example, reordering questions or automating repetitive tasks can shave seconds off each call which adds up to significant time savings over thousands of interactions.
LeadSquared’s customizable workflows and script templates help standardize and optimize your customer interactions, so you can be consistent and efficient across your team.
First call resolution
While it might seem counterintuitive, focusing on resolving issues in the first interaction can actually reduce overall AHT. A study by SQM Group found for every 1% improvement in First Call Resolution there’s a corresponding 1% improvement in customer satisfaction and 1% reduction in operating costs .
LeadSquared’s customer profiles and interaction history allows agents to resolve issues on the first call, so you don’t need to follow up or call back.
AHT Optimization Mistakes
While reducing AHT is important, don’t make these common mistakes that can harm customer satisfaction and overall service quality:
Rushing customers off the call
Pressuring agents to end calls quickly can result in incomplete issue resolution and annoyed customers. This often means repeat calls, increasing overall AHT and damaging customer relationships.
Ignoring other key metrics
AHT should be balanced with other key metrics like Customer Satisfaction (CSAT), Net Promoter Score (NPS) and First Call Resolution (FCR). Focusing only on AHT can give you a narrow view of service quality.
LeadSquared CRM gives you a 360-degree view of your customer service performance so you can track multiple KPIs at once.
Rigid time limits
Setting strict time limits for calls can put pressure on agents and result in poor customer experience. Use AHT as a guide not a rule.
Ignoring after call work
Rushing or skipping documentation during after-call work can result in incomplete customer records and issues in future interactions. Make sure your AHT targets include after-call work.
Not personalising interactions
Some organizations over-standardise their approach in the name of efficiency. But customers love personalised service. Find ways to be personal while being efficient.
LeadSquared Service CRM allows you to be personal at scale by giving agents detailed customer profiles and interaction history so they can be personal without sacrificing efficiency.
Tools and Technology
The right technology can make a big difference in managing and optimising AHT. Here are the tools:
CRM systems
A good CRM like LeadSquared is a AHT game changer. LeadSquared has features that impact AHT:
- 360 degree customer views for quick access to information
- Automated workflow management to simplify processes
- Integration with multiple channels for seamless interaction
- Real time analytics to monitor and improve AHT
- Automated data entry to reduce after call work
By giving agents quick access to customer information and guided processes LeadSquared reduces AHT and improves customer interactions.
Call centre software
Modern call centre software has features like:
- Intelligent call routing
- Interactive Voice Response (IVR) systems
- Real time call monitoring and coaching tools
LeadSquared integrates with leading call centre software and adds to their capabilities with its robust CRM features.
Analytics and reporting tools
Advanced analytics tools can show you AHT trends so you can see where to improve. LeadSquared’s analytics suite has:
- Real time AHT tracking
- Agent performance comparison
- Predictive analytics for peak time forecasting
- Customisable dashboards for at a glance performance monitoring
AHT in the Future: Trends and Predictions
As we look forward, several trends are shaping AHT:
AI and machine learning
Artificial Intelligence and Machine Learning will change AHT forever. These technologies can:
- Predict customer needs based on historical data
- Give real time suggestions to agents during calls
- Automate mundane tasks so agents can focus on complex issues
Omnichannel support
As customers expect seamless experiences across multiple channels AHT strategies will have to adapt. LeadSquared’s omnichannel capabilities allow you to have consistent AHT across all touchpoints so customers have a unified experience.
Personalisation at scale
The future of customer service is personalisation without compromise. LeadSquared’s advanced personalisation features let you deliver personal interactions that feel personal yet efficient.
Predictive customer service
Predicting customer needs before they arise will be the key to reducing AHT. LeadSquared’s predictive analytics can identify potential issues and proactively address them so you may not need to have some customer interactions at all.
Conclusion
Average Handle Time is not about the shortest call possible. It’s about finding the sweet spot where efficiency meets good customer service. By using the right strategies, avoiding the common pitfalls and using tools like LeadSquared CRM you can optimise AHT and improve customer satisfaction.
Remember, it’s about creating a symphony of efficient, effective and satisfying customer interactions. With LeadSquared as your conductor’s baton you can lead your customer service orchestra to perfection and deliver value to your customers and your bottom line.
