Average Handling Time

Average Handling Time (AHT) is one of the key metrics in e-commerce customer service. It measures the average time a customer service agent needs to handle a request – from first contact to final resolution. A low AHT means problems are solved efficiently and quickly, which benefits both the company and its customers. In this article, you'll learn why AHT matters, how it is calculated and how you can optimize it.

What is Average Handling Time?

Average Handling Time is the average time needed to handle a customer request. It includes the following phases:

  1. Talk or interaction time: The time a support agent spends directly with the customer.
  2. After-call work: The time needed after the conversation or interaction for administrative tasks such as entering notes or solving technical problems.

AHT is a key indicator of your customer service team's efficiency. While a shorter handling time is often desirable, the balance between efficiency and customer satisfaction must be maintained – because fast but inadequate answers can do more harm than good.

Why is AHT so important in e-commerce?

  1. Customer service efficiency
    A low AHT shows that your support team handles requests efficiently. This means customers get a solution faster and the support team can handle more requests per day. This leads to higher productivity and lower costs per request.
  2. Customer satisfaction
    Customers want fast answers to their questions and problems. Long handling times can lead to frustration, while a quick solution strengthens trust in your company and increases customer satisfaction.
  3. Cost reduction
    Handling requests more efficiently means less time per ticket. This lowers operating costs, as fewer resources are needed to resolve customer requests. Companies can handle more requests with the same staff, which creates scaling potential.
  4. Competitive advantage
    In a highly competitive market, the efficiency of your customer service is a real advantage. Customers tend to buy from companies that offer not only good products but also fast and reliable support. A low AHT can therefore make the difference between a one-time buyer and a loyal customer.

How is Average Handling Time calculated?

AHT is calculated with a simple formula:

AHT = (talk time + after-call work) / number of completed requests

Example:
If a support agent spends 5 minutes talking to the customer about a request and then needs 3 minutes for after-call work, the total handling time is 8 minutes. If 20 requests were handled in a day, the AHT is:

AHT = (total time 160 minutes) / 20 requests = 8 minutes per request

Strategies for optimizing AHT

A shorter AHT means not only faster solutions for customers but also higher efficiency for your team. Here are some strategies for improving AHT in your e-commerce customer service:

  1. Employee training
    Well-trained employees can handle customer requests faster and more efficiently. They know the most common problems and exactly how to solve them. Continuous training on products, processes and communication strategies helps support agents work more confidently and quickly.
  2. Efficient use of tools and technologies
    CRM (customer relationship management) systems and helpdesk software help manage all customer requests in one central place. These tools provide instant access to customer data, previous interactions and product information, so employees don't have to search for long to handle a request.
  3. Automating standard processes
    Frequently asked questions or simple tasks such as resetting a password can be handled by automation solutions such as chatbots or self-service portals. This not only reduces the number of incoming requests but also gives support agents more time for complex problems.
  4. Ensure efficient after-call work
    After-call work is often a neglected part of AHT. To shorten it, you can use templates for standard answers and give employees clear documentation guidelines. Automating ticket management can also help speed up this phase.
  5. Identify problems early
    Requests can often be solved faster if the problem is clearly identified from the start. A structured questionnaire or guide for support agents can help collect the right information from the customer quickly and avoid unnecessary follow-up questions. This lets them address the problem immediately and offer a solution faster.
  6. Avoid multitasking
    A common problem in customer service is that employees handle several tickets at once. This can lead to longer handling times as focus keeps shifting. By introducing clearly defined processes where employees focus on one request, you can reduce handling time per ticket.
  7. Expand self-service portals
    Customers who can solve their problems on their own relieve support and thus lower AHT. FAQs, video tutorials and guides can help customers solve simple problems without contacting support directly, reducing the total number of requests.

Challenges in optimizing AHT

One of the biggest challenges in reducing AHT is keeping the balance between speed and quality. If the focus is too heavily on shortening handling time, support agents may work hastily, overlook important details or leave the customer dissatisfied.

An AHT that is too short could also indicate that requests were answered incompletely, which can lead to additional follow-up questions. That's why it's important to look at AHT together with other KPIs such as First Contact Resolution (FCR) or Customer Satisfaction (CSAT) to make sure the quality of customer service doesn't suffer.

Conclusion: why AHT is crucial for e-commerce

Average Handling Time (AHT) is an important KPI in e-commerce customer service because it shows how efficiently and quickly your support team works. A low AHT leads to happier customers, lower operating costs and a more efficient support team. By combining training, automation and efficient use of technology, you can optimize AHT in your company and improve customer service for good.

Remember that focusing too heavily on speed shouldn't come at the expense of quality. A balanced strategy that offers both fast and comprehensive solutions is the key to successful customer service in e-commerce.

Maximilian Borkowsky
CMO at melibo

About the author

Maximilian Borkowsky

Maxi knows customer service automation inside out.

Expert in scalable e-commerce customer service

Max knows online retailers' operational bottlenecks first-hand – from growing ticket volumes to inefficient processes.

AI and tech nerd

Max dives deep into new technologies long before they go mainstream. He tests tools, takes concepts apart and immediately thinks in use cases: how can e-commerce teams put this to work?

Film fanatic

His enthusiasm for storytelling is closely tied to his passion for films. His all-time favorite: The Shawshank Redemption.