In the world of customer service, two Key performance Indicators (KPIs) often fly under the radar but can have a massive impact on both customer experience and operational efficiency: Average Handling Time (AHT) and Customer Retention Rate (CRR). AHT measures how quickly customer issues are resolved, while CRR indicates how many customers stick with your business over time. Balancing these two metrics is critical—if your AHT is too high, customers may grow frustrated; if your CRR is low, you’re losing valuable customers that are vital to long-term success.
What Are Average Handling Time and Customer Retention Rate?
- Average Handling Time (AHT): AHT measures the average amount of time a customer service representative spends resolving a customer query. This includes time spent talking to the customer and any after-call work required to fully deal with the issue. Keeping AHT low is crucial for maintaining operational efficiency, but it must be balanced with delivering high-quality service.
- Customer Retention Rate (CRR): CRR is the percentage of customers who continue doing business with your company over a specific period. A high CRR indicates that customers are satisfied and loyal, while a low CRR can be a red flag for underlying issues in customer experience.
Why AHT and CRR Matter?
- AHT: High AHT can lead to customer frustration, especially if the issue takes too long to resolve. On the flip side, reducing AHT without sacrificing service quality can enhance the overall customer experience and reduce operational costs. The key is to use automation and AI-driven tools to speed up resolutions without compromising the customer’s satisfaction.
- CRR: Customer retention is vital for long-term success. Acquiring new customers is often far more expensive than retaining existing ones. Businesses with high CRR are likely to see greater customer loyalty, higher lifetime value (CLV), and improved profitability.
How to Improve AHT and CRR
- Automate Repetitive Tasks to Reduce AHT
- Use Generative AI-powered Call Center automation, and Contact Center automation to handle simple, repetitive queries automatically. Teneo LLM Orchestrator allow businesses to automate routine interactions such as answering FAQs, scheduling appointments, or providing account information, which reduces AHT dramatically. This together with powerful Large Language Models (LLMs) like, OpenAI o1, Anthropic Claude, and Google Gemini.
- For instance, implementing conversational IVR can shorten call times by routing customers directly to the correct department or providing them with self-service options. This not only lowers AHT but also boosts overall customer satisfaction as they receive quicker responses.
- Personalize Interactions to Boost CRR
- Retaining customers requires offering a personalized experience that meets their needs. With Teneo Generative AI, you can integrate customer data from past interactions to provide more tailored support. Whether through personalized recommendations through Teneo Adaptive Answers or proactive outreach, using AI to customize interactions can significantly increase your CRR. Which at the end can be presented in a Smart Agent Handover.
- Balance Efficiency with Quality
- While lowering AHT is essential, it shouldn’t come at the cost of service quality. Automating lower-level tasks allows human agents to focus on more complex, high-touch customer interactions. By freeing up agent time with Teneo AI-driven solutions, businesses can ensure that their agents are spending more time resolving intricate customer issues, which improves both satisfaction and retention.
How Teneo Helped Reduce AHT for Global Enterprises
Global companies using Teneo’s Call Center Automation have significantly reduced their Average Handling Time by automating simple queries and reducing the need for human intervention. This has allowed their customer service agents to focus on complex problems, providing a more personalized experience that has increased their Customer Retention Rates as well. You can find more information on our IVR Case Studies.
Further Reading
To explore these topics in more detail, check out the following resources:
- Introduction to Customer Experience KPIs
- Boost Loyalty with These Key Customer Experience KPIs: NPS & CSAT
- How This Customer Experience KPI (CES) Can Skyrocket Satisfaction
- The Customer Experience KPI You Can’t Ignore: First Contact Resolution
- Why Ignoring This Customer Experience KPI (Churn Rate) Hurts Your Business
- Speed Up Support with These Customer Experience KPIs: RT & FRT