7+ Average Handle Time Definition: Quick Guide

average handle time definition

7+ Average Handle Time Definition: Quick Guide

The duration representing the mean length of a customer service interaction, encompassing talk time, hold time, and any related tasks completed by the representative after the call but directly related to the interaction. For instance, if a call center handles 100 calls in a day, totaling 5000 seconds of talk time, 1000 seconds of hold time, and 2000 seconds of after-call work, the calculation would involve summing these durations and dividing by the number of calls. This results in a metric, expressed in seconds, indicating the typical time investment per interaction.

This metric serves as a crucial performance indicator for contact centers, impacting resource allocation, staffing strategies, and cost management. Historically, tracking this value has allowed businesses to optimize operational efficiency and improve customer satisfaction by identifying areas for process improvement. Monitoring fluctuations can highlight training needs, system inefficiencies, or procedural bottlenecks that affect service delivery. Its implications for forecasting workloads and ensuring adequate staffing levels are substantial.

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9+ AFC: Average Fixed Cost Definition & Economics

average fixed cost definition economics

9+ AFC: Average Fixed Cost Definition & Economics

The per-unit fixed cost of production is calculated by dividing total fixed costs by the quantity of output. Fixed costs, which do not vary with the level of production, are spread across a larger number of units as output increases, resulting in a declining per-unit cost. For example, if a company’s rent is $10,000 per month and it produces 1,000 units, the per-unit fixed cost is $10. If production increases to 2,000 units, the per-unit fixed cost decreases to $5.

Understanding the behavior of this cost component is crucial for informed decision-making regarding production levels and pricing strategies. As output expands, the decline in the per-unit fixed cost contributes to lower overall per-unit costs, potentially improving profitability. Historically, analyzing this relationship has aided businesses in identifying optimal production volumes to maximize efficiency and cost-effectiveness.

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