Likelihood to pay in full Likelihood to make a partial payment
Posted: Sun Jan 19, 2025 5:03 am
Don’t approach every collection file the same way. Strategically categorize cases based on variables such as:
Willingness to pay
Ability to pay
Amount in arrears
Length of time in arrears
Once cases are segmented this way, prioritize them based on considerations such as:
Debts most likely to be recovered quickly
How much time japan telegram an agent should spend on each file
The threshold for sending each debt into legal proceedings
These strategies will improve your recovery rate and save agents from wasting too much time on cases that are unlikely to be resolved quickly by contact center interventions.
Set goals using metrics
Debt collection goals
You can’t improve productivity if you don’t know how efficient your collections system is in the first place.
Here are some potential metrics to track on a daily, weekly, monthly, and quarterly basis:
Total number of contacts made by your collection agents
How many of those contacts result in full or partial payment
How many cases end up referred to legal proceedings
Dollar amounts collected
Number of contact attempts made in each case before the debt is paid
These data points will give you benchmarks to measure progress and set productivity goals for your collections team to work toward.
Use the correct channels
Debt collection channel
Is your collections team contacting debtors through the most appropriate channels?
One study found that although the majority (65%) of collection attempts are made through phone, voicemail, and letter:
Higher-balance customers are more likely to respond via digital channels like mobile and online banking
Lower risk customers with better credit scores still prefer to be contacted through more traditional channels like phone, voicemail, and letters
In all cases, debtors are more likely to respond and to pay in full when contacted through their preferred channel
Taking the time to analyze the channel use patterns and preferences of debtors can improve collection recovery rates dramatically.
Willingness to pay
Ability to pay
Amount in arrears
Length of time in arrears
Once cases are segmented this way, prioritize them based on considerations such as:
Debts most likely to be recovered quickly
How much time japan telegram an agent should spend on each file
The threshold for sending each debt into legal proceedings
These strategies will improve your recovery rate and save agents from wasting too much time on cases that are unlikely to be resolved quickly by contact center interventions.
Set goals using metrics
Debt collection goals
You can’t improve productivity if you don’t know how efficient your collections system is in the first place.
Here are some potential metrics to track on a daily, weekly, monthly, and quarterly basis:
Total number of contacts made by your collection agents
How many of those contacts result in full or partial payment
How many cases end up referred to legal proceedings
Dollar amounts collected
Number of contact attempts made in each case before the debt is paid
These data points will give you benchmarks to measure progress and set productivity goals for your collections team to work toward.
Use the correct channels
Debt collection channel
Is your collections team contacting debtors through the most appropriate channels?
One study found that although the majority (65%) of collection attempts are made through phone, voicemail, and letter:
Higher-balance customers are more likely to respond via digital channels like mobile and online banking
Lower risk customers with better credit scores still prefer to be contacted through more traditional channels like phone, voicemail, and letters
In all cases, debtors are more likely to respond and to pay in full when contacted through their preferred channel
Taking the time to analyze the channel use patterns and preferences of debtors can improve collection recovery rates dramatically.