How to improve your debt collection indicators? | Moonflow
Posted: Mon Dec 23, 2024 6:48 am
Collection indicators are measures or metrics used to evaluate and monitor the performance of a company's collection process . These collection KPIs provide quantitative information on the efficiency and effectiveness of collection activities, and help measure success in recovering outstanding payments.
There are different billing and collection indicators ; for example, there is the average collection period, the collection status, the percentage of overdue debt , the payment behavior of the portfolio, the percentage of managed clients, among others.
It is important to know the status of the collection indicators to know the performance of our organization. In this way, we can design strategies to improve the performance of specific areas of the collection process .
In this post we provide you with some tips that will help you improve your collection indicators.
What will you find in this text?
1. Segment your portfolio into types
2. Clean up your database
3. Automate stages of your collections process
4. Design scripts to communicate with your clients
5. Always have all your clients' information at hand
1. Segment your portfolio into types
Do you have all your clients on the same list? This is a mistake that buy usa email list your collection indicators ; by not segmenting, you are not designing a specific strategy according to the profile of each group of debtors. Remember that it is not the same to collect from a client who has been late in payment for just a couple of days than from another who has not paid for months; or worse still, has not responded to all your attempts to communicate.
There are different criteria that you can apply to segment your customer portfolio ; for example, you can divide them according to the amount of their debt; their seniority (as a customer or the age of the debt), the type of product they purchased, etc.
Once you have established customer segmentation, you can design a collection strategy according to each profile.
2. Clean up your database
Ensuring your database is up-to-date and error-free is critical to improving your collections metrics . Performing a database cleanup will allow you to identify and correct outdated, incorrect, or incomplete data. This includes verifying phone numbers, email addresses, and other relevant contact information.
Database cleaning can be done through a number of different methods, including using specialized database management software . Many collection software programs include the latter, so you could purchase them and have a multi-purpose tool for the same price.
3. Automate stages of your collection process
To improve your debt collection success rate, it is important that your debt collection managers do not have to perform routine or simple tasks; that way, they can concentrate on more complex tasks that guarantee payment.
There are different billing and collection indicators ; for example, there is the average collection period, the collection status, the percentage of overdue debt , the payment behavior of the portfolio, the percentage of managed clients, among others.
It is important to know the status of the collection indicators to know the performance of our organization. In this way, we can design strategies to improve the performance of specific areas of the collection process .
In this post we provide you with some tips that will help you improve your collection indicators.
What will you find in this text?
1. Segment your portfolio into types
2. Clean up your database
3. Automate stages of your collections process
4. Design scripts to communicate with your clients
5. Always have all your clients' information at hand
1. Segment your portfolio into types
Do you have all your clients on the same list? This is a mistake that buy usa email list your collection indicators ; by not segmenting, you are not designing a specific strategy according to the profile of each group of debtors. Remember that it is not the same to collect from a client who has been late in payment for just a couple of days than from another who has not paid for months; or worse still, has not responded to all your attempts to communicate.
There are different criteria that you can apply to segment your customer portfolio ; for example, you can divide them according to the amount of their debt; their seniority (as a customer or the age of the debt), the type of product they purchased, etc.
Once you have established customer segmentation, you can design a collection strategy according to each profile.
2. Clean up your database
Ensuring your database is up-to-date and error-free is critical to improving your collections metrics . Performing a database cleanup will allow you to identify and correct outdated, incorrect, or incomplete data. This includes verifying phone numbers, email addresses, and other relevant contact information.
Database cleaning can be done through a number of different methods, including using specialized database management software . Many collection software programs include the latter, so you could purchase them and have a multi-purpose tool for the same price.
3. Automate stages of your collection process
To improve your debt collection success rate, it is important that your debt collection managers do not have to perform routine or simple tasks; that way, they can concentrate on more complex tasks that guarantee payment.