Traditional collections operations used tactics like cold calling that made measurement difficult. Now, in modern debt collections, metrics have expanded and evolved into collector productivity, collections and recovery performance, and capacity planning. Your department should gather data on all segments and report on specific metrics to improve collections performance.
Measuring the right metrics will allow your department to test new strategies and learn from them. That, in turn, will help you iteratively improve performance. Continue reading to discover the top 14 metrics collectors should measure.
Collectors must be productive in order for your collections department to succeed. Until you measure the right metrics, you won’t have insights into how well or poorly individual collectors are performing on the job. Begin measuring your collector’s productivity with the following metrics:
These are the metrics that help measure the dollars and cents of recovery performance. They are typically divided into static metrics and behavioural metrics. Both are outlined below:
Productivity metrics track the performance of individuals. Capacity planning takes it one step further and tracks personnel hour allocation. With this metric, time can be efficiently allocated across accounts. This is a core cost for departments: doing it right results in significant savings. Find the best metrics for capacity planning below:
If your collections department is involved in measurement and reporting, be sure you have a pulse on the right metrics. Each of the metrics listed and explained above will paint a picture explaining performance, efficiency and more. The results will encourage new strategies, additional training for certain employees, or other operational or structural changes, if necessary.
Looking for even more ways to improve performance? Our Collections and Recovery Best Practices Manual will help you continue to improve your debt collections processes and yield the best results.
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