Using primitive collection strategies can keep your business from functioning at its full potential. A collections strategy that uses sophisticated recovery scoring, however, enables maximum efficiency throughout the entire recovery cycle.
Approximately 10% of organizations don’t have a collection strategy in place that uses analytics. This is likely because their inventory is low and they do not need one to approach their work. The remaining 90% use one of the following four levels of analytics in their debt collection strategies:
Any data is better than no data at all when scaling for a large inventory is a requirement. However, sophistication—and productivity—grows as increasingly robust data is added to the equation. With advanced analytics, you are able to make better decisions and ultimately find more money quickly, from the same amount of inventory.
Advanced recovery scores help you identify accounts that are most likely to be successful in recovery.
To get your organization operating at optimal performance, you need a course of action. To make it easy on you, TransUnion experts compiled their decades of experience in the collections industry and created a 10-step approach to implementing a data-driven recovery strategy that can positively affect your entire collections operation.
THE DATA-DRIVEN RECOVERY STRATEGY CHECKLIST
Implement these 10 steps to get your collections organization on the path to operational success.
- Acquire the score and rank your inventory
- Assign logical stratification
- Group inventory for scale and performance
- Quarantine specialized inventory
- Create a control group
- Determine your data acquisition plan
- Develop production strategy constants
- Allocate resources by agent skill
- Document your intentions
- Establish a fact base
Each step is essential to achieving the overall goal of collecting more money, faster, with the minimum required investment. It is important not to cut corners by skipping a step or two—your outcome will not be as favorable as those that execute the full plan.
Get the insights you need to enact an efficient collections strategy with our new insight guide: 10 steps to drive more profitable collections operations.