When implementing a digital collections platform into your recovery process, it's important to consider how you will measure the success of the new tool.For example, are you trying to reduce operational costs? Are you trying to improve customer satisfaction? Are you trying to minimize your losses? Or, all of the above?
The following Key Performance Indicators (KPIs) focus on collections software that provides self-cure solutions for past-due customers. Among all facets of the collection industry, these KPIs specifically discuss integrated collections software outcomes.
Four essential KPIs for digital collections platforms:
Increased self-cure rate
Arguably the most critical KPI in integrated software outcomes is increased self-cure rates. Increases in self-cure rates influence collection department productivity by allowing agents to focus on other relevant tasks, such as past-due accounts requiring special attention.
Decreased departmental costs (OPEX)
Increased self-cure rates help lower departmental costs by reducing agent hours spent on tasks that could be spared with automation. Additionally, collection software encompasses efficient functions that lower human error risk, resulting in less time and money spent fixing such mistakes.
The increased productivity from agents focusing on more pertinent tasks can help companies generate additional income.
Reduced Days Sales Outstanding (DSO)
Days sales outstanding (DSO) is an accounting ratio that measures the average number of days it takes for your company to collect payment on a sale. Well-managed cash flow is vital for a healthy business, and days sales outstanding is one part of your cash flow equation.
Although the average DSO varies by industry, a high DSO indicates that payments are delayed and could signal a cash flow problem and a low DSO suggests that you're getting timely payments.
Improved customer experience
Often overlooked, past-due customer loyalty and satisfaction are key metrics in measuring the overall customer experience. With all the KPIs presented above, collection software will lead to improved satisfaction and, most importantly, retention.
There is a gap between customers and past-due customers, with the latter often overlooked as deserving a satisfactory customer experience. You can help bridge that gap with a loyalty and satisfaction survey using a Net Promoter Score (NPS) or a Customer Satisfaction Survey (CSAT). Use these measurement tools before and after integration so you can track improvements.
Choose a digital collections platform that helps your team
What companies do today to overcome debt collection issues defines their course for the future. Where they focus their efforts, what they decide to optimize, and how they adapt to the ever-changing expectations of consumers will determine their growth trajectory in the years ahead.
When building humane debt collection best practices, digital collections software can help you collect faster. Lexop gives you everything you need to reach, incentivize, and effectively collect from your past customers. Talk with an expert to learn how to optimize your collection strategy.