Collections KPIs, Metrics & Benchmarks

KPIs & Metrics to Measure and Manage Collections Performance

What are Collections KPIs?

Collections Key Performance Indicators (KPIs) and metrics track the overall performance of an organizations reconciliation efforts of delinquent accounts. Collections departments operate mostly as call centers and metrics are typically found in abundance in these organizations. Narrowing down collections metrics into a manageable number of KPIS is proven to increase collections team results.

Using KPIs to Manage Your Collections Department’s Performance

Top Collections departments rely heavily on metrics to manage individual and area performance. One of the most important, yet hard to extract from today’s systems, is the total amount recovered vs. the addressable recoveries (i.e., what was collected compared to what could have been collected). These performance metrics allow Collections departments to determine if stricter write-off thresholds should be setup or if employee negotiations metrics need improvement.

6 Collections KPI Examples to Increase Recoveries

Companies devote considerable time and energy to the collection of larger debts. Collections departments follow escalation processes which factors in days outstanding and the amount owed for delinquent accounts. To help companies reduce the number of write-offs, below are a list of KPIs to help measure debt collection processes:

6 Collections Efficiency KPI Examples to Measure:

  1. 1.Percentage of Total Recoveries Collected
  2. 2.Amount Collected per Collections Employee
  3. 3.Delinquent Accounts per Collections Employee
  4. 4.Bad Debt Write Off Rate
  5. 5.Cycle Time: Debt to Recovery
  6. 6.Average Collections Payment Size

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