Amount Collected per Collections Agent

Amount Collected per Collections Agent

KPI Details

Amount Collected per Collections Agent measures the efficiency with which collections agents successfully collect payments from managed accounts that owe money to the company (i.e., delinquent accounts) over a certain period of time. A relatively low value for this metric is typically related to a few common factors: highly manual collection processes (i.e., manual delivery late payment notifications, etc.), inefficient call scripts and call handling policies, poor customer contact tracking and management (i.e., tracking of customer communications and contact information), an increase in payment disputes (can be due to product or service errors, customer dissatisfaction or undelivered products or services), and sub-par collections employee training and performance. Each of these factors lead to increased error rates, longer cycle times and higher charge-off rates which can expose the company to financial risks (e.g., fines, legal actions, bankruptcy, etc.) by preventing on-time payment of liabilities.

KPI Definition

The total dollar amount successfully collected by the Collections function over a certain period of time divided by the average number of collections agents (does not include administrative or support employees working in the Collections function) working for the company.

KPI Best Practices

• Categorize accounts by past-due balance, level of risk or likelihood to pay to properly allocate time
• Suggest appropriate payment options for different debtors to encourage payment
• Set targets and provide incentives/rewards for agents who meet their collections goals

KPI Calculation Instructions Amount Collected per Collections Agent?

Two numbers are used to calculate this KPI: (1) the total dollar amount successfully collected by the Collections function over a certain period of time, and (2) the average number of collections agents working for the company. Include collections from accounts at all stages of collections (i.e., early to late stage) in this calculation. Do not include administrative or support employees working in the Collections function in this calculation. Collections should be defined as successful when a delinquent customer actually pays/settles the payment(s) owed. Include both complete and partial payments in the numerator.

KPI Formula :

Total Dollar Amount Collected / Number of Collections Agents