Average New Collections Account Size
Metric Details & Benchmarking Report Download
KPI Benchmarks : Average New Collections Account Size
- Benchmark Range
- Benchmark Average
- Benchmark Sample Size (n) 32
* Is High or Low Best: Higher is Better
Average New Collections Account Size
KPI Details
Average New Collections Account Size measures the dollar value (i.e., sum of account balances of new accounts in Collections) of new accounts in Collections (new business) in relation to the total number of new accounts in Collections over the same period of time. A low value for this metric can be indicative of inefficient call scripts and call handling policies, an increase in payment disputes (can be due to product or service errors, customer dissatisfaction or undelivered products or services), poor customer contact tracking and management (i.e., tracking of customer communications and contact information), and sub-par collections employee training and performance. Excessively low values for this metric 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 value (i.e., sum of account balances of new accounts in Collections) of new accounts in Collections (new business) divided by the total number of new accounts in Collections over the same period of time.
KPI Best Practices
- Effective staffing levels, call scripts and training for collections agents
- Practical system of documenting and tracking contacts with delinquent accounts
- Prioritize collections calls based on amount due, level of risk, likelihood to pay, etc.
KPI Calculation Instructions Average New Collections Account Size?
Two variables are used to calculate this KPI: (1) the dollar value (i.e., sum of account balances of new accounts in Collections) of new accounts in Collections (new business), and (2) the total number of new accounts in Collections over the same period of time. Include accounts at all stages of collections (i.e., early to late stage) in this calculation. Early stage accounts in collections are considered to be accounts that are 30 - 90 days overdue. Late stage accounts in collections are considered to be accounts that are 120+ days overdue.
KPI Formula :
Dollar Value of New Accounts in Collections / Total Number of New Accounts
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