KPI Benchmarks : Collections Connect Rate
- Benchmark Range
- Benchmark Average 34.9%
- Benchmark Sample Size (n) 112
* Is High or Low Best: Higher is Better
KPI Details : Collections Connect Rate
Collections Connect Rate measures the number of outbound dials that are connected to a valid phone number in relation to the total number of outbound dials attempted over the same period of time. Low value for this metric can be related to a number of factors, including inefficient customer tracking and management practices (i.e., tracking of customer communications and contact information), poor initial lead generation and research processes, little communication with the departments/employees/creditors that originally dealt with the customers before their accounts were handed to collections, and sub-par collections employee training and performance. Excessively low values for this metric can, furthermore, increase overall charge-off rates (i.e., a write off expressing that the money owed is unlikely to be collected) and expose the company to financial risks by preventing on-time payment of liabilities.
KPI Best Practices : Collections Connect Rate
- Keep an organized log of outbound collections calls and remove listed phone numbers that are not valid
- Perform an audit of collections accounts a regular basis to update information and remove out of date records
- Use company databases, public records, etc. to improve the quality of contact information
KPI Calculation Instructions Collections Connect Rate?
Two numbers are used to calculate this KPI: (1) the number of outbound dials that are connected to a valid phone number, and (2) the total number of outbound dials attempted over the same period of time. Include dials to accounts at all stages of collections (i.e., early to late stage) in this calculation. A "valid" outbound dial (i.e., a "connect") should be defined as calls that are connected to a phone number that is in service. Include both right party contacts (i.e., the number of outgoing calls that result in contact with the borrower, co-borrower or another "trusted" party) and contacts to someone besides the customer in this calculation. "Trusted" parties include individuals authorized to provide information related to the borrower’s current financial situation, including financial managers or legal counsel.
KPI Formula :
(Outbound Dials Connected to Valid Phone Number / Total Number of Outbound Dials) * 100