KPI Benchmarks : Collections Revenue per Collections Agent
- Benchmark Range $132.1K-$280.0K
- Benchmark Average $190.7K
- Benchmark Sample Size (n) 32
* Is High or Low Best: Higher is Better
Download a Sample Collections Revenue per Collections Agent
KPI Details : Collections Revenue per Collections Agent
Collections Revenue per Collections Agent measures the total revenue generated (amount collected minus any amount paid back to the original creditor) by the Collections function over a certain period of time in relation to the number of collections agents working for the company. A relatively low value for this metric can be indicative of inefficient call scripts and call handling policies, overstaffing of the Collections function, inadequate contracts with the original creditor, poor customer contract 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. While companies typically look to streamline their processes and reduce employee positions to improve their collections revenue, renegotiating creditor contracts, purchasing debt at reasonable rates and balancing employee retention (thus preventing a negative impact on employee morale) are also important.
KPI Best Practices : Collections Revenue per Collections Agent
- Provide incentives/rewards for agents who exceed their collections quotas
- Follow-up with debtors the day before their scheduled payment dates to confirm payment
- Report payments of debts to credit bureaus as soon as possible to incentivize payment
KPI Calculation Instructions Collections Revenue per Collections Agent?
Two numbers are used to calculate this KPI: (1) the total revenue generated by the Collections function, and (2) the number of collections agents working for the company. Subtract the amount paid back to the original creditor from the amount collected to calculate how much revenue is generated by the Collections function. Do not include administrative or support employees working in the Collections function in the denominator. 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 :
Total Collections Revenue Generated / Number of Collections Agents