KPI Benchmarks : Percentage of Inbound Promises to Pay Kept
- Benchmark Range 33.2%-86.3%
- Benchmark Average 66.5%
- Benchmark Sample Size (n) 82
* Is High or Low Best: Higher is Better
Download a Sample Percentage of Inbound Promises to Pay Kept
KPI Details : Percentage of Inbound Promises to Pay Kept
Percentage of Inbound Promise to Pay Kept measures the number of promises to pay (PTP) made through inbound calls from delinquent customers that were actually paid/settled in relation to the total number of customers who promised to pay on inbound calls 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), 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 Best Practices : Percentage of Inbound Promises to Pay Kept
- Develop a risk profile for delinquent accounts and implement plan to follow up with accounts of different risk levels
- Set up a series of recurring payments for customers that cannot pay the entire unpaid balance at one time
- Inform past due customer of next steps if amount remains unpaid (collections letter, turning account over to collections agency,etc.)
KPI Calculation Instructions Percentage of Inbound Promises to Pay Kept?
Two variables are used to calculate this KPI: (1) the number of promises to pay (PTP) made through inbound calls from delinquent customers that were actually paid/settled, and (2) the total number of customers who promised to pay over the same period of time. A promise to pay (PTP) is defined as a verbal agreement between two parties (e.g., the customer and the collector), typically made when a payment is overdue, in which the customer promises to pay a certain amount of money by a certain date. Include accounts at all stages of collections (i.e., early to late stage) in this calculation.
KPI Formula :
(Inbound Promises to Pay Kept / Total Inbound Promises to Pay) * 100