Percentage of Outbound Calls Resulting in Promise to Pay
Metric Details & Benchmarking Report Download
KPI Benchmarks : Percentage of Outbound Calls Resulting in Promise to Pay
- Benchmark Range
- Benchmark Average
- Benchmark Sample Size (n) 24
* Is High or Low Best: Higher is Better
Percentage of Outbound Calls Resulting in Promise to Pay
KPI Details
Percentage of Outbound Calls Resulting in Promise to Pay measures the number of outbound calls to customers resulting in a promise to pay (PTP) in relation to the total number of outbound right party contacts (RPCs) made by collectors 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 Definition
The number of outbound calls to customers resulting in a promise to pay (PTP) divided by the total number of outbound right party contacts (RPCs) made by collectors over the same period of time, as a percentage. Includes accounts at all stages of collections (i.e., early to late stage).
KPI Best Practices
- Develop call scripts and revise them frequently to ensure a promise to pay is requested
- Implement payment schedules to allow the debtor to make multiple payments over a time period
- 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 Outbound Calls Resulting in Promise to Pay?
Two variables are used to calculate this KPI: (1) the number of outbound calls to customers that result in a promise to pay (PTP), and (2) the total number of outbound right party contacts (RPC) made by collectors 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. A right party contact (RPC) is defined as an outgoing call that results in contact with the borrower, co-borrower or another "trusted" party divided by the total number of outgoing calls that are connected (i.e., dial reaches a working, in-service phone number). "Trusted" parties include individuals authorized to provide information related to the borrower’s current financial situation, including financial managers or legal counsel. Include accounts at all stages of collections (i.e., early to late stage) in this calculation.
KPI Formula :
(Outbound Calls Resulting in Promise to Pay / Total Right Party Contacts Made) * 100
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