10:38 AM
Kinsz
I have read a number of blogs about collection agencies looking to cut costs in this complicated economy. The 3 largest expenses that were debated were: employee expense, mailing costs and telecoms cost.
Reducing headcount is only a good course if you have ineffective employees. Every company should do periodic reviews and eliminate staff when they are not performing to expectancies. The best run collection companies continuously evaluate their operations and provide coaching to new and existing workers to make them better. By impressing high expectations and providing your people the proper coaching to perform at a high level, you'll make their work more efficient, clients will be more happy and collections cash per worker will improve.
Mailing programs are fairly consistent in price and services. Limiting mail returns and bulk mailing are a few of the common cash savers. The biggest savings in mail costs can be extracted from cutting back on the quantity of pieces sent. There are a number of scoring corporations that will offer a program to ascertain which pieces are unlikely to supply an economic return.
Good collection agency software can also provide some basic criteria to discontinue those mail pieces that don't meet the minimum factors to mail. As an example, any account that has got a balance less the $25 and is bigger than 180 days old is not going to provide a reasonable return on a letter series at 55 cents a letter.
FDCPA requires that a preliminary letter be mailed. Once the letter is sent a message regularly is enough to get some yield on low balances. Sending statements by e-mail is also a money saver, but managing that process is best left to an external service which will assure compliance.
Telecoms costs are one of the simplest areas to determine services that are overpriced, underutilized, or to establish that new services are available that are better, quicker, and less expensive. Many companies are migrating to VOIP services for the telephone and messaging systems. Hosted dialers provide all of the features a collection company desires including messaging, text to speech, interactive voice response (IVR), automatic call distribution (ACD), incoming priority routing, and call recording.
As firms grow, telecomms services frequently go years without any substantial review. A thorough review with an expert can often find thousands of dollars being spent on services that are not being used. Some services will do a review and they're going to charge a percentage of the savings that you'll realize in the subsequent 6 months or year. They can easily determine where you can save some cash with no impact on service.
Reducing headcount is only a good course if you have ineffective employees. Every company should do periodic reviews and eliminate staff when they are not performing to expectancies. The best run collection companies continuously evaluate their operations and provide coaching to new and existing workers to make them better. By impressing high expectations and providing your people the proper coaching to perform at a high level, you'll make their work more efficient, clients will be more happy and collections cash per worker will improve.
Mailing programs are fairly consistent in price and services. Limiting mail returns and bulk mailing are a few of the common cash savers. The biggest savings in mail costs can be extracted from cutting back on the quantity of pieces sent. There are a number of scoring corporations that will offer a program to ascertain which pieces are unlikely to supply an economic return.
Good collection agency software can also provide some basic criteria to discontinue those mail pieces that don't meet the minimum factors to mail. As an example, any account that has got a balance less the $25 and is bigger than 180 days old is not going to provide a reasonable return on a letter series at 55 cents a letter.
FDCPA requires that a preliminary letter be mailed. Once the letter is sent a message regularly is enough to get some yield on low balances. Sending statements by e-mail is also a money saver, but managing that process is best left to an external service which will assure compliance.
Telecoms costs are one of the simplest areas to determine services that are overpriced, underutilized, or to establish that new services are available that are better, quicker, and less expensive. Many companies are migrating to VOIP services for the telephone and messaging systems. Hosted dialers provide all of the features a collection company desires including messaging, text to speech, interactive voice response (IVR), automatic call distribution (ACD), incoming priority routing, and call recording.
As firms grow, telecomms services frequently go years without any substantial review. A thorough review with an expert can often find thousands of dollars being spent on services that are not being used. Some services will do a review and they're going to charge a percentage of the savings that you'll realize in the subsequent 6 months or year. They can easily determine where you can save some cash with no impact on service.
About the Author:
Rodney MacKenzie is VP of Sales & Marketing for CollectTech Solutions. Their flagship debt collection agency software is Wincollect.
2 comments:
The look out for a good debt recovery company should be expert in the domain.The commercial and dues of a company are inter-related and collection agency with low experience should be avoided.
When sending letters and making calls do not help, debt collection needs something professional.That is where relevance of a good collections agency which helps the feasible debt recovery and get the due on time.
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