Companies typically upgrade collections and recovery software systems no more than once every five years. Each new solution will stick around for a while, so you want to make the right selection from the start.
While your team likely went through a rigorous vetting process to choose your C&R solution, even the most considered decisions come with post-purchase doubts. After you buy, you may find yourself asking:
- Will the system actually do what it says?
- Will our teams actually use it?
- Will it really provide ROI like the sales people told me it would?
Often, the answers to these questions depend on how you use your C&R solution. Here are three ways to get the most value from your system.
1. Determine Your KPIs
Have you defined the KPIs that impact your bottom-line most? Do you know how you’ll measure success for this and any other future software implementations? If not, you should.
Determining KPIs is an important first step because it helps your business align big picture goals with real, measurable benchmarks. Here are the three main categories you’ll want to look at to determine C&R success:
- Capacity Planning: Consider the number of accounts to be worked and account-to-collector ratios (ACRs). Keep in mind seasonality and personnel shift records. Benchmark what success looks like when it comes to staffing.
- Account Segmentation: Leverage both static and behavioral metrics, such as product type, customer exposure, account balance, kept promise, non-starter, recidivist and time since last max bucket. Identify the numbers that help you increase self-cure rates and protect customer relationships.
- Staff Productivity: Take a look at the amount recovered against portfolios versus hours worked for each member of your staff.
With a clear picture of KPIs, you’ll accurately benchmark how your system should perform. Now, it’s time to make sure it does.
2. Educate and Train Your Team
You won’t unlock the full functionality of your C&R solution without education or training methods in place.
Take the time to work with internal or external software experts (in the best case scenario, the company that implemented the software) and fully learn its capabilities. Then, put plans in place to spread that knowledge company-wide. Distribute available brochures, webinars and demos to help your team learn faster.
Also, be sure to put the software to work. Automate a few tasks that eliminate staffing needs or promote cost savings, such as fully programmed monitoring reports, legal recovery litigation tracking or the creation of risk-level warning lists. This shows the team that the software provides value, encouraging adoption and freeing up staff for higher-level problem solving.
3. Continually Evaluate Performance
Internal stakeholders will want to know what success looks like with your C&R solution in place. Develop SMART (specific, measurable, achievable, realistic and timely) goals that connect your previously established KPIs with business needs. That way, you can show decision-makers how the system has performed over time.
Establish 12-, 24- and 36-month goals. These could be as simple as “increase staff collection efficiency by 20% after 24 months.”
Always be monitoring and evaluating software performance to see how it matches up against what you hope to achieve. Collections and recovery moves fast. You need to experiment, test and validate constantly to truly capture more revenue using your C&R software. When you do, success is just around the corner.
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How does your team adapt to new technology systems? Share how you get teams up to speed on software upgrades in the comment section below.
Image Source: Alan O'Rourke under Creative Commons Attribution 2.0 Generic