The primary objective of a collection strategy is to generate a positive return for the organization, converting potential losses into revenue. With collections often seen as a secondary or, in some cases, nonexistent activity, often revenue is left on the table. Increasing debt trends combined with stricter regulatory laws means that it is more important than ever to have a mature, grounded collections strategy.
An effective in-house collection strategy can increase revenue up to 15 percent1 and decrease collection costs up to 25 percent2 through more effective use of resources and staff. Implementing collections strategies have shown to reduce default rates, protect bottom line, find “lost” customers, and maintain customer relationships.