Plan Of Action:† 12 Effective Collection Strategies

The impact of working with data-driven collection strategies can be seen in the fact that most businesses spend 25% of their effort on collecting from customers who would have paid anyway; best-in-class businesses spend less than 5%!

Conclusion

Collections is one of the most strategic processes of the Order-to-Cash cycle. Its impact is visible on long-term business objectives of lowering DSO and improving working capital. In order to achieve these objectives, what organizations need, beyond a proactive collections team, is the right strategy to collect from each account. Additional Takeaways:

• Studies have shown that leveraging customer data and past collections experiences could increase identification of delinquent accounts by up to 5 times
• Leverage data to identify payers who would remit without wasting collection effort to reduce the cost of collection operations
• Track monthly delinquency trends and month-on-month delinquency changes in each aging bucket
• Track payment mode across top customers, compare with payments made in previous months and adopt push strategies to drive change in relevant customers? payment mode