Top KPIs for Debt Collections

The best performance explanation would typically include the following metrics:

Recovery Rate: The percentage of total outstanding debt that is recovered by the collection team. This metric gives a good overall picture of the team's performance in terms of recovering debt.

Contact Rate: The percentage of customers that the collection team is able to reach out to and make contact with. This metric helps to identify areas where the team may be struggling to reach customers.

Payment Rate: The percentage of customers who make a payment after being contacted by the collection team. This metric helps to identify how effective the team's communication and negotiation skills are in getting customers to make payments.

Average Time to Payment: The average time it takes for a customer to make a payment after being contacted by the collection team. This metric helps to identify how quickly the team is able to secure payments from customers.

Customer Satisfaction: The percentage of customers who report being satisfied with the collection process. This metric helps to identify areas where the team could improve their customer service.

Net Recovery Rate: The percentage of total outstanding debt that is recovered after expenses are taken into account. This metric gives a good overall picture of the team's performance in terms of recovering debt after accounting for all expenses.

By analyzing these metrics, a collection team can identify areas for improvement and track progress over time. It's also important to note that, depending on the industry, there may be other relevant metrics that a collection team should track to ensure the best performance.