I get asked quite often which is more effective, making collection calls or sending out letters. Most people would rather send out letters, so they do not have to have a direct contact with the person who owes them money.
When I say collection calls are much more effective, most people wish it was the other way around.
I have been researching information and statistics in quantitative terms to the success rate of calling debtors (and also, the variance of the success rate depending on how many days you wait to call) and the same for dunning letters.
I have found that case studies on this exact process are hard to come by, I was looking for theoretical data in regards to making collection calls vs. sending out dunning notices.
Some of the things I found out from businesses I interviewed were:
- Some wait 5 days before they call after sending an initial letter.
- The percentage that pay off of letters is around 1%, says one company.
- The calling is most effective, and some get better results by calling in the evening twice a week.
- Some business owners make collection calls the day they send a letter.
I hope this helps you, and please email or make any comments or suggestions.
As a good businessman, you are aware of the manner in
which accounts that have become seriously past due must
be handled. We won't attempt a clever phrase or witty
jingle to get your attention. Neither do we wish to
embarrass, intimidate or do any of the nasty things that are
often done to encourage payment.
Posted by: Anonymous | November 13, 2007 3:09 PM | Permalink to Comment