Collection strategy
A collection strategy is the set of rules that defines which debtors a company works with, at what point, through which channel and in what tone.
What it looks like
A strategy answers a few questions. When to start: before the due date, on the first day past due or a week later. Whom to contact first: by amount, by risk, by payment history. Which channel: a message, a call, a letter. When to change stage and tone. When to send a debt to court, to an agency or to sale.
In practice it is a table or a diagram: debtor segment, day past due, action, owner. For example, clients with a good history get a short reminder and a pause, while new clients with a large balance get a call on day one.
Why it matters
Without a strategy every agent works their own way. Some debtors receive ten messages a day, others none. Effort goes to people who would have paid anyway, and the difficult debts age.
A strategy makes the work manageable. A manager can change one rule and see how recovery and roll rates respond.
What to do
Start simple: split the portfolio into a few segments and describe a sequence of actions by day for each. Then test changes on part of the portfolio and compare it with the rest. That shows what actually works.
Review the strategy regularly. Clients, channels and laws change.
A common mistake is one strategy for everyone. A debtor who forgot a payment and one who has not paid for three months need different approaches. Limits on contact frequency and timing depend on the country and should be built into the rules from the start.
More in Signals
- Debt collection in messaging apps: what works and where the legal line isDebtors answer a message sooner than a call because there is no pressure of the moment, time to think and less shame. For a company that means a calm tone, clear amounts and dates, an agreement on a specific day and a reminder before it. Stay within the law: no threats, no night messages, no disclosure to third parties. The head of collections owns that line and reads the conversations.
- Collection agency and call center in messaging apps: the economics of switching from calls to chatMoving collections from calls to messaging apps pays off only if you measure it on your own data: compare the connect rate with the reply rate, promises with how many are kept, and the cost per contact before and after. People answer messages more readily because they answer when it suits them. Stay inside the collection and data protection laws of your country and start with a pilot on one group.