12 Collection Strategies for Every Aging Bucket


Compilation of strategies used by top-performing collectors across 15 industries

Contents

Chapter 01

The Right Approach to Develop a Collections Strategy

Chapter 02

Developing an Effective Collections Strategy

Chapter 03

12 Collection Strategies for Every Aging Bucket

Chapter 04

Additional Notes

Chapter 05

About HighRadius
Chapter 03

12 Collection Strategies for Every Aging Bucket


Plan Of Action:† 12 Effective Collection Strategies

Customer Segmentation

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

 

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HighRadius Collections Software automates and optimizes the credit & collections management process to improve collector efficiency, minimize bad debt write-offs, improve customer relationships, and reduce DSO. It provides a complete set of tools to optimize and automate the credit collections management process and enable the better prioritization of credit collections activities All the information you need (invoices, dispute information, POD, claims, tracking info, etc.) on each case is automatically presented in a collections work-space and is ready for use. Apart from the wide variety of benefits that it has, it also comes with some amazing features like CADE (Collection Agency Data Exchange), collector’s dashboard which has prioritized collections worklist, automated dunning & correspondence, dispute management, centralized tracking of notes, call logs & payment commitments along with cash forecasting functionalities. The result is a more efficient collections team that contributes to enhanced cash flow and reduced DSO.