The current global scenario has made it tough to collect debts from delinquent accounts. However, portfolio penetration can help you recover a significant amount of money from your portfolio of accounts. The challenge with penetration is the associated high costs, but there are ways to minimize these expenses while still obtaining desirable results.
What is Portfolio Penetration?
Portfolio penetration involves working on accounts that were previously neglected or not given enough attention. The cost of portfolio penetration includes letter expenses, scoring expenses, and phone call costs. To minimize expenses, you can start by scoring all your accounts and then dividing them into various segments based on their scores. This allows you to develop a collection strategy for each segment based on the total cost involved.
The reality is that the more you invest in portfolio penetration, the more money you can recover.
Reducing Penetration Costs
To get the most out of each segment, focus on reducing the costs while maximizing returns. The cost of letters cannot be reduced, but you can make the letters more impactful to elicit a response from the customers. For example, by placing an appealing font for the self-pay option on the letter, you can encourage debtors to self-pay and reduce your costs.
Inbound and outbound call costs are another high expense associated with portfolio penetration. You can reduce these costs by collecting from inbound expenses and notifying customers to pay through your agents or through notifications. Additionally, you can hire less skilled professionals for the job as it does not require a lot of expertise, thus reducing your expenses.
In conclusion, the key to deeper portfolio penetration is reducing the cost of all processes involved. Look for ways to minimize your expenses as much as possible to maximize your collections.
Don't wait any longer! Take action today and start optimizing your portfolio of defaulted accounts through deeper penetration. By working with a reliable debt collection agency, you can reduce costs and increase your chances of collecting more money from each account. So, why not make the smart choice now and give your portfolio the boost it deserves? Get in touch with a