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Why Collections Scoring Doesn’t Work And How to Fix It!

Whether you are currently using scoring, have tried and failed to use scoring or are considering using scoring in your collections operation, doing it profitably can be an elusive endeavor. You can hardly turn a page in our industry reading without hearing someone tout the benefits of it. But is scoring really all it is cracked up to be? Are companies really making more money because of it, or are they finding it a giant waste of time and money? We will shed light on this, no matter which group above you are in.

Let’s first speak to those who don’t use scoring or have tried and failed. Are you in this group?

 

    • Your client mandates you have to contact every account no matter what. So you do, mostly.

 

    • Your corporate culture is that you believe contacting everyone no matter what, squeezing every drop from any and every account, is the best business practice.

 

    • You got burned, because your experience changed and now you don’t trust those misguided scores. You called on accounts that had a high likelihood of “collectability” scores, but they performed poorly. Conversely, you found that debtors who had low scores actually yielded some decent collections. You lost faith in the scoring model.

 

  • You used to use scoring but the results were scattered and you have no way to calibrate a scoring algorithm to the complexion of your collection portfolio. So you reverted to calling everyone simply by the way it’s queued up in your dialer.

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