3 Tips to Get More From Your Re-Skip Process
TIP 1. Evaluate if Your Portfolio is Right for Re-Skip
First thing is first – the value of a re-skip process is derived from an agency’s business requirements. Do you collect on high margin debt or low margin debt? How long do you hold accounts before they are recalled? Do your accounts come pre-populated with consumer phone numbers? All of these questions build the framework for whether or not a re-skip process is even feasible. The higher your margins and the longer you hold the debt, the more attractive a re-skip process becomes.
Beyond this, dialing strategies and operational efficiency play a big part in how much value you can generate with an effective re-skip process. Be sure to exhaust your phone inventory within an account before sending it back out to a data provider. This will ensure you are maximizing your contact potential and not making premature investments.
TIP 2. Diversify Your Phone Sourcing
Another driver of value for re-skipping accounts is how you source the phones you acquire. A couple common pitfalls that limit the upside of such a process are:
Utilizing the same phone source over and over again
Are hit rates on your re-skip files substantially low? If you are seeing hit rates dip below 10% there is a reason for that – your phone provider has exhausted its pool of information for many of your consumers. In a recent experiment, we took a population of 5,000 accounts from a client (we’ll call them Client A) that were strictly re-skip accounts. Client A had been sending these accounts through the same data sources multiple times and were only realizing a hit rate of approximately 5%. We took this sample of accounts and sent them through 3 new data sources (not previously used by Client A) and were able to achieve a 25% hit rate. The best part? Quality didn’t dip. The client created high ROI by leveraging a simple task – mixing it up.
Not having any control over match logic
Concern lies on the opposite end of the spectrum as well. Rather than dealing with substantially low hit rates for re-skip, some may face an even bigger problem: the hit rate that can’t collapse. If you’re seeing hit rates upwards of 70% – 90% on the second go around – be warned. This could be an indication that match logic is loosening and the confidence that a provided phone number is associated to your consumer is disappearing. Obtaining phone numbers is the end goal – but only if a quality standard is in place. Ask your phone provider how they handle match logic and what restrictions they have in place – you’ll be happy you did.
TIP 3. Analyze KPIs Surrounding Data Acquisition
The third and final talking point is subjective – but highly important. Figure out internally what your organization wants to benchmark its data acquisition efforts on. My recommendation is to apply a quality metric somehow, whether it be Right Party Contacts, Promises to Pays, Actual Payments, etc. Use these KPIs to hold your data provider accountable as well as leverage them during testing or vendor shopping so you can compare apples to apples. A common metric we use internally is cost/RPC. (Related Article: 5 Factors that Affect RPC Rates.) Regardless of whatever metric(s) you choose for benchmarking your operations, make sure to use them as a guide for evaluating the risk and rewards of utilizing re-skip efforts in an attempt to maximize performance and liquidation.
LocateSmarter offers customizable skip tracing and compliance solutions that improve contact rates, reduce operating costs and minimize the risk of litigation. With agile development, superior customer service and transparency through analytics, we deliver products built by end users, for end users.