5 Factors that Affect Right Party Contact Rates
One of the most important metrics you can look at when evaluating your call disposition data is right party contacts (RPC). This is because RPCs have a direct correlation to dollars collected. However, if you look at right party contact rates from portfolio to portfolio, you will notice they are not the same across the board. While there are many things that can impact your RPC rate, here are 5 factors that might be affecting you.
Quality/Completeness of Existing Data
Good data in, good data out. The more (correct) data you have on a consumer, the easier it is to match and get an RPC. For instance, utility companies usually have higher quality data since the address on the account is used to receive the service. Additionally, utilities’ delinquency allowances are shorter in duration, increasing the reliability of existing contact information. On the other hand, municipality debt like parking fines and tollways tend to have lower RPC rates due to the limited identifying data they send for matching.
Age of Debt / Number of Times Skip Traced
A debt’s age, along with previous collection and skip tracing attempts, can also impact the reliability of your existing consumer information. Consider first party collections: maybe the consumer forgot to pay their bill, maybe your phone call or letter is the first they’ve heard of the debt. Whereas, with purchased or old debt, the consumer may be aware of the debt and is trying to avoid it with false wrong number claims or by not answering their phone. This type of behavior will reduce your right party contact rates.
Related Article: 3 Ways to Get More Out of Your Re-Skip Process
Cell vs Landline
Cell phones consistently convert to RPCs faster than landlines. In fact, in a recent study, we found that cell phones converted almost 3X faster.
Pro Tip: If you have the capacity to dial cell phones in compliance with the Telephone Consumer Protection Act, make sure you tell your data providers to focus more on cell phones and less on landlines.
Consequences of Non-Payment
When there are multiple bills to pay and limited income, the consumer may assess the impact of non-payment. Therefore, expenses like utilities (electricity, phone bill, etc.) may be paid prior to credit card debt since turning off a household’s phone or electricity may be more detrimental than not being able to use a credit card for a retail store. This logic also affects the likelihood of the consumer answering the phone.
Low Balance vs High Balance
The balance of the debt can also play a factor in RPC rates. There are portfolios that generally have lower balances and therefore, the consumer may be more inclined to answer their phone and pay their debt. Whereas, debt types like student loans and medical debt may be ignored due to a high balance that feels impossible to pay off.
With so many factors affecting right party contact rates, it’s important to consider your portfolio and the consumer characteristics. LocateSmarter works with clients to determine the best strategy and data sources to maximize RPCs. Want more information? Contact us at 888-254-5501 or fill out our contact form.
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.