5 Ways to Spend Less Money on Skip Tracing Data
Last Fall, we published a series of tips aimed at helping readers reduce skip tracing expenses by reducing excess/unnecessary data, proactively minimizing wrong numbers and looking at the overall cost of your skip tracing efforts. We have compiled all of these tips into one convenient blog, so without further au due, here are 5 ways to spend less money on skip tracing data:
Tip 1: Ensure Your Batch Skip Tracing Strategy Aligns with Your Dialing Strategy to Avoid Waste
Spending money on phone numbers you’re not going to dial just doesn’t make sense. However, this happens far too often. In this illustrated example, landline phone numbers were rarely called. To prevent unnecessary data expenses for our client, LocateSmarter modified their custom product to return less landlines and instead concentrated on cell phone numbers. Make sure your dialing strategy aligns with your skip tracing strategy to avoid waste and save money.
Tip 2: Strive to Reduce Excess Data by Identifying Non-Performing Data Providers and/or Sources
A high hit rate is oftentimes viewed as a good thing, however, when many of those phone numbers do not result in a right party contact (RPC), you need to evaluate the wasted resources and unnecessary data expenses associated with them. By choosing a data provider that returns less excess data, you not only save money on the data expenses themselves, but also mitigate the risk associated with dialing wrong numbers. (View client example here.)
Tip 3: Identify Where Your Wrong Numbers Are Coming From to Avoid Costly Lawsuits
Wrong numbers can be very costly both from a performance standpoint and due to the risk of CFPB complaints, fines and lawsuits. It is important to identify which skip tracing vendor(s) are putting you most at risk as it can have major financial impacts. Our analytics client had 12 lawsuits brought against them due to wrong numbers. During our analysis of their wrong numbers and disposition data, we found that 9 of the 12 phone numbers came from the same skip tracing vendor. As a result, they eliminated that vendor. By evaluating and eliminating the data providers that pose the most risk, you can protect yourself from future complaints and lawsuits. (Read Tip #3 in its entirety here.)
Tip 4: Evaluate Cost per RPC – Not Just Price Per Hit
Using cost-per-RPC, a vendor with higher pricing may still be a better option if their RPC-to-hit ratio is higher. When multiple vendors are used, give priority to the vendor that returns the lowest cost per RPC to reduce overall skip tracing spend. (View champion challenge example here.)
Tip 5: Ensure You’re Not Skipping Records You Won’t Contact
In many portfolios, a consumer that is identified as bankrupt, deceased or litigious would not require additional skip tracing. Yet, without proper programming and products, you may still incur additional skip tracing expenses without realizing it. LocateSmarter offers multiple products and the ability to manage your workflow through our patented platform, so if you do identify an uncollectable consumer, you can halt the record from further skip tracing with a click of the mouse. (View Tip #5 in its entirety here.)
If data quality matters to you, make sure you are getting your skip tracing data from a vendor that also cares. Contact LocateSmarter today for your skip tracing data needs at 888-254-5501 or fill out our contact us 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.