What is Collection Process In BPO? | Hire Collection Agents

Businesses are tasked with a multitude of activities every day. Large enterprises usually outsource activities such as customer support, accounting, and debt collection to a third-party service provider. Wondering what the collection process in BPO entails? An outsourced telecalling collection team can assist by sending regular payment reminders to customers, prompting them to settle their outstanding balances. These reminders may escalate in urgency as the payment becomes more overdue.

The BPO call center team reaches out to customers via various channels such as phone calls, WhatsApp, emails, and other omnichannel methods to remind them of their outstanding payments. Telecalling agents may inquire about the reasons for the delay and attempt to negotiate payment arrangements if needed.

What is the Collection Process in BPO?

A BPO firm has specialized experience in the activities outsourced to it by a business through customer service experts. It follows a systematized process to accomplish the given tasks. In a Business Process Outsourcing (BPO) context, the collection process typically refers to the activities involved in recovering outstanding payments from customers on behalf of a client company.

The collection process in BPO also includes strategies to accrue debts and pending installments, especially in the case of Banking and Finance companies.

Now that you know what is collection process in BPO, let’s dig deeper and find out how it is carried out. The measures taken by a BPO company to collect due payments for their clients are given below:

Detailed Study and Analysis of the Client’s Debtors

The first step in the collection process in BPO is to take a deep dive into the books of accounting and evaluate the records. Collecting and scrutinizing information like the number of outstanding payments, the total amount unpaid, due dates, payment history, settlements, etc. helps the collection team to be well-prepared.

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Communicating With the Debtors

Once the data is reviewed, the team reaches out to the borrowers and intimates them regarding the collection. This can be done using various online or offline mediums like email, outbound calls, letters, etc. It is essential to contact them through the appropriate channel to avoid communication gaps or failure. These details can sent though using various telecalling software to prepare a report used to track connected calls details.

Determining a Mutually Agreed Settlement

If the customer responds within a given time, the collection team initiates debt recovery. There may be negotiation from the debtor and discussion regarding the settlement. Both the parties work out an agreement, which may include conditions like the final amount, date of settlement, and discounts or concessions (if any).

Revisiting and Reminding

In case the debtor fails to acknowledge or meet the terms of the agreement, the collection team follows up and sends reminders. This is done to give sufficient time to the debtor to arrange the funds and provide reasonable conditions for payment. It is ensured that a positive and professional decorum is maintained throughout.

Keeping a Record of the Collection Process

Accounting and finance is all about maintaining the books of accounts. Thus, the final step entails documenting and recording all the transactions, bills, vouchers, reports, communication history and other relevant facts and figures.

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KPIs of a Collection Process in BPO

There are some quantitative key performance indicators, or KPIs, that drive the collection process in BPO. These metrics help in assessing the efficacy of the procedure.

• Recovery Rate: This KPI determines the percentage of the outstanding balance successfully repaid during a particular time. A higher percentage of recovery rate signifies greater performance.

• Collection Rate: It is the proportion of debt outstanding that has been successfully repaid within a certain timeframe. A higher collection rate is a sign of a more efficient process.

• Compliance Rate: This KPI assesses compliance with regulations and legal requirements during the procedure. It assures that collection is carried out ethically and complying with the law.

• First Contact Resolution Rate: It is a measure of the proportion of accounts in delinquent status that are resolved when the creditor is contacted for the first time. A higher resolution rate indicates a successful and efficient collection process.

• Average Days Delinquent: This KPI determines the average days payments remain outstanding after the due date. A lower average days delinquent is an indicator of a more efficient collection process.

• Call Quality: This key performance indicator evaluates the quality of interactions between collection agents and debtors. It considers factors such as adherence to the script, professionalism, understanding, as well as resolution abilities.

• Aging of accounts: This KPI examines the division of outstanding loans based on their age. It assists in identifying obstacles to the collection and helps direct efforts on more difficult accounts.

These KPIs help in identifying the strengths and weaknesses of the collection process in BPO. They establish the areas of improvement and increase the overall productivity.

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