Testing skip trace vendors isn’t rocket science but it’s not as straightforward as you might think. The things we’ve learned from different skip trace testing methods may surprise you.
Method 1: The Copycat
It’s natural for collection organizations to adopt products and strategies of market leaders and skip testing altogether. The ‘Copycat Method’ often fails to deliver, but why? Products and strategies underperform when they aren’t well matched to their environment. The way you connect and collect is unique and the best strategies are unique too. In our experience, the ‘copycat method’ is a good method to get new products into your testing funnel but not the best approach to helping your achieve your goals.
Method 2: The Data Test
A file of the same or similar accounts are sent to multiple data providers. Calls are made, results are scored. In our experience, sample sizes are often too small and the processes used in testing rarely match real-world environments.
Method 3: Overlap Analysis
Determines the data overlap and uniqueness of data returned by data providers on the same set of accounts. It’s a powerful purchasing and strategy refinement tool but does not accurately predict vendor performance in a real-world environment.
Method 4: Advanced Strategy Optimization
Optimization strategies weighs performance based on each strategy option based on desired performance outcomes. It’s a scientific way to determine the data vendors to use and the order in which to use them. A powerful method that should be used with care however how theories play out in production may surprise you.
Method 5: The Champion Challenger
We love a challenge and what could be sexier than outperforming the champion? Champion/Challengers test competing strategies against a current strategy (‘the champion’). Accounts are randomly split into equal segments and run in a production environment until sufficient performance data is present and can be analyzed. Larger sample sizes are used in an environment using a company’s actual process. We’ve learned the Champion/Challenger approach is the most reflective of how products and strategies will perform in a production environment project task tracking software.
At TEC, we’ve learned testing skip trace vendors isn’t rocket science but each approach has its pro’s and cons. We use a combination of testing approaches to determine the vendors we select and where we place them.