Insights

7 Tips To Turn Skip Tracing Into A Profit Center

Missing debtors and collateral can be expensive to chase especially in market conditions where companies and service providers are feeling squeezed to cut fees to stay price competitive.

It is not a surprise that collection and collateral recovery organizations are tempted to scale back or eliminate skip tracing.  When the balloon gets squeezed on one side the other side often bulges out larger best project tracking software.  This is the case with skip tracing and the bulge is the unintended impact skip trace cuts are having on recovery rates and overall ROI.

Consider these tips to help your internal and outsourced collection teams turn skip tracing into a profit center.

  1. Layer in additional data vendors to increase locates and boost recoveries.
  2. Spend more for skip data and services that significantly move the revenue needle, even if it reduces your ROI rate.
  3. Evaluate labor and opportunity costs of using free and manual skip searches to determine processes that can be automated to get higher resolution rates out of your staff.
  4. Monitor call penetration rates when evaluating performance of data companies and skip strategies.
  5. Add metrics that track efficiency (right party rate, cost per right party contact) and effectiveness (revenue or fees recovered or collected, ROI)
  6. Use relatives and place of employment searches to boost recoveries.
  7. Outsource select accounts to an experienced service provider which is often cheaper and more effective than skipping or resolving the account in house.

The bottom line:  Wise skip tracing investments can yield big returns, especially in an environment where other companies and service providers are minimizing efforts on hard to locate accounts.

 

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