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In the dynamic and complex ecosystem of debt collections, measurement of success is paramount for both lending institutions and their partners. Debt collection platforms play a vital role in facilitating the recovery of outstanding debts and helping creditors regain financial stability. A robust set of metrics and Key Performance Indicators (KPIs) is useful to assess the effectiveness and efficiency of collection teams and platforms. For lending institutions, it is imperative to understand the importance of measuring success in debt collections, explore the key metrics, and KPIs used to evaluate debt collections platforms, and know how to leverage these insights to drive improved performance and outcomes. 

It is vital for lenders to stay abreast of industry trends, emerging technologies, and evolving customer expectations. By embracing a data-driven culture and leveraging the power of metrics and KPIs, debt collections teams can optimize their operations, enhance customer experiences, minimize risks, and drive sustainable growth.

Some of the most common metrics used in debt collections to measure the efficacy of recovery efforts and outreach are discussed below. 

  1. Days Past Due (DPD): Days past due (DPD) is used in debt recovery efforts to measure the number of days by which a payment is overdue. It represents the length of time that has elapsed since the due date for the full EMI payment without it being received. DPD is commonly used to assess accounts’ delinquency or late full EMI payment status. For example, if an EMI payment was due on March 15th and it is now April 1st, the DPD would be 17 days. This indicates that the payment is 17 days past the scheduled due date. The DPD can vary depending on the terms and payment schedule the lender and borrower agree upon. 

Days past due is an important metric for lenders, as it helps them monitor the timeliness of payments and identify accounts that are becoming delinquent. It enables them to take appropriate actions, such as sending reminders, initiating collection efforts, or implementing penalties for late payments. 

  1. Average days delinquent (ADD): Average days delinquent is used in debt collections to measure the average number of days that accounts remain overdue or past due. It provides valuable insights into the efficiency and effectiveness of debt collections process, allowing lenders to assess their ability to collect payments from delinquent accounts within a specific time frame.

The formula for calculating average days delinquent is as follows:

Average Days Delinquent = Sum of Days Delinquent for All Delinquent Accounts / Number of Delinquent Accounts

Let us take the case of a debt collection agency that is monitoring five accounts that are 30 days, 45 days, 60 days, 90 days, and 120 days past due. We add up the total days past due for all accounts and divide it by the total number of past due accounts to determine the average number of days delinquent.

Average Days Delinquent = (30 + 45 + 60 + 90 + 120) / 5 = 69 days

In this example, the average number of days delinquent for the delinquent accounts is 69.

By tracking and analyzing the average number of days delinquent, lenders can identify trends, evaluate the impact of collections strategies, and implement measures to improve their collections process. It allows them to set benchmarks, establish targets, and compare performance across different periods or segments of delinquent accounts. Additionally, it provides insights into the effectiveness of customer communication, payment reminder systems, and overall credit management practices.

  1. Collection Rate, or RoR %: The Collection Rate is used to measure the effectiveness of the debt collections team in recovering outstanding debts. It represents the percentage of total outstanding debt that is successfully collected within a specific period.

To calculate the Collection Rate, the following formula is applied:

Collection Resolution Rate or R = (Total Amount of Principal Outstanding Cured / Total Amount of Principal allocated) * 100

For example, if a debt collections team has Rs. 5,00,000 in outstanding debt and successfully collects Rs. 4,00,000 within a month, the Collection Rate would be:

Collection Rate = (4,00,000 / 5,00,000) * 100 = 80%

A high Collection Rate indicates that the debt collections team / platform is effective in recovering debts from borrowers. It reflects the ability to successfully negotiate payment arrangements, implement effective collection strategies, and maintain strong relationships with borrowers. A low Collection Rate, on the other hand, suggests that there might be challenges in recovering debts. It could be an indication of ineffective collection techniques, poor communication with borrowers, or a need to improve the overall debt recovery process.

  1. Percentage of outbound calls resulting in promise to pay (PTP): ​​The percentage of outbound calls resulting in Promise to Pay (PTP) is a metric used to measure the success rate of debt collections agents in securing commitments from borrowers to make future payments. PTP refers to an agreement between the agent and the debtor, where the debtor promises to pay a certain amount of the outstanding debt on a specific date or within a designated time frame.

The formula for calculating the percentage of outbound calls resulting in PTP is as follows:

Percentage of Outbound Calls Resulting in PTP = (Number of PTPs / Total Number of Outbound Calls) * 100

For example, if a debt collections agent makes 100 outbound calls and manages to secure 25 PTPs during a specific period, the percentage of outbound calls resulting in PTP would be:

Percentage of Outbound Calls Resulting in PTP = (25 / 100) * 100 = 25%

A higher percentage of outbound calls resulting in PTP indicates a higher success rate in obtaining commitments from borrowers to repay their debts. It reflects the effectiveness of the agent’s communication skills, negotiation techniques, and ability to establish rapport and trust with debtors. Conversely, a lower percentage suggests that the agent may face challenges in securing PTPs. It could be an indication of ineffective communication, a lack of persuasive skills, or a need for improved strategies to motivate borrowers to commit to repayment.

  1. Right Party Contacts Rate (RPC): The Right Party Contacts (RPC) rate is used in the debt collections industry to measure the effectiveness of reaching and engaging with the correct party, typically the borrower or the person responsible for the outstanding debt. It represents the percentage of attempted contacts that successfully connect with the intended recipient.

When a debt collection agency or platform attempts to contact a borrower, they make multiple calls or send communications to reach the individual. The RPC rate measures the success of those attempts to reach the intended party and have a meaningful conversation or interaction regarding the debt.

The RPC rate is an important metric for debt collections as it provides insights into the efficiency and effectiveness of their contact strategies. A high RPC rate indicates that a significant proportion of contact attempts are successfully reaching the intended parties, allowing for productive conversations, negotiation of repayment plans, and progress toward debt resolution.

  1. Connect Rate: Connect rate, also known as call connection rate, is a metric used in debt collections to measure the percentage of borrowers who have picked up the call at least once. It represents the effectiveness of outreach efforts in reaching and establishing contact with the targeted individuals or customers.

The connect rate is calculated by dividing the number of borrowers who have answered or picked up the call by the total number of borrowers allocated, and then multiplying the result by 100 to express it as a percentage. 

For example, if a collections team has 100 cases to call and successfully connects with 70 prospects, the connect rate would be 70%.

It is important to note that while a high connect rate indicates the effectiveness of outbound calling efforts, it does not imply that the lenders have established contact with the intended audience. The metric for measuring the efficiency of the outreach process in successfully engaging with the targeted individual, is the Right Party Contact Rate, which is a broader KPI that presents a more accurate picture.

  1. Non-contactable rate: The non-contactable rate is a metric used in debt collections that measures the percentage of attempted calls that are unsuccessful in reaching the intended borrower. It represents the number of calls that result in no contact with the desired individual.

The non-contactable rate is calculated by dividing the number of unsuccessful or non-contactable borrowers by the total number of attempted borrowers and multiplying the result by 100 to express it as a percentage. The formula is as follows:

Non-Contactable Rate = (Number of Non-Contactable Borrowers / Total Number of Borrowers) x 100

For example, if a collections team allocates 100 cases but is unable to reach 20 of them, the non-contactable rate would be 20%.

The non-contactable rate provides insights into the effectiveness of the contact information available for the targeted contacts. A high non-contactable rate may indicate issues such as incorrect or outdated contact details, disconnected phone numbers, busy lines, voicemails that are not answered, or individuals who are consistently unavailable.

Debt Collections Platforms


By setting clear targets and benchmarks, debt collections teams can establish a framework for success and measure their performance against defined goals. These metrics provide a comprehensive view of various aspects of the collections process, from efficiency and effectiveness to financial performance and customer engagement. Regularly tracking and analyzing these metrics allows organizations to make data-driven decisions, implement targeted strategies, and continuously improve their collections practices.

It is important to note that while these metrics are valuable, their interpretation and application should be tailored to each debt collection team’s specific context. What works for one platform / team may not necessarily be applicable to another. Therefore, it is crucial to align the chosen metrics with the strategic objectives and unique characteristics of the debt collections platform. With a focus on continuous improvement and a commitment to data-driven decision-making, debt collections platforms can navigate the complexities of the industry, deliver exceptional results, and ultimately contribute to improved collections mechanisms and an exceptional borrower experience. 


  1. What are collections metrics?

Collection metrics are specific measurements used to evaluate and track the performance and effectiveness of debt collection efforts. These metrics provide valuable insights into the efficiency of collection processes, the success of debt recovery, and the overall financial health of the collections department or organization. They measure different parameters and their efficacy in the overall debt collections process. 

  1. Why are metrics in debt collection important?

Metrics in debt collections are important for several reasons:

  1. Performance Evaluation: Metrics provide a quantitative measure of the performance and effectiveness of debt collection efforts. They help evaluate the success of strategies, campaigns, or individual collectors by tracking key performance indicators (KPIs).  
  1. Goal Setting and Targeting: Metrics help set specific goals and targets for debt collection activities. By defining desired outcomes and benchmarks, lenders can establish performance targets for collectors, teams, or the entire collections department. This enables a clear focus on desired results and helps align efforts towards achieving those targets.
  1. Efficiency and Productivity: Metrics allow lenders to monitor and analyze the efficiency and productivity of their debt collection processes. By tracking metrics such as calls made, promises to pay (PTP), resolution rates, or accounts worked per day, they can identify areas where efficiency can be improved, streamline workflows, and allocate resources effectively to maximize productivity.
  1. Compliance: Metrics play a crucial role in ensuring compliance with industry regulations and internal quality standards. By tracking metrics related to consumer protection, regulatory compliance, and adherence to best practices, lenders can monitor and enforce compliance measures. This helps mitigate legal and reputational risks and ensure ethical and responsible debt collection practices.

3. What is days past due?

Days Past Due (DPD) is a term commonly used in the context of debt collections to refer to the number of days by which a borrower’s full EMI payment is overdue beyond the scheduled due date. It is a measure of the delinquency status of an account and indicates how many days the borrower has fallen behind in making the required payments.

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