What is data? Loosely defined, data is facts or statistics collected together for reference or analysis. That definition does a poor job of painting a picture to show you what data is, where you can find it, and what to do with it. It’s like the instructions competitors in “The Great British Bake-Off” get during their technical challenge, where they are told to “make bread” or “bake” and not given any additional information. But any collection operation that intends on being around for more than a few more months needs to know a lot more about data than that definition. They need to be eating it, sleeping with it, taking it to meet their parents.
Data should be influencing every decision you make - whom to call and when, what to put in the body or subject line of an email, where to put the “Make a Payment” button on your portal. Data has become a critical asset for making informed decisions and optimizing recovery strategies. As a company focused on helping organizations analyze their data, we’ve seen firsthand how leveraging the right information can drastically improve collection rates and operational efficiency. However, with the vast amount of data available, it can be challenging to identify which data points are truly essential to your collection operation. In this blog post, we'll explore the most important data points you should focus on, how AI in collections and predictive analytics can enhance their value, and provide actionable insights to help you take your collection strategies to the next level.
What makes this such a difficult topic is that this is very much a “your mileage may vary” type of situation. The data that you have access to and that is important to you is going to be different then the data that your peers and colleagues have access to and is important to them. It’s not exactly a snowflake situation, but the nuances and idiosyncrasies of different collection platforms and appetites for risk are going to change the quality and quantity of data inside a collection operation.
Generally speaking, here are some areas that will yield data you can put to good use. Some of this you may have access to and some of it you may not, but you can use this as a departure point.
Now that we've identified some key data points, let's explore how to effectively collect and utilize this information:
Identifying the most important data points that help improve your productivity and efficiency is crucial to the success of your collection operation. Look at the data your operation is creating, talk to others about what data they are using, and work with your vendors to create reports that yield insightful and actionable insights you can put to work today.