Keeping the delinquencies down by applying the right collections strategies has always been a major priority for companies. With the availability of several analytical tools the art of collections has become a science and its practitioners and observers have revealed several methods and strategies from time to time.
In this paper CoreCard will take a look at just one of those ideas and detail how companies can use the concept to improve their own collection practices, allowing them to lower their delinquency in a proven way. The concept is known as the Champion – Challenger technique.
Over the years, collection systems have become very sophisticated. The statistics they track, the ability to balance workloads, change campaigns from day to day, etc., are all powerful tools. But the Champion – Challenger technique allows companies to take collections to a new level of sophistication.
In the simplest terms, the collection campaign in use today would be known as the Champion. This is how business done at the company it works, and it is proven. The Challenger would be a campaign that is unproven, and has never been tried.
Using a system capable of running two different campaigns at once allows the testing of new ideas and ways of designing collection campaigns. This is what CoreCard examines in this white paper — fine tuning collection techniques using Champion – Challenger strategies.