Understanding the costs involved in debt collection can feel like an uphill task, filled with many variables and challenges. In this blog, we’ll dissect these costs, starting from the fundamental ‘cost per seat’ model.
Additionally, we’ll explore how reducing these costs with debt collection software solutions can lead to a higher profit margin. We’ll examine how the latest technology — including solutions provided by Latitude by Genesys — can play a pivotal role in effectively and efficiently managing costs.
Breaking down the costs
In the realm of debt collection, the ‘cost per seat’ is a key factor in understanding your profitability. This figure, which for over a decade typically hovered around $5,000 per seat, encapsulates all operational aspects of your business, and provides a rough estimate (based upon internal allocation) of what each collection seat “costs” within a calendar month. Payroll, rent, software costs, management costs, utilities, insurance, licensing, (and even paper clips!) all factor into this number. Every seat in your organization is an investment; debt collection software from Latitude by Genesys can help to maximize profits while reducing operational costs.
Balancing costs and profits
While it’s critical to understand these costs, it’s equally important to understand the balance between cutting costs and ensuring the effectiveness of collections. Simply put, reducing collection costs can significantly boost your profit margin. However, this isn’t about indiscriminately slashing costs; it’s about strategically reducing expenditures without compromising the efficiency or quality of your collections and compliance operations.
The power of omnichannel communications
A game-changing aspect of an updated cost-saving strategy lies in the use of omnichannel communications software. This software substantially reduces the costs associated with phone calls and human interactions. Collections businesses can not only save resources but also streamline operations and improve customer service by centralizing communication across various channels like email, SMS, IVR, and live agents using specialized debt collection software.
Embracing the Genesys Cloud
One of our highly successful solutions is the Genesys Cloud option. This cloud-based data solution minimizes in-house costs by reducing IT needs and server maintenance. It enables your business to be more agile and responsive, which not only contributes to cost savings but also enhances your ability to provide excellent customer service.
Streamlining operations with customizable KPI’s & Reporting
With our suite of tools, businesses have the capability to simplify their operations without compromising effectiveness. We provide specialized tools and a comprehensive reporting system to keep you informed about your operations and help control costs. These tools, which include KPI reports and dashboards, do not require specialized staff or extensive report-building knowledge to set up and use. This user-friendly approach results in significant time and cost savings, allowing you to focus more on the core business of debt collection. Better data invariably leads to better decisions, particularly regarding cost management and efficiency improvements.
Boosting effectiveness with Latitude by Genesys
We aren’t just about reducing costs; we empower businesses to be more effective in their debt collection and recovery processes. The Latitude by Genesys solution is a comprehensive platform for managing all pre- and post-charge-off accounts and workflow processes. In this balancing act, strategic partnerships can be incredibly valuable. Latitude has forged numerous partnerships that enable services to be provided to our clients at a reduced rate. This allows businesses to maintain their efficiency and effectiveness while cutting down costs.
From student loans to overdue credit card payments, first-party creditors, debt buyers, and collection agencies can easily manage all phases of the debt lifecycle. This eliminates gaps in functionality, reduces the pressure on your agents, and ultimately, increases recovery rates.
With Latitude by Genesys, collectors and agents can access the tools they need to manage the debt collection and recovery process. We also make it easy for creditors, supervisors, managers, administrators, and support staff to work within the Latitude platform cohesively and cooperatively.
Furthermore, clients have the capability to maintain account and contact information, track account activities, record account notes, set account reminders and follow-up dates, schedule and process payments, and even connect to a predictive dialer program to facilitate working accounts. Latitude by Genesys, particularly when paired with Genesys Cloud, is effectively “collections in a box” minus the people.
Reduce costs of debt collection
Navigating the costs of debt collection may seem daunting, but it doesn’t have to be. With a clear understanding of the costs involved, a strategic approach to reducing those costs, and the right tools and technology, this journey can be made much smoother to help your organization succeed in a changing environment.
At Latitude, we take pride in providing comprehensive solutions that empower debt collection agencies to take control of their costs, improve efficiency, and ultimately, increase their profitability. This allows you to focus on what truly matters—growing your business and succeeding in the complex landscape of debt collection. Contact us today to learn more.
About Latitude by Genesys
Latitude by Genesys® is a comprehensive debt collection and recovery solution for managing all pre- and post-charge-off accounts and workflow processes. It provides collectors and agents with the tools to manage the debt collection and recovery process and provides full functionality for the collector’s or agent’s desktop and deploys as a true zero-footprint, browser-based environment. Since 1996, Latitude’s focus has been to provide the most forward-thinking, attractive solution to the business needs of different people and companies in the accounts receivable management (ARM) space. Acquired by Genesys in 2016, Latitude is continually growing, innovating, and reshaping the technology expectations and customer experiences of ARM companies and their consumers.