The Analysis Forums
Collector loading
Feedback from questions on the right workload volumes for credit controllers
Laurie Beagle Managing director, Forums International
lauriebeagle@forumsinternational.co.uk
An issue we have all attempted to consider and get the right formula in place for our firms is as follows: from experience, we all know that ‘collector loading’ depends hugely on the portfolio they manage, from a few massive complex accounts with large document volumes to the hundreds of small SMB customers with few but often regular billings. So we asked our members: typically how
many accounts do your collectors each handle? We received some interesting feedback which I would like to share with you. The actual numbers varied: 140-150 per
head, 450+ accounts, typically around 500- 600 accounts per controller, 700-800 mixed account optimum volume unless high volume low value. These are the numbers. The comments and strategies are very interesting: l It varies region to region and even within region, as some city-centre locations may be more demanding. Equally, the nature of client brand to brand varies so it is very difficult to determine a one-size-fits-all approach. l Each regional manager manages the respective workloads and it does not seem to cause any issues of manageability or any imbalance across controllers. Often any imbalance is soon balanced by allocation of other duties within the office. l Typically, around 500-600 accounts per controller, but they do it all: distribution of invoices, statements, handling queries, and chasing debt. The accounts range from £500 single-invoice debts to multiple invoices up to 500 invoices on an account for £250,000 and more. l It seems to work well here when we carefully match controllers to major accounts – we take time with them to understand the customer and sometimes, where practical, arrange for them to meet the key contacts at the other end. l Besides volumes, the need for customer retention and service is also paramount in how we distribute workload among different types of account, and this also impacts on having people with the right strengths and personalities handling different types of account. l Our credit controllers have a total of around 1,000 customers each, but around 30% to 40% will be non-trading at any time. We place a lot of emphasis on telephone contact – the personal touch – so, in the vast majority of cases, we call customers when chasing for
March 2019
From experience, we all know that ‘collector loading’ depends hugely on the portfolio they manage
any monies needed and take a fair amount of card payments as a result! l Experience both here and at previous companies is that telephone contact is the most effective form of communication with customers, supported by dunning and pre- legal or collections letters where appropriate. The call is not just about getting the current debt paid; it is about any snippets of information given away during the call that may highlight a bigger problem – such as cashflow issues or potential insolvency. lThe main challenge, whether volume calling or high-value accounts, is keeping people phone-focused. Meaning that they optimise call times at prime availability of clients, rather than getting bogged down with admin. l Better collectors will call their large debts early in the month and make sure they cover every invoice on the account whether due or not, and always add clear notes to the account. l For the size of our business, we have a well-managed query-management system, but the query resolution can be problematic
based on the personality of the credit collector. For example, just noting that someone else is involved does not mean the problem has been resolved or will get resolved, ownership is, therefore, a constant debate to make sure we all work to solve an issue swiftly. Some are good at it, and some not so good resulting in longer payment terms. Thanks to our forum members for their input. It appears volumes vary, but how the collectors operate is the factor of key importance.
March and April forums l 21 March – Business & Office Supplies Credit Forum, London** l 9 April – Credit Professionals Forum, Bracknell l 10 April – SAP User Group, London l 11 April – IT Distributors & Resellers Credit Forum, Stratford- upon-Avon l 14 May – Export Credit Forum, London** l 14 May – ICT Credit Forum, London** l 16 May – Fraud Prevention Forum l 6 June – Senior Credit Management Forum – Stratford-upon-Avon ** virtual access available CCR
www.CCRMagazine.com 13
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