Many industries are associated with simple mnemonic devices that represent some important characteristic, rule, or standard of that particular business sector. A few widely recognized examples include the “Four Cs” of diamond quality—Carat weight, Color, Clarity, and Cut—established by the Gemological Institute of America around 1950 to create a standard grading system for diamonds and the “Three Rs” of education: Reading, wRiting, and aRithmetic. Although less commonly known, the debt collection industry has a three letter axiom of its own: the “Three Ps.”
Within the accounts receivable management (ARM) industry, the Three Ps stand for People, Postage, and Phones. In addition to being among the most important tools used in the process of collecting delinquent receivables, the Three Ps also account for the lion’s share of collection agencies’ costs of doing business. And in 2011, one of those budgetary line items just got more expensive.
Is the U.S. Postal service change affecting your collection strategy?
10 Tips for Collection Letters
The following is prioritized list of ideas you should consider doing on a daily basis, along with a few new ideas and opportunities, regarding your company’s collection letter practices.
Is your company following these collection letter strategy best practices?
- Full Service Intelligent Mail Barcode (IMB)
- Market Testing
- Consider using pre-cancelled stamps
- Download the paper for the rest of Surebill’s checklist.
Actionable, Timely Steps for Collection Letter Strategy
If you employ some or all of these options you should see short-term cost relief and long term letter program improvement. Download the paper and get the full list of ten action items for optimal collection letter cost performance.
Managing Editor, insideARM.com