Your RFP template for selecting an innovative debt collection agency

Finding the right debt collection partner for your credit or consumer-facing organisation can be overwhelming. Every agency offers something different, so how do you screen for the best fit?

The answer? A clearly defined Request For Proposal (RFP) framework.

This crucial step will determine which collections partner will not only meet your immediate needs, but push the envelope to meet your long-term goals as you grow.

We asked collections experts Justin Parker from 2nd Order Solutions, and Hugo Rajotte, VP of Growth at InDebted, what they look for to identify an innovative debt collection partner. Here, we outline six of their top criteria.

Apply them to your RFP today to save time and resources by future-proofing your organisation.

Six essentials to build into your RFP

Consider this list as a starting point to decide which partner offers the most value to your organisation now and in the future.

1. Scalability

Set your organisation up for success with a collections partner that supports your growth ambitions. From market expansion to increasing customer demand, you need a partner that will scale with you. Here’s a few questions to screen for the best fit.

How will they ensure sufficient resources and capacity to service your accounts?

The right partner should offer the flexibility to scale effortlessly with technology and support to handle increased accounts — without compromising performance or customer experience.

If you’re a global organisation, how many markets are they operational in, and can they support your geographical expansion?

Where are they operational now, and what (if any) markets are on their roadmap? If they’re expanding, what’s their experience in meeting complex regulatory requirements across multiple jurisdictions?

What’s their referral capacity? Does their solution restrict your growth, or does it offer limitless referrals and scalability?

2. Data security

Robust security infrastructure is non-negotiable. Faults in data security aren’t worth the risk to your organisation’s reputation, regardless of the high performance results a potential partner may offer. Find out if they match your standards by checking the following:

Can you be confident they will protect your customer data?

Understand what policies and processes they have in place, how consumer data is used and secured, and whether they match your organisation’s benchmarks.

Do they meet all data security requirements?

Ask for information on certifications and global standards such as ISO27001, ISO9001 and PCI compliance, and how they are applied in practice.

3. Compliance

Safeguarding your organisation with a trusted collections partner is crucial to reducing compliance risk.

During your RFP process, it’s important to be aware of red flags such as a high volume of customer complaints and unresolved customer or regulatory issues. These can indicate poorly managed compliance. Evidence of regular staff compliance training alongside robust policies and monitoring is a positive sign of a reliable partner. Here are a few other points to consider.

How do they meet regulatory and consumer protection requirements?

A modern debt collection partner will ensure regulatory requirements are met, while identifying opportunities to improve the customer experience.

How do they protect vulnerable customers experiencing hardship?

Beyond what’s legally required, are they actively recognising signs of vulnerability across all channels, not just in conversations with agents? Are they offering effective support? What does customer advocacy look like within their organisation? You may ask them to provide evidence of this.

4. Data analytics & reporting

Access to comprehensive, quality data unlocks greater recovery performance and partner accountability. Think beyond standard collections metrics. How could real-time engagement insights, such as SMS response or click-through rates, improve your customer journey and wider organisational strategies to give your business an edge? Leave no stone unturned when clarifying the capabilities of potential partners with questions such as:

How is data integrated throughout the customer journey?

A modern debt collection partner should employ internal and external data to respond to customer needs at every touchpoint. Internal (proprietary) data consists of customer interactions with the solution, offering critical insight into the behaviours and preferences of customers.

In contrast, external data from third-party sources may identify emerging consumer demands and help you gain a broader perspective on the market. Together, they form a complete picture to determine areas to strengthen your collections journey.

Can they manage campaigns across multiple channels simultaneously?

Let’s say your organisation prioritises SMS and voice as a key part of your recovery strategy. To deliver top performance and delight customers, the right partner won’t operate these channels in silos. They’ll use data to create a consistent, omnichannel experience across a variety of channels so your customers can engage in the way they prefer. Make sure your potential partner matches the intuitive experience your customers expect.

Do they have real-time insights dashboards?

With real-time data comes the ability to keep your strategy adaptable, and hold your partners accountable. Weigh up how often you need to see key metrics and performance data — if you can’t afford to wait for updates, this on demand access may be a deal breaker.

5. Agent management & training

Collections performance and agent performance are closely tied. Finding an innovative debt collection partner that matches your approach to customer care is essential for continuity and safeguarding your reputation. To identify the strength of their operational capabilities, ask questions such as:

• How do they incentivise and manage the performance of their agents?
• How are their agents trained to provide empathetic, professional and courteous service to all customers?
• Which languages can their agents communicate to customers in?

The right partner will act as an extension of your organisation — make sure they act and sound just like you do.

6. Technology

The lynchpin of a modern debt collection partner is their investment in technology and continual innovation. Will their technology meet your organisation’s needs as you grow? Here are a few prompts to find out.

Did they build their technology, or is it licensed (off the shelf)?

This may impact their flexibility or limit their adaptation to changing consumer expectations.

How does their technology influence the customer journey?

From simple automation through to machine learning models — there are varying ways in which technology can determine the next best action for your customer.

How will your accounts be referred?

Gain confidence that your customer data will be securely transferred into their systems by understanding their recommended onboarding method, such as a standard SFTP upload or API integration.

Are their technology platforms scalable and can they handle increased volume during peak periods?

A long-term debt collection partner should have the means to handle fluctuating economic cycles and support your organisation’s growth.

How frequently do they update and improve their platform?

Are they constantly innovating and building new features into their platform to meet evolving customer expectations?.

Download the free RFP template

Streamline your RFP process to save time and resources with our free template. It covers all the essential criteria for selecting an innovative debt collection agency, with input from experts like Justin Parker, Senior Advisor at 2nd Order Solutions. Download, copy and adapt it to your organisation’s needs today.

If you have questions about how a debt collection partner could improve recoveries for your organisation, our experts are available to help. Get in touch with our team here.