The Art of Debt Collection

October 18, 2011 by
Filed under: Direct Marketing Strategy 

Perfecting Target Marketing with Predictive Modeling

Purchasing a billion dollars worth of credit card debt becomes an art for larger debt collection companies.

When you employ an army of inbound/outbound customer service reps, large legal staff and analytical purchasers you can perfect your competitive advantage with…

Predictive modeling techniques and have a staff of SAS programmers that mail millions of letters each month based on pre-statue strategies and Trans Union credit scores appended to model.

The mailing list model is based on credit scores that are appended to massive numbers of debtor accounts.

Databases are sorted into buckets based on age and credit scores with the highest scores and the freshest debts being the A Segment through E Segment.

Hot accounts

….are any accounts that have been contacted by anyone on staff by phone or email or private message during the last 30 days.

Direct marketing strategy

begins with predictive modeling, crafting of the message/envelope and rotating mailings based on a monthly diminishing ROI. This is calculated and ranked by revenue increase or decrease.

There is some seasonality with January and the colder months being more responsive than the summer months.

How do you determine success?

The success is determined by a breakeven point or ROI that is greater than 2 and a response rate that is greater than .74% on the entire mailing.

Online Mailing Lists

I can help you with call me at 313-268-9951 for free consultation or email at

About The Author

Tim G. Little has a BS in Business Administration, and has worked in the magazine publication and circulation management for the past 20 years. As an Internet Publisher and Entrepreneur, he has developed a website to help small business entrepreneurs find the best mailing list and marketing programs ps: I would like to recommend a tool to you to help find Boost Sales… Gain Market Share.. . With Focused List Selection, 

More Debt Collection Strategies

When analyzing this model you look at numbers month over month, 6 month analysis and over 12 months.


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One Comment on The Art of Debt Collection

  1. Treadmill Ratings on Sat, 22nd Oct 2011 4:40 am
  2. Thanks for the share! Very useful info!

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