In CLFP terms, what is a collection plan's measurement of success?

In CLFP terms, what is a collection plan's measurement of success?

• A. The number of calls made per day
• B. The percentage of accounts resolved by error
• C. The number of letters sent
• D. Metrics such as cure rate, time-to-resolution, cost per account, and net recoveries

Answer: (D)

In CLFP terms, success for a collection plan is measured by outcomes that show both effectiveness and efficiency. The key metrics—cure rate, time-to-resolution, cost per account, and net recoveries—capture this. Cure rate tells you how often accounts are brought to a resolved state, time-to-resolution shows how quickly those resolutions occur, cost per account indicates how efficiently resources are used, and net recoveries reflect the actual financial result after costs. Together, they provide a complete view of how well the plan performs, not just how much activity is generated. Focusing on activity like the number of calls or letters measures effort, not outcome, and a metric described as “accounts resolved by error” isn’t a meaningful success measure.

In CLFP terms, success for a collection plan is measured by outcomes that show both effectiveness and efficiency. The key metrics—cure rate, time-to-resolution, cost per account, and net recoveries—capture this. Cure rate tells you how often accounts are brought to a resolved state, time-to-resolution shows how quickly those resolutions occur, cost per account indicates how efficiently resources are used, and net recoveries reflect the actual financial result after costs. Together, they provide a complete view of how well the plan performs, not just how much activity is generated. Focusing on activity like the number of calls or letters measures effort, not outcome, and a metric described as “accounts resolved by error” isn’t a meaningful success measure.