Mar 24, 2015 Phil Burgess
Debt collectors are looking for more advanced ways to do their jobs, and new technology has given them plenty of options to choose from. Specifically, big data can help recovery professionals analyze information and determine better methods to work with debtors.
Here are five qualities of big data recovery professionals should know about before pursuing it as a valuable tool:
1. What is big data?
Big data has many vague definitions. However, it's most easily defined as the large amount of data organizations or individuals collect. The diverse amount of information can help individuals in various industries determine patterns and trends specifically about clientele behavior. Debt collectors specifically can use this information to become more familiar with debtors and how they act in response to being contacted, as well as how best to get ahold of them in the first place.
2. How does it work?
According to Entrepreneur, how users benefit from big data depends on the challenges they face. Professionals need to take the time to find out what obstacles there are in regard to debtor behavior. Big data helps organizations figure out how many bad reviews there are for a product and improve customer retention. It can assist collectors in predicting debtors' reactions when being called at certain times of the day and how receptive they are to particular tactics. 3. How accurate is big data?
INSEAD Knowledge, otherwise known as "the business school for the world," discussed how big data can be difficult to draw concrete answers from, depending on how many sources from which the information is coming. Debt collectors need to be careful in determining how they will use their data and what answers will they will find from conflicting evidence. The more data there is, the more risk there is for contradictions and uncertainties.
4. What does it require?
Big data needs structure, according to Entrepreneur. Debt collectors can't just jump in and expect to gain insight from huge amounts of diverse data. They need to comprehend how this digital information will fit into their job and organization's infrastructure. INSEAD Knowledge highlighted how cellphone operators use non-marketing data to figure out who users' friends are, where they hang out and their approximate age. When used correctly, big data can be a very powerful tool.
5. Why professionals need to start small?
Results won't be immediate with big data. The source recommended that collectors implement big data policies slowly to collect information and apply it to their services. They need to first determine what they need to find out from data and what kind of information will give them those answers. There is a variety of software that can help recovery professionals kickstart using big data to gain better insight.