Enhancing Collection Efforts with Champion-Challenger Testing

Champion-challenger testing is a powerful tool for optimizing processes in the collection and debt recovery. It involves testing multiple variations of a process or strategy to determine which one is most effective. By using champion-challenger testing, businesses can make data-driven decisions and improve the efficiency and effectiveness of their collection efforts.

Implementing Champion-Challenger Testing in the Collections Process

  1. Identify the specific goals and objectives for using champion-challenger testing in the collection process. These could include increasing the number of payments made, reducing the amount of time spent on collection efforts, or improving communication with customers.
  2. Develop a hypothesis for the champion-challenger test. This should outline the specific changes or variations that will be tested and the expected outcomes.
  3. Choose the appropriate sample size for the test. This will depend on the specific goals and objectives of the test, as well as the size of the overall customer base.
  4. Implement the champion-challenger test and carefully track and measure the results. This may involve collecting data on the number of payments made, the response rate to communication efforts, or other relevant metrics.
  5. Analyze the results of the test and determine which variation was most effective. This may involve comparing the results of the champion and challenger variations, as well as other factors that could have influenced the outcome of the test. Based on the results, businesses can then decide whether to implement the winning variation in their collection efforts going forward.

Experimenting to find the most effective strategy

One of the key advantages of champion-challenger testing is that it allows businesses to experiment with different approaches and compare their results. For example, a business may want to test two different email templates to see which one is more effective at encouraging customers to make payments on their outstanding debts. By testing these templates and measuring the response rate of each one, the business can determine which template is more effective and use it in future collection efforts.

Using champion-challenger testing to improve efficiency

Another benefit of champion-challenger testing is that it can help businesses identify and address any bottlenecks or inefficiencies in their collection processes. For example, a business may find that a particular step in their collection process is causing delays or preventing customers from making payments. By testing different variations of this step, the business can identify the most effective approach and improve the overall efficiency of their collection efforts.

Improving communication: Testing messages and channels

In addition to improving efficiency, champion-challenger testing can also help businesses improve their communication with customers. By testing different messages and channels, businesses can determine which ones are most effective at encouraging customers to make payments. This can help businesses maintain positive relationships with their customers and improve their chances of recovering their debts.

Implementing Champion-Challenger Testing

  • Test different call scripts to identify the most effective one for encouraging payments, such as one that emphasizes the consequences of not paying a debt or one that focuses on the benefits of making a payment.
  • Experiment with different communication channels to determine the best ones for reaching and engaging customers, such as email on weekdays versus weekends.
  • Use personalized messaging to tailor communication to individual customers' needs and characteristics, such as using personalized subject lines in emails.
  • Test different times of day or week to send messages to determine the best time to reach customers, such as morning versus evening for payment reminders.
  • Compare the effectiveness of different payment reminder emails, such as ones that offer a discount versus ones that do not.
  • Test the use of incentives to encourage customers to make payments, such as offering a discount for timely payment.
  • Compare the effectiveness of different letters or mailers to remind customers of their outstanding debts, such as using a friendly versus a formal tone.
  • Test the use of automated phone calls versus live agents to communicate with customers and provide payment information and assistance.
  • Use champion-challenger testing to identify bottlenecks in the collection process and test different approaches to improve efficiency.
  • Test the use of social media ads to target specific customer segments with personalized messages encouraging them to make a payment.


Champion-challenger testing is a useful tool for businesses looking to optimize their collection and debt recovery processes. By testing different strategies and approaches, businesses can identify the most effective ones for encouraging customers to make payments and improving communication. By following a systematic approach and tracking the results, businesses can use champion-challenger testing to improve their collection efforts and recover more debt.