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Payment Recovery Rate
from Orders
Metrics type
Actionable
Units of measure
Rate
Direction
More - better
Check frequency
Weekly
Description
Payment recovery rate measures the percentage of unpaid orders that are successfully recovered through follow-up communications, reminders, or other recovery efforts. Improving payment recovery rate helps minimize revenue loss and improve cash flow.
Why it is important
Measuring the Payment Recovery Rate enables businesses to assess their ability to recover unpaid orders, minimizing revenue loss and improving cash flow. This metric reflects the effectiveness of payment recovery efforts and follow-up communications in recovering outstanding payments.
By improving payment recovery rates, businesses can optimize resource allocation, streamline recovery processes, and enhance financial performance by mitigating revenue losses associated with unpaid orders.
By improving payment recovery rates, businesses can optimize resource allocation, streamline recovery processes, and enhance financial performance by mitigating revenue losses associated with unpaid orders.
Formula
(Recovered Payments / Total Failed Payments) * 100
Calculation example
If there were 10 recovered payments out of 30 total failed payments,
Payment recovery rate = (10/30) × 100 = 33.33%
Payment recovery rate = (10/30) × 100 = 33.33%
Related metrics
↩️ Affecting
- Unpaid Order Recovery Cost
↪️ Affected
- Unpaid Orders
🔃 Connected
- Paid Orders
- Unpaid Order Recovery Cost
↪️ Affected
- Unpaid Orders
🔃 Connected
- Paid Orders
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Suggested slices for dashboards
- Recovery Method
- Time Since Unpaid
- Customer Segment
- Order Value
- Geographic Region
- Time Since Unpaid
- Customer Segment
- Order Value
- Geographic Region
Questions to be Answered
1. What is the trend in the payment recovery rate over time, and are there any fluctuations or patterns that could indicate changes in payment recovery efforts or customer responsiveness?
2. How does the payment recovery rate vary across different stages of the recovery process (e.g., initial contact, follow-up communication), and are there any insights into which approaches are most effective in recovering unpaid orders?
3. Can we identify any correlation between the payment recovery rate and customer satisfaction metrics, such as reviews or post-recovery feedback?
4. What strategies can be implemented to improve the payment recovery rate, such as automation of recovery efforts or incentives for prompt payment?
5. How does the payment recovery rate impact overall revenue and profitability, and what measures can be taken to optimize payment recovery processes for maximum effectiveness and efficiency?
2. How does the payment recovery rate vary across different stages of the recovery process (e.g., initial contact, follow-up communication), and are there any insights into which approaches are most effective in recovering unpaid orders?
3. Can we identify any correlation between the payment recovery rate and customer satisfaction metrics, such as reviews or post-recovery feedback?
4. What strategies can be implemented to improve the payment recovery rate, such as automation of recovery efforts or incentives for prompt payment?
5. How does the payment recovery rate impact overall revenue and profitability, and what measures can be taken to optimize payment recovery processes for maximum effectiveness and efficiency?
Possible causes of worsening
🔹 Ineffective follow-up communications. If follow-up communications to recover payments are not timely, persuasive, or targeted, customers may ignore or overlook them, resulting in a lower payment recovery rate.
🔹 Payment dispute resolution delays. Delays in resolving payment disputes or issues may prolong the time taken to recover payments, resulting in a lower payment recovery rate.
Explore more causes in full version of JetMetrics Lite
🔹 Payment dispute resolution delays. Delays in resolving payment disputes or issues may prolong the time taken to recover payments, resulting in a lower payment recovery rate.
Explore more causes in full version of JetMetrics Lite
Tactics to improve this metric
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