Leasing companies are monitoring more key performance indicators (KPIs) to improve customer service and front end performance, rather than just arrears handling, according to LPM Outsourcing (LPMO).
The leasing business service provider said that after the financial crisis the KPI focus was on managing arrears, but with the Finance & Leasing Association reporting the value of arrears dropping from around 2.5% in Q1 2010 to around 1.5% in Q1 2013, lessors and outsourcers are looking at KPIs in other areas to "boost the profitability on their portfolios and help secure future income streams".
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Lessors are using KPIs to track targets on new business or lease agreement changes, improve efficiency, and many also request an alert near the expiry of a lease so the sales team can step up its marketing activity with the customer for upgrades or asset disposal of any old equipment.
Ian Dennis, business development director at LPMO, said: "The use of KPIs changed as a result of the financial crisis when the focus was almost exclusively on arrears management.
"As the economic situation has improved, leasing companies have generally been very successful in reducing the arrears levels on their portfolios."
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