Transforming the management of rent arrears is one thing but, without evaluating through randomised controlled trials, you may run into trouble.
Finding out why a tenant hasn’t paid, when they’re able to and how you can help them, is just the beginning… To really make an impact, you need to back up your predictions and actions through evidence-based practice.
Which activities are most effective? When should resources be used to maintain those activities? How can you refine collections to free up capacity to be deployed elsewhere?
Only through constant evaluation of processes can you know what’s working, and how to achieve sustainability. By carrying out randomised controlled trials, we help you get the best from your collections procedures.
Understanding your customers and predicting their behaviours are critical in the management of rent arrears. But to truly target the right person with the right message at the right time, you need to combine behavioural insights with data science.
Controlled trials validate your collections by tracking how people respond to your communications at different stages of the journey. Randomisation removes the risk of bias that might be inherent amongst your agents, ensuring you get a true picture of how your tenants respond to your rent arrears management software.
This objective evaluation of processes helps you to develop an engagement strategy built on solid, provable data – not a hunch or a good guess.
In the last three years, Voicescape has carried out over 30 randomly controlled trials for social housing landlords around the UK. We believe they’re essential to positive change. These trials can determine:
Armed with this information, you can fine-tune collection practices and monitor the impact on rent arrears – comparing the results over days, weeks and months. This data builds evidence for how to influence those same people – or people like them – in the future. It puts behavioural modelling into practice, increasing profitability and engagement.
Adactus, a social landlord agency in the Jigsaw Homes Group, manage over 13,000 homes in 25 North West authorities. They were struggling to contact every tenant about overdue payments.
Using behavioural insights, we developed a range of interventions to address low-levels of arrears. Then we conducted randomised controlled trials on the results.
What did we find? Adding just one extra sentence to a letter about arrears led to an 8% increase in payment rates. Want to know what that sentence said? Simply pick up the phone and ask us.
Assessment and evaluation are crucial to managing rent arrears. When you have a winning formula, you’ll create stronger relationships with those in your communities. And the stronger those links are, the faster you’ll collect what you’re owed. And that’s not all you can gain from our Collections software…
Want to transform how you manage rent arrears? Get in touch to find out.