CAPE is a metric used in connection with collections. CAPE is an acronym for “collection accounts per employee” or “customer accounts per employee.” The formula used to calculate CAPE is:
Number of Active Customer Accounts/Number of Total Collectors
The resulting number denotes how many active accounts each collector manages. Typically, higher numbers or the more accounts managed by a collector, indicate an efficient use of employees and technology.
What is a good number? The answer depends on many factors:
- The credit-worthiness of your customer base: for example, are new accounts carefully pre-screened?
- An account's status: a seriously delinquent account may require longer, more involved calls and attention;
- A customer's payment history;
- How the customer's business and/or industry is doing; and
- Whether you manually make telephone calls or employ an automated dialing solution.