Champion-challenger testing

Champion-challenger testing is running a new strategy, the challenger, on a share of accounts alongside the strategy already in use, the champion. The outcomes from both strategies are then compared using the same measure.

Example

For illustration, a lender assigns 800 of 1,000 accounts to the champion treatment and 200 to a challenger treatment. After the observation period, the analyst compares payments received for each group using the same measure. The results show how the new strategy performed beside the one already in use.

Champion-challenger testing runs a new strategy beside the one in use and compares outcomes; in collections decisioning, a fork routes each account to one treatment or the other.

Related topics:

Improving collection efforts with champion-challenger testing Debt Recovery Hub Promise to Pay in Consumer Lending: How to Track, Test, and Improve Collections The process of implementing a decision engine