What can be a result of failing to perform proper callbacks in managing bad debt?

Failing to perform proper callbacks in managing bad debt can lead to decreased account recovery rates because callbacks are essential for maintaining communication with customers who may have overdue accounts. When businesses do not follow up appropriately, they miss opportunities to negotiate payment plans, clarify misunderstandings, or provide incentives for customers to settle debts. This lack of engagement can result in customers becoming disengaged, leading to a reduced likelihood of recovering the owed amounts, thereby negatively impacting the overall recovery rate.

In contrast, proper callbacks can strengthen the relationship with customers, potentially leading to better recovery outcomes. The other options do not relate to the consequences of ineffective management of bad debt. Increased customer loyalty and higher revenue from services are typically derived from positive interactions and services, rather than from neglecting debt management practices. Enhanced service offerings are not a direct outcome of ignoring callback protocols, but rather depend on other strategic business initiatives.