Every lead vendor has a replacement policy. Most are described in a sentence during the sales call and never written down, which is precisely when they stop being policies and become negotiations.
The definition does the work
A replacement policy is downstream of a definition. Until both sides agree what invalid means, the policy is just a promise to argue later. The definition needs to distinguish clearly between:
- Invalid. The record fails the agreed criteria — wrong state, existing counsel, injury outside the agreed window, disconnected number, duplicate.
- Unreachable. Contact details are correct but the person did not respond after an agreed number of attempts over an agreed period.
- Unconverted. The firm reached them, they matched the criteria, and they did not sign.
The first two are usually replaceable. The third is not, and should not be. A vendor that offers to replace records that simply did not convert is either mispricing the service or planning not to honour it.
Terms that need numbers
Vague policies fail under pressure. Specify:
- The window for raising a claim. Long enough to be workable, short enough that records can still be investigated.
- The contact standard for unreachable. How many attempts, over how long, on which channels.
- The remedy — replacement record or account credit — and who chooses.
- The evidence required. Usually a CRM export showing attempts and outcome.
- Any cap on replacements per period, and what happens when it is hit.
What the rate tells you
A replacement rate near zero is not necessarily good news. It can mean the criteria are so loose that almost nothing fails them, or that the claims process is painful enough that the firm has stopped bothering. Either way the number is not measuring quality.
A rate that climbs steadily is a targeting or screening problem and should trigger a conversation about criteria, not just a stream of credits. Replacements treat the symptom. If they become routine, something upstream needs fixing.
Before you sign
Ask for the policy in writing before the first invoice, not after the first dispute. A vendor confident in its screening will have no difficulty putting a definition and a remedy on paper. The reluctance itself is the signal.