Four Ways Dunning Management Reduces Churn -
The biggest challenge for all subscription-based businesses is figuring out how to maintain recurring payments flowing for their company. Because revenue is tied with business growth and wellbeing, any dip in revenue recurring is instantly felt throughout the entire organization.
First Reason: Dunning Management Saves You Time
A person in the company who is responsible for manually sending periodic reminders to accounts that are in delinquency carries its own inherent risks. What happens if the person gets sick or is swamped with additional work and isn't able to process invoices? If you miss an invoice due to a month it's just prolonging the amount of time needed to get paid.
However, what if there was an alternative method to communicate to accounts that are in delinquency and get late payments? Dunning management systems will automatically issue reminders to accounts that are in delinquency on behalf of you. In the event, for example, a credit card fails, a dunning letter is automatically created and immediately sent to the account. Because your business already uses an automated process for that monitors delinquent subscriber accounts, you can reallocate funds from your business to help support the core of your business.
Reason #2: Keep More Money in your Pocket
The benefits of recurring payments for subscription companies as they offer a steady stream of revenue that companies are able to use to predict future growth. But, collecting recurring payment has the challenges that come with it. The credit and debit cards that pay for these recurring payments can get canceled, expire and/or get lost, resulting in the payment being ineffective and causing an interruption the customer's service. Being proactive about notifying users of any payment issues that occur during the method ensures your business gets the money you owe for your services on time.
The built-in dunning feature of the software allows companies to create emails that can be sent out at the intervals of two, five, seven, 14, and 21 days after the customer's payment method has failed.
Third Reason: Cut Down on Customer Churn
There is no doubt that it's not easy to get new customers, it can also be substantially more costly as well. In order to reduce customer acquisition costs you must ensure to focus your business on protecting your current customer base.
The Reason #4 is to Increase Your Work Efficiency
A business owner does not want to be wasting time writing emails or making telephone calls to customers to ask them to update their payment information. Imagine managing thousands of customer accounts and the billing details can get overwhelming.
A good news is that working with an online retailer that has automated dunning tools can speed up the entire process. Relax knowing that user-friendly reminders are sent out on your behalf. If your client needs to change their current payment information or just needs a gentle reminder for a future payment, the dunning capabilities of's make it easy to keep up with your customers.
Wondering if your subscription management system has all the features to meet your expanding business needs? Download our free ebook 8 Essential Subscription Management Features to find out.