4 Ways Dunning Management Reduces Churn -

One of the biggest challenges faced by subscription-based businesses is figuring out how to maintain regular payments running for the company. Since revenue is tightly dependent on business growth and wellbeing, any dip in revenue recurring is instantly felt throughout the entire organization.

Reason #1: Dunning Management Saves You Time

Having someone in-house manually sending periodic reminders to all delinquent accounts carries its own inherent risks. What happens if the person gets sick or is swamped with additional work and isn't able to handle invoices? If you fail to send a monthly notice, you're simply prolonging the amount of time needed to receive your payment.

But what if there was an alternative method to communicate to accounts that are in delinquency and get the overdue payment? A dunning management system will automatically issue reminders to accounts that are in delinquency for you. For instance, if a credit card fails, a dunning letter will be automatically generated and immediately sent to the account. As your company is able to automate the process of checking up on delinquent subscription accounts, you can reallocate the resources of your company to support the core of your business.

The second reason is to keep more Money in your Money

Recurring payment is a great option for subscription companies because they provide a predictable source of income that businesses can use to forecast future growth. But, collecting recurring payment comes with its own challenges. Credit and debit cards that pay for the recurring payment can be lost, retracted, or get lost--resulting in payment failure and an interruption of your client's subscription. Being proactive about notifying users when their payment fails to procedure will ensure that your business is getting compensated for its services in a timely manner.

's built-in dunning features allow the company to schedule flexible email reminder notifications at two, five, seven, 14, and 21 days after the payment method of a client fails.

Reason #3: Reduce Your Customer Churn

It's not just harder to acquire new customers, it can also be considerably more expensive as well. To cut down on expenses for acquiring customers It is essential that you focus on protecting your current customer base.

Reason #4: Increase Your Work Efficiency

A business owner does not want to spend valuable time writing emails, or even making phone calls to customers asking them to update their payment data. Now imagine if you're managing thousands of customer accounts and billing information--the process can quickly turn into a nightmare.

A good news is that working with an ecommerce partner with automated dunning tools can speed up the entire process. Rest easy knowing that customer-friendly reminders are distributed on your behalf. If your customer requires to update their existing details for payment or simply needs a gentle reminder for a future payment,  dunning functions allow you to stay in contact with your customers.

Wondering if your subscription management system is equipped with the right features to support your growing demands for your business? Get our ebook for free 8 Essential Subscription Management features to discover.