4 Methods Dunning Management Reduces Churn -
A challenge faced by all businesses that are based on subscription is to figure out how to maintain regular payments running to their business. Because revenue is dependent on business growth and well-being, any drop in revenue recurring is instantly experienced throughout the entire company.
Reason #1: Dunning Management Saves You Time
A person in the company who is responsible for manually sending out monthly reminders for all accounts in default has its own risks. What happens if that person becomes sick or overwhelmed by extra work and is unable to process the invoices? If you fail to send the monthly reminder, you're simply prolonging the amount of time needed to receive your payment.
However, what if there was a better way to outreach to delinquent accounts and collect overdue payments? Dunning management systems automates the sending of reminders to your delinquent accounts for you. In the event, for example, your credit card has problems the dunning notice is created automatically and sent out immediately. As your company has an automated dunning process that monitors delinquent subscriber accounts, you can reallocate company resources towards supporting your primary company.
Reason #2: Keep More Money in your Pocket
Recurring payment is a great option for businesses that subscribe since they create a regular flow of revenues that companies are able to use to predict the future of their business. But, collecting recurring payment has its own challenges. The debit and credit cards that pay for the recurring payment can be cancelled, expired or become lost, leading to payments being rejected and even a break of your client's subscription. Being proactive about notifying users of any payment issues that occur during the process helps ensure that your business is getting paid for your services promptly.
's built-in dunning features allow your company to set flexible email reminder notifications at 2, 5, 7 14 and 21 days in the event that the customer's payment method has failed.
Reason #3: Reduce Your Customer Churn
It's not easy to get new customers. It could also be substantially more costly as well. In order to reduce the cost of acquiring new customers, it is important that your company focuses on safeguarding the current customers base.
Fourth Reason: Improve Your Work Performance
No business owner wants to be wasting time writing emails or phone calls to customers asking customers to update their credit card details. Imagine if you manage hundreds of accounts for customers and the billing details can turn into a nightmare.
A good news is that working with an ecommerce partner with automated dunning features can streamline the whole process. You can rest assured that friendly customer reminders will be distributed on your behalf. If your client needs to update their existing account information, or wants a friendly reminder for a future payment, 's dunning features help you stay on top of your clients' needs.
Do you want to know if your subscription-management software has the capabilities that your demands for your business? Get our ebook for free 8 Essential Subscription Management Features to learn more.