4 Methods Dunning Management Reduces Churn -
A challenge faced by all subscription-based businesses is figuring out how to maintain recurring payments flowing for the company. And since revenue is closely tied with business growth and wellbeing, any dip in the recurring income is noticed throughout the whole organization.
Reason #1: Dunning Management Saves You Time
A person in the company who is responsible for manually sending out monthly reminders to accounts that are in delinquency has its own risks. What happens when that employee gets sick or is swamped by extra work and is unable to handle invoices? If you miss an invoice due to a month and you don't pay it, you're just increasing the time it will take for you to be paid.
What if there were an easier way to reach out to accounts that are in delinquency and get late payments? Dunning management systems automates the sending of reminders to accounts that are in delinquency on behalf of you. In the event, for example, the credit card is not working, a dunning letter is automatically created and sent out immediately. Since your company already has an automated dunning process checking up on delinquent subscription accounts, you are able to redirect company resources towards supporting the core of your business.
The second reason is to keep more Money in Your Pocket
The benefits of recurring payments for subscription businesses since they create a regular source of income that businesses can use to forecast future growth. Unfortunately, collecting recurring payments has the challenges that come with it. The debit and credit cards that pay for those recurring payments could be canceled, expire or become lost, leading to payment failure and an interruption in your customer's subscription. 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.
Built-in dunning capabilities allow the company to schedule an email reminder that is flexible and can be scheduled for two, five, seven 14 and 21 days following the payment method of a client fails.
Reason #3: Reduce Your Customer Churn
It's not easy to get new customers. It can also be substantially more costly as well. To reduce your expenses for acquiring customers, it is important to focus your business on safeguarding the current customers base.
Fourth Reason: Increase Your Work Efficiency
Every business owner doesn't want to spend valuable time writing emails, or even making telephone calls to customers to ask for them to change their billing information. Imagine if you manage hundreds of accounts for customers 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 whole procedure. You can rest assured that friendly customer reminders are distributed on your behalf. Whether your customer needs to correct their account information, or requires a simple reminder to make a recurring payment, dunning functions make it easy to keep in contact with your customers.
Do you want to know if your subscription-management system has all the features that your demands for your business? Get our ebook for free: 8 Essential Subscription Management features to discover.