Four Ways Dunning Management Reduces Churn -

One of the major challenges faced by subscription-based businesses is figuring out how to maintain the flow of recurring payment for their company. Since revenue is tied to business growth and wellbeing, any dip in recurring revenues is felt immediately across the whole company.

The First Motive: Dunning Management Saves You Time

Having someone in-house manually sending monthly reminders to all accounts in default has the potential for risk. What happens when the employee has a health issue or is overwhelmed by additional work and not competent enough to manage bills? If you don't deliver a monthly notification it is simply increasing the length of time for your payment.

If there were an easier way to get in touch with those with delinquent accounts to request overdue payment? A dunning management system automates the sending of reminders to your delinquent accounts on behalf of you. If, for instance, your credit card has failed to connect with the account, a notice of dunning is automatically created and sent immediately into the credit card account. Because your business already is capable of automating the process of checking account balances it is possible to redirect company resources towards supporting your primary company.

The second motive is to have More Cash in Your Pocket

Recurring payments are great for companies that sign up because they offer a steady stream of earnings that firms can use to forecast the future of growth. However, the process of taking these payments is fraught with their own set of challenges. Cards for credit and debit which are used for payments on a regular basis can get cancelled, expired or become damaged, resulting in payments being denied and eventually break the customer's service. Be sure to notify your customers when their payment fails to be processed will ensure that your business receives the cash you owe for your services quickly.

With built-in dunning, companies are able to design an email-based reminder that is flexible and can be scheduled to run for two, five 7, 14 and 21 days following the payment method of a client's failure to pay.

Third Reason: Cut Down on Churn by Customers

There is no doubt that it's not only harder to attract new customers but it could also be substantially more costly as well. In order to reduce expenses for acquiring new customers, ensure that your company focuses on protecting the existing customer base.

Fourth Reason: Increase your Work Performance

Every business owner doesn't like spending the time writing emails, or even making phone calls to clients asking customers to correct their payment details. Imagine managing many customer accounts, and the billing details can become an overwhelming.

The good news is having an e-commerce partner with automated dunning features can streamline the entire procedure. Rest easy knowing that customer-friendly reminders are automatically being delivered on behalf of you. If your client needs to update their data on their account or would like to be reminded of payments on a regular basis Dunning capabilities in's allow you to stay up with your customers.

Do you want to know if your subscription-management software has the capabilities that your business needs? Download our no-cost ebook 8 Essential Subscription Management Features to learn more.

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