Four Ways Dunning Management Reduces Churn -

The greatest challenge faced by all subscription-based businesses is figuring out how to keep recurring payment running for their organization. Since revenue is linked to the growth of the business and its overall wellbeing any drop in income recurring can be immediately noticed throughout the whole organization.

First Motive: Dunning Management Saves You Time

A person in the company that is accountable for sending periodic reminders to accounts who are delinquent carries its own inherent risks. What happens if the person gets sick or is swamped by additional work and not in a position to handle invoices? If you fail to pay the payment due to the end of a month, it's simply increasing the time required to be paid.

What if, however, there was an alternative method of communicating with the accounts that are delinquent or have late payments? Dunning management systems automatically send reminders to accounts that have delinquency in the name of you. When that, for instance, an account is closed an account, a letter of dunning is generated automatically and instantly sent into the credit card account. Since your company already has an automated method which you monitor accounts with delinquent subscriptions and accounts, you are able to transfer the funds of your company in order to assist with the primary of your company.

Second Reason: Keep More money in your pocket

Benefits of recurring payment for subscription companies as they can provide a constant stream of revenue that companies are able to use to anticipate the growth of the company in the coming years. But, collecting recurring payment is not without its challenges with it. The credit and debit cards that are used to pay for recurring payments can get canceled or expire, and also be lost, resulting in the transaction not working and causing an interruption the services of the client. Making sure to inform customers of any payment issues that occur during the method makes sure that your business receives cash you are owed for your services on the right date.

The dunning option built into the program allows businesses to design emails that could be sent at intervals of 2-5, 7, 14 and 21 days after the payment method used by the client has failed.

Third Reason: Cutting Down on Customer Churn

No doubt, it's not easy to get new customers, it can also be substantially more costly and costly. To reduce your expenses for acquiring new customers, ensure to focus your business on safeguarding your current customer base.

The reason #4 is to improve your work efficiency

The business owner doesn't need to spend hours sending emails or making calls to customers to ask them to update their payment information. Imagine managing thousands of customer accounts and the payment details could become overwhelming.

A good news is the fact that working with an online retailer that has automated dunning software will speed up the whole procedure. Be assured that simple reminders will be sent for you. If your client needs to alter their existing payment information or just needs a gentle reminder for an upcoming payment, the dunning capabilities of's make it easy to keep on top of your clients.

Wondering if your subscription management system is equipped with the right features for your business's growing requirements? Download our free ebook 8 Essential Subscription Management features to discover.

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