As I was scrolling down on Netflix, My neighbour knocked at my door enquiring about the water supply at my house. I affirmed and she leaves thanking me and finding it strange how hers is the only house without water. I alerted her to check out if she has paid the bills; in her defence, she said that she had done it 6 months ago. She walked away murmuring that she needs to call up the water supply board.
The next day when we met at the elevator she said her water supply was back after payment as her last payment through credit card was cancelled and she never knew about it!
That's when Dunning Management comes into the picture.
Your curiosity about the answer from the previous blog is here to an end, as Dunning Management is one of the most essential features that many subscription billing businesses using recurring billing platforms do not possess.
One such is our talk of the day!
What is Dunning Management?
Dunning is the art of collecting payments from customers who have subscribed to your product. It is an automated process to manage the complications in case of a credit card decline or payment failure.
In the subscription business, payment failure happens all the time due to various reasons:
- Expired credit card
- Payment gateway errors
- Insufficient credits
- Cancelled card
- Deactivation of the service
In a subscription business, most 10-15% of payment failures are due to credit card issues. But that's not the end of it, with the help of dunning management, 90% of these failed transactions can be retrieved.
SaaS companies can have this process automated for their customers by integrating with a reliable subscription or recurring billing software as it is secure and supports data recovery.
What does it do for your customers?
How many times have we felt frustrated with our mobile network calling us, n-number of times about the ending recharge?
Positive customer experience should be the ultimate goal for SaaS companies during this process.
Keeping the communication clear and crisp while smoothly addressing the payment failure issue would bring better results.
Your customer will be notified about his failed payment and their next retries.
- The number of retries and the time duration between each retry is configured in the dunning system of your subscription billing platform.
- The subscription is cancelled only when all the retry attempts fail.
Here you have not only saved your business from churn in the same instance increased customer satisfaction and loyalty by not getting subscriptions cancelled immediately.
Notifying the Customer:
SaaS companies should send timely notifications when the transaction fails or any other issue regarding payment for subscriptions which would prove to put your customer out of his agony.
Dealing with money is a sensitive business; so pacifying your customer without scaring or rebuking him regarding his payment failure. It will help you maintain a good customer relationship.
Done right, Dunning can not only help you recover your company's lost revenue but also reduce customer churning out.
MYFUNDBOX is one of few subscription billing platforms which provide the prominent feature of Dunning management to put your customers out of their misery; thereby benefiting you from recovering lost revenue and a stable customer base.
Going global, we also support dunning in SEPA( Single Euro Payments Area) in European Union, profiting the European customers on large scale.
Fight churn armoured with MYFUNDBOX!
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