Failed Payments are a Pain – Tips to Manage Dunning

Why Is Dunning Management  Necessary? 

With COVID having a lasting impact on businesses and new Business models emerging there are many Solopreneuers, Freelancers, Marketing Agencies and SaaS companies who are switching to Subscription Payments. 

you make your money by regularly billing each customer’s credit card. Sooner or later, though, any given customer’s credit card is going to be declined and you’re going to be left one payment poorer. This can happen for any number of reasons: credit cards expire; they get stolen; they get cancelled; they get maxed out; customers move; the list goes on.

Unfortunately the simple fact of the matter is that many customers’ first though in many of these cases isn’t going to be updating the payment info their billing services have on file. That’s where dunning comes in.

Dunning means communicating with clients and customers to let them know that their account is past due and ensure the swift collection of payment. This is most often done via email in modern subscription billing contexts, but dunning can take any form. Dunning management is the process of making sure this communication is done effectively. Without a good dunning management plan, you’re essentially resigning yourself to endless churn and an ultimate client retention rate of 0%. (Remember: all credit cards expire.)

Now that we’ve got a better understanding of what dunning is and why it’s necessary, let’s take a look at some best practices.

How Can MYFUNDBOX Help?

With MYFUNDBOX E-mail reminder configuration you can remind customers of a failed payment by sending a Payment link based on your preferred Email sequencing

Dunning emails are best when they’re prompt, regular (they should be sent every 3-5 days until payment is received or a specific time cut-off is reached), and personal.

you can configure

Get in touch with us if you need a helping hand we will be glad to support