Four Ways Dunning Management Reduces Churn -
One of the biggest challenges faced by businesses that are based on subscription is to figure out a way to keep the flow of recurring payment for the company. And since revenue is closely tied with business growth and wellbeing, any dip in revenue recurring is instantly noticed throughout the whole organization.
Reason #1: Dunning Management Saves You Time
In-house staff members who manually send out monthly reminders to all delinquent accounts is a risk in itself. What happens if that person has a health issue or is overwhelmed with additional work and isn't able to handle invoices? If you don't receive a monthly notice, you're simply prolonging the time required to get paid.
However, what if there was an easier way to reach out to account holders who are delinquent and to collect overdue payments? A dunning management system automatically sends out reminder notifications to the accounts you have a problem with for you. In the event, for example, the credit card is not working an account, a letter of dunning will be automatically generated and distributed immediately. Because your business already has an automated dunning process that monitors delinquent subscriber accounts, it is possible to shift funds from your business to help support your core company.
The second reason is to keep more Money in your Money
The benefits of recurring payments for subscription businesses because they provide a predictable source of income that businesses can utilize to plan for the future of their business. However, the process of collecting these payments has the challenges that come with it. The debit and credit cards that are used to make the recurring payment can be canceled, expire and/or get lost, resulting in payment failure and an interruption in your customer's subscription. Being proactive about notifying users when their payment fails to method ensures that your company is compensated for its services in a timely manner.
's built-in dunning features allow companies to create flexible email reminder notifications at the intervals of two, five, seven, 14, and 21 days in the event that the payment method of a client fails.
Reason #3: Reduce Your Customer Churn
There is no doubt that it's not only harder to find new customers. It can also be considerably more expensive as well. In order to reduce expenses for acquiring customers you must ensure to focus your business on safeguarding your existing customer base.
Fourth Reason: Improve Your Work Performance
Every business owner doesn't want to waste time writing emails, or even making phone calls to clients asking them to update their payment details. Now imagine if you're managing hundreds of accounts for customers and payment information. The process could quickly become overwhelming.
It is a good thing that partnering with an ecommerce partner with automated dunning capabilities can simplify your entire process. Rest easy knowing that customer-friendly reminders are delivered on behalf of you. Whether your customer needs to update their existing account information, or needs a gentle reminder for a future payment, 's dunning features allow you to stay in contact with your customers.
Are you wondering if your subscription management system has all the features that your demands for your business? Download our free ebook: 8 Essential Subscription Management Features to find out.