Four Ways Dunning Management Reduces Churn -
One of the biggest challenges faced by businesses that are based on subscription is to figure out ways to ensure that recurring payments flowing for the company. Because revenue is tied with business growth and well-being, any drop in the recurring income is experienced throughout the entire company.
Reason #1: Dunning Management Saves You Time
A person in the company who is responsible for manually sending regular reminders each month to accounts that are in delinquency is a risk in itself. What happens if that person has a health issue or is overwhelmed by extra work and is unable to process the invoices? If you don't receive the monthly reminder, you're simply prolonging the time required to get paid.
However, what if there was an alternative method to communicate to account holders who are delinquent and to collect late payments? A dunning management system automates the sending of reminders to the accounts you have a problem with on your behalf. If, for instance, your credit card has problems, a dunning letter will be automatically generated and distributed immediately. As your company uses an automated process for checking up on delinquent subscription accounts, it is possible to shift company resources towards supporting your primary company.
Reason #2: Keep More Money in your Money
Recurring payments are great for subscription businesses as they offer a steady stream of revenue that companies can use to forecast future growth. Unfortunately, collecting recurring payments is riddled with their own set of challenges. Credit and debit cards used to pay for these recurring payments can get cancelled, expired, or get lost--resulting in the payment being ineffective and causing an interruption of your client's subscription. Making sure you notify customers that their payment has failed to process helps ensure that your business is getting compensated for its services on time.
Built-in dunning capabilities allow the company to schedule flexible email reminder notifications at two, five, seven 14 and 21 days in the event that a customer's payment method fails.
The 3rd reason is to reduce your Customer Churn
It's not easy to get new customers. It could also be considerably more expensive as well. In order to reduce expenses for acquiring customers It is essential that you focus on safeguarding your existing customer base.
Reason #4: Improve Your Work Performance
A business owner does not want to be wasting time writing emails or making telephone calls to customers to ask customers to update their credit card details. Imagine if you manage many customer accounts as well as billing information--the process can quickly get overwhelming.
It is a good thing that partnering with an e-commerce vendor that offers automated dunning features can streamline the whole process. You can rest assured that friendly customer reminders are distributed on your behalf. If your client needs to correct their details for payment or simply wants a friendly reminder to schedule a regular payment, 's dunning features help you stay up with your customers.
Wondering if your subscription management system is equipped with the right features to support your growing demands for your business? Download our free ebook 8 Key Subscription Management features to discover.