4 Ways Dunning Management Reduces Churn -
The biggest challenge for all companies that operate on subscriptions is finding ways to ensure that recurring payments flowing for their company. Because revenue is tied with business growth and wellbeing, any dip in revenue recurring is instantly felt throughout the entire organization.
First Reason: Dunning Management Saves You Time
In-house staff members who manually send out monthly reminders to all delinquent accounts carries its own inherent risks. What happens if the person becomes sick or overwhelmed with additional work and isn't able to handle invoices? If you don't receive a monthly notice it's just prolonging the time required to receive your payment.
However, what if there was an alternative method to communicate to account holders who are delinquent and to collect the overdue payment? A dunning management system automates the sending of reminders to your delinquent accounts for you. If, for instance, the credit card is not working, a dunning letter is created automatically and immediately sent to the account. Since your company already has an automated dunning process that monitors delinquent subscriber accounts, it is possible to shift the resources of your company to support the core of your company.
The second reason is to keep more Money in Your Cash
The benefits of recurring payments for subscription businesses as they offer a steady stream of revenue that companies are able to use to predict future growth. However, the process of collecting these payments comes with their own set of challenges. Credit and debit cards that are used to make those recurring payments could be canceled, expire or become lost, leading to the payment being ineffective and causing an interruption of your client's subscription. Making sure you notify customers that their payment has failed to method ensures that your company is paid for your services promptly.
Built-in dunning capabilities allow the company to schedule flexible email reminder notifications at 2, 5, 7 14 and 21 days following a customer's payment method fails.
Reason #3: Reduce Your Customer Churn
We all know it's not easy to get new customers, it can also be significantly more expensive too. To cut down on customer acquisition costs It is essential that you focus on safeguarding your existing customer base.
The Reason #4 is to Increase Your Work Efficiency
Every business owner doesn't want to spend valuable time writing emails or phone calls to clients asking customers to update their credit card data. Imagine managing thousands of customer accounts and the billing details can turn into a nightmare.
It is a good thing that partnering with an ecommerce partner with automated dunning capabilities can simplify the entire process. Relax knowing that user-friendly reminders will be distributed on your behalf. If your client needs to change their current details for payment or simply requires a simple reminder for a future payment, dunning functions help you stay in contact with your customers.
Do you want to know if your subscription-management system has all the features to meet your expanding business needs? Download our no-cost ebook 8 Key Subscription Management features to discover.