Four Ways Dunning Management Reduces Churn -
One of the biggest challenges faced by subscription-based businesses is finding out the best way to keep regular payments for their business. Because revenue is linked to growth in the company and overall well-being, any drop in the recurring revenue will be felt instantly throughout the entire business.
The First Motive: Dunning Management Saves You Time
Having someone in-house manually sending regular reminders each month to all accounts in default has the possibility of exposing oneself to danger. What happens if an employee suffers from health issues or becomes overwhelmed with additional tasks and isn't able to deal with the cost of bills? If you fail to send an annual notice, it's simply increasing the length of duration of your payments.
There was a simpler means of communicating people with accounts in default to request overdue repayment? The dunning management system can automate the sending of reminders to delinquent accounts for you. For instance, if the credit card you use has failed to establish a connection with the account, a notice of dunning is generated automatically and immediately deposited into the account of your credit card. Since your company is already adept at automatizing the checking of account balances it is possible to direct resources from your business to support your main business.
Another reason is to put more money in Your Pocket
The benefits of recurring payments for those who sign up as they guarantee a regular stream of earnings that firms can utilize to plan growth in the near future. However, taking these payments is fraught with its own unique difficulties. Credit and debit cards that are utilized for payment frequently could be cancelled, expired or damaged. This could result in the payment being rejected or even halting the client's service. Be sure to notify your customers when their payment fails to be processed will ensure that your business gets the money that you owe to your service promptly.
By incorporating dunning into their emails, businesses are able to design an email-based reminder that can be flexible and set to be scheduled over two to five, seven, 14 and 21 days in the aftermath of the payment method of the client's inability to make payment.
Third Reason: Cut Down on the amount of Churn generated by customers.
There is no doubt that it's not only harder to attract new customers but also substantially more costly in the long run. To cut down on the costs for acquiring new customers, make sure that your business focuses on safeguarding your current customers.
Fourth reason: Improve your Work Performance
Every business owner doesn't like working on emails or making phone calls to clients soliciting them to change their payment details. Imagine managing many customer accounts and billing information could become overwhelming.
It's a good thing that using an e-commerce vendor with automated dunning features can streamline the entire procedure. Rest easy knowing that customer-friendly reminders will be sent automatically for you. If your customer needs to update their data on their account, or wants to be reminded about payments on a regular schedule, Dunning features in's will allow you to stay up with your customers.
Do you want to know if your subscription-management software has the capabilities that your business needs? Download our absolutely free guide 8 essential features of subscription management to learn more.
This article was originally posted here
This post was posted on here