4 Methods Dunning Management Reduces Churn -
The most difficult thing for organizations that are dependent with subscriptions is figuring out methods to keep recurring payments flowing for the company. Because revenue is tied with the growth of the business and overall wellbeing, any dip in revenue is immediately noticed throughout the whole organization.
The First Reason: Dunning Management Saves You Time
Staff members in the company who send monthly reminders to all account holders who are in delinquency carries inherent risks. What happens when the employee becomes sick or overwhelmed with more work and can't be able to pay bills? If you do not receive an invoice every month, it's simply increasing the amount of time needed for you to get your money.
What if, however, there was an alternative method of communicating to those who have accounts that are in default and also to get the late payments? The dunning management software automates the process of sending reminders to accounts that are in default to help your benefit. For instance, if the credit card you use is not functioning, a dunning notice is created automatically and immediately is sent directly to your account. Because your business already uses an automated dunning procedure which monitors accounts of delinquent subscribers, it is possible to shift the resources of your company to help support the mainstays of your business.
The third reason is to keep the cash in your account.
Recurring payments are a great option can be a boon for subscription companies since they provide a consistent stream of revenue that companies are able to use to predict future growth. But, making these payments is not without certain challenges. Debit and credit cards which serve as the basis for these periodic payments may be cancelled in the future, expired or deleted, which could result in that payment not working and leading to a disruption of the client's subscription. Be sure to inform your customers that their payments have failed to method ensures that your business is compensated for its services quickly.
Built-in dunning capabilities allow the business to program emails that can be sent out at 7, 14, 14 or 21 days in the event that a customer's payment method fails.
Reason #3: Reduce Your Churn Rates with Customers
As we all know, it's not easy to get new customers. However, it could even be much more costly as well. In order to reduce the cost of acquiring customers, it is crucial to focus on safeguarding your existing customer base.
The Reason #4 is to improve your work efficiency
Everyone who runs a business doesn't need to waste time creating emails or making calls for customers asking them to update their credit card data. Imagine managing thousands of customer accounts and the billing details can become a nightmare.
It is a good thing that partnering with an ecommerce supplier with automatic dunning features can make it easier to manage your entire process. You can rest assured that easy reminders will be sent by you. If your client needs to alter their personal information in order to make a payment, or needs an easy reminder of future payments, the Dunning features help you remain on top of your customer's needs.
Do you want to know if your subscription-management system has all the features to meet your expanding business needs? The free eBook contains 8 Key Subscription Management options to explore.
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