4 Strategies Dunning Management Reduces Churn -
One of the biggest challenges faced by businesses that are based on subscriptions is to figure out how they can keep regular payments running to their company. Because the revenue stream is contingent on business growth and well-being, any drop in the revenue stream is noticed across the entire business.
Reason #1: Dunning Management Saves You Time
The employee that is accountable for sending out monthly reminders for all accounts who are in default, has their own risk. What happens if the person gets sick or overwhelmed with additional work, and becomes unable to pay the bills? If you don't make the monthly reminders it will only prolong the amount of time needed to receive your payment.
But, what if there was a better approach to contact account holders who are delinquent and also collect the overdue payments? Dunning management systems automates the delivery of reminders to delinquent accounts to help the benefit of. In the event such as when the credit card you use is not working, the dunning notice is created instantly and immediately sent to you. If your business has an automated system for dunning which monitors delinquent subscriber accounts, you can reallocate funds from your business to help support the primary business.
Reason #2: Keep More money in your pocket
A recurring payment can be a good option for businesses that are interested in recurring payments as they provide an ongoing flow of revenue which companies can use to predict the future of their business. However, the process of collecting recurring payments comes with its own set of challenges. The credit and debit cards that pay for the periodic payment may be lost, cancelled and expired, or even lost, resulting in payments being rejected and even a break of your client's subscription. Making sure you inform users of any payment issues which arise will ensure that your company gets paid for its service promptly.
Its built-in dunning capabilities allow companies to create an email reminder that is flexible to send out every 2, 5, 7 14 or 21 dates in the event the payment method used by your customer is not working.
Third Reason: Cut Down on Customer Churn
It's hard to acquire new customers. However, it could turn out to be significantly more expensive and costly. To cut down on the expense of getting new customers, it's essential that your business concentrates on safeguarding your existing customer base.
Fourth Reason to Increase Your Work Performance
No business owner wants to be wasting hours writing emails or making telephone calls to clients asking customers to update their credit card information. Imagine managing several accounts for your customers , and billing information are a mess.
A good news is the fact that working with an online company that has automated dunning capabilities can streamline the whole process. It is safe to know that friendly customer reminders are sent out by you. If your client needs to update their existing data on their account or would like a friendly reminder for the future installment, our Dunning functions will help you remain on top of your clients' requirements.
Do you want to know if your subscription-management software has the capabilities that your demands for your business? Download our eBook for free 8 essential Subscription Management Features to learn more.
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