Four ways to Dunning Management Reduces Churn -

A challenge faced by all subscription-based businesses is figuring out how to maintain regular payments running for their company. And since revenue is closely connected to business expansion and well-being, any drop in the recurring income is experienced throughout the entire company.

First Reason: Dunning Management Saves You Time

A person in the company who is responsible for manually sending periodic reminders to all delinquent accounts has its own risks. What happens if that person becomes sick or overwhelmed with extra work and can't handle the invoices? If you miss an invoice due to a month it's just prolonging the amount of time needed to receive your payment.

However, what if there was an easier way to reach out to delinquent accounts and collect overdue payments? Dunning management systems automatically sends out reminder notifications to accounts that are in delinquency for you. For instance, if your credit card has problems the dunning notice is created automatically and sent out immediately. Since your company already has an automated dunning process monitoring delinquent subscription accounts, you are able to redirect company resources towards supporting your core business.

Second Reason: Make Sure You Keep More Money in your Money

The benefits of recurring payments for subscription companies since they create a regular flow of revenues that companies can utilize to plan for the future of their business. However, the process of collecting these payments comes with their own set of challenges. The credit and debit cards used to pay for the recurring payment can be lost, retracted, or get lost--resulting in payment failure and an interruption the customer's service. Be proactive in notifying customers that their payment has failed to process helps ensure that your business is getting the money you owe for your services in a timely manner.

's built-in dunning features allow companies to create emails that can be sent out at 2, 5, 7 14 and 21 days in the event that the customer's payment method has failed.

Reason #3: Reduce Your Customer Churn

We all know it's not only harder to find new customers, it can also be substantially more costly too. To cut down on expenses for acquiring customers It is essential that your company focuses on safeguarding your existing customer base.

The Reason #4 is to Increase Your Work Efficiency

Every business owner doesn't want to waste time writing emails or phone calls to customers asking them to update their payment data. Imagine if you manage many customer accounts as well as billing information--the process can quickly turn into a nightmare.

It is a good thing that partnering with an ecommerce partner with automated dunning tools can speed up the entire process. Relax knowing that user-friendly reminders will be delivered on behalf of you. If your client needs to update their existing account information, or wants a friendly reminder to schedule a regular payment,  the dunning capabilities of's allow you to stay on top of your clients' needs.

Wondering if your subscription management software has the capabilities to support your growing demands for your business? Download our no-cost ebook 8 Essential Subscription Management Features to find out.