Four Methods Dunning Management Reduces Churn -
The most difficult challenge facing every subscription-based business is working out how to keep recurring payment running for their organization. Since revenue is linked to the development of the company and its overall wellbeing any drop in revenue recurring could be immediately noticed throughout all of the company.
One of the main reasons is Dunning Management Saves You Time
The employee who has the responsibility of regularly sending reminders to customers who have been in arrears is a risk that comes with it. What happens if the person gets sick or is swamped by work that leaves them are unable to deal with bills? If you do not complete the due payment by the end of a month this is simply extending the length of time for the payment to be made.
But what if you could find a different method to communicate with accounts which are in delinquency or have late payments? Dunning management software automatically sends reminders to accounts with outstanding debts under your name. In the event, for example the account has been closed an account, a letter of dunning is generated automatically and instantly sent into the account of credit cards. Since your company already uses an automated system that lets you monitor accounts with delinquent subscriptions and accounts that are not paying, you can transfer funds from your company in order to assist with the primary business.
The Second Reason: Keep more money in your pocket
Advantages of recurring payment to subscription businesses is that they ensure a steady flow of revenue that companies can use to anticipate the growth of their business in the coming years. However, the process of collecting recurring payments is not without its challenges associated with it. It is possible for debit and credit cards that are used to pay for recurring payments can get canceled or expire, and also be lost, resulting in the transaction being inoperable and causing an interruption clients' services. Be sure to notify customers about any issues with payment that arise ensures that your company receives cash you are owed for your services on the correct date.
The feature of dunning included in the program allows businesses to create email messages that can be delivered at intervals of 2-5, 7, 14 and 21 days after the payment method employed by the customer is unsuccessful.
Third Reason: Cutting Back on Churn
It's true that it's difficult to find new customers, it can also be significantly more expensive and time-consuming. For a lower cost for the acquisition of new customers, be sure that your company is focused in protecting your existing client base.
This is the reason #4 was created to improve your work efficiency
A business owner does not have to be spending hours on emailing or making phone calls to customers asking them to change their information regarding payment. Imagine having to manage thousands of customer accounts and the payment details could be overwhelming.
A good news is that using an online store that has automated dunning software will make the process easier. You can rest assured that easy reminders will be sent to you. If your client needs to alter their existing details for payment or simply needs a gentle reminder for an upcoming payment Dunning capabilities in's allow you to stay in touch with your clients.
Wondering if your subscription management software has the right features for your growing business? Download our no-cost ebook 8 essential Subscription Management capabilities to learn about.
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