Four ways to reduce dunning Dunning Management Reduces Churn -
One of the major challenges faced by businesses that are based upon subscriptions is working out the best way to sustain regular payments for their business. Since revenue is tightly tied with business growth and overall health, any decrease in the recurring revenue is immediately felt throughout the entire company.
First Reason: Dunning Management Saves You Time
In-house staff members who manually send out regular reminders to everyone with account holders who are in delinquency is risky in itself. What happens when that individual has a health issue or has a lot of work and isn't able to deal with bills? If you do not receive the monthly reminder it's just prolonging the time required to get paid.
What if there was an easier way to reach out to those who have a delinquent account and to collect overdue payments? The dunning management program will automatically issue reminders for the accounts you're having a problem with for you. In the event such a case, as if the credit card is not working an account, a note of dunning will be automatically created and sent out immediately. As your company utilizes an automated dunning system which checks accounts with delinquent subscriptions It is also possible to transfer funds from your company in order to assist your primary company.
The third reason is to keep an extra amount of money in your bank account.
The benefits of recurring payments can be a boon for subscription companies since they are a reliable source of revenue that businesses can utilize to plan for the long-term future for their business. The process of making these payments comes with problems that go along with them. The credit and debit cards utilized to process the payment could be cancelled, expire and/or get lost, resulting in payment failure and an interruption in your customer's subscription. Making sure you notify customers of a payment failure method ensures that your company gets paid for the services it provides in a timely manner.
Built-in dunning capabilities enable companies to design customizable email reminders in intervals of two 5, 7, 21, and 14 days in the event that the payment method of a client fails.
The 3rd reason is to reduce your Customer Churn
There is no doubt that it's not easy to attract new customers. It can also be considerably more expensive as well. If you want to cut costs for acquiring customers you must be sure to concentrate your company on protecting your existing client base.
Fourth Reason to Improve Your Performance at Work
Everyone who runs a business doesn't wish to spend time writing emails or making phone calls to clients asking for them to change their payment details. Now imagine if you're managing many accounts of customers and payment information. It could soon get overwhelming.
It is a good thing to partner with an online supplier that can automate dunning can simplify your entire process. Rest easy knowing that customer-friendly reminders will be sent out on behalf of the company. When your customer requires to update their existing details on their account, or requires an easy reminder of another payment in the future, Dunning functions let you keep in touch with your clients.
Are you unsure if your subscription management system includes all the features your demands for your business? Download our free ebook 8 essential Subscription Management Features to learn more.
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