If you do not know what dunning is, this post is definitely for you. Even if you currently have a dunning strategy in place, you’ll learn some tips below to retain more customers. Bottom line is, if you want to recover more revenue and reduce subscription churn, read on to learn about our new preconfigured dunning strategies.
“Dunning” is the process of attempting to collect payment after a payment method fails, prior to subscription cancellation. A dunning strategy is made up of three main parts:
- Retrying failed transactions
- Communicating with customers when transactions fail, giving them a chance to keep their account active by updating payment information
- Deciding how to handle past due accounts after a certain amount of failed attempts, emails, days, etc.
Individual results will vary, but there is one thing for certain – credit card dunning DOES work and WILL increase revenue and decrease churn.
What exactly makes up a good dunning strategy? Every business is different and there is no one-size-fits-all strategy.
- How often should you retry failed transactions?
- When do you send emails and what should the emails say?
- How many attempts do you make before you give up and then what do you do?
The uncertainty of these questions can lead to merchants implementing the wrong strategy or not implementing a strategy at all.
At Chargify, we have helped thousands of merchants implement and improve dunning strategies over the last 7 years. Taking that knowledge, we’re happy to introduce preconfigured dunning strategies…
Whether you’re just getting started or already use dunning, we’ve provided preconfigured dunning strategies that can be implemented with a single click!
If you’re just getting started with Chargify, or create a new Site, you will see the following options when visiting the ‘Dunning and Retries’ Settings page:
If you’re an existing merchant, all Chargify Sites had VERY basic defaults in place. Unless you have modified the default settings, your current strategy includes:
- Retry on day 1 after a failed transaction (no email to customer)
- Cancel the account on day 14 (no email to customer)
The new preconfigured strategies include more retries and customer emails to proactively engage with past due accounts, giving you a better chance to reactivate them.
You can stay on course with your current strategy, edit your current strategy (see the edit section below), or switch to one of the new preconfigured options.
Go to your Chargify Site > click on the Settings tab > and click on the ‘Retries and Dunning’ section. At the bottom of the page, select the new “Reset My Dunning Strategy” button:
Note: No changes will be made until you confirm the update in the next step.
You will then see the preconfigured options. Select the desired strategy that’s best suited for your business:
Confirm that you want to replace your existing configuration:
Congrats, you are now on your way to an optimized dunning strategy!
Now you can further customize the settings based on your needs…
Editing your dunning strategy:
With any dunning strategy, you can edit:
- The frequency of retries and if/when emails are sent
- The content of every email ← we highly suggest you further customize automated dunning emails
- If you want to configure your own email systems to send the dunning emails using our Webhooks and Subscriptions API
- If an internal email address is bcc’d on any dunning emails
- When and what the final action is after a series of unsuccessful retries