chargify--logo Created with Sketch.

Revenue Retention

Reduce customer churn caused by failed or delinquent payments.

Dunning 101

Problem

Dunning is the process of communicating with at-risk customers to bring their accounts current after a failed payment attempt.


Solution

All Chargify plans include easy-to-configure dunning management tools that allow you to control credit card retries, email notifications, and account cancellation logic.


Return

ROI varies, but recovered revenue averages 4 times the Chargify monthly fee for B2C merchants and over 10 times the fee for B2B merchants.

…

Prevent payment failures before they happen

Proactively prevent failed transactions before they happen with customizable emails based on events such as end-of-trial, renewal notices, and credit card expiration notifications.

  • Send end-of-trial emails, especially when customers might need to enter their billing information.
  • Customize upcoming renewal notices to remind customers that their account is about to renew.
  • Enable credit card expiration emails to notify customers of upcoming expirations along with a link to easily update their credit card information.

Communicate with past due customers

Do not give up on lost revenue after a payment failure. Configure retry logic to keep trying after failed transactions.

The most important component of a dunning strategy is customer communication when transactions fail and accounts become past due. Chargify lets you customize and schedule multiple emails to re-engage with these accounts and reel them back in.

Manage the cancellation process

Even with a robust dunning strategy, some customers will not respond. Define how many days after the account is “past due” that cancellation will occur.

Customize the cancellation email to communicate what action has been taken and what features will be unavailable. Choose to offer an incentive if they change their mind and include information on how to reactivate their account.

Monitor past due account reporting

Chargify’s reporting allows your team to monitor and export subscriptions that have entered into the dunning process. This is helpful to identify at-risk accounts so your sales or customer success team can re-engage with these accounts above and beyond system communication.

At Knobby, we use Chargify’s dunning email workflows to help ensure that past due accounts are re-engaged and maximum revenue is achieved. It works!

All set? Let’s get started.