SaaS & Startupintermediate
Dunning
Definition
The automated process of contacting customers whose payments have failed, usually through a sequence of reminder emails, to recover the revenue and update their card details.
Why it matters
A surprising share of churn comes from failed payments rather than unhappy customers. A good dunning process quietly recovers revenue you would otherwise lose.
Example
When a subscribers card expires, a founder dunning sequence emails them three times over a week asking them to update their details, recovering most of the failed payments.
Related terms
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