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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.

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