Payment failure is the problem that every business has to face in the digital world. Though online payment methods are efficient, payment failures remain there as a necessary evil. There will probably to no system that can ensure zero payment failures. The only solution is to make your system efficient to recover the failed payments.
If you are also facing difficulty regarding recurring payment recovery, then follow these tips:
Dunning Management
Dunning is the way to contact your customers in case of failed payments. You should know this, customers are already disturbed and annoyed when their payments fail. You need to adopt a polite tone to ask for a try to repay their recurring charges. But before you offer them to repay their charges, your recurring payment system should be efficient to allow your recurring customers to repay their charges.
Smart dunning is to manage the dunning process automatically. You should send dunning notifications and emails before the deadline to pay their charges. Sometimes, customers try to pay through their credit cards. When the card is expired or is lost, the chances of payment failure are higher.
So, if the payment got failed because of credit card issues, the customer deserves a chance to at least try to repay through another payment method. That’s where automated dunning helps. There are by default templates that recurring payment systems offering dunning management provide. Customers can be asked to retry to pay their charges.
Multiple Payment Methods
As has been mentioned, payment failure can happen because of credit card expiry. In that case, if you ask the customer to pay through another payment method, then your recurring billing system should offer more than one payment method to your customers.
Different payment methods also help to bring international customers on board. So, to recover failed payments you need dunning as well as multiple payment methods.
Follow Up Emails
Another effective way to recover your recurring payments is to send follow-up emails that most retailers ignore. If you send notifications or emails regarding timely payments but do not receive your payment, then your system should be efficient enough to send follow-up emails.
Ask customer persistently about the payments. Stay in touch with him. A Dunning management system can help you send appropriate follow-up emails. Even if you have not automated the dunning, it is your responsibility to send follow-up emails for the sake of your own payments.
Automate Card Updates
There are millions of subscribers in the digital world who pay by using their credit cards. If most of your customer base also uses credit cards, then automate card updates. Notify your customers about the expiry date or any other issue related to their card.
Most of the recurring billing software stores the customer information that he shares for the first time to pay his recurring fee. If your system also stores this information, then you can easily track the status of the bank cards through which the customer pays his recurring billing charges.
Ask him time to pay his recurring charges timely.
Incentives for Timely Payments
Another business tactic that you can use to get your recurring payments in time is to offer incentives for those customers who pay you on time. This way you can motivate your customers to pay on time. You can also offer benefits or discounts for those customers who have been the victim of involuntary churn.
Communicate with them through the dunning process, ask them to come on board again by paying their recurring fee. Offer them incentives for rejoining your customer base.
The Best Customer Support
There are many customers who are not tech-savvy. Once their recurring payment fails, it is difficult for them to retry or use another payment method to pay their recurring charges. For these customers, you should offer the best customer support services.
Train your customer representatives to resolve the issues of those whose payments got failed on a priority basis. Customer support can play an eminent role in reducing payment failure. Now that you are aware of various tips and tricks to manage failed payments, it is hoped that you will be able to nip this nuisance in the bud. SubscriptionFlow is one such subscription billing software where you can manage your failed payments and subscribers who got their payments failed efficiently. Here you can not only recover your failed payments but also remove the cause of revenue leakage for good.
