Dunning is known to be the process of business owners communicating with their customers to collect money owed services for services or goods provided. These days, various software and programs are used for online dunning, which has made the whole procedure easy, effective, and fast.

What is dunning?

The online dunning procedure involves a website, app, or payment recovery software that contacts customers about the payments due. There are several steps involved in this online dunning procedure for obvious reasons.

Modern dunning involves credit cards

After the inclusion of SaaS, the online dunning procedure has changed into a vastly altered concept. Hence, the online dunning procedure has transformed from traditional dunning. It has become much more than just communicating with customers to collect due payment for the services or goods provided.

For example, regarding a credit card billing set up, a payment could fail for various reasons like insufficient funds, credit card declines, network issues, blocked cards, card expiry, etc. The cardholder often does not notice these things unless the card statement comes in. This is where an online dunning procedure is required. Hence, online dunning is likely to identify such mystifying transaction failures and notify the customers with timely, accurate information.

Essential things related to dunning

In regard to online dunning management, the whole process is to be automated where several steps are involved. A few of such steps are described below.

The first step is to set up smart retries for the failed payments. Then sending the customers reminded about the outstanding dues from the credit cards is the next step. In the third step, it is important to alert the customers via mails something went wrong in the last transaction. Now in the least step, it is important to request the customers opt-in to collect the updated credit card details from the card providers. This whole process comes under online dunning. Giving the customer a reminder is the whole point of dunning in this regard. It is because, without a reminder, the customer won’t be able to proceed to fulfill or make the payment.

The reminder by mail or phone number is basically done. SMS and other approaches can also be taken. Once the customer makes the payment successfully, then is/she is sent the invoice accordingly. Sending the proper invoice after the payment also comes under the dunning procedure. The invoice collection is the customer’s responsibility, but the dunning method is used to mitigate the hazard of the customers.

More on it

Once the customer successfully makes the payment, the dunning methods stop reminder procedure for the obvious reasons. In the case of giving a reminder, the first reminder free of charge but for other reminders, customers are supposed to be charged for definite reasons. The most important step of dunning is to give a bill reminder to the customer so that he/she proceeds to make the payment.

Dunning is to improve customer experience

Dunning is to improve the overall customer experience, to say the least. A business is bound to lose its customer without a healthy dunning procedure. It is really important for a business to do something fast and effective about receivables management. The dunning procedure makes it easy to handle steps claims. It is also used to write reminder to send to the customers so that they make the payment.

Without giving a payment reminder to the customers, a business is bound to lose its revenue. As a result, the business is less likely to thrive and grow to say the least. Moreover, a useful dunning method also adds an essential layer of security apart from being used for collecting outstanding debts. Moreover, the business also gets to have a healthy communication and connection with customers from time to time. Payment failures are involuntary, unintentional, and unavoidable. Hence, the significance of the dunning method is also high.

In regard to open invoices collection, the customer can push the service provider after making the payment. And it will be sent to the customers through the dunning process. Hence, if you are running a business, you should explore the dunning process and management first. Once you know about its various aspects, you can decide to utilize it in your business in the best way possible. In this way, you are bound to be benefitted to the fullest. There are various websites on the internet where you will get to know a lot of information about this procedure.