How can I reduce payment declines?
By implementing a comprehensive subscription payment recovery strategy that includes intelligent dunning, Account Updater services, network tokenization, and proactive customer communication, businesses can significantly reduce involuntary churn and retain more subscribers.
Dunning: Dunning is the process of communicating with customers after a payment failure while automatically retrying transactions according to predefined rules. An effective subscription payment recovery strategy relies on dunning to recover revenue without creating unnecessary customer friction.
Effective dunning should include:
- Automated payment retries
- Personalized customer notifications
- Multiple communication channels
- Easy methods for updating payment information
The goal is to resolve payment issues before customers lose access to your product or service.
Account Updater: Card issuers regularly replace payment cards due to expiration, fraud, lost cards, or account upgrades. Without updated payment credentials, recurring transactions fail even though the customer still wants the subscription.
Account Updater automatically receives updated card information from participating card networks and issuers before recurring transactions are processed.
Network Tokenization:Unlike traditional credential updates that may occur periodically, network tokenization can help ensure payment credentials remain current, reducing the likelihood that a payment enters the dunning process in the first place.
Combined with Account Updater services, network tokenization helps subscription businesses maximize successful renewals and improve overall payment performance.