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Dunning Process in SaaS

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Sinopsis

One of the most important topics in SaaS that isn’t too often covered, is the dunning process. For those who might not be familiar with dunning, it’s the process of communicating with customers that are past due, to collect payments before their accounts get cancelled or closed. Dunning is usually a structured automated process whose form of communication is email or sms. For SaaS companies with a large number of customers, dunning is a crucial process with several benefits, including revenue retention, helping churn, increasing cash flow, and more efficient use of resources. An effective dunning processes requires a lot of thought and strategy, which usually depends on what you choose to optimize for. That usually depends on the nature of your business, industry and types of customers. A typical dunning process lasts about 30 days, however that could vary more or less, depending on your business. What strategy to use? If you’re optimizing for revenue retention and churn prevention, than you will want to have