There’s no denying it: there’s a lot to love about the subscription business model. Why else would we be witnessing the rise of the so-called “subscription economy?”
But for all the advantages that subscription customers and automated billing offer any business, one pain point that can’t be avoided is the hassle of dealing with declined credit cards. As with almost any other problem, the best course of action is prevention – but since that’s not always possible you need to have an effective plan for collecting on past due accounts and retaining the clients attached to them. This is true whether your subscription service is selling business software or a monthly delivery of curated snacks.
This process, known as “dunning,” is difficult but not impossible. Let’s take a closer look at what exactly dunning is and how to do it right (spoiler: Subscription DNA helps).