A Billing Failure happens on 10-12% of all credit card transactions.
This is how it usually goes down. You sell a monthly subscription, you get a payment online, and then somewhere between month 4 & 5 that payment fails. We talk to business owners all the time, and we hear this story over and over. Most CEO’s chalk this up to the cost of doing business, they throw some dunning software at the problem and consider it ‘solved.’
But here’s the problem with that approach. Dunning software will only recover about 15% of the total number of billing failures. Dunning software is a great first step, but it shouldn’t be thought of as a comprehensive fix for your billing failures. It can be part of the plan, but it shouldn’t be the whole plan. Here are a few software platforms that address billing failures. Recurly, Churn Buster, Stunning
Most dunning software platforms initiate an automated email sequence as the primary method of getting a payment back on-line. But did you know that 85% of dunning software emails go unread? The reason why is because they are automated, and your customers know when they are receiving an automated email from you. The reality is that people just don’t respond well to automated emails. There is very little sense of urgency when there is not an actual person on the other end of the email.
Here’s are two reasons why dunning software should not be the only bullet you shoot at your billing failures:
Here’s the bottom line. Your billing failure is always worse than you think it is. And if you don’t have a full-time focus on this, that is, a full-time person dedicated to relentlessly pursue any and all failed payments, than you are losing money.
Gravy can help you do this. We can give you all the benefits of software, with the effectiveness of a full-time employee dedicated to recovering every single one of your billing failures. Sounds expensive right? Well here’s the best part, we work on commission. So we only make money unless you are making money. If we are not adding money to your bottom-line then you don’t pay us a commission. It’s a no-brainer. And when your business sees an influx of revenue that was previously walking out the back door...we call that Gravy money. You can book a free discovery call with us today to see how much money we can add to your bottom line by clicking the link below.