Definition
The automated process of retrying failed payments and notifying customers when a card fails, before treating the account as churned.
Why it matters for growth
Effective dunning recovers a meaningful share of what would otherwise be counted as involuntary churn, directly protecting revenue with no product changes.
Example
A billing system retries a failed charge three times over ten days and emails the customer each time, recovering 60% of failed payments.
FAQ
- What is Dunning?
- The automated process of retrying failed payments and notifying customers when a card fails, before treating the account as churned.
- Why does Dunning matter for growth?
- Effective dunning recovers a meaningful share of what would otherwise be counted as involuntary churn, directly protecting revenue with no product changes.
- What is an example of Dunning?
- A billing system retries a failed charge three times over ten days and emails the customer each time, recovering 60% of failed payments.