Dunning, a method of attempting to collect debts or accounts receivable, is the systematic process by which businesses communicate with customers to ensure the collection of outstanding accounts. The process of dunning ensures that an account receivable is collected, as well as providing proof of good communication. Dunning procedure online may be done through telephone calls, letters or other methods. Initial dunning procedure is done after a certain time has elapsed since the due date, in order to resolve any overdue situations.
Importance of dunning system for SaaS business
Today, Dunning is a crucial part of the online business experience. Whether it’s an issue with a payment gateway provider, or it’s a product that doesn’t meet customer needs, SaaS companies can no longer afford to let failed payments fester in a monitoring dashboard.
Let’s face it; online payments are only getting worse. In fact, according to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and PYMNTS.com, from 2013 to 2016 charge backs increased by 3 percent while card fraud jumped 6 percent. This is where a subscription SaaS payment solution can help you better manage dunning and other failed payments across multiple channels.
Dunning Online is all-in-one platform that gives credit and financial managers the personalised insights they need to successfully cultivate, grow and change customer behaviour. Dunning Online’s suite of integrated tools are designed to help you actually measure and manage your client’s behaviour across multiple channels: from face-to-face interactions, through to transactional data.
Importance of dunning system:
- Important to recover failed payments: Dunning system is very important for successful recover of failed payment. This system has the overview of all detection and if any payment has not been made the system will draw attention on it. And till it recovered it will be showed in red color in dunning system. Whereas if any, due payments are recovered then the system will show green color. Dunning System is one of the most important categories of credit cards. It helps to recover unpaid payments for Credit Card Company. The dunning system is implemented after 15 days of the due date of payment. It works by sending the calling bills remainder. Usually Credit card companies in USA sends these mails after 20-30 days from due date.
- Time saving: dunning system is a fully automated process in which the management of your bank or other institution alerts you by prompt email or reminder letter if there is an activity on your bank accounts. The way it’s done by the help of powerful computer and software that scan your records automatically and send you an notice when any activity takes place in your accounts. By managing this activity in a more proper way you can avoid any error or loss.
- Increase revenvue: Did you know that the Mahnverfahren online system is responsible for as much as 25% of your company’s online sales? It’s true. Many brick & mortar business owners still feel confused about dunning, or are wondering if it is even worth investing in. With an established dunning system, your bottom line will see an increase in producing $$$ without added staff or capital investments, allowing your business to profit when it counts the most, while focusing on your retail customers and other tasks that help drive success inside the store.
- Better customer experience: The dunning system is very important for better customer experience. First, it is an effective way to remind customers to pay their bills remainder, free of charge to the organisations. Second, it can avoid customer from going against the company, which may happen due to the prolonged payment of a bill. Finally, it’s also a good way to cultivate a healthy relationship with customers.
The dunning system is the system used in e-commerce business. This is a very important and useful part of ecommerce business. Without a proper dunning (reminder)system, ecommerce business is not required at all. credit card payments are being used widely in online business, therefore, customers should be reminded when they obtained the products and due to payment issues, they return the product or not pay for the products.
Expand your reach to customers who online reject charges using Dunning Online. Dunning online system filters through declined credit cards with the help of a machine learning algorithm so you can focus on your core business.
Automatic email notifications are send when credit cards are about to expire. The importance of dunning online has its place in the world of business. The scenario that is often presented is a credit card account at a gas station. All the time people are constantly on the go. The last thing they want to think about is their credit card account moments before they run out of gas and need to refuel while they are in a frenzy of sorts.