What is Dunning?
Dunning is a process used by businesses to communicate with customers who have overdue payments. It involves a series of reminders and requests for payment, escalating in urgency and formality over time. The goal of dunning is to recover unpaid debts while maintaining a positive relationship with the customer.
The dunning process typically begins with a friendly reminder, which may be sent via email, SMS, or phone call. If the payment is not received, subsequent reminders become more insistent, highlighting the overdue amount and potential consequences of non-payment. In some cases, businesses may offer payment plans or other solutions to help customers settle their debts.
Effective dunning strategies are essential for maintaining cash flow and minimizing bad debt. Automated dunning systems can streamline the process, reducing the administrative burden on businesses. These systems can schedule reminders, track responses, and escalate the matter to collections if necessary.
Customer communication during the dunning process should be clear and respectful. It is crucial to provide customers with multiple payment options and easy access to support if they have questions or issues. Transparent policies regarding late fees and service disruptions can also help manage customer expectations and reduce disputes.
Dunning is particularly relevant in subscription-based businesses, where recurring payments are a key revenue source. Ensuring that customers are aware of their payment obligations and have the tools to manage their accounts can help reduce churn and improve overall customer satisfaction.
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Why Solvimon
Helping businesses reach the next level
The Solvimon platform is extremely flexible allowing us to bill the most tailored enterprise deals automatically.
Ciaran O'Kane
Head of Finance
Solvimon is not only building the most flexible billing platform in the space but also a truly global platform.
Juan Pablo Ortega
CEO
I was skeptical if there was any solution out there that could relieve the team from an eternity of manual billing. Solvimon impressed me with their flexibility and user-friendliness.
János Mátyásfalvi
CFO
Working with Solvimon is a different experience than working with other vendors. Not only because of the product they offer, but also because of their very senior team that knows what they are talking about.
Steven Burgemeister
Product Lead, Billing