Automated Dunning Management

Reducing Consumer Churn:
Automated Tools and Payment Options for Publishers


Understanding Subscriber Churn

Involuntary churn within digital subscriptions refers to the unintended loss of subscribers, often due to payment failures or other technical issues rather than a customer’s conscious decision to cancel. This phenomenon can have significant impacts on a company’s revenue and customer retention strategies. Here are some key points and data on the effects of involuntary churn within digital subscriptions:

Digital subscription retention strategy diagram


1. Grace Periods

When a subscription payment fails, publishers can place subscribers into an automatic grace period. During this time, payment recovery tools are activated, and transactional emails are sent to inform subscribers of the issue and guide them to self-service tools. Concurrently, recurring instructions are sent to the payment processor to retry the payment over several days. The payment processor is also directed to perform an automatic card update to check for new card information, such as a new number, cvv or expiry date, and update the payment token accordingly. Throughout the grace period, subscribers continue to have access to content while the payment is being recovered.

Benefits

  • Better experience for the consumer with the brand
  • Reduces involuntary churn by up to 70% and retains subscribers


    • 2. Automatic Payment Retries

    Payment failure can happen for any number of reasons, expired card, insufficient funds, incorrectly marked for fraud, or that the bank simply marks the transaction as do not honor. Involuntary churn is one of the most detrimental causes of subscriber loss and one of the easiest to correct. One of the most effective ways to handle failed payments is through automatic payment retries. This process involves the system automatically attempting to process the payment again for a number of days until successful, after an initial failure. Flip-Pay's subscription management solution, works with your payment gateway performing smart retries, which can be linked to our grace period functionality, which can be tailored to increase the chances of successful transactions without causing inconvenience to the subscriber.

    Benefits

    • Reduces manual intervention by customer service teams
    • Increases the likelihood of recovering failed payments
    • Provides a hassle-free experience for subscribers who might not be aware of the failed transaction


      • 3. Auto Card Updating

      Cards on file can become outdated due to expiration, re-issuance, or changes in cardholder information. By implementing Flip-Pay's auto card updating service* ensures that the subscriber’s payment information is kept current without requiring manual updates from the customer.
      * The Payment Processor must support auto card updating

      Benefits

      • Minimizes payment disruptions due to outdated card information
      • Enhances the customer experience by reducing the need for manual updates
      • Helps maintain a steady flow of revenue by preventing unnecessary subscription cancellations
      • Failed transactions will retry automatically upon a successful card update


        • 4. In-Site Notifications

        When a payment issue arises, notifying the customer directly within the website can be highly effective. Flip-Pay provides in-site notifications that can alert the subscriber to payment problems as soon as they log in, providing an immediate prompt to resolve the issue

        Benefits

        • Provides real-time awareness of payment issues
        • Card expired, Card about to expire, Payment failed, Subscription lapsed, other, on screen notifications
        • Encourages prompt action from the subscriber to rectify the problem
        • Enhances the user experience by integrating notifications within the familiar website environment
        • Link directly to customer self service tools to rectify the account issue



          • 5. Transactional Emails with Self-Service Links

          Sending transaction emails that link out to self-service tools on the publisher’s website empowers subscribers to resolve payment issues on their own. These emails should be clear, concise, and contain direct links to update payment information or address any other payment-related concerns.

          Benefits

          • Empowers subscribers to quickly resolve payment issues independently
          • Reduces the burden on customer service teams
          • Enhances customer satisfaction by providing convenient self-service options


            • 6. Offering alternative payment options

            Integrating popular payment options like Google Pay, Apple Pay and PayPal along side traditional card payment forms can significantly reduce churn, especially on mobile devices. These payment methods offer a seamless and secure checkout experience, making it easier for subscribers to manage their payments.

            Benefits

            • Increases the convenience and speed of payment processing
            • Reduces the likelihood of payment failures due to outdated card information
            • Enhances security and trust with subscribers who prefer using digital wallets
            • On mobile devices, removes 3DS2 validation requirements
            • Can generate sales without registration as email addresses are already validated



Flip-Pay has the above enabled as default as part of our anti-churn solution, which is fully integrated into our subscription management platform. There is no need for additional vendors or any third party integrations.

We assist publishers with our advanced dunning management strategies that can recover up to 70% of failed transactions.

Talk to us today and find out how our platform can simplify your subscription business, so you can focus on delivering great content.