Book Demo
Failed payments can significantly impact your revenue, with studies indicating that up to 14.6% of recurring payments fail due to issues like expired cards or insufficient funds. This can lead to substantial revenue loss, as subscription businesses reportedly lose about 9% of their average annual revenue due to failed payments.
Implementing robust dunning analytics to address this is crucial. By monitoring and analyzing payment failures, you can understand their impact on your revenue and develop strategies to mitigate them. A comprehensive dunning management system can automate the recovery of failed payments, reducing involuntary churn and enhancing customer satisfaction. For instance, businesses that actively track and manage failed payments recover, on average, 43% more revenue than those that do not.
To gain deeper insights into effective recovery strategies, visit Loopwork.co. Our advanced dunning analytics and management tools can help you reclaim lost revenue and strengthen your subscriber base.
When addressing failed payments, Loop's Dunning Management system provides a straightforward, practical approach to recovering missed payments. While payment recovery isn't a revenue-generating strategy, it's critical for maintaining financial stability.
The challenge of payment recovery is a critical issue for DTC businesses with subscription models. Missed payments can significantly impact revenue, with studies showing that involuntary churn can account for 20-40% of total customer losses. This is where robust measurement and analytics become crucial.
Our payment snapshot section provides a comprehensive, real-time view of your entire recovery process. By transforming data into actionable insights, you can understand exactly where and why payments are failing. Features like payment snapshots and recovery performance metrics allow you to track trends, identify bottlenecks, and develop targeted strategies to minimize revenue leakage.
For instance, the source-wise distribution view helps you pinpoint which payment channels are most prone to failures. Is it shopify payments? Shoppay? Paypal? With this granular understanding, you can take proactive steps to address specific payment method challenges.
The Payment Snapshot section provides a clear overview of attempted payments, revenue realized, revenue recovered with Loop, and lost revenue (after the last attempt of payment recovery failed). This enables you to assess your dunning strategies and later help you optimize them for better results via insights and trends.
You can also track success vs failed revenue over the last twelve months through an intuitive bar graph. With these comprehensive visualizations, you can leverage actionable insights to arrest payment failures.
By analyzing metrics like Revenue Realized % and Lost Revenue, merchants can evaluate the effectiveness of their current dunning strategies and make data-driven adjustments to optimize revenue recovery.
This section provides a comprehensive payment summary, complete with customizable filters for date ranges and time comparisons. This enables you to analyze data based on both order count and revenue, giving you a deeper understanding of your payment performance.
The Payment Summary section includes key metrics like overall, non-dunning and dunning realization from both attempted and realized orders.
Similarly, you get a by-the Source-Wise distribution section to understand which payment sources are encountering the most issues. You gain insights into attempted vs realized orders, along with the recovery percentage of dunning and non-dunning. This source-wise breakdown is crucial because different payment sources often have varying levels of success rate and reliability. You can identify areas where optimization is needed, by analyzing these differences.
Finally, the Payment Over Time graph visually tracks failed vs. realized revenue over specific time periods, helping you spot trends in payment issues and recovery. This complete overview provides you with the insights needed to fine-tune your strategies and minimize lost revenue.
Loop Subscriptions provides a comprehensive solution for automating and optimizing your payment recovery process. From automated retry workflows and choosing final actions after failed payments to reactivation incentive campaigns, we help you recover payments efficiently. Additionally, Loop's in-depth recovery analytics allows you to analyze recovery trends.
Once the initial payment fails, the dunning system comes into play and retries the payments at defined intervals. The retry settings page empowers you to customize payment recovery strategies by defining the number of retry attempts, intervals between retries, and the number of retry cycles.
Select the final action to take after all retry attempts have been exhausted. The available options include skipping the payment, pausing the subscription, or cancelling the subscription entirely. The "Skip the Payment" option offers flexibility, allowing you to configure auto-cancellation or pausing after 2, 3, 4, or 5 consecutive payment failures. Additionally, you can specify whether the final action should be a pause or a complete cancellation. An important aspect of this feature is that customers will receive notifications with reactivation or resume quick action via email and through event payloads synced to third-party applications.
Get detailed recovery insights for subscriptions in dunning, including payments that have been recovered, are still in recovery or have been paused or skipped, as well as those where the final payment attempt had failed. You can check the count and revenue associated with each status, along with the percentage trend over the selected time frame. You can filter this data by time and even compare different time frames for deeper analysis.
The Recovery by Retries section provides deeper insights into the success of each retry, helping you understand which retry strategies or offers are most effective. You can filter this data by payment source, failure reason, and retry cycle.
Along with this, the Recovery by Failure section gives a detailed breakdown of recovery rates for each retry ( from retry 1 to retry N) by failure reason. This data can be filtered by payment source and failed cycle for detailed recovery performance analysis. This section helps identify which payment failure reasons have good or poor recovery rates, enabling businesses to develop more targeted strategies for improving payment recovery and minimizing revenue loss.
This section is crucial for understanding the root cause of payment failures and making recovery strategies accordingly. By looking at the detailed overview of the top 5 payment failure sources and failure reasons, along with associated revenue, you can gain deeper insights into where the problems are arising. Whether it's a card declined issue or an issue with a specific payment method, Loop Subscriptions detailed breakdown helps you pinpoint the exact failure reasons.
You can further filter this data by payment source and time frame to get a more detailed picture, enabling you to identify patterns and trends in failure reasons, optimizing your retry strategies, or offer incentives to the customers.
The dunning system is set up to send automated gentle reminders to customers via emails or SMS notifications for overdue payments. You can customize the emails based on various factors, such as the customer's history or the payment amount. Loop’s dunning management system offers a user-friendly payment recovery experience, where personalized automated emails are sent directly to customers, enabling them to update their card details instantly on-screen without OTP hurdles, Transforming the process and providing a smooth, effortless experience for resolving payment issues.
Remind customers about their failed card/payment details on their customer portal. Merchants can offer personalized discounts to subscribers, such as "Update your card and get 10% off" within the customer portal.
Export subscriber data as CSV files, tag customers in dunning mode, and automate personalized SMS and email notifications to inform them about payment failures. Loop seamlessly integrates with Klaviyo and other Shopify marketing apps for effective follow-up campaigns. You can proactively address potential payment failures by configuring admin alerts and receiving regular reports on upcoming payments with high failure risks. By leveraging these powerful features, you can reduce payment failures, improve customer satisfaction, and optimize your payment processes for greater efficiency.
In today’s subscription economy, managing involuntary churn is not just about recovering lost payments, it’s about creating a seamless experience that protects your customer relationship and your revenue. Loop’s dunning management system provides you twith ools and insights to understand the revenue realized and why the payment failed. With automatic retry configuration and detailed recovery performance analysis, We turn payment failures into opportunities for improvement. Don’t let payment failures drain your revenue, turn dunning management into a strategic advantage with Loop Subscriptions.
Emma Johnson is celebrated for her strategic brilliance and innovative flair. By seamlessly blending creativity with data-driven insights, she has propelled Loop’s brand to new heights, establishing it as a formidable force in the Shopify Subscriptions space.
