Involuntary churn—losing customers due to failed payments rather than cancellation—costs SaaS companies millions annually. The right payment orchestration strategy can dramatically reduce these losses.
The Dunning Strategy Framework
Effective dunning involves multiple retry attempts with increasing urgency:
- Day 1: Soft email reminder
- Day 3: Payment retry with card update prompt
- Day 7: Urgent email with alternative payment methods
- Day 10: Final retry attempt
Payment Method Diversity
SaaS companies processing €500k+ monthly should maintain multiple payment methods:
- Credit cards (primary)
- SEPA Direct Debit (for European customers)
- Bank transfers (for enterprise)
- Digital wallets (for younger demographics)
Platforms like Stripe Billing and Novalnet offer sophisticated dunning management that can automate this entire process, recovering 10-15% of failed payments.