Dunning Emails
Failed payments emails
Stripe emails
Gal Cegla
Feb 3, 2025
When it comes to reducing involuntary churn, personalized dunning emails can be a game-changer. A dunning email is a communication sent to customers whose payments have failed, reminding them to update their payment information or settle their balance. While this may sound simple, the way you approach dunning emails can make the difference between retaining a customer and losing them for good. In this article, we’ll explore the best practices for creating personalized dunning emails that work and provide examples to inspire your own efforts.
Why Personalization Matters in Dunning Emails
Generic dunning emails often come across as impersonal, which can alienate customers. Personalization, on the other hand, helps establish a connection, making the email feel like it’s coming from a partner, not a bill collector.
Here’s why personalization works:
Builds Trust: Personalized emails show that you know and value your customer.
Reduces Friction: Clear and empathetic communication can alleviate the embarrassment or frustration a customer may feel about a failed payment.
Increases Engagement: Customized content is more likely to be opened, read, and acted upon.
What We Do Differently with Dunning Emails
1. Coordinate communications with retries
We automatically coordinate dunning communications with each customer’s payment retries and failure reasons. By aligning the timing of emails with retry attempts, we ensure that messages are sent when they are most relevant. This minimizes unnecessary emails and enhances the likelihood of recovery by addressing the issue in real-time. Additionally, understanding why payments are failing allows us to craft targeted messaging that resonates with the customer, offering solutions to specific problems such as expired cards or insufficient funds.
2. Delay Emails After Soft Declines
For better customer experience, we don’t send emails immediately after a soft decline. This prevents unnecessary disruptions for the user and reduces passive churn. Instead, we monitor the situation and take action only if the issue persists.
BTW, this is automated by default with FlyCode’s Emails
3. Email Other Users in the Organization
If the main admin is unresponsive, we send follow-up emails to other users within the organization. This approach is unique to us and has a massive impact on recovery rates, as it ensures the message reaches someone who can take action.
4. Set Tailored Schedules for Hard Declines
Using a real machine learning model, we craft different email schedules for hard declines. This ensures that the timing and frequency of the emails are optimized for maximum recovery chances.
5. Benchmark Email Deliverability and Recovery Rates
We conduct full DMARC tests and use domain-based, personalized emails tailored to each user. This ensures high deliverability and allows us to track real-dollar recovery metrics for continuous improvement.
6. Send Emails at the User’s Local Time
Instead of relying solely on event-based triggers, we schedule emails to be sent at the user’s local time. This significantly increases the likelihood of the email being noticed and acted upon.
Best Practices for Personalized Dunning Emails
Use the Customer’s Name
Addressing your customer by name adds a human touch and sets a friendly tone.
Example:
Subject: Hi [First Name], we need your help with your payment 🙏
Add Emojis in Email Titles
Using emojis in email subject lines can make your dunning emails stand out in crowded inboxes. Choose emojis that match the tone of your message—friendly, urgent, or supportive.
Examples:
Subject: Oops, looks like there was an issue with your payment 😕
Subject: Urgent: Update Your Payment to Avoid Service Interruption ⚠️
Subject: Hi [First Name], please update your payment 🙏
Be Clear and Empathetic
Avoid jargon and keep your tone understanding. Let customers know that payment failures are common and easily fixable.
Example:
We understand that payment issues happen, and we’re here to help you resolve it quickly.
Include Relevant Details
Provide specific information about the failed transaction, such as the date, amount, and payment method. This transparency builds trust.
Example:
Your payment of $49.99 on January 25, 2025, could not be processed with your card ending in 1234.
Make Updating Payment Info Easy
Include a clear call-to-action (CTA) button that takes the customer directly to their payment update page. Ensure the process is simple and mobile-friendly.
Example CTA:
[Update My Payment Info]
Highlight Loss of Service
Make it clear to the customer that failure to update their payment information will result in losing access to your service. This creates urgency and emphasizes the importance of taking action.
Example:
Please note that if payment is not updated, your access to [Service Name] will be temporarily suspended.
Use Real People as the Senders (& switch between them)
Emails sent from a real person in your organization (e.g., the customer success manager or head of billing) feel more personal and trustworthy. Additionally, switching between sender names for follow-up emails can keep communications fresh and engaging, ensuring that the user doesn’t overlook subsequent emails.
Example:
From: Sarah at [Company Name]
Follow-up: Alex from [Company Name]
Key Takeaways
Personalization builds trust and improves engagement.
Timing, user-specific scheduling, and custom incentives are crucial.
Highlighting service loss creates urgency and drives action.
Testing and optimizing your emails can help maximize recovery rates.
By implementing these battle-tested strategies, you’ll not only reduce involuntary churn but also strengthen your relationship with customers. Start crafting personalized dunning emails today to turn failed payments into opportunities for retention with FlyCode.
