What is Dunning?

Dunning: The Initial Phase of Debt Recovery

Dunning is the process of regularly reminding customers to pay their overdue bills. This involves sending reminder letters, emails, or making phone calls. The aim is to get the customer to pay what they owe without needing to take legal action. The process usually starts with polite reminders and becomes more assertive if the payment is still not made. Most subscription companies have an automated dunning process.

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For physical product subscriptions, dunning typically includes:

1. Reminder Notices: Sending polite reminder letters or emails to customers who have missed a payment. These notices highlight the overdue amount and request immediate payment, often before the next shipment of products (in case of consumable subscriptions) or for continued, uninterrupted use of product (in case of physical product subscriptions).
   
   
2. Phone Calls: If written reminders are ignored, businesses may follow up with phone calls to discuss the overdue payment directly, reinforcing the importance of timely payment for continued service.
   
   
3. Escalation Notices: As the overdue period extends, the tone of communications may become firmer, warning customers of potential service interruptions or additional fees if the debt remains unpaid.

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Learn more about dunning management.