What is Dunning?
Dunning is a core concept in modern B2B revenue. Here is a clear, accurate definition, why it matters, and how Ardovo handles it.
Short answer
Dunning is the process of systematically following up with customers whose payments have failed or are overdue, through reminder emails and retries, to recover the revenue. Effective dunning reduces involuntary churn from expired cards and missed payments.
Key takeaways
- Automated follow-up on failed or late payments.
- Combines reminders with payment retries.
- Recovers revenue lost to involuntary churn.
Why it matters
A large share of subscription churn is involuntary, caused by failed cards rather than a decision to leave. A good dunning sequence quietly recovers that revenue.
How Ardovo handles it
Ardovo flags overdue and failed payments so finance can run a dunning sequence, and Rook can draft the reminder outreach to recover the balance.
Frequently asked questions
What is involuntary churn?
Churn caused by failed payments, expired cards, or billing errors rather than a customer choosing to cancel. Dunning targets exactly this.
How many dunning attempts are typical?
A sequence of three to five reminders with card retries over a couple of weeks is common before an account is suspended.