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Campaign Types

Dunning Email

Automated emails sent to recover failed subscription payments before they result in churn.

Definition

Dunning emails are automated messages triggered when a customer's payment fails. They notify the customer about the issue and prompt them to update their payment method. For SaaS businesses, dunning is one of the highest-ROI email sequences you can build because it directly recovers revenue that would otherwise be lost to involuntary churn.

Why It Matters

Failed payments cause 20-40% of all SaaS churn, and most of it is preventable. Customers often have no idea their card expired or their bank flagged the transaction. A well-crafted dunning sequence can recover 50-70% of failed payments. That is pure revenue you would have lost without sending a single email.

How It Works

When a payment fails, your billing system (like Stripe) triggers a webhook. Your email platform catches this event and starts a dunning sequence. The first email goes out immediately, explaining the issue and providing a direct link to update payment details. Follow-up emails escalate urgency over the next 7-14 days before the subscription is cancelled.

Best Practices

  • 1Send the first email within minutes of payment failure, not hours
  • 2Include a direct link to update payment info with no login required if possible
  • 3Use a friendly tone in early emails and increase urgency gradually
  • 4Send 3-5 emails over 7-14 days before cancelling
  • 5Show what the customer will lose access to if not resolved
  • 6A/B test subject lines because open rates directly impact recovery

Automated Dunning Sequences

Sequenzy connects directly to Stripe to trigger dunning emails instantly when payments fail. Build multi-step recovery sequences with our visual automation builder.

Learn More

Frequently Asked Questions