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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

Most successful sequences send 3-5 emails over 7-14 days. Start friendly on day 0, send a reminder on day 3, escalate urgency on day 7, and send a final warning on day 10-12 before cancellation. More emails generally means more recovered revenue.

A solid dunning sequence recovers 50-70% of failed payments. If you are below 40%, your emails probably need work. The key factors are speed of first email, clarity of the update payment link, and subject line open rates.

Test both. Some SaaS companies see better results from a personal sender like "Sarah from Acme" while others do fine with "Acme Billing." The key is making the email feel important, not promotional.