SaaS glossary
Dunning
Dunning is the automated process of retrying failed payments and notifying customers to update their payment method before a subscription lapses.
Also called: payment recovery, failed-payment flow
What dunning does
When a recurring charge fails, the billing system enters a retry schedule over several days or weeks. At the same time it sends emails or in-app messages asking the customer to update their card or payment details.
If a retry succeeds the subscription continues uninterrupted. If all retries fail the subscription moves to past-due or cancelled, depending on the billing settings.
Typical dunning sequence
Schedules differ by billing provider and are usually configurable: several retries spread over days or weeks, with a notification at each step. The final notice warns that the subscription will end if payment is not updated.
Some products add a grace period where the customer keeps access while the retries run. Others cut access immediately on the first failure.
How it differs from a cancellation flow
Dunning runs because a payment failed. The customer has not asked to leave. A cancellation flow runs because the customer clicked cancel. The customer has signaled intent.
The tools, messaging, and metrics are different. Dunning measures recovery rate. A cancel flow measures save rate.
Where BoolBul fits
BoolBul does not do failed-payment recovery or dunning; it handles the cancel moment with an exit survey and one matched offer.
FAQ
Is dunning the same as a cancellation flow?
No. Dunning recovers failed payments from customers who did not ask to cancel. A cancellation flow addresses customers who deliberately clicked cancel.
Does every subscription product need dunning?
Almost any. Recurring billing always has some expired cards and declined charges. Many billing providers include basic retries, so check what yours already does.
Does BoolBul include dunning?
BoolBul does not do failed-payment recovery or dunning. It handles the cancel moment with an exit survey and one matched offer.
Related terms
- Involuntary churn: Involuntary churn is when a subscription ends because a payment failed, not because the customer chose to cancel. It is the churn a cancel flow cannot fix.
- Voluntary churn: Voluntary churn is when a subscriber chooses to cancel, as opposed to losing them to a failed payment. It is the churn a cancel flow can influence.
- Cancellation flow: A cancellation flow is the set of screens a subscriber sees after clicking cancel: usually a reason question, one relevant offer and a clear way out.
- Save rate: Save rate is the share of cancellation sessions that end with the customer staying subscribed. It shows whether a cancel flow is doing anything.
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