Dunning

Outline:

• Overview
• What is it?
• Why should I use it?
• How do I set it up?
  • Video walkthrough
  • Text walkthrough

Overview 

• Dunning is the process of retrying a credit card after a failed payment
• Credit cards are vaulted in Shopify Payments so a subscriber will need to update their credit card in Shopify Payments; to update a credit card, a subscriber will need to request an email from Shopify with the link to update their card
• Subscribers can request this email in their customer portal by going to “edit payment method”; alternatively, a subscriber can click on the quick action link and this will send them the same email

What is it?

• Dunning is an important recovery process to prevent the loss of subscriptions due to failed/outdated payment methods
• Most ecommerce brands will lose subscribers over time due to credit card changes and brands need to have their subscribers update their default card on file over time
• A subscription or subscriber that is “in dunning” will be at-risk of losing out on future orders if their credit card is not updated
• Within Skio, under the Settings page, there are options to edit the dunning process
  • By default, Skio will retry the card on file every day for 14 days and then put the subscription in a "cancelled" state.
  • Brands can choose to have a subscription cancel after X number of attempts and edit the number of days in between each retry

Why should I set it up?

• Failed payments can cause merchants to passively lose up to 20% of their subscribers per month and Skio’s dunning tool can help recover that process while making it easy for subscribers to update their card on file in Shopify
• Instead of manually reaching out to these subscribers, a brand can automate this process!

Video Walkthroughs:

What is dunning?

Choosing your dunning settings

Skio billing notifications

Dunning from the customer's perspective

Building a klaviyo flow for dunning (optional)

Step-by-step instructions:

Step 1: Configure your dunning settings

• Go to Skio > Settings > Dunning
• The retry interval will determine how often we will retry the failed card on file
• The cancel attempt will determine how many times Skio will retry the card on file until the subscription is cancelled
• If a merchant doesn’t want to cancel the subscription, the “never cancel” setting will push the subscription into a “failed payment” state after 14 days

Step 2: Create a dunning quick action

• Go to Skio > Quick actions
• Create a quick action to “Reset customer payment method”
• This variable will be used in your notifications or Klaviyo flow emails as a link that will trigger the action

Step 3: Setup your Klaviyo flow

• Merchants will need to copy the quick action link from Skio for the Klaviyo flow

• Skio designed the copy link button for each quick action to be formatted specifically to Klaviyo so merchants can easily paste the copied text into Klaviyo as a link

• Use the “Billing attempt failed” metric from Skio to trigger this flow

• If you’d like to send a reminder for each failed billing attempt, create a trigger logic

  • Use “number of failed attempts” as the filter (this is the value of the original trigger, Billing attempt failed)

  • Each time the credit card fails, the billing attempt value will increase by 1

  • Create a trigger split for each notification you want to send

• Emails, texts, or both can be sent in a Klaviyo flow

Step 4: Add the quick action variable to each message (email and text)

• The quick action variable is what a subscriber will click on to generate the email to update their credit card
• This flow will work without the variable, but the variable is what allows for a subscriber to update their card by simply clicking on the link
• The quick action variable will populate within the edit section for both email as well as sms and the merchant should copy the full variable including brackets