Dunning

Outline:

  • Overview (TL;DR)
  • What is it?
  • Why should I use it?
  • How do I set it up?
    • Video walkthrough
    • Text walkthrough

Overview (TL;DR)

  • 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  • Dunning is an important recovery process to prevent the loss of subscriptions due to failed/outdated payment methods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will retry the card on file every day for 14 days and then put the subscription in a “failed” state which mean it is no longer active, but it also isn’t considered “cancelled”
    • 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

Using the QA feature

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 “$Value” 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


How did we do?


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