Weekly Dunning Review Template

Why Weekly Dunning Review Matters

Dunning configuration drift is invisible. A retry window set to 3 days instead of 5 days, or a retry count capped at 2 instead of 4, silently reduces recovery rate by 5 - 15%. Most operators discover the problem only when cohort LTV drops unexpectedly.

Weekly review catches three failure modes: (1) configuration creep from platform updates or manual changes, (2) email deliverability degradation (ISP filtering), and (3) customer response decay (lower card update rates). Each requires different remediation.

Weekly Review Checklist

Run this checklist every Monday morning. Allocate 20 - 30 minutes. Use data from the prior 7 days.

Pull dunning recovery rate: (successful retries / total failed charges) for the past 7 days. Threshold: 35 - 50% is healthy for most DTC. Below 30% signals a problem.
Check retry attempt count: How many times is the system retrying each failed charge? Verify it matches your documented policy (typically 3 - 5 attempts over 14 - 21 days).
Audit retry timing: Confirm the days between retries (e.g., Day 0, Day 3, Day 7, Day 14). Gaps longer than 7 days reduce recovery by ~10%.
Review email open rates on dunning messages: Compare to baseline transactional email open rate. If dunning emails open 20% lower, check subject line, sender, or list fatigue.
Count customers prompted to update payment method: Divide by total dunning attempts. Target: 40 - 60% of recipients see the update prompt. Below 30% means messaging is weak.
Measure card update rate: Of customers shown the update prompt, what % successfully add a new card? Threshold: 15 - 25% is typical. Below 10% indicates friction in the update flow.
Identify cohorts with below - average recovery: Segment by signup cohort, region, or plan tier. Flag any segment with recovery rate 10+ points below average for investigation.

Failure Mode Diagnosis

Recovery rate dropped 5+ points week - over - week? Use this decision tree to isolate the cause.

Did email open rate drop? Check spam folder rates via your email provider. If spam complaints rose, audit sender reputation or reduce frequency. If opens fell but spam stayed flat, test subject line or timing.
Did card update rate drop? Review the update flow for new friction (extra verification step, mobile rendering bug, payment processor latency). A/B test a simplified version.
Did retry count or timing change? Audit your dunning configuration in your payment processor or subscription platform. Compare to last week's documented settings. If changed, revert and document the change process.
Did failed charge volume spike? This is often a platform or processor issue. Check payment processor status page and recent API changes. Confirm your retry logic is firing at all.
Did customer cohort composition shift? If new customers have lower card update rates, they may have weaker payment intent. Segment recovery rate by cohort age and adjust expectations.

Configuration Audit Template

Document your dunning configuration in a shared spreadsheet. Update weekly. This prevents configuration drift and enables fast diagnosis.

Retry attempt count: [number] attempts over [number] days
Retry schedule: Day 0 (initial failure), Day [X], Day [X], Day [X], etc.
Email cadence: [number] emails sent, on days [list]
SMS cadence (if used): [number] SMS sent, on days [list]
Card update prompt: Shown on attempt [number], via [email/SMS/in-app]
Failure handling: After final retry, [cancel subscription / pause / manual review]
Exemptions: [list any customer segments excluded from dunning, e.g., high - LTV, enterprise]
Last reviewed: [date]
Last changed: [date], [description of change]

Decision Rules for Threshold Breaches

If a metric falls outside the healthy range, follow this decision rule to determine next action.

Recovery rate below 30%: Escalate to payment processor support same day. Check for API errors, webhook failures, or processor - side retry logic interference.
Recovery rate 30 - 35%: Audit email deliverability and card update flow. Run A/B test on subject line or update prompt copy. Increase retry attempt count by 1 if currently below 4.
Email open rate 20+ points below baseline: Investigate sender reputation (check DKIM, SPF, DMARC). Consider reducing dunning email frequency or consolidating messages.
Card update rate below 10%: Simplify the update flow. Remove optional fields, reduce verification steps, test mobile rendering. Consider SMS reminder before email.
Retry timing gaps longer than 7 days: Reduce gaps to 3 - 5 days. Shorter intervals increase recovery by 5 - 8% but risk customer fatigue. Test incrementally.
Configuration mismatch detected: Document the discrepancy, revert to last known good state, and implement a change control process (e.g., all dunning changes require written approval).

Weekly Report Template

Capture findings in a 5 - minute summary. Share with finance and customer success leads.

Recovery rate (this week vs. last week): [X]% ([+/- Y] points)
Total recovered revenue: $[amount]
Customers prompted to update payment method: [number]
Card update rate: [X]%
Anomalies detected: [list any metrics outside threshold]
Actions taken: [list changes made, e.g., 'increased retry count to 4', 'A/B testing new subject line']
Next week focus: [one priority for next review]

Common Pitfalls

Operators often skip weekly review because recovery feels 'set and forget.' This is the primary failure mode. Dunning is a tuning problem, not a setup problem. Recovery rate naturally decays 2 - 3% per quarter without active management.

Second pitfall: confusing recovery rate with churn rate. A 40% dunning recovery rate does not mean 40% of customers churn. It means 40% of failed charges are successfully retried. The remaining 60% may still be retained via manual outreach or plan downgrade.

Third pitfall: over - aggressive retry schedules. Retrying every 2 days across 5 attempts can trigger customer complaints and payment processor warnings. Stick to 3 - 5 attempts over 14 - 21 days unless data supports tighter spacing.

Questions

FAQ

What's a healthy dunning recovery rate for DTC?

35 - 50% is typical for most DTC subscription brands. This means 35 - 50 cents of every failed charge is recovered via retry. Rates below 30% signal configuration or deliverability issues. Rates above 50% are rare and may indicate overly aggressive retry logic that risks customer churn.

How many retry attempts should we use?

3 - 5 attempts over 14 - 21 days is standard. Fewer than 3 attempts leaves recovery on the table (typically 10 - 15% of recoverable revenue). More than 5 attempts increases customer complaints and payment processor friction without meaningful recovery gain. Test incrementally and measure recovery rate impact.

Should we retry via email, SMS, or both?

Email is the baseline (required). SMS adds 5 - 10% recovery if used selectively (e.g., on attempt 2 or 3 only, not all attempts). SMS fatigue is real - limit to 1 - 2 SMS per dunning cycle. In-app prompts (if you have an app) add another 3 - 5%. Combine channels but avoid message overlap on the same day.

What should we do after the final retry fails?

Three options: (1) cancel the subscription immediately (highest churn risk, lowest operational load), (2) pause the subscription and prompt manual intervention (moderate churn, requires support resources), (3) downgrade to a lower tier or free plan (lowest churn, requires product support). Choose based on your LTV and churn tolerance. Document the rule and audit it weekly.

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