What Are the Best Practices for Initial and Recurring Payment Failure Recovery?

Effective Revenue Recovery Strategy in Recurly Subscriptions

Effective revenue recovery requires a comprehensive strategy combining intelligent retries, targeted email communication, and a seamless customer experience, all managed within Recurly Subscriptions. This strategy is essential for reducing involuntary churn.

Leverage Intelligent Retries

The Recurly Subscriptions system automatically handles retries for failed transactions.

• Recurly's system utilizes machine learning to optimize the timing of retries, aiming for the highest possible success rate.

• This intelligent retry logic is not user-configurable.

Enable Transactional Email Communication

Use email communication to instantly alert customers about failed payments and provide a path to resolution.

• Use the "Failed Payment Method" email templates configured for your Recurly implementation.

• These communications should instantly alert customers and provide a secure link, allowing them to update their billing information quickly.

Prioritize Customer Experience

Tailor the approach based on the type of payment failure (initial versus recurring) to maintain a warm and professional subscriber relationship.

• First Payment Failure: Address the issue immediately with customized, clear email communication to minimize early-stage involuntary churn.

• Recurring Failures: Rely primarily on the automated dunning cycle (managed within Recurly Subscriptions) to prompt the subscriber to resolve the failed payment method through email notifications.

Integrate with Recurly Engage for Enhanced Recovery

For a sophisticated, multi-step recovery journey, leverage the pre-configured functionality in Recurly's companion product, Recurly Engage.

• Use the Payment Failure Guide within Recurly Engage to intercept users.

• The guide facilitates a multi-step journey, often through in-app prompts and targeted emails, that seamlessly guides the subscriber to update their payment information, which can significantly reduce involuntary churn within your Recurly Subscriptions base.