What is dunning system: Dunning is a complex, multi-phase process that’s been around for over 20 years. But when you break down its components, it’s less about fixing failed payments than preventing them from happening in the first place. It’s about managing your collections and making sure your customers pay up on time. And as we all know, that’s not just a good idea – it’s a must. Dunning online is here to help you in your business.
A web-based platform that allows credit and financial managers to centrally monitor the entire financial performance of their portfolio of companies in real time. Built with the right media project management tools, it will help you work faster, more efficiently and smarter, thus improving your overall credit quality. Online Dunning procedure is a fully configurable dashboard that can be accessed through both desktop and SaaS channels such as smartphones and tablets.
Why Dunning System Is Important:
- Recovers failed payments: The dunning system helps you to recover the money that is due because of failed payments. Even though it is a large amount and collecting them may be difficult, you should always do your best to reach the defaulter. A dunning system is a way to notify customers who have failed to make payments on time. It’s a system that reminds you that you have an unpaid invoice and helps you to recover the funds. If a customer has failed to pay for services you provide, it is imperative that you keep in contact with them. You may already be sending out reminder invoices regularly or by emails, text messages, letters and making phone calls and they need to be able to see how many of these you have made over the period of time.
- Time saving: Dunning system is an important procedure for an organization. It is very helpful in making business process automated, especially in customer relationship management. Dunning mechanisms are utilized when you need to request advance payments from a client before performing service or shipping goods. They are also useful when invoices are sent automatically to a client after delivery of good.
- Increase revenue: Automation increases revenue and capture rates by enabling you to automatically invoice customers based on criteria such as time usage, site activity, and more. Your time is better spent managing your clients and growing your business, not billing! The dunning system is an automated and customized email reminder that helps you to easily collect payments and maximize your revenue. To provide a better customer experience, dunning also enables you to get in touch with your customers directly through email by sending out personalized offers.
- Better customer experience: Dunning is a system to help business survive in the competitive market. Aside from the importance of dunning system, this paper will discuss on its role and process. Why is it important ? Customer experience could be improved after implementing the dunning system. It allows the company to handle their customers properly and efficiently, thus, getting more sales and profits.
- Automatic email notifications: Automated email remainder are send when credit cards are about to expire because it is important that consumers have a card on hand in case of an emergency. The automated emails also remind them of the importance of keeping their accounts current, so as not to lose much-needed credit line.
- Automatic account update: Mahnverfahren online account update is done automatically by the system. Creditors have the opportunity to take confirmation from their debtor regarding the accuracy of their new accounts and they are encouraged take necessary actions regarding it. An automated account update can make sure that the right person sees the right email. In mail-merge, the dunning interval field controls the frequency with which accounts are updated.
Conclusion: For the main purpose of Payment for missed payment dunning system is used. There are different types of dunning system and in this project we have taken IVR (Interactive Voice Response) as an example which allows the customer to communicate by via voice message. For example, a list of bills is given to customer and automatically the list of bills is called by command. When there is a pre-set time no response from customer it will arrange a reminder and send an SMS notification. If the customer pays in pursuance, then the whole process stops there. Else, it will call the bill through voice calling system and if still there was not response and if again a pre-set time goes on then in that case it calls the debt collector to collect their money back.