Dunning & Account Recovery
Intelligently retry failed charges, downgrade accounts, and handle disputes automatically, minimizing churn
Stripe integration that manages the lifecycle of failed charges—retry, downgrade to free/lower tier, or cancel—based on customer value and failure pattern.
When a subscription payment fails, Nora follows a smart dunning process: (1) Retry payment 3 times over 10 days with backoff. (2) If still failing and customer is high-value (LTV > $500), offer downgrade to lower tier instead of cancellation (e.g., 'Your card declined. We've downgraded you to $29/mo plan to keep you active—upgrade anytime'). (3) If medium-value, pause subscription (don't cancel, giving them time to fix). (4) If low-value, cancel after 3 failed retries. (5) Send customer notifications at each step. This nuanced approach minimizes churn. A customer with $5,000 LTV who has a temporary payment issue shouldn't be canceled—downgrading to a lower tier keeps them engaged and revenue flowing. Once their payment method is fixed, they can upgrade again. For $100 LTV customers, cancellation is acceptable. Nora's approach recovers 20–30% of failed payments that would otherwise result in churn, and for customers who do churn, tracks their win-back path (did they come back? how long?). The automation respects customer preferences—if they've explicitly canceled, Nora won't attempt recovery.
How it works
- Detect failed payment; extract customer LTV and failure reason
- Retry payment 3 times over 10 days (3 day, 5 day, 7 day intervals)
- If customer is high-value and still failing, offer downgrade option
- Send downgrade proposal email with explanation and link
- If accepted, apply downgrade in Stripe
- Log all actions and track outcome (recovered, downgraded, churned)
Frequently asked questions
What does "Dunning & Account Recovery" do?
Stripe integration that manages the lifecycle of failed charges—retry, downgrade to free/lower tier, or cancel—based on customer value and failure pattern.
How long does setup take?
Under 5 minutes. Connect your tools and Nora handles the rest.
Which tools does this use?
Uses Stripe, run by your Finance Manager.
How much time does this save?
Saves approximately 5 hours/week, running real-time as payments fail, on retry schedule.