Failed Payment Recovery

Terms

What is expansion mrr?

Expansion MRR tracks revenue growth from existing customers through upsells and upgrades. It shows how well you're growing accounts vs just acquiring new ones. Formula: New MRR from current customers minus churned MRR from current customers.

What is involuntary churn?

Involuntary churn occurs when customers are lost due to payment failures or technical issues, not by choice. Unlike voluntary churn, these customers want to stay but can't due to expired cards, failed transactions, or account problems. This creates unexpected revenue loss that businesses can prevent with proper payment recovery systems.

What is payment method optimization?

Payment method optimization refines checkout payment options to create seamless, user-friendly experiences. The goal: reduce cart abandonment and increase conversions by offering the right payment methods at the right time.

What is smart dunning?

Smart Dunning combines automation with data-driven insights to optimize payment collection. It uses intelligent algorithms to personalize communication timing and messaging based on customer behavior, improving recovery rates over traditional methods.